If you have a stake in the world of radio advertising, you’ve likely heard about the sweeping change affecting Nielsen’s rating methodology next year. 

This month, the leaders in audience insights will make a significant shift from their standard five minutes of listening time to a three-minute qualifier across 48 PPM markets. 

The change comes more than two decades after top markets switched from Diary to PPM measurement and aims to recapture lost impressions while improving the overall measurability of radio advertising. Many in the industry view the coming change as a long-awaited course-correct.

How will this 120-second shift affect the measurability of radio advertising, and what does it mean for clients? Here’s what you need to know about the change and how agencies like SMI are preparing for a new era of listening data. 

WHY NOW?

Prompted by the evolving media consumption habits of Americans, Nielsen’s updated methodology stands to drive market-level radio audience growth while boosting the ratings of local stations. 

Consumers are listening in shorter durations. Most songs are no longer than three minutes long, and 45% of all PPM listening occasions are shorter than five minutes. By modifying the minimum qualifier from five minutes to three minutes, previously uncredited listeners will be counted. 

“Attention spans are changing,” says Senior Media Buyer Pam Wolfgram, “and if an ad doesn’t immediately capture someone’s attention, it won’t get much traction.” 

Nielsen has measured impressions using 15-minute intervals known as “quarter-hours” since the 1920s and will continue using this metric as their principal criteria. 

In some cases, a five-minute listening session may be reduced to just three minutes of credited time if it spans the transition between two quarter-hours, as Nielsen only tracks impressions down to the nearest whole minute. 

A move to the three-minute listening threshold is expected to create a one-time increase to radio listening levels for all stations across all PPM markets.

“It’s a really exciting change,” adds Pam, “especially from a media perspective. I think clients will see a rise in awareness of their younger following. It won’t be as much about gaining new listeners as it will be recognizing listeners who weren’t accounted for in the past.”

Cumulus predicts its younger demographics will net the biggest boost with a projected 27% increase in 18-49 and 25-54 audiences. 

By 2025, AM/FM radio’s ratings within the 18-49 demographic are expected to outpace television in key advertising groups further.

WHAT TO EXPECT

Nielsen’s initial impact data estimates an initial 24% average audience (AQH) increase across all PPM markets. 

“Will time spent listening increase?” asks Media Assistant Emily Holtzclaw, “Initially, yes – on paper. If programming across the board improves from this change, we can expect a higher level of legitimate engagement from listeners.”

Along with providing a more comprehensive makeup of listeners, advertisers will have the opportunity for better-targeted campaigns. 

“Most station breaks are five minutes,” adds Emily, “designed to capture listenership. Reducing ad breaks means less noise, allowing clients to be nimble with their campaigns.” 

Nielsen’s hope – amongst many – is to show advertisers that they’re getting a larger audience than they thought they were before. In a recent webinar, Nielsen’s managing director, Rich Tunkel, predicted markets like Salt Lake City and San Antonio – young commuter cities – may benefit the most from the change. 

Since Diary Stations will remain untouched, Nielsen projects an overall ratings lift of around 10% nationwide. These changes, however, will take some time to see on a macro level. 

“Keep in mind – these aren’t necessarily new listeners coming into the mix,” adds Pam, “These are listeners who’ve always been there.” 

Pam anticipates this reporting change will open up a universe of lower CPM media, offering up formerly out-of-reach station time to agencies and clients alike. 

At the same time, agencies should be prepared to brief clients on this trend break, focusing on the potential of the markets, stations, and formats seeing the biggest lift. 

WHEN DOES THIS HAPPEN?

The shift covers the January 2025 PPM survey period, which begins on January 9, with releases starting the following month.

For more information on Nielsen’s landmark ratings methodology change, read the 3-Minute Qualifier Hub here. 

Binet and Field have written some of the most well-known books on marketing effectiveness, including: Marketing in the Era of Accountability, The Long and the Short of It, Media in Focus, and Effectiveness In Context.

In his recent study, Field mined a data set of thousands of case studies from the Institute of Practitioners in Advertising (IPA) and found hard evidence for how AM/FM radio drives significant lifts in market share, pricing power, sales, profits, and ROI.  

This study was the first time an in-depth analysis had ever been conducted on the IPA marketing case histories for radio,” said Pierre Bouvard, Chief Insights Officer of the Cumulus Media | Westwood One Audio Active Group. Field analyzed thousands of case studies and compared marketers that included radio in their media plan and those that did not. Here are his key findings:

• Marketers using radio generated 13% greater mental availability, the propensity of a brand to be noticed and thought of in buying situations.
• Marketers using radio had 28% larger market share.
• Marketers using radio saw a 42% lift in the number of companies reporting large profits.
• Marketers using radio saw a 23% increased return on marketing investment. 

According to SMI Copywriter Payne Ratner, “‘Mental availability’ is just a new term for what has been called ‘top-of-mind-awareness’ for years. And top-of-mind-awareness comes from everything we’ve talked about in advertising. A spot that’s effective and memorable. Pinpoint media placement. Message frequency. And most importantly, a product that lives up to its promises. Without those there’s not much ‘mental availability.’”

I interviewed SMI’s Media Buying Team to obtain a better understanding of how the work we do helps our clients achieve mental availability. Here are some highlights from our conversation:

In their book 66 Ways To Screw It Up: How Not to Plan, Les Binet and Sarah Carter write, “The single most important factor driving brand preference is ‘mental availability’: how well known a brand is, and how easily it comes to mind. Brands with low mental availability tend to struggle, rejected in favor of more familiar rivals, or not considered in the first place. Brands with high mental availability don’t have to push so hard to sell, so tend to have higher market shares and better margins.” 

What does SMI do to increase mental availability?

“The key contributor to increasing a brand’s mental availability is to incorporate national and local broadcast placements (AM/FM Radio) into a brand’s overall audio strategy,” said Network Buyer Jared Kulaga. “Local broadcast greatly effects brand awareness through frequency, with national placements assisting with overall market reach. The combination of reach and frequency achieved on AM/FM Radio cannot be easily duplicated with other audio channels.”

Is there a link between scaling (and how do we define that term) and increasing mental availability. 

Yes, there is a link between scaling and increasing mental availability,” said Senior Media Buyer Josh Knock. “As a campaign increases budgets, they are increasing their reach and frequency within the marketplace. Consequently, the brand’s market share will increase leading to higher brand awareness, increasing overall mental availability.”

How do we recommend our clients achieve scale/mental availability?

“We recommend leaning into audio mediums that allow for high reach and frequency,” said Senior Media Buyer Pam Wolfgram. “The combination of national (high reach) and local broadcast (high frequency) placements as part of an overall audio strategy is a perfect combination to achieve campaign scale as well as increase the brand’s share of voice and mental availability.”

Are you ready to improve your brand’s mental availability through the proven medium of radio? Contact SMI today. 

Pew Research data published last year found that in 2009, 92% of Americans age 12 and up listened to broadcast radio in a given week. By 2022, that number dropped to 82%. However, pay TV viewership dropped at a much higher rate of 20 percentage points between 2014 and 2023, falling at a record pace in the third quarter of last year.

With so many media options to choose from, why do audiences continually turn to radio?

According to SMI’s Media Director Heather Hansen, “Being able to feel connected and find relevance in content is important to radio listeners, and that is what will engage them. Local radio gives listeners a platform to actively participate in discussions that they find personal and relatable. These are experiences that are not necessarily achievable through other mediums.” 

“Local radio helps to keep people informed about weather, sports and news events in their communities, said SMI’s Senior Media Buyer Josh Knock. “For many of us, it’s just part of our routine when we drive to and from work, or out for an errand.” 

Radio’s accessibility also contributes to its steady listenership. “Radio is found in all cars without associated costs,” said Hansen. “It provides content to listeners without an added expense, therefore making it widely available to a large percentage of the population.” Last year, Statista found that 73% of American drivers listen to the radio in the car, making it the number 1 audio source on U.S. highways. 

In the U.S., where people are inundated with monthly subscriptions, broadcast radio offers a cost-free alternative. “There are no paywalls or monthly subscriptions with radio,” said Jared Kulaga, Network Media Buyer at SMI. “The experience is entirely free of both cost and commitment.” 

Radio’s continued ability to draw loyal audiences is a tremendous benefit to advertisers. Buying media on local stations with well-known hosts—and on National networks with syndicated music, news-talk, sports, and entertainment personalities—has served SMI’s clients well. According to Kulaga, “We find there tends to be more listener loyalty with bigger personalities, average listening time is often higher, and it ensures your message achieves frequency with listeners.”

“Here at Strategic Media, we always find it interesting when studies reveal that radio listenership has remained stable over time,” said Bob Leonard, SMI’s Director of Business Development. “This is something we know. And with the strategies we’ve implemented, our clients haven’t just done well on radio, they’ve thrived.”

At SMI, our advanced tracking systems and attribution models enable us to optimize creative messaging and media selection not only month-to-month but week-to-week. “Knowing that one creative message works best the week before Black Monday and a different one works best the week after can make or break a company’s holiday campaign,” Leonard said.

“When you use radio the right way, it can be the most profitable medium in your marketing plan,” said Leonard.

Are you ready to reach loyal audiences on the resilient medium of radio? Contact SMI today.