Southern California Broadcasters Association Research Suggests Moving TV Ad Dollars To Radio

New Research

How much of your advertisers spending should go to radio rather than TV? The SOUTHERN CALIFORNIA BROADCASTERS ASSOCIATION has released a report that concludes advertisers should take some of their existing TV budget, and move it to radio. The report's highlights:

Based on the SCBA research findings on the erosion of traditional appointment Television and the surging technology options of today’s viewers, the report recommends the following for your immediate review:

• Meet with the SCBA for an in-depth review of Radio vs. TV for SOUTHERN CALIFORNIA clients.
• At a minimum, we are urging advertisers to make a 39% adjustment in TV budgets from TV to Radio based on these findings and the growing DVR use/ownership in the LA DMA.
• Weekend sales events, limited offers, and expiring special offers are being compromised by delayed or no viewership from DVR usage for TV advertisers.
• Radio is and always will be aired in REAL TIME, with no delay or skipping of ads.

SOUTHERN CALIFORNIA Radio continues to grow in active listening:

• Total Radio listener growth of 888,400 more Adults 18+ or +7.4% from 2008-2014.
• Total market reach of 92.9% for Radio vs. 87.0% for TV for Adults 18+. A 9.3% advantage of Radio over TV.
• Total market reach of 94.9% for Radio vs. 87.7% for TV for Adults 25-54. A 9.2% advantage of Radio over TV.
• There is no DVR technology for Radio, which airs commercials in REAL TIME.

Disturbing facts about DVR usage and national viewership of Prime Time TV.

• 49.0% of all LOS ANGELES DMA households own/use a DVR.
• That is a 39% growth rate in just six years.
• 60% of all Americans skip TV commercials all or most of the time.
• Three out of four Americans record TV content to skip TV ads.
• Fall 2013’s traditional TV network premiere week programs had national erosion of 15-25% viewership compared to FALL 2012.

Television faces multiple and immediate threats to its viewership.

• NETFLIX and its 40 million paid subscribers.
• GOOGLE Television.
• AMAZON/HBO partnership for new AMAZON TV.
• 50% of American TV’s are now connected to the Internet.
• YOUTUBE original program “Epic Rap Battles” attracts 40 million viewers in prime time.
• GOOGLE now has one billion unique visitors watching 6 billion hours of video every month.
• Final season premiere of “Madmen” attracted only 2.3 million viewers; 1.1 million less than in 2013.
• MICROSOFT’s X-box 360 and X-box one debuts original streaming programs this SUMMER.

Appointment Television erodes at alarming rates in the LOS ANGELES DMA.

• Local TV’s Early Fringe (M-F, 6-8p) has eroded by 427,000 viewers 18+ or -6.5% from 2008-2014
• Any local news (M-F, 5-7a, 5-7p, 10-11:30p) has eroded by 535,771 viewers 18+ or -8.5% from 2008-2014.

Read the full report here.

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