For Holiday Retailers, Research Demonstrates AM/FM Radio’s Advertising Effectiveness

With a deluge of holiday shopping set to begin this week, brick-and-mortar and e-commerce retailers can capture consumer attention and drive results through AM/FM radio advertising.

That’s the message from Pierre Bouvard, Chief Insights Officer of the Cumulus Media | Westwood One Audio Active Group, and the author of Westwood One’s weekly blog.

Bouvard, citing Nielsen data, notes that AM/FM is highly effective at reaching potential holiday shoppers with a substantial 76% adult 25-54 average weekly reach regardless of the season.

“In the week leading up to Thanksgiving,” Bouvard writes, “76% of adults 25-54 are reached by AM/FM radio. 78% of adults 25-54 are reached the week of Christmas, making AM/FM radio the prime advertising vehicle for reaching shoppers trying to find last-minute gifts.”

AM/FM radio also reaches consumers on the path to purchase — with 65% of all AM/FM listening taking place outside the home, according to Nielsen data. “Advertisers who invest in AM/FM radio are reaching consumers at a critical time when purchase decisions are made,” Bouvard writes.

Bolstering radio’s effectiveness is the fact that many Americans are driving to and from stores — in addition to traveling to see their friends and family during the holiday season, making the car a great place to reach consumers. A study from RealityMine’s USA TouchPoints finds that on a weekly basis, 53% of Americans 18-64 have been in a store and their car in the same half-hour.

Edison Research’s third-quarter 2024 “Share of Ear” says that when consumers are in their cars, 86% of ad-supported audio time goes to AM/FM radio — a golden opportunity for shoppers to be exposed to commercials that influence where they shop and what they buy.

A study from the Radio Advertising Bureau and Dial Report demonstrated that AM/FM advertising campaigns deliver substantial store traffic lift across categories. That includes home improvement retailers (+7% lift in store traffic); quick-service restaurants (+23%); and beauty retailers and auto dealers (+32% each).

E-commerce retailers, meanwhile, see meaningful digital impact from AM/FM radio. According to a recent analysis of 17 AM/FM radio campaigns by LeadsRx, website traffic saw an average gain of 14%.

Additional digital case studies illustrate AM/FM radio’s effectiveness to increase site traffic, turn awareness into purchases, and increase website visitation.

And lastly, AM/FM radio, according to multiple Nielsen studies, has a well-documented track record when it comes to return on investment: AM/FM radio generates an average of $16 of retail sales for every $1 of radio advertising.