NYMRAD: Radio Has Highest Rate of Return
Radio in the New York market saw a 3% increase in the fourth quarter 2015, according to Miller, Kaplan, Arase data supplied for New York Market Radio Association. The results of NYMRAD’s state of radio report can be useful as a guide for other markets as well.
The analysis of the New York marketplace is designed to help advertisers understand Radio’s impact on consumers and its prominent role in the local advertising landscape.
Total revenues rose 4% led by growth in communications, health care, food and beverage categories. Automotive leads among product categories, accounting for 15% of the spend, while wireless carriers increased their spending 10% for full year 2015 and public utilities by 22%.
Just over 20 automotive advertisers at least doubled their radio budgets; many are automotive websites, looking to radio to drive traffic to their sites.
Over 200 new advertisers came to the area in 2015; each one spent at least $25,000 with 26 investing $300,000 or more, according to NYMRAD.
Nationwide, radio has the greatest rate of return. The data suggests every dollar devoted to radio advertising can generate up to $17 of revenue per listener exposed to the message. At $17, department stores saw the largest payback, followed by mass merchandisers ($16.37), home improvement ($9.48) and quick-service restaurants ($3.01). Several companies and industries are expanding their presence in the New York metro, providing advertising opportunities for radio, according to NYMRAD.
Department stores face declining interest in full-price items and have been opening discount outlets, including Nordstrom, Macy’s and Saks. Similar outlets targeting millennials are opening in New Jersey as well.
Grocery delivery services are expanding and so is the auto category, with Jaguar Land Rover, Nissan and Infiniti opening show rooms in New York City’s Auto Row. Healthcare is growing, and tourism demand remains strong and so is hotel demand.