What Medium's Underused for Movie, Video Advertising? That's Right: AM/FM Radio.

Conventional wisdom suggests that advertising movies or streaming video is more effective and efficient in its reach on a visual medium such as television.

Based on an analysis of multiple research studies in this week's Westwood One blog, that conventional wisdom is incorrect. “AM/FM radio can dramatically grow reach and sell movie tickets and video subscriptions,” Cumulus Media/Westwood One Audio Active Group Chief Insights Officer Pierre Bouvard says, noting Vivvix/Kantar ad spend figures for 2024 which show that “audio use is negligible” in ad buys for movies or streaming services.

While just 4.1% of motion picture and 2.1% of streaming video ad spending went to AM/FM radio vs. TV and digital, a Maru survey of moviegoers finds that compared to heavy TV viewers, heavy AM/FM listeners are 92% more likely to be avid theatergoers, 117% more likely to see movies on opening weekend, 38% more likely to be a “big fan” of major movie franchises, and 19% more likely to intend to see upcoming major movies.

Overall, 93% of frequent moviegoers (several times a month), and 91% of heavy movie streamers (watching at least once a week) are reached by ad-supported audio, outscoring all other media.

Citing Edison Research's “Share of Ear” report, the blog also notes that among persons 13+ who either see a movie once a month or more at a theater (15.6% of the U.S.), or stream a movie once a week or more (43.3% of the U.S.), AM/FM dominates daily ad-supported audio share, reaching 65% and 62%, respectively.

What happens when AM/FM radio is added to a traditional TV buy for movie campaigns? According to Nielsen Media Impact, when 20% of the linear TV budget for five major motion picture ad campaigns during 2024 is shifted to radio, reach of adults 18-49 is boosted anywhere from 113% to 333%.

“While the linear TV budgets varied, the greatest campaign reach was in the mid- or upper-30s,” Bouvard says. “The vast majority of America (60% to 75%) never saw the linear TV campaigns for these films. [When] 20% of the linear TV campaign budget is shifted to AM/FM radio, campaign reach doubles! Smaller TV campaigns see even greater reach growth.”

Similar results are seen for a streaming video buy, in this case from Hulu, also focused on linear TV. Moving 20% to AM/FM radio not only pushes up reach of adults 18+ from 34% to 59%, reach of all adult demographics increases significantly, most notably in younger age groups, with 18-24s up 226% and 25-34s lifted 171%.

Adding AM/FM solves the problem of reaching light and medium TV viewers with the campaign, increasing reach of the former by 197% and the latter 58%. “While Hulu’s campaign reaches two-thirds of heavy TV viewers, the campaign misses two-thirds of medium TV viewers and 85% of light TV viewers,” Bouvard says. “A wise media planner once said, 'You cannot solve the light TV viewing problem by buying more TV'.”

Additional research mentioned in the blog notes that from a creative standpoint, audio ads are found to outperform video for attention and brand recall, can be optimized with a less aggressive approach and slower narration and are more effective when the narrator explains the plot and names the actors vs. using hard to understand, noisy clips from the movie.