Study shows that radio's reach far exceeds advertiser perceptions

What advertisers perceive as the reach of AM/FM radio, when compared to the leading audio streaming services, appears to be drastically different than reality, according to a new study commissioned by leading radio broadcasting groups.

Utilizing survey data compiled by Nielsen, Edison Research and Advertiser Perceptions, the study found that advertisers estimate 64% of Americans are reached by AM/FM radio. In actuality, the Nielsen weekly reach is 93%. Advertisers and agencies also believe that Pandora and Spotify hold a share of listening that is roughly equal to that of AM/FM radio, when it’s been confirmed that AM/FM’s audience is 9 times that of Pandora and 17 times that of Spotify.

Nielsen data also show that radio’s reach includes 93% of Millennials – 22% more than TV reaches.

“Advertisers and agencies drastically underestimate the reach of AM/FM radio,” said Lew Dickey, CEO of Cumulus and Westwood One. “This study is the first conclusive evidence of the major gap in actual and imagined performance of AM/FM and streaming outlets.”

Added iHeartMedia Chairman/CEO Bob Pittman, “The most recent Nielsen Total Audience Report showed that radio is now the number one reach medium, surpassing TV with total audience and Millennials by an even greater margin. This research makes it clear that while TV and new forms of media may get more attention, they don’t come near the reach of radio; radio is truly the mass reach mobile media.”

Mark A. Kaline, former head of media at Ford Motor Company and Kimberly-Clark, further supported the findings of the survey.

“This study shows that app downloads and user stats don't equal audience,” he said. “While consumers may have these music apps on their devices, it doesn't mean they use them as part of their everyday radio listening habits. As a marketer, I've always found radio to be a medium that effectively and efficiently delivers reach over an extended period of time, while driving ROI within the total communications plan.”

The study was commissioned by leading radio broadcasters including Cumulus, Westwood One, iHeartMedia, Alpha Media, Beasley Media Group, CBS Radio, Cox Media Group, Emmis Communications, Entercom, Greater Media, Hubbard Radio, Radio Advertising Bureau, Radio One, Townsquare Media and Univision Radio, Inc.

The online survey of 327 advertising decision-makers was conducted by Advertiser Perceptions between May 11 and 14, 2015.