April 28, 2021
A big reason, according to Westwood One’s Pierre Bouvard, is the fragmentation and decline in Television viewership. According to Bouvard the TV landscape is undergoing massive change and that all works to radio’s advantage.
In his latest column Bouvard put together a list of bullet-points easily explainable to advertisers. They include these facts:
That one out of four people in the 25-54 demo can no longer be reached by linear TV.
That pay TV lost 5.5 million subscribers in 2020
That broadcast TV’s reach is down about 22%
Bouvard says if advertisers put radio in their advertising plan it generates triple the reach of connected TV. “Adding 50 points of AM/FM radio to 250 points of TV (225 linear TV GRPs and 50 connected TV GRPs) generates a +24% increase in reach, triple the incremental reach lift that connected TV can add alone. The average P&G brand experiences a +38% increase in reach due to AM/FM radio campaigns.
And radio continues to use P&G as a great example of what adding radio to an ad campaign can do for an advertiser. Bouvard pointed out that At a radio conference a few years ago, P&G Executive John Fix said: “P&G wants to reach as much of America as it can, once a week … While TV has been its media cornerstone, it’s a costly investment to use television to reach 72% of the U.S.” He continued, “The brands are looking to get the reach they want and they can’t get it with TV. Knowing that, radio seemed to be an option.”
And Bouvard follows up. “P&G’s December 2020 radio campaigns lifted TV reach by +33% among persons 45-54, +57% among persons 35-44, and +101% among persons 25-34. Hundreds of NMI reports for dozens of brands and categories all reveal the same findings. AM/FM radio can supplement the older skew of linear TV with significant reach lift under the age of 60.”
Read Bouvard’s latest column HERE.