Holiday shoppers are expected to plunk down nearly $1.59 trillion this year, with a focus on discounts and conservative gifting strategies. But with Thanksgiving falling at the end of November, there are fewer shopping days before Christmas than there were last year. Factor in continued economic uncertainty and pesty inflation, and brands and retailers are scrambling for the attention of consumers.
That makes it more important than ever for advertisers to get in front of these decision-makers to relay their value proposition. Culling data from a collection of research studies, Katz Radio Group makes a case for radio as the medium that can deliver reach and bring value to a holiday media plan.
Citing Nielsen data, Katz says in its Holiday by the Numbers 2024 report that radio is “a top reaching medium for consumers throughout the year and delivers strong holiday listening levels during the tremendous shopping event that is Black Friday/Cyber Week.” In fact, two-thirds of consumers plan to spend up to half of their holiday budget between Black Friday and Cyber Monday.
And radio, on average, reached nine out of ten of the typical audience during this holiday period across all key demos in 2023. At a 106 index, radio reached 6% more 18- to 34-year-old listeners on Wednesday, Nov. 22 than on an average day, per Nielsen-Scarborough data.
Ideal Holiday Prospects
Moreover, radio listeners are ideal holiday prospects, according to findings from a 2023 holiday study done by Katz Radio Group. It found 85% of regular radio listeners (those consumers who tuned in to AM/FM at least a few times each week) participate in the winter holiday season.
In fact, one in five regular radio listeners felt that they do “a ton” of holiday shopping. That’s 17% more than the average adult and nearly double that of light and non-listeners. And when it comes to making holiday purchases, they have more robust shopping lists than other consumers. Regular radio listeners were set to spend an average of $626 over the holiday season. Not only were they outspending the average adult by $72, but they also planned to spend more than $241 per person than light and non-listeners of radio.
Reaching Actionable Consumers
Because consumers want flexibility to shop, whether in-store or online, brands and retailers must provide an omni-channel shopping experience. And their ad creative must amplify that convenience factor, Katz says. Wherever consumers plan to shop, Katz says “radio is there to connect with them and impact consumer behavior on and offline.” That’s because radio reaches consumers out-of-home, where messaging is most actionable, driving both in-store and online traffic, and prompts consumer response. Share Of Ear data from Edison Research shows AM/FM captures 86% of ad-supported audio listening time in a car or truck. Importantly, studies show radio moves the sales needle for retailers. A RAB-commissioned study conducted by Forrester Research found that radio ads drove a 22% lift in store traffic among consumers across categories and radio ads generated a 29% average increase in online search activity across categories.
In addition, recent studies from Katz Radio Group within the liquor and jewelry categories show campaign success using AM/FM for key brand categories. In one study, radio successfully drove web traffic to a liquor brand’s site, resulting in a 20.2% lift in web traffic, delivering an average of 1.5 visits per airing (VPA). Additionally, on-air influencer spots delivered a 6.25 VPA, 6-times higher than the brand spots. Though only 10% of the total spot count was endorsement, they drove 40% of all traffic volume.
Meanwhile, two radio campaigns for two different jewelry retailers found brand awareness increased an average of 25% and brand consideration increased an average of 38% among radio-exposed consumers.
In addition, radio delivers on average an $18:$1 return on ad spend for the key holiday categories of food & beverage, apparel, footwear, accessories, and health and personal care.
Radio Gets Festive
Several dozen radio stations have already flipped the switch to all-Christmas music. And the Santacaster floodgates are expected to open in the coming days and weeks. A Katz Radio Group 2023 Holiday Music Study shows that brands that advertise on the radio during the holiday season, especially on stations playing holiday music, are tapping into “high-reach, festive environments that resonate with consumers and maximize emotional connections.” Findings show that more than 8 out of 10 adults enjoy listening to holiday music, believe listening is a tradition, inspires nostalgia, and adds enjoyment to the season. And radio is the top source for big holiday music fans.
The bottom line, according to Katz: “Radio is a must for delivering brand messaging this retail holiday season.”
Download Holiday by the Numbers 2024 HERE.