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