What does radio have to do with Amazon Prime Day? Research shows that heavy audio consumers, particularly those who frequently listen to AM/FM and podcasts, give online retailers a unique advantage that Amazon might not necessarily bank on – but it should.
In 2023, Amazon Prime Day became the company’s largest single sales day ever with members purchasing over 375 million items globally. Additionally, it was the most successful event for third-party sellers, who saw sales surpass those of Amazon’s own retail business, and as long as the decade-old event has been around AM/FM has been a major ally for Amazon.
In 2015, more than half of those exposed to Amazon Prime Day ads on the radio made a purchase. In 2018, heavy AM/FM radio listeners represented almost half of Prime Day buyers. The effect goes on far beyond Amazon, too. Cumulus Media/Westwood One Chief Insights Officer Pierre Bouvard has shared Nielsen data that shows heavy AM/FM listeners spend significantly more online than heavy traditional TV viewers – to the tune of more than $150 per year.
Back to Amazon, audio listeners over-index on Prime memberships and the intent to purchase during promotional events, highlighting their value as a target audience for e-commerce brands.
So what can other e-commerce brands learn from Amazon’s success? Shifting just 20% of a television advertising budget to radio can result in a 50% increase in campaign reach. This strategy is particularly effective in capturing the attention of younger audiences, aged 18-49, who are traditionally lighter TV viewers.
The reallocation strategy not only broadens the reach but also ensures that the campaign resonates more effectively with a younger, digitally-savvy audience. Nielsen Sales Effect Studies have quantified the return on advertising spend from AM/FM radio campaigns, with retailers seeing up to $15 in incremental sales for every advertising dollar spent.
In a final example shared by Bouvard, a MARU/Matchbox Campaign Effect Study of Amazon’s 2023 holiday radio campaign reveals brand equity received a huge bump across numerous facets from AM/FM reach and trust.
The data underscores a clear message for advertisers and media planners of e-commerce brands: incorporating AM/FM into the media mix not only diversifies the reach but also enhances the effectiveness of advertising campaigns, particularly in reaching demographics less responsive to traditional TV advertising.
