Traditionally, the go-to metric for ranking AM/FM radio formats with the most upscale listeners has been annual household income. This only tells part of the story, however. A just-released analysis of MRI-Simmons data in Katz Radio Group's “Sound Answers” blog looks at household net worth to show which formats not only overdeliver vs. average net worth, but which compare favorably to other media brands attracting upscale consumers.
“Household net worth of consumers [is] often considered a better indicator of wealth and spending power, as it takes into account the owned assets of the individual’s household (including financial accounts, home value and possessions), instead of simply reflecting a regular paycheck,” Katz's report says.
Using this measure, 17 formats index higher than average – most notably all news, classical, public radio and news/talk, where average household net worth far exceeds MRI-Simmons' adults 18+ average net worth of $391,880. Among the 17 are other formats showing up strong in major markets based on share or cume, such as classic rock, classic hits, sports, and soft or hot AC.
When Katz compares formats in the top half of this ranker to media brands outside of radio, these formats hold their own when it comes to average household net worth. Listeners of all news and classical, for example, boast a higher average net worth than readers of The Atlantic and Condé Nast Traveler or viewers of the Golf Channel, while sports listeners' average net worth is on par with that of The New York Times readers and ahead of MSNBC viewers.
“Affluent Americans wield immense purchasing power across a variety of categories, including automotive, travel and financial services,” Katz's report says. “AM/FM radio offers marketers multiple options to engage with this important and influential segment in meaningful ways.”