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Why Streaming Video Services Are Turning To Broadcast Radio.

It’s no longer just Netflix, Hulu and Amazon Prime Video duking it out in the subscription streaming video space. Now there are at least fifteen services clamoring for consumer attention.

“Streaming video brands are turning to AM/FM radio like never before,” according to Pierre Bouvard, Chief Insights Officer at Cumulus Media. In a new blog post, he chronicles a case study for a video streamer to show how broadcast radio “plays a powerful and unique role” in its media plan. Last fall, a major streaming service used the NFL play-by-play on Westwood One to promote their service. The radio network used Nielsen to measure the impact of the radio campaign.

Nielsen’s national study compared consumers who had been exposed to the NFL broadcast radio campaign to those who weren’t exposed. The results showed the radio campaign boosted brand attributes and the likelihood to recommend the video on demand streaming service. Specifically, the campaign generated 18% growth in brand recommendation and a 26% increase in average brand attribute.

The campaign also produced what Bouvard called “extraordinary levels” of purchase intent. Twelve percent of those unexposed indicated they would probably/definitely subscribe to the video streamer in the coming month. But that shot up to 45% among those exposed to the NFL AM/FM radio campaign.

In a finding that seems counterintuitive, the Nielsen study showed AM/FM radio is better than TV at promoting streaming video-on-demand services. According to Nielsen, “AM/FM radio audiences are far more engaged with video streaming services than TV viewers,” Bouvard explains. In their fall 2020 study, Nielsen found that heavy AM/FM radio listeners subscribe to more streaming video services than heavy TV viewers. Heavy TV viewers subscribe to 3.8 such services while heavy AM/FM radio listeners subscribe to 4.5. In fact, the greater the time spent with AM/FM radio, the greater the number of streaming video subscriptions.

And Nielsen found that heavy AM/FM radio listeners are far more likely to subscribe to the major video streaming services compared to heavy TV viewers. That’s because AM/FM radio listeners have higher income, employment and larger households with a greater presence of children. Comparing heavy TV viewers and heavy AM/FM radio listeners, Nielsen found that AM/FM radio outperforms TV for presence of children, larger households, employment, and income. “Larger homes with children have greater demands for certain types of content. Greater incomes and employment provides the means to subscribe to a greater number of video streaming services,” says Bouvard.

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