Radio and Podcasts are Ideal Platforms for Marketing VSS

RADIO ONLINE | Monday, December 9, 2024

Cumulus Media and Westwood One

A series of tracking studies conducted by Screen Engine/ASI and analyzed by the Cumulus Media | Westwood One Audio Active Group highlight the effectiveness of AM/FM radio and podcasts as marketing platforms for video streaming services like Amazon Prime Video, Netflix, Hulu, Paramount+ and Disney+. The findings span six quarterly studies conducted from Spring 2023 to Fall 2024 and provide insights into audience behavior and media effectiveness.

Key findings from the research include:

• Rising video streaming popularity: According to Nielsen, video streaming's share of TV time has grown significantly, rising from 26% in 2021 to 40% in 2024.

• Ad-supported growth: Americans are increasingly subscribing to video services with ads while cutting back on ad-free subscriptions.

• Audience overlap: Screen Engine/ASI data reveals that the audience profiles of podcast and AM/FM radio listeners closely align with those of video streamers, unlike linear TV viewers.

• Budget mismatch: Despite this alignment, most marketing budgets for video streamers remain focused on linear TV, which misses the heavy audio consumer demographic.

• Similar ad recall: Ad recall among heavy TV viewers is comparable to that of heavy audio listeners, indicating AM/FM radio and podcasts are just as effective in creating awareness.

• Enhanced reach: Nielsen reports that AM/FM radio reaches a wider audience at any spend level compared to linear TV.

• Improved campaign efficiency: Nielsen Media Impact analysis shows that reallocating 20% of a Hulu campaign's budget to AM/FM radio increases reach by 76%, particularly among younger and light TV viewers.

The findings underline the unique potential of AM/FM radio and podcasts in reaching video streaming audiences, suggesting these platforms are an untapped opportunity for marketers. The full analysis can be found on the Westwood One blog: Read the blog post here.