Buyergraphics, Not Demographics: CBS test drives a new approach to segmenting audiences.

INSIDERADIO
March 18, 2015

For a peek into how radio may be marketed to advertisers in today’s data-driven world, look no further than how CBS is pitching its fall network lineup heading into TV’s upfront season. The company is using third-party, single-source data from Nielsen and Rentrak to show clients how its top rated shows, like "The Big Bang Theory" and "NCIS," perform among specific consumer categories. It claims consumers who go to movies, shop at electronic stores, are in the market for a luxury car and other products are more likely to watch CBS than any other television network. The CBS pitch marries television viewing data from the 2014/2015 season-to-date with purchase data across consumer categories. It’s part of a larger industry effort to migrate media away from what CBS chief research officer David Poltrack has called "simplistic and outdated" age and sex demographics to "quality-reach buyergraphics." Poltrack believes it can help prove return on investment for radio, too, right down to the brand level. Last year he said the combo of CBS Radio and TV stations in Boston reached 14% more Dunkin Donut customers than the top 25 cable networks do. Segmenting consumers by purchase behavior and other variables is also the goal of the programmatic platform being developed by iHeartMedia and Jelli. While the new audience segments aren’t likely to change the ratings currencies radio and TV are sold on, they are expected to be used to reinforce their value. "Delivering an audience that is heavily loaded with proven consumers is a very compelling proposition for an advertiser," Poltrack says.

Buyergraphics trend likely to impact how radio is bought and sold. CBS isn’t the only company looking at new ways to segment audiences to help marketers reach the audiences that matters the most to them. A recent Nielsen analysis found that supplementing traditional demographics with buyergraphics, or audience segmentation based on purchase behavior, can further help advertisers reach their best consumers. The study combined consumer purchase data and TV viewing data, to compare current ad spend by genre and viewer spend by genre, and found several instances where advertisers could optimize their TV advertising budget allocation. For example, only 2.5% of the $1.5 billion department stores spent on TV advertising last year was allocated to how-to shows, devoted to topics like cooking, travel, and other lifestyle activities. Yet how-to show viewers made up 46% of all dollars spent at department stores last year. The analysis also found that viewers of evening animation shows have an appetite for fast food. Connecting the dots between what people buy and the media they consume is a trend likely to impact radio. Nielsen last year released the results of a study that linked PPM listening data from the three largest markets with auto purchases from Polk, which tracks automotive ownership history for more than 600 million vehicles nationwide. The study showed that every market is unique and that radio formats can be used to reach specific listeners who are shopping for a certain type of car. Los Angeles country and contemporary Christian radio listeners were more likely to buy a luxury car than people who tune into a sports station. But in New York, sports radio scored the best among high-end vehicle buyers.