According to Cumulus and other reliable sources, in a series of private meetings with customers, Nielsen has reportedly revealed potential plans to enhance the way it generates average quarter-hour audiences in the 48 markets which utilize the Portable People Meter. Crediting to AM/FM radio listening in local PPM markets will increase by +24%. For national marketers and media agencies, the expected impact in 2025 will be a +10% increase in total U.S. listening levels. This week’s Cumulus Media | Westwood One Audio Active Group® blog examines the implications for AM/FM radio. Here are some key points
• The trend of AM/FM radio surpassing TV in ratings will accelerate: Over the last five years, AM/FM radio has overtaken linear TV in ratings. Based on TV and AM/FM radio audience forecasts, 2025 will see AM/FM radio overtake TV in the all-important 25-54 demographic by 13% and widen its ratings lead over TV among 18-49s by 47%.
• 2025 post-buy analyses will overachieve 2024 media plans: In PPM markets, expect up to +24% increases in audience deliveries based on prior year schedules. For local buys, outcomes will vary by demographic, markets utilized, and AM/FM radio programming format mix.
• AM/FM radio, already America’s number one mass reach media, will experience reach growth in advertising schedules: With an estimated daily reach growth of +7% and weekly week growth of +4%, reach and frequency analyses are expected to experience growth.
• AM/FM radio ads will become more effective as stations increase the number of commercial breaks with shorter durations: With a 3-minute quarter hour qualification, stations could create more breaks of shorter duration. This will significantly benefit advertisers.
TALKERS publisher Michael Harrison’s reaction to this possible course of action is, “The game is played the way the game is scored. However, we in radio must be careful not to fool ourselves by what could simply be a lowering of the bar. If the fences are moved in an extra hundred feet, the result will be more home runs… but not necessarily better hitting.”