The New York Market Radio Association says the third quarter was bright for radio and its advertisers. The Q3 report can be seen as a sign of things to come for the fourth quarter.
The economy is improving, leaving consumers with more money to spend, “so advertisers have more opportunities to grow revenue and capture market share,” says NYMRAD.
New advertising categories have emerged with the expansion of tech, retail, restaurant, supermarket, tourism, sports and performing arts, for example. New York is closing in behind Boston and Portland for tech jobs, according to NYMRAD. Baby apparel company Aden + Anais is a good prospect for radio advertising, as is Barebuger, Panda Express, Stop & Shop Supermarket Co.
Some companies that advertise in television and or newspapers in New York are rise for radio a pitches, including Time Warner Internet, Infiniti Motor Corp. and its dealer association as well as the Audio and Cadillac dealer associations, advises the group.
Citing Nielsen data, NYMRAD highlights that Nearly two-thirds (61%) say they find new music on AM/FM or satellite radio, a 7% increase from last year.
Smartphone ownership increased from 61% in 2014 to 71% this year, while radio usage increased from 47% to 53% in the same time period. 44% of Americans listen to music on a smartphone in a typical week, data from Nielsen that NYNRAD uses to help advertisers understand radio’s impact on consumers and its prominent role in the local advertising landscape.
“In third quarter, retailers effectively used radio leading up to the holiday shopping season,” says NYMRAD Executive Director Deborah Beagan. “Radio has always done a terrific job of reaching people on the go, and is a huge benefit for influencing consumers closest to their point of purchase.”
Research on the department store, mass merchandiser, home improvement, and fast food sectors found that exposure to radio ad campaigns increased sales, number of buyers, and dollars spent. For department stores alone, sales increased by 10%, the number of buyers increased by 3%, and dollars spent per customer increased by 6%.
Hispanics respond “extraordinarily well” to radio advertising compared to the general market, notes NYNRAD. The impact of radio advertising increased the amount Hispanic shoppers spent by 49% in home improvement, 43% in department stores, and 23% in fast food (versus 4%, 10%, and 6% respectively for the average American).
