how does it work? the proof of radio’s effectivess
TRANSCRIPT
How does it work?The proof of radio’s effectivess
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
Radio Effectiveness
The Sales Multiplier
The Headline Findings
The Awareness MultiplierHow did we conduct the research?
Radio lifts advertising awareness by 3% for every 100 ratings
A B C D E F G H I J K L M N O P01234567 6
5 54
3 3 3 3 3 3 3 32 2 2 2
1
Ave.
Source: Millward Brown
Brand
Awar
enes
s in
dex
Radio is four times more cost-effective than TV
AWARENESS INDEX MEDIA COST
3
1
5
7
RADIO TV
Source: Millward Brown
The Sales MultiplierHow did we conduct the research?
Radio lifts sales by 2.2% for every 100 ratings
A B C D E F G H I J K L M N O P Q0
2
4
6
8
10
12
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”
High levels of ad avoidance hinder outreach in traditional media
TV Newspapers Magazines Radio Cinema
31%37% 34%
18% 18%
Source: Clark Chapman Research
% of ads by medium which are “hard avoided” by medium
Even higher ad avoidance for internet advertising
31%37% 34%
18% 18%
62% 65%73%
Source: Clark Chapman Research
BannersPopups
% 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
Series1Series1
* 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%Uplift in awareness
Source: The Awareness Multiplier, Millward Brown
IN-MARKET AUDIENCE(ready to respond now)
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
Source: Radiocentre
IN-MARKET AUDIENCE(ready to respond now)
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
PRESS RADIO
WIDER AUDIENCE(not yet ready to respond)
Source: Radiocentre
IN-MARKET AUDIENCE(ready to respond now)
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
PRESS RADIO
WIDER AUDIENCE(not yet ready to respond)
Source: Radiocentre
IN-MARKET AUDIENCE(ready to respond now)
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
PRESS RADIO
WIDER AUDIENCE(not yet ready to respond)
The effect of ad avoidance
Source: Radiocentre
IN-MARKET AUDIENCE(ready to respond now)
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
PRESS RADIO
WIDER AUDIENCE(not yet ready to respond)
The effect of ad avoidance
Source: Radiocentre
What happens when 50% of press ads are redeployed to radio?
Source: RAEL, The Benefits of Synergy
Radio and newspapers
Radio and newspapersUnaided brand recall increases threefold
Source: RAEL – The benefits of synergy. Base c 100 respondents per group
25%
70%
Newspapers only
Radio and newspapers
Radio and the internet
A high proportion of broadband users are listening to radio when online
53%
22%
Within the last 7 days Listening now
Source: Other Lines of Enquiry Base: 523
Radio and the internet are natural partners...
The internet is best at... Radio is best at...
Helping me find information Keeping me company
Saving me time and trouble Helping me to relax
Giving me what I want when I want it
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 InternetUnaided 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
If I hear something on the radio whilst using the Internet I will search
the web for more details
Radio adverts have prompted me to search for something on the Internet
0%
10%
20%
30%
40%
50%
60%
70%59%
39%
Source: Other Lines of Enquiry
Base: 310 who listen to radio when online
Radio multiplies traffic to brand sites
Average Brand A Brand B Brand C0%
10%
20%
30%
40%
50%
60%
70%
80%
39%
63%
32%
21%
50%
69%
28%
53%
Control group (exposed to non-relevant radio ads)Test group (exposed to relevant radio ads)
Source: University of Lancaster. Base: 55
% visiting test brand sites
Radio and price promotions
Brand IRadio + own price promotion
Total volume No. of customers0%
20%
40%
60%
80%
100%
Control Test
Source: dunnhumby
% change vs. period preceding promotion
Radio in isolation
Radio’s multiplier effect
• 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
+ 180%
+ 350%
+ 15%
+ 27%
Thank you
Research sources:• The Awareness Multiplier Study (Radiocentre/Millward Brown)• The Sales Multiplier Study (Radiocentre/dunnhumby)• You can’t close your ears (Radiocentre/Clark Chapman)• The benefits of synergy (RAEL)• Radio & online (Radiocentre/IAB/Other Lines of Enquiry)• Radio and the internet (RAEL)
For further information go to: www.radiocentre.org/advertising