How does it work? The evidence for radio’s effectiveness
Mar 31, 2015
How does it work?The evidence for radio’s effectiveness
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
The Sales Multiplier
Radio effectiveness – the headline findings
The Awareness MultiplierHow did we conduct the research?
Radio lifts advertising awareness by 3% for every 100 ratings
Ave.
Source: Millward Brown
Brand
Awareness index
Radio is four times more cost-effective than TV
Source: Millward Brown
The Sales Multiplier
Radio effectiveness – the headline findings
The Sales MultiplierHow did we conduct the research?
Radio lifts sales by 2.2% for every 100 ratings
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”
Source: Clark Chapman Research
% of ads by medium which are “hard avoided” by medium
High levels of ad avoidance hinder outreach in traditional media
% of ads which are “hard avoided” by medium
Source: Clark Chapman Research
% of ads by medium which are “hard avoided” by medium
High levels of ad avoidance hinder outreach in traditional media
Source: Clark Chapman Research
% of ads by medium which are “hard avoided” by medium
High levels of ad avoidance hinder outreach in traditional media
Source: Clark Chapman Research
Even higher ad avoidance for internet advertising
Banners Popups
% 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
* 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%
Source: The Awareness Multiplier, Millward Brown
Radio and newspapers
IN-MARKET AUDIENCE(ready to respond now)
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
Source: RAB
IN-MARKET AUDIENCE(ready to respond now)
PRESS RADIO
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
Source: RAB
WIDER AUDIENCE(not yet ready to respond)
IN-MARKET AUDIENCE(ready to respond now)
PRESS RADIO
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
Source: RAB
Source: RAB
WIDER AUDIENCE(not yet ready to respond)
IN-MARKET AUDIENCE(ready to respond now)
The effect of ad avoidance
PRESS RADIO
Radio and newspapersAd avoidance challenges an advertiser’s ability to reach new consumers
Source: RAB
WIDER AUDIENCE(not yet ready to respond)
IN-MARKET AUDIENCE(ready to respond now)
The effect of ad avoidance
PRESS RADIO
Radio and newspapersRadio’s low ad avoidance enables it to get messages under the radar
What happens when 50% of press ads are redeployed to radio?
Source: RAEL, The Benefits of Synergy
Radio and newspapers
Source: RAEL – The benefits of synergy. Base c 100 respondents per group
Radio and newspapers
Unaided brand recall increases threefold
25%
70%
Newspapers only Radio and newspapers
Radio and the internet
Source: Other Lines of Enquiry Base: 523
A high proportion of broadband users are listening to radio when online
Radio and the internet are natural partners…
The internet is best at…
• Helping me find information
• Saving me time and trouble
• Giving me what I want when I want it
Radio is best at…
• Keeping me company
• Helping me to relax
• 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 Internet
Unaided 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
Source: Other Lines of Enquiry Base: 310 who listen to radio when online
Radio multiplies traffic to brand sites
Source: University of Lancaster. Base: 55
% visiting test brand sites
Radio and price promotions
Brand IRadio vs. competitor price promo
Total Volume
Source: dunnhumby% change vs. period preceding promotion
Brand IRadio vs. competitor price promo
Total Volume
Source: dunnhumby% change vs. period preceding promotion
Brand IRadio vs. competitor price promo
Source: dunnhumby% change vs. period preceding promotion
Total Volume
Brand IRadio + own price promotion
Source: dunnhumby
% change vs. period preceding promotion
Brand IRadio + own price promotion
Source: dunnhumby
% change vs. period preceding promotion
Source: dunnhumby
% change vs. period preceding promotion
Brand IRadio + own price promotion
Radio in isolation
• 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
Radio’s multiplier effect
+ 180%
+ 350%
+ 15%
+ 27%
Thank you
Research sources:• The Awareness Multiplier Study (RAB/Millward Brown)• The Sales Multiplier Study (RAB/dunnhumby)• You can’t close your ears (RAB/Clark Chapman)• The benefits of synergy (RAEL)• Radio & online (RAB/IAB/Other Lines of Enquiry)• Radio and the internet (RAEL)
For further information go to: www.rab.co.uk