As America cautiously moves from sheltering at home to re-opening, Local Broadcasters are on the front lines providing critical information to consumers. Katz Radio Group will be updating the marketplace regularly with new insights about how America's perceptions and behaviors are changing toward radio, communities and brands.
The Shifting Consumer Landscape
Radio is a "Reach Accelerator" for Campaigns
Plenty of advertisers rely heavily on TV for their messaging. New findings from Nielsen show that if they're not using radio, they're placing themselves at a disadvantage when it comes to reaching audiences.
Cumulus | Westwood One worked with Nielsen on a series of cross-media studies to track ad exposure when radio is added to a TV campaign. Looking at diverse categories with varying levels of ad spend, they found that the addition of AM/FM radio brought an average +20% incremental reach. In fact, radio in the mix consistently increased the campaign's reach across all demographics, most dramatically among Adults 18-34, which averaged +41%.
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Radio is a natural complement for any TV campaign, it delivers light and non-TV users, and goes where TV cannot - reaching consumers on the go and close to the point of purchase. Adding radio to TV optimizes campaigns, bringing incremental reach and frequency for demos under-served by TV.
Consumer Behavior and Brand Loyalty Put to the Test
The COVID-19 pandemic, with its resulting stay-at-home mandates, store closures, and product availability issues, forced consumers to adopt new behaviors. From changing shopping methods, to switching brands, Americans took a crash course in reevaluating their wants versus needs over the past few months.
According to recent findings from McKinsey & Company, 75% of consumers have altered their shopping behavior during the pandemic. 4 in 10 consumers changed their shopping method, such as adopting curbside pickup, and 2 in 10 tried a new digital shopping method. Brand loyalty is on shaky ground as well, as 36% report trying new brands, 33% buying from a different retailer or website, and 25% trying private label or store brands.
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NEW CHANGES ARE HERE TO STAY
The study found that the vast majority of these consumers (between 73% and 80%) intend to continue with their new shopping behaviors even after the pandemic has subsided - either in addition to, or as a total replacement for their pre-crisis shopping methods. The motivations that drove them to make changes during the pandemic: availability, convenience and value, are proving sticky enough to create lasting shopping habits.
With brand loyalty up for grabs, it is more important than ever for advertisers to maintain a share of voice with consumers, old and new. Brands need to remain salient, stay top-of-mind among consumers, and address the drivers that are challenging old shopping habits. Local radio is a natural choice for brands to keep consumers informed on what's available locally, how they can access it conveniently, and get the best value for their dollar.
Happy Holidays Ahead for Retailers
CONSUMERS PLANNING ON SPENDING THIS WINTER HOLIDAY SEASON
It's still a little early for Christmas in July, but new research from Radial is spreading holiday cheer among retailers looking towards the 2020 Winter Holiday Season.
Despite the impacts of the COVID-19 pandemic, the majority of consumers still plan to spend the same amount as last year - though where and how they spend their money will be affected. 60% plan to spend to shop less in-store, while 66% say they will increase online purchases, showing a preference for the safer and more convenient online methods they became accustomed to during the pandemic. Retailers' in-store behavior is still important, as 63% of consumers are more likely to buy from a retailer that is following safety precautions in-store.
Consumers do not expect to modify the timing of their holiday purchasing despite any pandemic-related delays in deliveries - intending instead to shop on schedule with what they did last year. For 4 in 10 consumers, that means starting in October through early November, while 3 in 10 plan to start during the major sale weekend of Black Friday through Cyber Monday.
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July 23rd - Advertiser Perceptions - From Paralysis to Scenario Planning in the Coronavirus Economy. Webinar will explore some of the major factors advertisers must consider (e.g. where & how to spend) as they move forward in H2 2020 and beyond. Register here.
July 30th - Nielsen & J.D. Power - Rev Up Your Auto Marketing with Multicultural Consumers: Hispanic, Black & Asian Americans. Webinar will cover shifts in the automotive landscape, which media tactics resonate most across multicultural Americans, and how to leverage data, insights and trends to drive business forward. Register here.
August 5th - Merkle - Get Local: Making your Media Relevant for Today. Webinar will discuss the tools and ingredients needed to deliver a personal, localized experience with media. From data and tech to localized media and demand tools, Merkle will share real examples and case studies to help businesses get local and stay relevant with your media. Register here.
The Evolving Landscape for Consumers & Brands
Every state has now taken steps to lift stay-at-home regulations and ease business restrictions to varying degrees. Marketers need to carry on reassessing and adapting their actions in response to local regulations. Keep updated on state-by-state and category-specific actions with the links below.
More from Katz
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