Nielsen: Radio listeners are primed and ready for e-commerce

What does radio have to do with Amazon Prime Day? Research shows that audio-heavy consumers, especially those who listen to AM/FM and podcasts, give online retailers a unique advantage that Amazon can’t necessarily count on — but should.

In 2023, Amazon Prime Day became the single largest sales day in the company’s history, with members purchasing more than 375 million items worldwide. It was also the most successful event for third-party sellers, with sales exceeding those of Amazon’s own retail business, and AM/FM has been a major Amazon ally since the decade-long event.

In 2015, more than half of those exposed to Amazon Prime Day ads on radio made a purchase. In 2018, heavy AM/FM radio listeners made up almost half of Prime Day shoppers. And the effect extends far beyond Amazon. Cumulus Media/Westwood One analytics director Pierre Bouvard shared Nielsen data showing that heavy AM/FM listeners spend significantly more online than heavy traditional TV viewers—to the tune of more than $150 per year.

Coming back to Amazon, audiobook listeners are more likely to use Prime memberships and are more likely to make purchases during promotional events, underscoring their value as a target group for e-commerce brands.

So what can other e-commerce brands learn from Amazon’s success? Shifting just 20% of TV ad budget to radio can result in a 50% increase in campaign reach. This strategy is particularly effective in capturing the attention of younger audiences aged 18-49, who traditionally watch less TV.

The reallocation strategy not only broadens reach, but also ensures that the campaign will be more effective among a younger, digitally savvy audience. Nielsen Sales Effect research estimates the return on ad spend for AM/FM radio campaigns, with retailers reporting a $15 increase in sales for every $1 spent on advertising.

The final example Bouvard cites is a MARU/Matchbox study of the impact of Amazon’s 2023 holiday radio campaign, which found that brand value significantly increased across multiple dimensions, from AM/FM reach to trust.

These data send a clear message to advertisers and media planners of e-commerce brands: incorporating the AM/FM band into the media mix not only diversifies reach, but also increases the effectiveness of advertising campaigns, especially for demographic groups less sensitive to traditional TV advertising.