Tuesday, July 5, 2011 | Edited by Daniel Moores
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New Study Highlights Radio's Positive Impact on Its Audience Medium's Influence on Listeners' Happiness, Energy Levels Enhances the Effectiveness of Radio Advertising Does radio make its listeners happier and more energetic, which in turn, results in a more receptive advertising audience? According to a new study commissioned by the Radio Advertising Bureau of the United Kingdom, the answer is a resounding "yes." The survey, titled Radio: The Emotional Multiplier, was conducted by Sparkler Research during the Spring of this year. Through a smartphone-based sampling of 1,000 consumers, it set out to determine the positive effects of media on the emotional state of individuals. The participants in the study were prompted to respond to questions via their handsets relating to their location, media usage -- and overall mood -- at various times of the day. The main survey was supplemented by a small-scale neuroscience (brain scan) test. According to the study, "People use media to make themselves feel happier, and happier people are more inclined to respond to advertising in an instinctive, emotional way. This study shows that radio excels as a 'feel-good' medium, and importantly, that this effect extends into enhanced consumer engagement with the advertising." The study revealed five key findings: 1. Consuming any medium (TV, online, radio) has a significant uplifting effect on people's mood. 2. Radio generates the highest Happiness and Energy levels of the three media measured, and on more occasions.
4. So for advertisers, radio represents a unique and powerful opportunity to reach consumers in a positive frame of mind, when they will be more receptive to advertising messages. 5. Radio is a powerful Emotional Multiplier, boosting consumer happiness and enhancing receptiveness to advertising. As a reason for why radio generally outperforms TV and the Internet in terms of improving happiness and energy, the study noted that "it (radio) is chosen as a kind of lifestyle support system, to help people feel better as they go about their daily lives. In this context, it was interesting that some respondents talked about how they didn't realize how important radio is in their lives until they had participated in this exercise." The survey also stated that "the nature of radio programming also plays a role. Rather than the peaks and troughs that people claimed to experience with TV and online, radio provides a consistent environment themed and shaped to suit the listener's needs at any given time of day, and one that is generally upbeat in tone. Radio presenters are focused 100% on delivering a positive experience for the listener." The results of the UK survey reinforce the findings of several RAB Radio Ad Lab studies that have been conducted over the years, including the Engaging Consumer Emotions series, the Radio and the Internet report, the Personal Relevance series and the Synergy study. The entire Radio: The Emotional Multiplier survey can be accessed on www.rab.com by clicking here. To view the Radio Ad Lab studies, follow this link. |
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Affluent Americans More Optimistic, Within Reason Affluent Americans -- those in households making over $100,000 per year -- may be just 20% of U.S. households, but they represent 70% of consumer wealth. They are also twice as likely to buy things, and spend 3.2 times what everyone else spends. But since the recession, are the 58 million adults and 24 million households that belong to the affluent category still buying? According to a new survey-based study by Ipsos Mendelsohn, they are, in fact, starting to feel better about the economy after their sentiment dipped to a low in April this year. "Everything is coming slowly back; I'm not worried about inflation or excesses in the marketplace" were typical survey comments. Most affluents also said they see recovery in a year and a half, with 40% of respondents saying the economy will be back on track by 2013. Fifty-two percent believe they will be better off in a year, while 28% said they will not be, and 20% are unsure. The study, based on online surveys, also asked affluents to look at the past decade and how their quality of life had changed. The majority -- almost 80% -- said their lives are more intertwined with technology, while nearly 60% said their lives are more complicated and more stressful. About 47% said their lives are "more fun," while a third of respondents said life has become easier. About a quarter said they are more isolated. "I think that they recognize the pros and cons of technology, but with all that they continue to buy with great enthusiasm," says Stephen Kraus, VP and chief research and insights officer at Ipsos Mendelsohn. Kraus tells Marketing Daily that sales of e-readers and tablets to affluent consumers have doubled over the past six months. "So while they love buying new technology, they recognize that it has made life more stressful," he says. The study also suggests the blush is off ostentatious investment, and on experiences. Affluent consumers are focusing on travel (72% of respondents) with redecorating and investing in the markets coming in a distant second and third. About 27% said they planned to buy a new vehicle, while only 11% said they will invest in real estate or buy luxury items like expensive watches. Unfortunately for the watercraft market, only 4% said they plan to invest in sailboats and power boats. Kraus says materialism has been replaced by affluent consumers' desire to spend on experiences. "Back in '05 everyone was getting rich and there was such a joy in consumption and acquisition," he says. "Now, with the future in doubt, the focus has changed. And there is also the importance of family, and family travel. Affluent consumers seek anything that brings families closer together." And that is tied to the association between stress and connectivity. "The last bastion used to be the airplane, but now you can get Internet on the airplane, so almost the new status symbol is the ability to become truly disconnected," says Kraus. When asked on a product-category level how their interest in different products will change over the next half year, there was a much bigger uptick in intent among men than women over things like autos, electronics, alcoholic beverages, home and garden, clothing and accessories, personal care and wellness, and insurance. Ipsos also found that men were generally more optimistic than women. But in personal care and wellness, women were more likely to say they would purchase premium brands. They are also spending more time on Groupon.com, Amazon and etsy.com. The study also found a big behavioral difference between people making less than and those making more than a quarter million dollars a year. For instance, more of those in the $250,000-and-up club are planning to buy and redecorate houses and grounds, invest in fine watches and apparel, and get plastic surgery this year than in 2010. Kraus says that difference reflects something else about the U.S. economy that has been in process since the middle of the last century: The rich are getting richer and the middle and upper-middle class are disappearing. "Some people have used the phrase 'Tiffany Recovery' to describe what's happening in the high end," he says. "Meanwhile, if you think about luxury back in 2005 and 2006, everyone was talking about the aspirational luxury shopper. But those folks have disappeared and haven't come back, and we don't expect them to come back." He points out that people making $250,000 and up -- while they constitute 1.5% to 2% of the population -- own a third of the net worth in the U.S., "so even within the affluent range there is a huge concentration of wealth that has grown over the last 30 years." Even the very wealthy, however, are moving away from ostentatious luxury items as status symbols. Kraus says that although sentiment has moderated somewhat from when the recession first began "and there were anecdotal stories about people going to Bergdorf Goodman and asking for items to be put in plain brown paper bags," people now want luxury brands that are seen as smart. He notes a new campaign for Ford's Lincoln brand with the line, "It's not just luxury. It's smarter than that." "The Maybachs and Bentleys are not viewed with the same cachet as they were," says Kraus. (Source: Marketing Daily, 06/28/11) |
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NAB HD Radio Multicast Award Nomination Process Begins According to the National Association of Broadcasters, the nomination process for the NAB HD Radio Multicast Award, which recognizes creative and compelling digital programming, is now underway. The deadline for submitting entries is July 31. Established in 2007, the award recognizes an HD Radio multicast station at the forefront of creating unique, innovative or groundbreaking programming. The award will be presented during the 2011 Radio Show, September 14-16, in Chicago. Previous award recipients include KBCO-FM Denver's "The Studio C Channel;" WRIF-FM Detroit's "Riff2;" WHUR-WORLD, an extension of Howard University's WHUR-FM; WAMU-FM for its Bluegrass Country station, 88.5-2; and WSTW-FM in Delaware, MD for its 93.7-2 "Graffiti Radio" channel. Stations must submit their entry online at http://www.nab.org/hdaward/ and may contact Melek Demir at mdemir@nab.org or 202-775-3511 for additional information. About the Radio Show The 2011 Radio Show, produced by the Radio Advertising Bureau and the National Association of Broadcasters, will be held September 14-16 in Chicago. This year's show brings radio broadcasters and industry colleagues together to share knowledge, discover the latest innovations, network with industry leaders and explore creative business strategies to help radio flourish in the digital age. To learn more about the 2011 Radio Show, visit www.radioshowweb.com. |
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