Katz: Radio Delivers 18:1 ROI for Holiday Advertisers

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As the winter holidays approach, retailers and advertisers are preparing for one of the most critical shopping periods of the year, and radio advertising is again emerging as one of the most powerful and cost-effective platforms to connect with shoppers and drive sales.

Despite economic challenges, the National Retail Federation forecasts US holiday spending to grow 2.5% to 3.5% this year, reaching between $979.5 billion and $989 billion in November and December, up from $955.6 billion in 2023.

Recent studies highlight radio’s effectiveness in influencing holiday shoppers. With a weekly reach of 82% among adults, radio surpasses other platforms, including connected TVs and smartphones. AM/FM radio remains the top audio choice, reaching 84% of adults, far outpacing streaming services and podcasts.

A 2023 study by Katz Radio Group found that of the 84% of adults that enjoy listening to holiday music, radio is the number one source for among big fans, outperforming streaming services and platforms like YouTube – the perfect way to reach the exceptionally festive.

Another Katz Radio Group survey revealed 85% of regular radio listeners participate in the winter holiday season. These listeners plan to spend an average of $626 on holiday shopping, which is $72 more than the average adult and $241 more than light or non-listeners of radio. During the holiday season, radio maintains strong audience levels during peak shopping periods. 2023 data from Nielsen shows that radio reaches up to 106% of its average daily audience on the day before Thanksgiving among adults aged 18-34.

Across key holiday verticals, radio delivers an average return on ad spend of $18 for every $1 invested. Categories such as grocery stores, department stores, and mass merchandisers benefit notably from radio’s effectiveness in reaching and influencing consumers.

Case studies further illustrate radio’s impact during the holiday season.

In the liquor category, a radio campaign analyzed by Katz Radio Group showed a 20.2% lift in web traffic attributed to radio advertising, delivering an average of 1.5 visits per spot airing. On-air influencer spots were particularly effective, achieving six times higher visits per airing than standard brand spots, even though they accounted for only 10% of the total spot count.

For jewelry retailers, two separate radio campaigns resulted in significant increases in brand awareness and consideration. Aided brand awareness increased by an average of 25% among radio-exposed consumers, while brand consideration grew by an average of 38%. These findings underscore radio’s ability to enhance brand perception and influence purchasing decisions.

The full study can be found via Katz Media Group.

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