With inflation lingering and household finances under strain, US families are heading back to school and into the holidays with caution and cost-consciousness, and that’s where audio advertising can help as brands vie for dollars in a flat-spending environment.
According to Deloitte’s 18th annual Back-to-School Survey, total BTS spending is projected to hold steady at $30.9 billion, with per-child spend flat at $570, 7% below 2021 levels, despite continued inflation. Parents are increasingly narrowing their focus to essential items, prioritizing mass merchants (46%) and online retailers (24%) for value and convenience.
More than half of parents (52%) say they’re cutting back in other areas like dining out and entertainment to afford BTS shopping, while 75% are willing to switch brands if prices get too high. That puts pressure on retailers, but also creates opportunity for those who can connect with budget-conscious families early and effectively.
That’s exactly where radio and podcasting come in. Nielsen Scarborough research shows that audio ads outperform other media channels when it comes to influencing parents’ back-to-school purchases. According to 2024 BTS season data, podcast ads scored an action index of 163, and radio ads came in at 141, as social media trailed at 132, with TV at 107, and streaming services like Spotify falling even lower
The effect of audio goes beyond simple awareness. Parents who listen to radio and podcasts are 25% more likely to buy additional items requested by their children, according to Audacy. And with 62% of parents saying their kids influence what goes in the cart, and 57% willing to splurge on a first-day-of-school outfit, reaching both the gatekeepers and the influencers matters.
With categories like tech (–8%), school supplies (–3%), and home/health (–12%) all seeing declines, Deloitte says there’s only one BTS category due to see a spending increase this year: clothing and accessories, which are up 6% year-over-year. Conveniently, audio listeners over-index most on kids’ clothing and sports apparel.
Even more importantly, audio advertising drives conversions. What makes commercials most effective? A 2024 Veritonic study found 70% of shoppers are more likely to purchase after hearing a discount code, 66% are swayed by free shipping, and 61% act on buy-one-get-one deals.
As for what’s to come, 31% of parents are already planning to spend less on holiday gifts, making radio a critical proving ground for messaging, loyalty strategies, and omnichannel alignment. AM/FM and podcast ads can serve as effective early-stage awareness drivers, setting up consumer habits that carry through the holidays.
According to a Katz Radio Group survey, 85% of regular radio spend $72 more than the average adult on holiday shopping. Across major holiday retail categories like grocery, department stores, and mass merchandisers, the medium boasts an average return of $18 for every $1 spent. Veritonic reports that 46% of shoppers begin their holiday shopping by October 1; brands that act now will be ahead of the curve.
For retailers and marketers, aligning with radio’s timing, context, and trust can make the difference between being heard and being bought.
