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Radio - An Effective Medium


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  • Radio has the human voice to convince.
    • A medium for all seasons and tuned into winter, spring, summer and fall
    • The top choice for audio and entertainment - at home, in car and on the go
  • Radio's strength is brand building
    • Radio ads are much more personally relevant than ads in all other media.
      (Source: Radio Ad Lab "Personal Relevance I & II)
    • People who listen to broadcast radio feel more alert than when consuming other media.
      (Source: Where Radio Fits - Radio's Strengths in the Media Landscape, 2012, Nielsen Audio and MBI TouchPoints)
    • Radio has the human voice to convince.
      • 52% of people with a favorite personality stated that that personality influences their opinion.
        (Source: USC, Annenberg School for Communication & Journalism, PSI Study released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in Los Angeles)
    • Radio ads prompt consumer response
      • 41% of P12+ visited an advertised store after hearing a broadcast radio ad
      • 28% of P12+ visited an advertiser's website
        (Source: The Infinite Dial 2013 - Arbitron, Inc. / Edison Research)
  • Radio has the human voice to convince
    • Radio ads are much more personally relevant than ads in all other media.
      (Source: Radio Ad Lab "Personal Relevance I & II)
    • Radio has ads that are honest and believable.
      (Source: "Radio Tomorrow", 2012, Alan Burns & Assoc. and Triton Digital)
    • People turn on the radio because they know their favorite personality is on the air.
      (Source: USC, Annenberg School for Communication & Journalism, PSI Study released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in Los Angeles)
    • Radio listeners have called into a station, met a DJ in their community, or interacted in some other manner.
      (Source: Woodley, P. Parasocial Interaction between On-Air Radio Personalities and Listeners. USA, Annenberg Scholl for Communication & Journalism, released April 2014)
    • 55% of respondents stated that hearing one of their favorite radio station personalities provide testimonials for health care or medical products or services made them trust that product or service.
      (Source: Radio Advertising Bureau F.C.T. Report on healthcare, 2014)
  • Radio increases recall and brand preference
    • When radio is included within a plan, it boosts brand recall and brand preference.
      (Source: Radio Ad Lab - "The Benefits of Synergy," "Radio's ROI Advantage" and "Radio and the Internet: Powerful Complements for Advertisers" )
    • When 15% of a TV-only campaign is reallocated to radio, the campaign's reach and receptivity significantly increases.
      (Source: A Smarter Mix, 2012, Clear Channel Media + Entertainment and MBI TouchPoints
    • Radio drives loyalty: Radio increased shopper retention for a big box retailer by as much as 11%.
      (Source: Nielsen Catalina Solutions Copyright 2014)
  • Radio helps drive traffic and interest in your brand
    • Radio is the medium used closest to the point of purchase.
      (Source: Where Radio Fits - Radio's Strengths in the Media Landscape, 2012, Nielsen Audio and MBI TouchPoints)
    • A Radio/Internet-mix plan showed greater impact in website visitation and purchase likelihood.
      (Sources: Radio Ad Lab "Radio and the Internet: Powerful Complements for Advertisers" and RAB U.K, "Radio: The Online Multiplier")
    • Radio's digital platforms also improve campaign effectiveness. Ad response rates increase 3½ times when Internet Radio is used in combination with AM/FM Radio.
      (Source: TargetSpot Study: "Internet Radio Advertising Impact Study" with Parks Associates, 2011)
    • When radio is included within a plan, it boosts brand recall and brand preference.
      (Source: Radio Ad Lab - "The Benefits of Synergy," "Radio's ROI Advantage" and "Radio and the Internet: Powerful Complements for Advertisers")
    • Radio campaigns deliver a 49% ROI advantage over TV (increase in sales).
      (Source: Radio Ad Lab "Radio's ROI Advantage")
    • A media advertiser saw a 16% conversion rate for promos when using radio as a reminder medium, building increased frequency.
      (Source: Nielsen Catalina Solutions Copyright 2014)
    • Radio personalities are influentials.
      • 51% of people with a favorite radio personality have considered or purchased a product/service advertised during their favorite radio personality's show. (Source: USC, Annenberg School for Communication & Journalism, PSI Study released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in Los Angeles)
  • Radio Boosts ROI
    • Radio campaigns deliver a 49% ROI advantage over TV (increase in sales).
      (Source: Radio Ad Lab "Radio's ROI Advantage")
    • When 15% of a TV-only campaign is reallocated to radio, the campaign's reach and receptivity significantly increases.
      (Source: A Smarter Mix, 2012, Clear Channel Media + Entertainment and MBI TouchPoints)
    • Reallocation of existing ad budgets to give Radio 20% share of spending increases overall campaign ROI by eight times.
      (Source: Radio: The ROI Multiplier, RAB U.K., 2013)

  • Study Summaries on Radio Effectiveness:
    • Nielsen, Nielsen Catalina Solutions, 2014
      • Based on a study of 10 brands that advertised on Clear Channel
      • Combined data from Nielsen's newly acquired radio-audience measurement business with shopper-card data from Catalina
      • Brands averaged a sales lift of more than $6 for every $1 spent on radio ads - an ROI double that of even the best results from many recent studies of digital or TV media
      • One retail brand delivered an almost unheard of $23.21 in sales lift for every $1 invested
    • Marketing Evolution and Clear Channel Media, 2014
      • Based on a study to measure the ROI on a new menu marketing campaign for Romano's Macaroni Grill across national cable TV networks and four radio markets _ Tampa, Cleveland, Denver and Dallas
      • Results showed that combining TV and radio marketing would yield higher Top of Mind Awareness scores with no additional investment
      • In the case of Macaroni Grill, more impact was achieved with a 77 percent TV and 23 percent radio campaign-spend mix
      • There was an increase in Top of Mind Awareness (+8 points) in the radio test markets
    • Radio: The ROI Multiplier, RAB U.K., 2013
      • Based on ROI data supplied by nine econometric agencies representing all major media agency groups and covering over 2,000 individual media campaigns across 517 separate ad campaigns
      • Covered 10 major sectors using multi-media combinations
      • On average radio advertisers got their money back 7.7X over.
      • In terms of media planning, it is coverage rather than frequency which boosts radio ROI.
      • Brands which reallocate more of their ad budgets to radio see significantly higher returns in terms of overall campaign ROI
    • A Smarter Mix, Clear Channel iHeartRadio Insights, 2012
      • Based on work with seven actual brand media plans in diverse categories: 2 Auto OEMs, 2 Financial Services, 2 Quick Serve Restaurants and 1 Home Improvement
      • Reallocated 5%, 10% and 15% of the TV budget to radio and assess the impact of the new media mix on campaign effectiveness
      • In each instance, radio increased reach significantly without any increase to spend.