New York radio stations wrote new business from 80 new advertisers while convincing 200 existing clients to double their ad spend in the second half of 2016. A total of 15 ad categories increased radio ad spend by double digits in the nation’s largest market, with grocery and department store categories showing the largest gains—both up by over 40%.
This is how NYMRAD (New York Market Radio) sizes up the “The State of the Market” during the period from Jul.-Dec. 2016 in a new guidance report issued Monday by the trade group. While the report doesn’t say whether the market went up or down in the second half, it does use Miller Kaplan data to highlight a number of growth categories, including education, entertainment and the hospitality industries.
The hospitality category rolled out the red carpet for New York radio in the second half as 48 advertisers collectively spent $5.24 million, an increase of 18.5% over the second half of 2015. Competition among cruise lines pushed the cruises subcategory up 74% as three major cruise lines combined to spend over $1 million. New York’s top three cruise line advertisers were Royal Caribbean Cruises, Celebrity Cruises and Norwegian Cruise Line, according to Miller Kaplan. Advertising by tourist bureaus also increased.
New York is one of the world’s entertainment meccas and the producers of concerts, plays and other live events boosted their spending 27% when compared to the second half of 2015, with 78 advertisers in the category shelling out a collective $13 million. “The growth was evenly spread between concerts, movies and Broadway,” says Debbie Beagan, executive director at NYMRAD. Live Nation was the category’s top spender.
Designed to help advertisers understand radio’s impact on consumers, the report cites Nielsen Scarborough data showing how New Yorkers taking in the region’s live entertainment and sports attractions are easily reached through radio. For example, 95.6% of attendees of U.S. Open Tennis listen to radio. Ditto for those who attend Yankees (92.8%) and Mets (92.3%) baseball games, Giants football games (92.4%), Rangers hockey (91.5%), Nets basketball (91.5%), Knicks basketball (91.3%), and the New York Marathon (90.3%). As one of the world’s cultural hubs, New York is packed with concerts, theater, art shows and events and the report shows how promoters of these events can reach attendees over the air. More than nine in 10 New Yorkers who attended dance and ballet performances (91.2%) tune in, as do those who frequent Broadway theater (90.4%), rock concerts (90.3%), art galleries (89.4%), Radio City Music Hall events (90.4%), Lincoln Center (88.5%) and the circus (89.2%).
Not every category grew year-over-year. Education advertising, for instance, decreased 9% in the second half of 2016. A total of 54 education advertisers collectively spent $4.22 million on New York radio in the back half of 2016. Within the category, the online education subcategory was a bright spot as the largest online education advertiser more than doubled its spend to hit $312,000 per Miller Kaplan data. Two of the largest advertisers were On Line Training Academy and Mercy College.
“Many times, advertisers do not realize the power of radio,” says Carly Fink, principal, director of Strategy & Research at market research and strategy firm Provoke Insights, which NYMRAD commissioned to conduct analysis for the report. “Often they think that the number of listeners of AM/FM radio is the same as streaming services. However, research shows that radio’s reach is at least five times higher than streaming services” In fact the study quotes Nielsen data showing that the New York market’s radio cume topped 16 million last year, giving it the largest cume of any U.S. radio market. In the ethnically diverse market, Hispanic and African-American populations represent 41% of radio listeners.