Audacy CEO David Field is known for repeating the statement, “Radio is punching below its weight class.” That remains true today when you compare how much time consumers spend with radio and how much money brands spend on radio. A new iHeart commissioned study shows audio still has a long way to go to even out the playing field.
Marketing Intelligence company WARC released a study Tuesday it conducted for iHeartMedia on media consumption and how that compares to how companies invest in audio. The study includes case studies about Coca Cola and Ritz Crackers who used radio and for Ford which used podcasting to get their message out about the new Bronco.
In a nutshell, the new data states that while consumers spend 31% of their media time with audio brands only allocate 8.8% of their media budget on audio, with 25% of brands not spending a penny on the medium at all.
iHeart wants to push out the new data to try to help convince buyers to spend more of their ad budgets on both radio and in podcasting.
When we asked about how the study was conducted, when it was conducted and how many people were involved in the study, WARC did not respond to our request. Here’s all we know about those details. It was conducted in September of this year, it was done for iHeartMedia, and it was an “analysis of data from WARC’s proprietary knowledge base and research, and in consultation with our experts.” We were unable to find out who these experts were.
WARC says its information states that consumers of every generation are spending more and more time with audio content.
WARC is forecasts audio advertising spend in the US (radio, podasting and streaming) to reach $13.9 billion this year, a double-digit recovery (+10.9%) from 2020.
WARC came up with four types of advertiser attitudes towards audio:
· Audio Avoiders, the 25% of advertisers who do not invest in audio at all
· Broadcast Believers, who have seen the benefits of radio and are beginning to delve into more forms of audio
· Digital Only, those who have started to invest but are missing out on the full suite of audio options, particularly the 90% reach of broadcast radio
· Cross-Platform Champions, who explore audio’s full potential and continue to test, learn from and optimize their investments across platforms.
The final report also includes information from Nielsen about the power of radio.