Home Login RADIO ONLINE RSS Facebook
Advertisement

Second Annual DtC Media Attribution & Awareness Report


Westwood One
Westwood One

Cumulus Media's Westwood One has partnered with LeadsRx and MARU Matchbox to conduct their second annual Direct-To-Consumer Media Attribution and Awareness study to understand the marketing effectiveness of direct-to-consumer firms and the state of their brand equity.

Even before the coronavirus, e-commerce was surging. In the first quarter of 2020, the U.S. government indicated e-commerce represented 11.8% of total U.S. retail sales up from 6.9% in the first quarter of 2015 and 4.8% in in the first quarter of 2010. eMarketer forecasts e-commerce will represent 14.5% of full year 2020 total retail sales.

"Direct-to-consumer brands are entering their second act now, seeking to grow through market penetration and attract the masses via TV and AM/FM Radio," said Cumulus Media and Westwood One Chief Insights Officer Pierre Bouvard. "This study validates the brand-building sales effect of broadcast media as TV and Radio drive seven times the search and site traffic lift of Google and Facebook."

Another key finding from the study is that AM/FM radio is a catalyst for increased effectiveness of Google and Facebook ads during the pandemic. During 2019, Facebook and Google ads saw a 15% increase in performance due to AM/FM radio advertising. During the pandemic in Q2 2020 radio's impact on Google/Facebook performance surged to 20.0%.

"Why is radio driving even more Google and Facebook impact during the pandemic? I believe it's because radio listeners at home are responding MORE to radio ads now than they 'normally' did last year," observed LeadsRx co-founder and CEO AJ Brown. "Radio has this 'halo' effect and sub-conscious impact. Even while listening in the background while checking email or performing other work activities, it's likely consumers recall an advertiser when getting on the internet."

The study includes the following highlights:

  • Combined, Radio and TV deliver seven times the site traffic lift of Google and Facebook. The combined site traffic lift of TV and AM/FM radio grew from 40% in 2018 to 63% in 2019. The lift of Google and Facebook fell from 17% to 9% during the same period.

  • AM/FM radio advertising enhances Google/Facebook performance during the pandemic. During 2019, Facebook and Google ads saw a 15% increase in performance due to AM/FM radio advertising. The first quarter of 2020 showed an uptick in the average lift to 16.4%, increasing to 20% when the pandemic hit in the second quarter.

  • Surprisingly, AM/FM radio is just as good as TV in driving site traffic and TV. Across all the attribution studies performed, LeadsRx found a $24,300 investment in AM/FM radio generated one point of search and site traffic lift; to attain a point of lift via TV advertising, a $25,581 investment is needed.

  • Heavy AM/FM radio listeners are 37% more likely to shop online than heavy TV viewers. According to GfK MRI, 59% of heavy AM/FM listeners have shopped online in the last year versus only 43% for Heavy TV viewers. For every dollar a DTC brand spends on TV, only 43 cents reaches consumers that shop online.

  • The profile of online shopper aligns more with AM/FM radio listeners than the TV audience. GfK MRI reveals online shoppers are nearly equally segmented into three age groups: 18-34 (32%), 35-54 (36%) and 55+ (32%). Heavy radio listeners mirror the online shopper profile: 18-34 (33%), 35-54 (36%), and 55+ (31%). The heavy TV viewer skews much older: 18-34 (14%), 35-54 (23%) and 55+ (64%).

  • There is a massive disconnect between the media selection for DTC advertising and which media audiences make the most online purchase. GfK MRI reports AM/FM radio represents 60% of the consumer e-commerce spend. Yet, according to Kantar Media, only 3% of e-commerce ad dollars are spent on AM/FM radio.

  • Per Nielsen's Media Impact optimization platform, a reallocation of 20% of a DTC TV buy to radio generates stunning growth in incremental campaign reach. The challenge for DTC brands: most online shopping occurs among those under 55 while most TV tuning is generated by 55+ viewers. Per Gfk MRI, 68% of online shoppers are 18-54, however only 36% of heavy TV viewers are 18-54. Nearly two thirds of TV deliveries (64%) skew 55+ a demo that only represents 32% of online shoppers. Radio to the rescue. Adding AM/FM radio into the DTC plan generates significant incremental reach under the age of 55.

  • Best practices to power DTC marketing effectiveness: Allocate 74% of marketing budgets to brand building, target broadly with emotional advertising that runs in all days and dayparts.
For the full Direct-To-Consumer Media Attribution and Awareness report, click here.

Advertisement

Latest Radio Stories

Report: Majority of U.S. Voters Trust Public Media
Corporation for Public Broadcasting (CPB)
Corporation for Public Broadcasting (CPB)
As the Senate prepares to vote on the Rescissions Act of 2025 -- which would eliminate $1.1 billion in previously approved funding for the Corporation for Public Broadcasting (CPB) -- a new national poll finds that most U.S. voters trust and value public media more than commercial More

NRRC Welcomes New Natl. Radio Network & Syndication Members
The Network Radio Research Council (NRRC)
The Network Radio Research Council (NRRC)
The Network Radio Research Council (NRRC) has announced the addition of leading research professionals from several major national audio companies, including Audacy Networks, Compass Media Networks, Entravision, Key Networks-United Stations, and Reach Media. The expansion brings a More

Quu Visual Radio Ads Boost Purchase Intent by 89%
Cumulus Media and Westwood One
Cumulus Media and Westwood One
New research finds that in-dash visuals synced with AM/FM radio ads can dramatically increase purchase intent and brand engagement, offering a new frontier for audio advertising. In this week's Cumulus Media | Westwood One Audio Active Group blog, studies from Quantilope and System1/JCDecaux examine the More
Advertisement

Rising Through the Ranks 2025 Scholarship Recipients Revealed
Radio Advertising Bureau (RAB)
Radio Advertising Bureau (RAB)
The Radio Advertising Bureau (RAB) and Mentoring and Inspiring Women in Radio, Inc. (MIW) have revealed the 26 scholarship recipients selected for this year's Rising Through the Ranks program. Designed to foster the next generation of female leadership in the radio industry, the annual initiative combines More

Radio Milwaukee Adds Jon Adler and Maggie Corry
Jon Adler
Jon Adler
Veteran Milwaukee radio personality Jon Adler is returning to local airwaves, joining Radio Milwaukee's WYMS (88Nine) as Assistant Program Director and weekday evening host. Starting Monday, Adler will be on the air from 6-10pm and will also helm a new Saturday request show, "Let's Hear It!," debuting August More

CPR Approves FY 2026 Budget, Welcomes Three New Members
Colorado Public Radio (CPR)
Colorado Public Radio (CPR)
During its annual meeting, Colorado Public Radio's board of directors approved its budget and work plan for the new fiscal year beginning July 1, while also announcing the addition of three new members to its governing board: Carrie Okizaki, Arnold Salazar, and Sruta Vootukuru. The three incoming members More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement