How does it work?The evidence for radio’s effectiveness

The evidence for radio’s effectiveness

• Radio effectiveness – the headline findings • How ad avoidance challenges media effectiveness• How radio successfully combines with other media

The Awareness Multiplier

The Sales Multiplier

Radio effectiveness – the headline findings

The Awareness MultiplierHow did we conduct the research?

Radio lifts advertising awareness by 3% for every 100 ratings

Ave.

Source: Millward Brown

Brand

Awareness index

Radio is four times more cost-effective than TV

Source: Millward Brown

The Sales Multiplier

Radio effectiveness – the headline findings

The Sales MultiplierHow did we conduct the research?

Radio lifts sales by 2.2% for every 100 ratings

Source: dunnhumby

Ave.

Average = 2.2%

The evidence for radio’s effectiveness

• Radio effectiveness – the headline findings • How ad avoidance challenges media effectiveness• How radio successfully combines with other media

Advertising is increasingly ubiquitous

65%AGREE

“There are so many commercial messages these days it is overwhelming”

Source: Clark Chapman Research

% of ads by medium which are “hard avoided” by medium

High levels of ad avoidance hinder outreach in traditional media

% of ads which are “hard avoided” by medium

Source: Clark Chapman Research

% of ads by medium which are “hard avoided” by medium

High levels of ad avoidance hinder outreach in traditional media

Source: Clark Chapman Research

% of ads by medium which are “hard avoided” by medium

High levels of ad avoidance hinder outreach in traditional media

Source: Clark Chapman Research

Even higher ad avoidance for internet advertising

Banners Popups

% of ads by medium which are “hard avoided” by medium

The evidence for radio’s effectiveness

• Radio effectiveness – the headline findings • How ad avoidance challenges media effectiveness• How radio successfully combines with other media

Radio and TV

Radio and TVLow ad avoidance gives radio greater outreach

* Exposure = total reach of 16-44s, net = reach adjusted for avoidance levels

Sources: Rajar, Barb, Caviar (15-44), Clark Chapman

21.3m23.1m

Total exposure* Net exposure*

15.9m17.5m

Different modes and mindsets

Sainsbury’sGetting “front of mind” at relevant times

41%

“picked up a recipe card”

What happens when 10% of a TV campaign is redeployed to radio?

Radio and TV

+15%

Source: The Awareness Multiplier, Millward Brown

Radio and newspapers

IN-MARKET AUDIENCE(ready to respond now)

Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers

Source: RAB

IN-MARKET AUDIENCE(ready to respond now)

PRESS RADIO

Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers

Source: RAB

WIDER AUDIENCE(not yet ready to respond)

IN-MARKET AUDIENCE(ready to respond now)

PRESS RADIO

Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers

Source: RAB

Source: RAB

WIDER AUDIENCE(not yet ready to respond)

IN-MARKET AUDIENCE(ready to respond now)

The effect of ad avoidance

PRESS RADIO

Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers

Source: RAB

WIDER AUDIENCE(not yet ready to respond)

IN-MARKET AUDIENCE(ready to respond now)

The effect of ad avoidance

PRESS RADIO

Radio and newspapersRadio’s low ad avoidance enables it to get messages under the radar

What happens when 50% of press ads are redeployed to radio?

Source: RAEL, The Benefits of Synergy

Radio and newspapers

Source: RAEL – The benefits of synergy. Base c 100 respondents per group

Radio and newspapers

Unaided brand recall increases threefold

25%

70%

Newspapers only Radio and newspapers

Radio and the internet

Source: Other Lines of Enquiry Base: 523

A high proportion of broadband users are listening to radio when online

Radio and the internet are natural partners…

The internet is best at…

• Helping me find information

• Saving me time and trouble

• Giving me what I want when I want it

Radio is best at…

• Keeping me company

• Helping me to relax

• Making me feel happy

What happens when 50% of internet ads are redeployed to radio?

Radio and the internet

Source: RAEL – Radio and the Internet Study

Radio and the Internet

Unaided brand recall increases four-fold

Source: RAEL – Radio and the Internet StudyBase c 800 respondent

Internet only Radio and internet

6%

27%

Radio prompts follow-up online

Source: Other Lines of Enquiry Base: 310 who listen to radio when online

Radio multiplies traffic to brand sites

Source: University of Lancaster. Base: 55

% visiting test brand sites

Radio and price promotions

Brand IRadio vs. competitor price promo

Total Volume

Source: dunnhumby% change vs. period preceding promotion

Brand IRadio vs. competitor price promo

Total Volume

Source: dunnhumby% change vs. period preceding promotion

Brand IRadio vs. competitor price promo

Source: dunnhumby% change vs. period preceding promotion

Total Volume

Brand IRadio + own price promotion

Source: dunnhumby

% change vs. period preceding promotion

Brand IRadio + own price promotion

Source: dunnhumby

% change vs. period preceding promotion

Source: dunnhumby

% change vs. period preceding promotion

Brand IRadio + own price promotion

Radio in isolation

• Radio with TV = + 15% prompted awareness

• Radio with newspapers = + 180% unaided brand recall

• Radio with internet = + 350% unaided brand recall

• Radio with price promos = + 27% more customers

Radio’s multiplier effect

+ 180%

+ 350%

+ 15%

+ 27%

Thank you

Research sources:• The Awareness Multiplier Study (RAB/Millward Brown)• The Sales Multiplier Study (RAB/dunnhumby)• You can’t close your ears (RAB/Clark Chapman)• The benefits of synergy (RAEL)• Radio & online (RAB/IAB/Other Lines of Enquiry)• Radio and the internet (RAEL)

For further information go to: www.rab.co.uk