As America settles into the new normal, Katz Radio Group will continue to update the marketplace regularly with new insights on America's perceptions and behaviors toward radio, communities and brands.
The Shifting Consumer Landscape
Radio is a Staple for Media Junkies
RADIO USAGE STEADY AMONG HEAVY USERS OF MEDIA
Media usage continues to evolve. From the adoption of new technologies and platforms, to the lifestyle changes brought on by the pandemic, consumers have ample opportunity to pick up a new favorite media. But when someone becomes a super fan, or heavy user, does that mean they end up sacrificing one media for another? Not always. A Katz analysis of Nielsen's recent Scarborough Supplemental Study looks at media consumption in 4th Quarter to check the status of consumer engagement with radio based on their current media appetites.
According to this recent survey, radio reaches 89% of adults 18+, and the average person spends 7 hours 35 minutes with radio each week. Looking at adults who are super fans of other major media, those in the top two usage quintiles for internet or television, radio's reach and engagement continue to shine.
These media super fans are still considerably engaged with radio. AM/FM reaches more than 88% adults, regardless of how much additional media they consume. And in true media junkie fashion, these users are not sacrificing radio time to compensate for their amped up usage of other media. Television and internet super users consume a comparable amount of radio to the average adult - over seven hours each week. Heavy TV viewers, at 7 hours 44 minutes, consume even more radio per week than the average person.
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The analysis finds that it is a mistake for marketers to assume that digital-savvy targets are not entrenched in radio. Digital devices account for increasing exposure to new media sources – audio and video streaming, social networks, and more, which occupy swaths of consumers’ time. But Nielsen's latest Scarborough survey finds that people are not replacing radio time with other media usage, even as they adopt or favor another media.
Tap into the Power of the Black American Consumer with Radio
FINDINGS FROM NEW KATZ MULTICULTURAL INSIGHT
Katz Multicultural's recent deep dive report showcases how the Black American consumer group influences our economy, why advertisers and brands must engage with them, and why radio is the media of choice to do so.
GROWING POPULATION & SOARING BUYING POWER
At 47 million people, Black Americans make up 14% of the total U.S. population, a number that has increased +18.7% since 2005 (U.S. Census). The Black American population is expanding into new areas of the U.S. and is the engine to growth in many markets, exceeding non-Black growth.
Black American buying power has increased +61% since 2010, with an estimated growth to $1.8 trillion by 2024 (Selig Center for Economic Growth). Black Americans are seeing strong gains in key socioeconomic categories, including higher education, household income, and home ownership. They are also making significant contributions to an active economy - more likely than the average consumer to make or plan major purchases, such as vehicles, electronics, and furniture.
ENGAGING THE BLACK AMERICAN CONSUMER
Black Americans are avid media consumers, giving advertisers many opportunities to connect with them. No medium reaches more of this life-group or resonates with them as well as AM/FM Radio.
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Black Americans consume more radio than any other medium, including smartphone app/web and television. Radio is a valued and trusted medium, deemed more useful, trustworthy, informative, enjoyable, and relaxing among the Black Americans than by the average consumer.
Radio offers great opportunities for advertisers to connect with valuable prospects in the growing Black American marketplace, delivering consumers who are active buyers and financially optimistic. Those advertisers that choose to engage with the Black American population on radio stand to gain exposure, grow market share, and cultivate value, trust, and loyalty within this untapped market.
Retail Sales Up in January
MONTH-OVER-MONTH AND YEAR-OVER-YEAR GAINS FOR RETAIL SALES
January 2022's Advance Retail Sales report from the Department of Commerce (data from the U.S. Census Bureau) reveals continued improvement in retail sales month-over-month and year-over-year. Consumers show that they are willing to spend across categories, even in the face of high inflation.
Overall, retail sales reached a record high $649.8 billion (adjusted) - translating to a +3.8% increase over December. January earned the largest month-over-month increase since March 2021, which may be helped in part by December being much weaker than initially reported. January gained a total +13% from last January, with all of the measured retail categories showing year-over-year increases except one - electronics stores, down -2.9%. The vast majority of categories show growth over last month as well, with a few exceptions - most notably, sporting goods/hobby stores, down -3%.
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Ecommerce is the monthly sales growth leader for January (+14.5%), followed by department stores and furniture stores (+9.2 and +7.2, respectively). Automotive performed strong as well, with dealers and aftermarket retailers up an estimated +6% over last month.
The categories seeing large year-over-year gains reflect a changed consumer mindset from one of staying at home in early 2021 to that of being ready to go out and resume a more active lifestyle in 2022. Gas stations top in YoY gains, up +33%, likely helped by rising gas prices. The hard-impacted restaurant/bar category saw large YoY growth (+27%), despite being slightly down for the month. Clothing/accessories stores, which were also heavily impacted by the pandemic, show notable YoY gains (+21.9%), and modest monthly (+0.7%) growth. Department stores are seeing marked increases as well, up +11.5% from last January and +9.2% over December.
As 2022 gets off to a strong start, retailers will be looking to influence consumer budgets. With its mass reach, local influence, mastery of time and place opportunities, and proven results in virtually every category, radio is positioned to be a valuable asset for retailers looking to take advantage of growing sales, or influence future recovery.
March 15th - National Retail Federation - State of Retail and the Consumer 2022. Webinar will explore the health of the American consumer and key behavior trends during and after the pandemic. Findings include the NRF's 2022 annual retail sales forecast. Register here.
March 16th - Radio Advertising Bureau - Radio Works for Nonprofits/ Lawn and Garden. A live presentation helping sellers prospect the nonprofit category. RAB members register here.
The Evolving Landscape for Consumers & Brands
States and businesses have been updating COVID-19 related restrictions and regulations. Keep updated on state-by-state and category-specific actions with the links below.
More from Katz
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