WWO: AM/FM and Podcasts Outperform TV in Auto Aftermarket Category
The latest blog post from the Cumulus Media | Westwood One Audio Active Group looks at data from a study the company commissioned by MARU/Matchbox analyzing the auto aftermarket category. Some of the key findings from the study include: 1) The segment has recovered to pre-pandemic levels. Annual spend,
number of retailers shopped, retailers shopped most often, brand perceptions, and advertising recall have recovered; 2) Brand equity and shopping patterns for the top two performers (AutoZone and O’Reilly Auto Parts) are stable to up. The second-tier players are slightly off; 3) AM/FM radio and podcasts are the ideal platforms to advertise auto aftermarket. TV underperforms with category usage and brand equity: Heavy AM/FM radio and podcast listeners visit more retailers in the category, make more shopping trips, and spend far more than the average. Two key consumer segments, do-it-yourselfers and ultra-heavy shoppers are more likely to be heavy AM/FM radio listeners. TV viewers are weak category users. See the blog post here.
including radio over-the-air and radio streams. The next highest portion, 18%, was spent with owned music such as CDs and downloaded audio files, and 11% of their daily audio time went to streaming. Today, we see the increase in listening from linear sources to more on-demand audio sources such as YouTube for music or music videos (not the YouTube Music streaming service), and podcasts. Americans age 13+ now spend an average of 18% of their audio day listening to streaming music from sources such as Amazon Music, Apple Music, Pandora, and Spotify, 14% listening to YouTube for music, and 10% listening to podcasts. AM/FM radio still takes the largest portion of the audio day on a 13+ basis with 36%, driven heavily by in-car listening.” Edison director of research Laura Ivey adds, “A decade ago Share of Ear was created to answer the question, ‘What do Americans listen to?’ Today we can understand the listening patterns of Americans and see how audio sources have emerged to vie for our daily listening time. There are surely audio developments that we can’t even imagine that will impact our daily audio time over the next 10 years.” 
media budget, adding AM/FM radio to a digital/TV plan sharply builds reach. Via Nielsen Commspoint, the media allocation planning tool, a wide range of monthly digital/TV media plans were examined. Very small, light, medium, and heavy campaigns were examined. The lightest digital/TV campaign reached 10% of the market. The heaviest reached 60%. Then a 20% allocation of AM/FM radio was introduced. The results were stunning. Across the seven monthly campaigns, from the lightest to the heaviest, the addition of AM/FM radio generated significant lifts in reach. Shifting 20% of the lightest TV/digital campaign to AM/FM radio caused reach to double. Introducing the 20% allocation of AM/FM radio to medium-sized campaigns causes reach to soar by 36% to 55%. Even the heaviest TV and digital campaign saw reach grow 20% with the addition of AM/FM radio to the plan.” 
content, providing an accurate assessment of the audience’s attentiveness and engagement.” Some of the key findings include: 1) Despite lacking “sight, sound, and motion,” AM/FM radio programming was +13% more engaging than Mediaprobe’s norm for television in the U.S. For advertisers, this means the AM/FM radio context for their ads has greater engagement than the TV context; 2) Overall, AM/FM radio advertising’s Emotional Impact Score (EIS) outperformed TV advertising by +12%. These new findings validate the recently released Dentsu/Lumen study, which revealed audio ads outperform video for attention and brand recall; 3) AM/FM radio news was the most impactful genre, consistently measuring as a high-quality contextual environment for advertising (+14% greater than Mediaprobe TV News norms and +8% than total AM/FM radio); 4) Mediaprobe audio benchmarks reveal the sound contrast between AM/FM radio programming and the ads drives higher attention and brand recall. For example, ads with music and jingles perform very well in spoken word programming due to the contrast; and 5) Creative best practices: Use female voiceovers, jingles, and include five brand mentions. 
audio experienced a 17% decline. The study identified radio app and voice users as super users who shared common traits and expectations. Audacy notes, “These highly engaged individuals demand seamless transitions for Audio across their home, phone, and car systems… Moreover, they exhibit readiness to spend, particularly in high-budget categories like home improvement and financial services, responding actively to targeted radio ads. For advertisers, crafting personalized ads targeted at these audiences presents an exceptional opportunity to guide listeners through all stages of the purchase funnel.” Other key findings of the study include: 1) Nearly half of radio app users sought information about advertised products online after hearing an ad in the car, compared to 22% of all listeners; 2) 31% of radio app users and 27% of voice users visited the store they heard about, doubling the rate of all listeners; and 3) 27% of radio app users purchased advertised products, more than doubling the rate of all listeners. 
aggressive AM/FM streaming app acquisition strategy by negotiating with three targets simultaneously. It is now clear that market conditions are unfavorable for securing the largest acquisition as our first target. As such, to optimize shareholder value we are withdrawing the current S-1 on file that contemplates the Radio FM acquisition.”
those living in suburban or urban areas. Rural listeners spend 43% of their daily audio listening time with AM/FM radio and radio streams, compared with urban listeners who spend 34% of their time with AM/FM radio and radio streams. Meanwhile, Urban listeners spend over twice as much of their daily audio time with podcasts as rural listeners. Urban listeners spend 13% of their daily audio time with podcasts compared with rural listeners who spend 6% of their daily time with podcasts.” Interestingly, if you combine the AM/FM listening and podcast listening numbers for Urban, Suburban and Rural listeners, these numbers are essentially the same – between 47% and 49%. Edison notes, “It appears that the ‘time budget’ for radio and podcasting combined is consistent across locations; it is just the apportionment of that time that varies.”
small attributed lift (0% to +3% lift) to excellent (+15% or more). Across the 17 campaigns analyzed, the average attributed lift was +14%. Three tax preparation service campaigns achieved “excellent” status ranging from a +30% to +48% attributed lift; 2) On average, the 17 AM/FM radio campaigns saw the highest percentage of impressions at the start of the week, peaking on Mondays and Tuesdays. Compared to the Nielsen impressions, the AM/FM radio campaigns outperformed on Saturday, Sunday, and Monday. Advertisers should increase their use of AM/FM radio on the weekends. AM/FM radio campaigns on weekends drive impact and results; and 3) On average, evenings have a greater share of attributed web sessions due to available devices and free time of consumers. Mornings historically underdeliver their share of impressions since consumers are busy getting ready for work and school. This expected pattern should not be a reason to move campaign weight out of morning drive. Morning drive exposure results in web sessions during later dayparts when consumers have the time and available devices to respond. 
next best competitor – YouTube Music – at 31%. When it comes to Blacks 35-49, AM/FM reaches 90% of that demographic. The Nielsen report dips into Edison Research’s Share of Ear study and notes that when it comes to share of daily time spent listening to all audio sources (Black adults 18+) 44% of that time is spent with AM/FM radio compared to its next best competitor – streaming audio – with 14%. Not surprisingly, when it comes to the top radio formats listened to by Blacks 18+, rhythmic music stations rank at the top. However, out of the 20 radio formats Nielsen lists in its study, news/talk comes in as the 6th most-listened-to format with a monthly reach of almost 2.4 million. That comes out ahead of sports talk with a monthly reach of almost 1.98 million. 
from the study include: 1) the proportion of AM/FM radio in-car listening rose 9% year-over-year and is on par with pre-pandemic levels of listening; 2) spoken-word content listening is at an eight-year high with 39% of ad-supported listening (including AM/FM, streaming and podcasts) devoted to news/talk, talk, and sports; and 3) looking at Persons 25-54, the share of ad-supported audio time spent with personalities/talk shows has increased the most – from 11% of ad-supported listening in Q4 2016 to 19.4% in Q3 of 2023. 
AM/FM radio listeners are 39% more likely to pay $301+ to have their taxes prepared and show greater familiarity, interest, consideration, and usage of tax category brands; 2) AM/FM radio ads drive site traffic for tax preparation brands: In the LeadsRx attribution study of a tax preparation service’s multi-wave campaign, AM/FM radio generated between a 43% to 47% increase in website traffic; 3) Branding early and often in tax preparation service ads drives more site traffic: LeadsRx found the top three creative executions that drove site traffic for a tax preparation service had the marketer’s brand name within the first five seconds of the ad; and 4) compared to other radio formats, a 2023 tax prep campaign on news/talk and sports stations realized a higher percentage share of interactions than the percentage share of their Nielsen ad impressions. 
Survey says nearly half of all Americans over 13, nearly 135 million, listen to spoken word formats. The growth curve boasts an eye opening 52% jump in time spent listening at home.
word, which is a 55% increase over nine years ago (20%); 2) Spoken word listening at home has grown dramatically: 60% of the total daily audio time spent with spoken word audio is at home, 24% in the car, 13% at work, and 3% at some other location. The time spent listening to spoken word audio at home has grown to 41 daily minutes in 2023 from 27 daily minutes in 2014. Increases in at-home spoken word audio listening are seen across every hour in the listening day; 3) Spoken word listening in-car has shifted post-pandemic, but AM/FM radio remains on top: Of all the daily time spent listening to spoken word audio, time spent listening in the car has declined from 36% in 2014 to 24% in 2023. In the car, 62% of spoken word audio consumed by those in the U.S. age 13+ is to AM/FM radio content, including over the air and streams; 4) For the first time ever, the mobile device is the primary way people listen to spoken word: 39% of spoken word audio consumed daily by those age 13+ in the U.S. is on a mobile device, followed by 35% on an AM/FM radio receiver. At home, 41% of spoken word audio is consumed on a mobile device, and at work, 47% of spoken word is consumed on a mobile device. AM/FM radio receivers still dominate in-car, garnering 60% of the spoken word audio listening there; and 5) Podcasts represent a large and growing share of spoken word listening: Podcasts now represent over one-third (36%) of time spent with spoken word audio. Twenty-eight percent of time spent listening to podcasts goes to NPR/public radio. At home, 40% of spoken-word audio listening goes to podcasts. 
Folks in the Gen Z and millennial demographics are heavily 
monthly, and 77% have ever listened to podcasts. “All of this podcast and AM/FM radio audience duplication means there are great cross-promotion opportunities.” Among the podcast audience, over half the ad-supported time spent goes to podcasts themselves at a 53% share. AM/FM radio follows with a 37% share. Distantly following are ad-supported SiriusXM (4%), ad-supported Spotify (3%), and ad-supported Pandora (3%). Additionally, MARU/Matchbox was commissioned to study Cumulus Media radio listeners who listened for at least an hour to stations in Dallas, Chicago, Detroit, San Francisco and Atlanta and were exposed to promos for eight Cumulus Podcast Network podcast titles. Overall, 54% of the Cumulus radio audience were aware of the eight Cumulus Podcast Network podcasts. A much larger promotion of heavy AM/FM radio listeners (67%) were aware of the podcast titles, and a whopping 75% of the heavy AM/FM radio streaming audience were aware of the podcast titles. 
underestimate time spent with AM/FM radio. While they believe Americans spend 9% of their media time with AM/FM radio, the reality is 15%.” Why is this? The report cites two reasons. First, longtime ad agency executive Bob Hoffman says, “How can professional people who work in an industry that is largely constructed on media behavior be so astoundingly misinformed? The answer is pretty simple… marketers always overestimate the attraction of new things and underestimate the power of traditional consumer behavior.” Second, marketing professor Mark Ritson adds, “There is increasing global evidence that marketers are basing their media choices on their own behavior or that stoked by the digitally obsessed marketing media, rather than actual audience data.” 
One out of three American AM/FM radio listeners are reached monthly by AM radio. From the Edison study: 1) AM/FM radio dominates listening in the car with an 88% share of ad-supported audio; 2) AM/FM radio’s near-90 share of in-car ad-supported audio has been steady as a rock for the last six years; 3) AM/FM radio’s ad-supported shares in the car are dominant across all demographics, even among 18-34s; and 4) ‘Perception’ vs. ‘reality’: Agencies and advertisers underestimate AM/FM radio shares and overestimate Pandora and Spotify audiences (‘Perception’ from Advertiser Perceptions data). MRI Simmons shows Ford owners represent 20% of all U.S. AM radio listeners and are more likely to listen to AM radio. Cumulus chief insights officer Pierre Bouvard comments, “AM stations serve very unique, targeted constituencies and represent many languages and voices. As automobile manufacturers consider eliminating AM radio, it’s important to underscore that the AM dial is one of the most diverse media platforms in the world. Why would we eliminate this variety from the car?” 
own. It remains competitive with podcasts and DSPs (Digital Streaming Providers, such as Spotify, Apple Music, Pandora, and others) when consumers are in vehicles or public transit during the early morning and late afternoon commutes, and on weekends.” Respondents were asked to select a top preference from a list of audio entertainment choices and their top choices were (for morning commuters), broadcast FM/AM radio with 19% of the sample, followed closely by podcasts, with streaming coming in at third. The study indicates the competition is closer during the late afternoon commute, where podcasts and streaming barely eclipse radio as the top choice among commuters at 15% vs. 14% of the sample, respectively. And radio remains competitive as an audio entertainment favorite among listeners on the go during the weekend, sharing the top spot with DSP’s and eking ahead of podcasts. 
“while AM/FM radio represented only 16% of the media budgets, AM/FM radio generated 25% of site and search traffic.” Further, it discovered that “AM/FM radio delivered +58% greater site traffic than its share of spend. In contrast, TV delivered -11% less conversion lift than its share of the budget.” A Nielsen sales effect study of a campaign for a major retailer matched Portable People Meter panel data with credit card data to reveal how TV and AM/FM radio impacted sales. The AM/FM radio-only segment, those consumers only reached by the AM/FM radio campaign, had 3 times the sales lift of the consumers reached by the TV ads. Consumers only exposed to the TV ads generated a +4.6% sales increase. Those who saw both the TV ads and the AM/FM radio ads had a +4.8% sales lift. The segment only exposed to the AM/FM radio ads had an outsized +13.4% increase in sales. 
increases in advertising awareness, brand relevance, brand trust, and brand consideration.” Other key findings include: 1) AM/FM radio increases the efficiency of automotive media plans: Colourtext and Radiocentre compared AM/FM radio’s average share of total media spend to the increase in advertising awareness, brand relevance, and brand trust generated by AM/FM radio campaigns. In each case, the auto brand lift is four to 11 times greater than AM/FM radio’s share of media spend; 2) the best performing auto campaigns place an emphasis on creative consistency; 3) AM/FM radio creates future demand for automotive brands; 4) Nielsen Scarborough: American auto intenders clock a lot of miles in their vehicles: A Nielsen Scarborough study of 199,118 Americans finds new car buying intentions in the next year increase as miles traveled grows; 5) among ad-supported audio, AM/FM radio has a dominating 89% share of in-car time spent; 6) Nielsen Scarborough: Heavy AM/FM radio and digital consumers are way above the norm for auto purchase intention; and 7) new vehicle purchasers are similar in profile to heavy AM/FM radio listeners, and heavy Internet users, and podcast listeners. 
NFL, and this year’s Super Bowl coverage marks the 50th time that the network will broadcast the game. Some of the key takeaways from this study are: 1) NFL postseason AM/FM radio listeners are a desirable group of consumers: They are more likely to work full time and have higher disposable incomes compared to NFL postseason TV viewers; 2) The NFL postseason AM/FM radio audience is more engaged with sports: MRI Simmons finds NFL postseason AM/FM radio listeners attend more sporting events, seek out sports information on their phones more often, and play more fantasy sports than NFL postseason TV watchers. The higher levels of engagement translate into greater advertising effectiveness; and 3) NFL postseason AM/FM radio listeners are more likely to make purchases across key consumer categories: Compared to the NFL postseason TV audience, AM/FM radio delivers more consumers who are likely to buy a new or used vehicle, start a new business, or hire a financial advisor. You can see the complete report 
Why? Done right, it makes you special. Because new-tech audio competitors don’t do local news, and with most broadcast radio hours now robotic.
