Radio is a Media Destination for Upscale Consumers and Big Spenders
Affluent consumers wield considerable purchasing power across all sectors. Traditionally, high-end brands have focused their investments on print and TV platforms that cater to affluent interests such as travel, finance, gourmet dining, home design, and sports like tennis and golf. But Katz’s new analyses of MRI-Simmons data finds that such strategies are ignoring major opportunities to connect with this influential demographic. Radio truly is a media destination for upscale consumers, delivering high spenders across categories.
Katz analyzed the top traditional media choices of affluent Americans, focusing specifically on their preferred radio formats, TV channels, magazines, and newspapers. Affluence was defined here as net worth, rather than the conventional metric of annual household income. Using a broader definition of wealth beyond yearly earnings opens it up to include of all the assets owned by the individual’s household, such as financial accounts, home value, and possessions. According to MRI-Simmons, the average net worth for adults in the U.S. is $418 thousand.
RADIO FORMATS STAND SHOULDER TO SHOULDER WITH THE MOST UPSCALE MEDIA BRANDS
Looking at the top 50 commercial media properties based on the average net worth of their consumers, it is evident that numerous radio formats stand alongside other prestige media outlets in their ability to attract affluent audiences. In fact, Classical and All News radio stations have a higher average net worth than any measured TV, magazine, or newspaper property. News/Talk and AAA (Adult Album Alternative) surpass the likes of The Atlantic, the Golf Channel, and Fox Business Network, while All Talk comes in ahead of Kiplinger’s and the Wall Street Journal. Alternative music station listeners are wealthier than readers of The New Yorker, and those tuning into Soft AC stations have an edge on readers of the The Economist.
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RADIO LISTENERS ARE BIG SPENDERS ACROSS CATEGORIES
Radio's highest net worth formats have massive spending power, but where is it being wielded? Katz analyzed the highest indexing expenditure categories for these affluent radio formats to see where listeners are overspending, compared to the average U.S. adult. All of the top affluent radio formats display higher average monthly credit card expenditures than the average adult, and these listeners tend to overspend by varying degrees in nearly every buying category.
Focusing on their highest indexing buying categories, radio listeners are heavy spenders in upscale verticals, such as travel, tech, fine dining, fine jewelry, luggage, and even place settings. Domestic travel actually over-indexes for all of the top affluent radio formats, but is among the highest categories for All News, Classical, and Sports. Listeners are also big spenders on products and services that are available in their local markets, including dining, auto aftermarket, property and garden maintenance, veterinary care, and even flower shops.
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The commanding household net worth of certain radio formats make them ideal environments for advertisers seeking to reach affluent consumers. However, affluents’ appetite for audio extends well beyond these high net worth formats too. Regardless of what radio format they hear an ad on, these listeners have deep pockets are spending their dollars across a range of categories, both online and in their local markets. Smart marketers will seize the opportunity to reach them on AM/FM radio.
