Advertisers: 5 Reasons Why 2020 is the Year to Shift Your Media Mix Strategy from TV to Radio
Jaime Chesney
Driving Growth with Proven Strategies and Creative Solutions | Executive Consultant | REALTOR? at Realty One Group Horizon | Combat Sports Judge | Founder of The Road to Heal Foundation
1. TV Ratings & Reach are Down, CPM is Up
The state of TV today is highly disrupted with cord cutting, many viewers moving to streaming, fragmentation, time shifted viewing, and declining ratings. All of which have contributed to creating smaller TV audiences and reaching fewer people.
Considering these facts, broadcast TV networks have no choice, but to increase their prime-time CPMs 15-20%. Why pay more to reach less, when you can invest in America's #1 reach medium, radio?
2. Radio is America's #1 Reach Medium
With over 270 million listeners nationally, radio reaches over 90% of the population and surpasses TV in scale and mass reach.
Audio is in a renaissance, and due to it's adaptability in the digital world with apps like Radio.com, broadcast radio remains steady as listeners' #1 use.
3. Radio has the Higher ROI
Nielsen took a look across a number of large industries to determine the return on investment for radio. They have determined that on average, radio delivered a 10:1 ROI. Let that sink in for a minute, a 10 to 1 return on investment, from the largest reached medium in the U.S., compared to 6.5:1 ROI in TV, published by A. Guttmann, Nov 14, 2019.
4. Radio Drives Results Through All Phases of the Consumer Buying Cycle
Simply put, consumers hear radio ads, and then react to them.
5. Radio Delivers Trust, Engagement, and Influence
The reason why radio is such an effective ad medium, is the unique relationship between the listener and the radio personality. An endorsement by a local personality is 7x more impactful than one of a favorite celebrity or athlete endorsement. The endorsement by a local personality comes of as more authentic, believable and trustworthy.
2020 is the year of "clear vision", and after seeing the substantial evidence on why radio is the more effective ad platform, it is time to re-optimize your media mix and invest in radio. For help with this, reach out to me directly at [email protected].
Thank You & Happy New Year!
-Jaime Chesney (right), with KDKA Radio local talent, Wendy Bell (left)