DMR/Interactive Sees 14% Boost in 2025 Station Marketing

RADIO ONLINE | Wednesday, December 4, 2024 | 11:22am CT

DMR/Interactive

After years of declining investments, the radio industry is poised for a resurgence, with DMR/Interactive predicting a 14% increase in station marketing for 2025. The rebound follows several years of single-digit decreases in marketing spending.

DMR/Interactive President and CEO Andrew Curran attributes the anticipated growth to improving economic conditions and strategic innovations like the 3-Minute Qualifier, along with easing interest rates. "We're seeing optimism fueled by these developments," said Curran. "Similar rebounds followed previous downturns, such as after 9/11, the Great Recession, and COVID."

A key driver behind this renewed confidence is the increase in Return to Office mandates, which boost urban activity and commuting -- a vital factor for radio listening. For every 100 workers returning to office spaces, 30 to 40 additional service workers are needed in surrounding businesses, creating a ripple effect in the local economy.

Commuting costs, averaging $561 per month per worker for expenses like gas, parking, and child or pet care, present an opportunity for radio to leverage contest prize money as a compelling incentive to boost habitual listening. "Contest prize money can drive daily cume and incentivize habitual listening among employed heavy listeners," Curran explained.

Curran also highlighted stark contrasts between stations investing in marketing and those that do not. A top-performing station in a large market saw a 38% year-over-year decline in Adults 25-54 ratings after running a local cash contest without marketing support. Conversely, another major market station achieved a 67% ratings increase in Women 25-54 by pairing national contesting with targeted marketing.

"With so many other platforms competing for the audience's attention, this renewed investment couldn't come at a better time," said Curran.

Looking ahead, Curran is optimistic about 2025 as a year of renewal for the radio industry. "Now is the time to secure funding and leverage investments in research, sales training, and strategic marketing to drive ratings and revenue growth," he added.