Guess Who Is Interested in Buying Radio Spots Again?

Fri Aug 25, 2017

Kathy Crosett

Earlier this year, Borrell Associates and the Radio Advertising Bureau announced that digital radiorevenue for radio stations would grow over 20% in 2017. That increase will amount to about $753 million overall. The growth is expected to be particularly strong for smaller market stations. The digital uptick isn’t the only source of excitement for many radio stations this year.

A recent report on InsideRadio.com reveals that radio media sellers are finding more interest from a familiar category of marketers: consumer packaged good companies. Back in the day, these marketers were the lifeblood of many radio stations.

The latest numbers for CPG companies that are buying radio at the national level are impressive. In particular, P&G has drastically cut its digital advertising and is changing up its media mix. Part of this change includes placing nearly 69,000 radio spots for Tide, a huge increase over the previous year. P&G is not alone. Analysts point out that large CPG companies are making “national and network buys” in radio. However, radio sellers in big urban markets can tap into some of the interest and budget reallocation that’s taking place.

CPG companies, whether they operate in a national or regional market, are looking for the best return on their investment. Digital formats are certainly not going away, but marketers seem more open these days to hearing pitches about traditional media formats. Buyers understand that consumers spend a significant portion of their day in the car, shuttling around kids or commuting. Not all this time is spent listening to their personal playlists. Consumers who hear radio ads about a new personal care product or brand of ice cream might just be enticed to give it a try.

With the right kind of creative pitch, whether it’s focused on branding or promotion, your CPG clients could experience big wins from their radio investments. Positive experiences like that will allow radio to earn back some of what has been lost in the rush to digital.

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About Kathy Crosett

Kathy is the Research Director for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel.

View all posts by Kathy Crosett
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