radio a sound investment. if radio didn’t exist today we would have to invent it. here’s why:
TRANSCRIPT
RADIO
A SOUND INVESTMENT
If Radio Didn’t Exist Today
We would have to invent it.
Here’s why:
Radio’s Unique Qualities
Radio has unique attributes that make it valuable to consumers, and therefore to marketers.
Radio & Media Accessibility
These characteristics complement the lifestyles, needs and potential media accessibility of typical American consumers.
Radio Characteristics or Assets?)
Radio is:Ubiquitous
Targeted (Personal)MobileThe ‘Multi-Tasker’ Medium
Radio & The Consumer
(
Radio is Ubiquitous
Radio is the only mass medium that is consumed - literally –everywhere… even in the shower and in the car.
Unlike TV, Print & the ‘Net, Radio Is Everywhere
Persons 12+ Total Weekly Time Spent
Radio is Targeted/Personal
•Formats•Format derivatives•Personalities•Local and Regional Nuances•Ability to connect consumers
Radio is Targeted/Personal
Highly defined formats allow the listener to select a few stations that resonate with their lifestyle, then develop a ‘personal’ relationship to the personalities, music and features.
Radio is Targeted/Personal
Sample Formats – US Radio
Adult Contemporary and Urban ACNews/Talk and CountryContemporary Hits and Classic RockOldies and Religious Adult Standards and Hip HopSmooth Jazz and Alternative
Radio is Targeted/Personal
As marketing and advertising becomes more targeted, radio’s asset value increases.“Quote here from McDonald’s CEO on the death of mass marketing”
Radio is Targeted/Personal
Veronis Suhler Communications Industry Forecast/ WSJ 1/26/04
Time Spent with Radio (and cable/ satellite TV) is Increasing Each Year.
Radio is targeted/personal
• Cable’s growth is at the expense of broadcast TV• Newspaper readership –and circulation numbers validity- continue to decline.•Radio least affected by increases in internet usage
Radio Stimulates Emotions
(Verbatim here from the Wirthlin Study interviews that indicate strong personal and emotional ties to radio.)
Radio’s Mobility is Unique
Extended commute times, an increase of women in the workplace, a dramatic rise in the use of personally owned vehicles all translate to more time spent in car- listening to Radio!
Radio’s Mobility is Unique
In 1960:
38% of all women work; few women with young children work
61% of families are “nuclear”
Majority of families have only one worker
Majority of families have only one vehicle
In 2000:
61% of women work, two- thirds with children under 6 work full or part-time. 25% of all family ‘heads of household’ are a female,alone 67% of families are NOT nuclearDual-earner families, higher incomes = one vehicle per worker
Source: U.S. Census from June 2003, Report by Nancy McGuckin, Travel Behavior AnalystNanda Srinivasan, Cambridge Systematics Inc.; Horowitz Associates, Inc ; Hal Kapp in American Way 1-15-2004
Radio’s Mobility is Unique
In- Car, Radio is forefront and intrusive.
And, we drive 3,175 more miles, or 36% more each year than in 1980.
Radio’s Mobility is Unique
41.4
59.7
81.3
99.6
112.7
0
20
40
60
80
100
120
1960 1970 1980 1990 2000
Millions of Workers commuting by POV’s(Personally Operated Vehicles)- U.S. Census
US Census and NHTA Travel Study -2003
Radio’s Mobility is Unique
In-car TSL only averages 1:30Daily just between 5a-8p. Los Angeles 1:33New York 1:24Chicago 1:24Miami/Ft. Lauderdale 1:36Dallas - 1:30
Source: Arbitron Fall 2003, DMA Ratings, Working Adults 18+.
Radio TSL is 2nd only to TV
These facets - combined with the American lifestyle realities – result in impressive Time Spent Listening (TSL) to Radio even in the face of increasing competition.
When the Commercials Air ?
Of television viewers:36% of viewers watched the breaks While14% channel surf20% talk to others in the room16% left the room11% doing something else
2004 TV Dimensions,
When the Commercials Air ?
36% of Radio listeners said they changed the station.
While only 36% of TV viewers continued watching through the breaks.
2004 TV Dimensions
Radio as the “Multi-Tasker”
Recent studies indicate that consumers positively identify with Radio as the companion medium to other activities, considering it a value, not the negative some marketers see as a ‘background medium.
Wirthlin study- hopefully
(Verbatim from Wirthlin Study if they hold from the qualitative to the larger
study…)
Radio as the “Multi-Tasker”
Chart of radio and other activities???.
Radio offers “Proximity to Purchase/Intent
Radio is most frequently the last medium a consumer is exposed to prior to making a purchase.
Radio offers “Proximity to Purchase/Intent
On Recency:
“Because products are bought everyday, brands need to remind consumers of their name and value everyday. This requires continuous advertising with effective presence, not effective frequency.
Dr. John Jones –”When Ads Work”
Radio offers “Proximity to Purchase/Intent
On Recency:
“On a tactical level, radio helps to drive awareness, delivers recency and provokes a response; it can generate commercial returns in the form of new users…. On the more strategic level, radio has a proven track record of building brands, bringing them to life, and differentiating them in the minds of its listeners.”
- Capitol Radio Group, London
Radio offers “Proximity to Purchase/Intent
63%
22%
13% 12%
33%
Radio
TV
Newspapers
Magazines
Outdoor
Adults 25-54Persons Reached by Medium
Within 1 Hour of Latest Purchase
Source: Media Targeting 2000
Radio offers Proximity to Purchase/Intent
22% 42%
23% 44%
6% 20%
4% 12%
After You Get Homefrom Work
On Your Way Homefrom Work
During Your LunchBreak
Before You Get toWork
Frequently Sometimes
Base: Work Full/Part Time
“In the course of a typical work week, how often do you shop…?”
Women 25-54
Source: Arbitron Edison NAB In-Car Study October 2003.
Radio is Cost Effective
2003-2004 CPM’s
Men Women M/HHI $75K+$ $ $
TV Avg :30
EM 17.90 11.25 100.50Daytime NA 5.60 NAEN 13.35 10.50 94.00Prime 28.25 21.90 145.00Prime Cable 10.15 9.75 69.60LF 28.10 24.00 139.65
Radio Avg :30
Network 10.15 8.50 54.05Spot 11.15 10.70 80.05
Magazines P4C
Business 25.00 NA 65.70Newsweeklies 10.80 NA 38.90Sports 9.05 NA 51.45Women's Fashion NA 10.15 NAWomen's Service NA 5.10 NA
Newspapers Top-100 Mkts 1/3 P B&W
Dailies 23.75 22.65 107.05
Outdoor 4.90 5.15 24.90
Radio is Cost Effective
2003-2004 CPM’s
Two charts here - men and women cpm’s
Radio and the Marketers
Radio & The Marketers
Agencies and Marketers disillusioned with TV – are grappling with reaching highly mobile and targeted consumersegments all point to new opportunities for Radio.
Radio is ‘Listening’
The Radio Industry and the Radio Advertising Bureau have undertaken an aggressive initiative to provide advertisers and agencies with the more consumer intelligence, and improved business systems.
Radio is ‘Listening’
Under the umbrella of ‘Accountability’, a multi-tiered, multi-year effort is underway to provide learning about ad effectiveness, demonstrate ROI, and deliver more value against ad dollars invested.
Radio:Evolving & Improving
Why now?Consolidation has made Radio stronger, an ‘old’ industry with a new business structure.Critical mass of our financial resources allows the industry to marshal itself into action
“Radio is Listening”
-Robert Liodice, President Association of National Advertisers
“The Advertiser “ Magazine -June 2004
“Radio is Pursuing Accountability With a Vengeance”
Radio is “Listening”
Accountability
RAEL
EDI
The Buy/Sell Process
RAB Redeployment
Back Room Process
Audience Measurement
Radio is “Listening”
Accountability/Perceptual Report
Slide
Scheduling/Measurement
“Radio is Pursuing Accountability With a Vengeance”
•Support of AAAA Media Policy Committee
•RAB EDI Task Force; improved backroom
•Arbitron PPM and ‘due diligence’ process
“Radio is Pursuing Accountability With a Vengeance”
•??Pricing mechanisms / improvements??
•(Gary- I know this is an issue but not sure where to take it or whether to leave it out…)
Radio is “Listening”
The Radio Ad Effectiveness Lab
“Consumer Research designed and approved by agencies and advertisers,
funded by the radio Industry”
Radio is “Listening”
RAEL
Effective Creative
Media and Emotions
ROI –The Holy Grail
Radio is “Listening”
Media and Emotions
“quote from ARF on need for this type of research”
Wirthlin descriptor
Radio is “Listening”
Wirthlin description
Release date
Radio is Evolving &Improving
Meaningful Consumer Research
Consistent Dialogue w/Trading Partners to improve Buy/Sell Process
Radio is Evolving &Improving
HD Radio
Back Room Processes
Arbitron
New Format development?
“Radio has the ability to change consumer thinking and behavior”
-Keith Reinhard, President
Business for Diplomatic Action
&
Chairman of DDB Worldwide
“Creatives and Radio
Over 70 creative directors invlovled in the judging and staging of the 2004
radio Mercury creative awards
Radio Revenue is consistent in the long term
Long term Revenue stats here