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Linking Radio Tuning to Buyer Behavior: New Value for Radio Advertising
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Linking Radio Tuning to Buyer Behavior: New Value for Radio Advertising

Linking radio station tuning data to consumer purchase information is the best way to ensure that radio advertising is being heard by consumers who are eager to listen.

According to a recent major market pilot test by Nielsen, for the first time, a connection can be drawn between what consumers listen to on the radio and how they spend. This solidifies radio’s place as a valuable marketing platform for advertisers and media planners. The major market pilot test combined proprietary Nielsen data with anonymized panelist credit and debit card purchasing behavior covering more than 24 billion transactions and $2 trillion in annual sales primarily from the retail, travel, digital, restaurant, entertainment, financial services and telecom categories.

“The ability to determine how radio listeners among different formats like pop, news or rock are spending their dollars creates a unique opportunity for radio broadcasters to make a case for the value of their audience,” says Farshad Family, SVP, Local Media Product Leadership. “We are just beginning to tell the story about the value of radio’s audience. As we make progress on conducting more links between listening data and purchase data, we will continue to share more insights with the marketplace.”

Dallas, Texas, a major market with more than 5.7 million weekly radio listeners and $344 million in radio ad spend per year*, was one of the DMAs included in the pilot test. By conducting the analysis at the local metro level, Nielsen identified unique radio ad spend opportunities specifically for the local market. Aligned with leading advertising effectiveness insights validated in the television and digital space, this pilot confirms efforts to extend Nielsen Buyer Insights to the radio industry.

Dallas Pop listeners spend more on casual dining than all other listeners

While Pop Contemporary Hit Radio listeners in Dallas spend less per trip on average, they actually exhibit the highest average spend per buyer annually. They also make the most trips annually when compared with all other listeners.

Dallas News/Talk listeners go to more movies every year and spend more money at the movies than all other listeners

It’s safe to say listeners of News/Talk radio in Dallas like going to the movies. On average, they spend roughly $25 more per buyer and watch 1.2 more movies annually. News/Talk listeners also spend more per trip.

Dallas Rock/Alternative listeners spend more money on retail and make more trips to retail locations than all other listeners

In the retail category, a big spending group emerges. While Rock/Alternative radio listeners in Dallas don’t spend more per trip on average, they spend almost $250 more per buyer and make more trips than the average listener annually.

*BIA Kelsey.