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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
20062006In MillionsIn Millions
2630
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
20062006In MillionsIn Millions
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
New Media LandscapeNew Media Landscape
# 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
Reach
At homeAt homeAt homeAt homeIn the In the
carcarIn the In the
carcar
At workAt workAt workAt work
OtherOtherOtherOther
Reach
At homeAt homeAt homeAt homeIn the In the
carcarIn the In the
carcar
At workAt workAt workAt work
OtherOtherOtherOther
Reach
At homeAt homeAt homeAt homeIn the In the
carcarIn the In the
carcar
At workAt workAt workAt work
OtherOtherOtherOther
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
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
Targetability
Targetability
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)
Consumer Influence – Study 1
“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
Consumer Influence – Study 1
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)
Consumer Influence – Study 1
“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
Consumer Influence – Study II
SynergySynergySynergySynergy
- or -
Unaided Recall
+34
%
Consumer Influence – Study II
SynergySynergySynergySynergy
- 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