Holiday Spend To Hit Ho-Ho-Whole New Level.

INSIDERADIO
October 22, 2015

  As retailers gear up for holiday shopping season, new data shows consumers are ready to shell out more money on gifts than they have in 14 years—and they’ll be buying less online. The National Retail Federation says holiday spending per person will reach $805.65 this year, with $462.95 allocated for gifts. That’s the highest gift-giving allowance in the time the group has tracked spending. Overall holiday spending is up slightly from last year’s average $802.45 per person, the NRF said. While 46% of consumers say online will factor into their purchases, 52.9% say they’ll purchase from online retailers, down from 56% last year. That marks the first annual decrease in the portion of consumers shopping online, the NRF notes. Mobile shopping, however, is gaining popularity, with 21.4% of smartphone owners saying they’ll buy items on their device, the highest level since the group began asking about mobile shopping in 2011. No doubt, many retailers will likely increase radio advertising outlays in the fourth quarter. In preparation, some retailers, including department stores, discount stores and jewelers, have already upped radio ad frequency. Leading the way, according to tracking of radio spots by Media Monitors, is department giant Macy’s, the no. 10 overall radio advertiser, which increased spot volume 14% from January to September 2015 compared to the same period last year. Jeweler Jared (no. 53) boosted its radio weight 48%; and JCPenney (no. 15) is up 13%. But two notable retailers may be holding their fire until the fourth quarter. While still a major investor in radio, Walmart (no. 55) pulled back considerably on its volume in the first nine months, with total spots down 68%, while Target (no. 297) decreased radio spots by 27%.

Competitive QSRs Add More Radio To 2015 Ad Menu. Brands always battle for greater market share, and radio often plays a key role for companies in highly competitive industries working to get their message out. And for the first nine months of the year, that axiom went double for top quick service restaurants. Other categories that increased their radio advertising, according to spot counts on stations tracked by Media Monitors, include automotive manufacturers and dealers, wireless carriers, insurance companies and auto parts retailers. But QSRs accounted for four of the 12 largest volume increases in ad time, with fast food chain Wendy’s, currently the no. 7 radio advertiser, leading the charge. Wendy’s increased radio ads 62% compared to the same period last year, resulting in the largest growth in its segment and among all radio advertisers. Burger King, the no. 37 heaviest radio advertiser, increased its radio commercial volume 102.4%, while Dunkin Donuts (no. 96) upped ad time 71%, and Taco Bell (no. 23) increased volume 29%. Other fast food chains, including Jack in the Box, Sonic and Jimmy John’s, have similarly boosted radio buys, while heavyweight McDonald’s (no. 4) pulled back slightly, measuring a 2.4% decrease. Meanwhile, automotive, radio’s largest advertising category, is on the upswing as well, with several dealer associations upping radio frequency. Nissan Dealer Association is making an aggressive push, increasing radio ads 257% and rising to no. 44 on the list, while the volume of radio spots from the Honda Dealer Association (no. 32) rose 43%, Toyota Dealer Association (no. 52) climbed 34% and Lexus Dealer Association (no. 111) rose 93%. Among the domestic car companies, Chrysler-Dodge-Jeep (no. 31) increased radio ads 19% and Ford Lincoln Mercury (no. 25) inched up 4%.

Web Ad Dollars Hit Historic Heights. Driven by explosive mobile growth, Internet ad revenues in the U.S. rocketed 19% to a landmark high of $27.5 billion in the first half of 2015 compared to one year earlier, according to a report issued Wednesday by the Interactive Advertising Bureau (IAB). Mobile revenues shot up 54% to $8.2 billion in what IAB senior VP of industry services Sherrill Mane called a “still explosive growth rate.” Mobile apps and websites that offer access to audio streams and on-demand content have become a priority for many radio stations and the new IAB numbers show that to be a smart strategy. Mobile now represents 30% of the revenues generated by the entire Internet advertising marketplace, up from 23% one year ago. Digital video, another priority for a growing number of radio broadcasters, hit $2 billion in the first half, a 35% year-over-year jump. “Digital video is one of our key drivers,” Mane said, more than tripling since 2010. Social media revenues reached $4.4 billion in the first half, a 51% hike over the same period in 2014. “Social media is maintaining astoundingly strong growth rates,” Mane said, with an annual growth rate greater than 50% every half-year. Display-related advertising revenues in the first half totaled $6.8 billion, a 5% uptick, accounting for 25% of overall digital ad revenue. And after declining in 2014, online CPMs (cost per thousand) grew to an average $11.67. The same top three ad categories continued to account for nearly half of online ad revenue—retail (22%), financial services (13%) and automotive (13%).