radio’s advertising power reachreach frequencyfrequency targetabilitytargetability consumer...

Radio’s Advertising Power

ReachReachReachReach

FrequencFrequencyy

FrequencFrequencyy

TargetabilitTargetabilityy

TargetabilitTargetabilityy

Consumer Consumer InfluenceInfluence

Consumer Consumer InfluenceInfluence

Power of Power of SoundSound

Power of Power of SoundSound

New Media LandscapeNew Media Landscape

0

20

40

60

80

100

120

140

160

MP 3 Streaming P odcasts Satellite RadioSources: XM and Sirius, 1/06; Arbitron/Edison, 2006; Arbitron RADAR 85, June, 2005

60

9.3

230

20062006In MillionsIn Millions


2630


0

20

40

60

80

100

120

140

160

MP 3 Streaming P odcasts Satellite RadioSources: XM and Sirius, 1/06; Arbitron/Edison, 2006; Arbitron RADAR 85, June, 2005

60

9.3

230



2630

9.3 Million Satellite Radios9.3 Million Satellite Radios681,000 Satellite Weekly Cume681,000 Satellite Weekly Cume

Media Audit, 2005Media Audit, 2005

9.3 Million Satellite Radios9.3 Million Satellite Radios681,000 Satellite Weekly Cume681,000 Satellite Weekly Cume

Media Audit, 2005Media Audit, 2005


# Of Receivers# Of ReceiversIn MillionsIn Millions

# Of Receivers# Of ReceiversIn MillionsIn Millions

Sources: RAB, 2005; R.L. Polk, 2005

853

9.3

185

190

195

200

205

210

215

220

225

230

94 95 96 97 98 99 00 01 02 03 04 05

230

Nationally Radio Continues To GrowNationally Radio Continues To Grow

Source: RADAR 85, Spring, 2005

12+ Weekly Cume12+ Weekly CumeIn MillionsIn Millions

12+ Weekly Cume12+ Weekly CumeIn MillionsIn Millions

0.0

5.0

10.0

15.0

20.0

25.0

94 95 96 97 98 99 00 01 02 03 04 05

20

Source: RAB, Broadcast Revenues 2005

RevenuesRevenuesIn BillionsIn Billions

RevenuesRevenuesIn BillionsIn Billions

Nationally Radio Continues To GrowNationally Radio Continues To Grow

Radio Radio MarketinMarketing Guide g Guide & Fact & Fact BookBook

Radio Radio MarketinMarketing Guide g Guide & Fact & Fact BookBook

Reach

At homeAt homeAt homeAt homeIn the In the

carcarIn the In the

carcar

At workAt workAt workAt work

OtherOtherOtherOther

Frequency

Repetition Repetition SellsSells

Repetition Repetition SellsSells

AffordabAffordablele

AffordabAffordablele

Time Spent Time Spent ListeningListening

Time Spent Time Spent ListeningListening

Targetability

Loyal audiencesLoyal audiencesLoyal audiencesLoyal audiences

Specific formatsSpecific formats

DemosDemos

Life-stylesLife-styles

EthnicityEthnicity

Specific formatsSpecific formats

DemosDemos

Life-stylesLife-styles

EthnicityEthnicity

Targetability

The Power of Sound

Imagery Transfer

Imagery TransferImagery TransferImagery TransferImagery Transfer

Close your

eyes… can you

see this TV

spot?

Theater Theater of the of the mindmind

Theater Theater of the of the mindmind

IntrusiveIntrusiveIntrusiveIntrusive

Consumer Influence

RAEL RAEL StudiesStudies-RelevanceRelevance-SynergySynergy-ROIROI

RAEL RAEL StudiesStudies-RelevanceRelevance-SynergySynergy-ROIROI

Consumer Influence – Study I

Personal Relevance, Personal Relevance, Personal ConnectionsPersonal ConnectionsPersonal Relevance, Personal Relevance, Personal ConnectionsPersonal Connections

• Wirthlin WorldwideWirthlin Worldwide• Published August, 2004Published August, 2004• Radio is more RELEVANT, Radio is more RELEVANT,

TARGETED and PERSONAL TARGETED and PERSONAL than TV or Newspaperthan TV or Newspaper

• Wirthlin WorldwideWirthlin Worldwide• Published August, 2004Published August, 2004• Radio is more RELEVANT, Radio is more RELEVANT,

TARGETED and PERSONAL TARGETED and PERSONAL than TV or Newspaperthan TV or Newspaper

Consumer Influence – Study I

Study ScaleStudy Scale“I feel like the advertisements are directed

more toward me personally.”

Favors Television

1 7Perception of MediumFavors Radio

4.4 Perception

favors Radio

Consumer Influence – Study 1

Advertisements in this medium are more honest

The advertisements are concise

I feel like the advertisements are directed more toward me personally

Advertisements in this medium are reliable

I am more likely to trust the advertising in this medium

I get more exposure to advertisements for local products and services

I can do other things while absorbing the advertising in this medium

I am more likely to trust the advertising

Provides me with last minute info about products/services before I shop

More likely to get a good deal on the products/services that I purchase

I’m less likely to waste money buying products/services that I don’t want

Advertisers who use this medium care more about reaching me personally

Advertisements make me feel more connected to my community

Radio more than TV is associated with…

5.2

4.8

4.6

4.4

4.3

5.3

5.1

4.3

4.2

4.2

4.1

4.1

4.7

Mean (rated on a scale of 1 to 7)


“If done correctly, Radio ads can really hold my attention – I can feel like someone is actually speaking directly to me.”

(Only Radio received such comments.)

Respondent 313


Advertisements are creative

The advertising is this medium is more interesting and engaging

Advertisements in this medium are intrusive

I feel like the ads are directed more toward me personally

Ads do a better job of reaching the people they are meant for

I can do other things while absorbing the advertising in this medium

The advertisements are more likely to hold my attention

Remember ad longer because ads in this medium have more impact on me

These advertisements are more likely to open my mind to new ideas

Advertisers who use this medium are trying harder to reach me

Advertisers who use this medium care more about reaching me personally

Advertisements are more fun

Radio more than Newspaper is associated with…

5.6

5.3

5.1

5.1

4.9

5.7

4.6

4.6

4.9

4.2

5.0

4.4

Mean (rated on a scale of 1 to 7)


“They come up with creative ideas to catch your attention…It makes me actually listen to the ad. I end up buying the product.”

Respondent 107

Consumer Influence – Study II

SynergySynergySynergySynergy

• The Pre-Testing CompanyThe Pre-Testing Company• Published December, 2004Published December, 2004• Reducing TV or Newspaper Reducing TV or Newspaper

and adding Radio and adding Radio increases recallincreases recall

• The Pre-Testing CompanyThe Pre-Testing Company• Published December, 2004Published December, 2004• Reducing TV or Newspaper Reducing TV or Newspaper

and adding Radio and adding Radio increases recallincreases recall



- or -

Unaided Recall

+34

%



- or -

Unaided Recall

+180%

Consumer Influence – Study III

ROIROIROIROI

• Millward-Brown and Millward-Brown and Information Resources, Inc. Information Resources, Inc. (IRI)(IRI)

• Published June, 2005Published June, 2005• Reducing TV and adding Reducing TV and adding

Radio improves ROIRadio improves ROI• Replacing TV with Radio Replacing TV with Radio

improves ROI even moreimproves ROI even more

• Millward-Brown and Millward-Brown and Information Resources, Inc. Information Resources, Inc. (IRI)(IRI)

• Published June, 2005Published June, 2005• Reducing TV and adding Reducing TV and adding

Radio improves ROIRadio improves ROI• Replacing TV with Radio Replacing TV with Radio

improves ROI even moreimproves ROI even more

Consumer Influence – Study III

ROIROIROIROI

• Real-world test of four Real-world test of four advertisersadvertisers

• Adding incremental radio to TV Adding incremental radio to TV gave a 4% lift in salesgave a 4% lift in sales

• Radio alone showed 49% better Radio alone showed 49% better ROI than TV aloneROI than TV alone

• Real-world test of four Real-world test of four advertisersadvertisers

• Adding incremental radio to TV Adding incremental radio to TV gave a 4% lift in salesgave a 4% lift in sales

• Radio alone showed 49% better Radio alone showed 49% better ROI than TV aloneROI than TV alone

radio’s advertising power reachreach frequencyfrequency targetabilitytargetability consumer...

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