Post on 11-Aug-2015
CONTENTS
Radio in the Media Landscape Radio is America’s Companion Radio vs. Music Streaming Services Radio’s Unique Capabilities Radio’s Power to Amplify Radio: Advertising that Works
1950 TodayUp 1,100,000
listeners in the past year in the
US alone!
Radio reaches 245,000,000 US consumers per week who spend 2-2/3 hours/day listening
Source: June 2015 RADAR® 125 and June 2015 RADAR® 121 Mon- Sun 12A-12A. Persons 12+
RADIO CONTINUES TO BE A “BIG THREE” MASS MEDIUM
CAMPAIGN CONUNDRUM:
• Consumers are receiving information from more sources than ever. How will you reach them?
• 900+ TV networks available anywhere anyplace means ratings are spread out over hundreds of channels and programs
• The majority of homes use a DVR to time-shift primetime programming
• iTunes alone now features over 1 million apps
• Internet is home to over 3 billion web properties.
Radio is
EverywhereHome / In-Dash / Digital / Internet / Streaming / Mobile / Wi-Fi / Tablet
Radio offers unique, compelling content and connection - no matter how or where listeners go to find it
NEARLY EVERYONE USES RADIO. IN REAL TIME. EVERY WEEK.
P 12+ P 18-34 P 25-54 P 35-64 Hisp18-49
AA/Blk18-49
W 25-54 P 18-49HH $75K+
P 18-34Col Ed
M 25-54Emp.
91% 91% 93% 94% 94% 92% 94% 93% 93% 94%
Weekly Radio Usage
Radio reaches 9 out of 10 people in virtually every segment of the population. That has been true year after year and remains true today.Listeners12+ spend more than 2-1/2 hours a day with radio.
Source: June 2015 RADAR® 124 Mon- Sun 24 hour cume and P12+ avg daily TSL
66%Agree that
their favorite radio stations
reflect who they are as a
person*
80%Have called
into a station, met a DJ in
their community, or interacted in some other
manner
70%Consider radio personalities to
be regular people like
themselves, who are “relatable”
and “authentic” and would truly
miss them if they were gone
60%Think radio
hosts are “like a friend,”
whose opinions they
trust and value
Sources: Woodley, P. Parasocial Interaction between On‐air Radio Personalities and Listeners. USC, Annenberg School for Communication & Journalism, released April 14, 2014; *Latitude Research and OpenMind Strategy. State of Listening in America. May 2013
This relationship carries over to advertisers who become a part of these “Virtual Neighborhoods”.
RADIO HAS THE POWER OF PERSONAL CONNECTION
82%Feel they have
a personal relationship
with their favorite DJ
67%
Agreed “If you couldn’t listen to radio, you’d feel something important was missing from your life.”
Radio connects with people
Source: Latitude Research and OpenMind Strategy. State of Listening in America. May 2013
PEOPLE ARE MORE CONNECTED TO THEIR FAVORITE RADIO STATION THAN TO FACEBOOK
Total <18 18-34 35-54 55+
62% 60% 62% 63%60%
45%
53% 54%
45%
34%
My favorite radio station went away Facebook went away
Read: I would be very disappointed if…
Source: Alan Burns/Triton Digital “The Future of Radio” September 2012 National Consumer Database; 25,000,000 Panelists; August & September 2012;All Ages, Genders and Format Fans; Total Polled = 41,252; Roughly in Line with 2010 Census;
RADIO IS A DOMINANT MEDIUM FOR YOUNG ADULTS 18-34
Radio Internet Broadcast TV Cable TV Mobile Internet0%
100%
Source: Scarborough USA+ 2014 Release 2 Total (Aug 2013 – Sep 2014) Persons 18-34
Used the medium within the last 7 days
Radio Internet Broadcast TV Cable TV Mobile Internet0%
100%
RADIO IS THE #1 CHOICE FOR REACHING ADULTS 25-54
Used the medium within the last 7 days
Source: Scarborough USA+ 2014 Release 2 Total (Aug 2013 – Sep 2014) Persons 25-54
108
109
113
106
114
110
117
$150+ Wireless Bills Last month
Heavy Grocery ShoppersHHLD spent $200+ in past week
Employed Full Time
Luxury Vehicles HH plans to buy/lease in next 12 months
Frequent Fast Food Consumers10+ times in past 30 days
$100K+ Household Income
Upscale HotelsStayed in the past 12 months
HEAVY RADIO LISTENERS ARE PRIME CONSUMER TARGETS
Index:
Source: Scarborough USA+ 2014 Release 2 Total (Aug 2013 – Sep 2014). Adult 18+ Heavy Radio Users (Top 2 Quintiles)
TargetM21-34
20%Outside Target Demo
80%
TargetW18-49
31%Outside Target Demo
69%
Primary Demos% of Users
Source: 2014 Doublebase GfK MRI. %’s are based on Adults 18+ (except for beer, A21+)
Radio reaches the entire brand user group
RADIO REACHES CONSUMERS BEYOND YOUR TARGET DEMO
Grocery Shopping
Retail ShoppingBeer
Quick Service Restaurants
TargetA18-34
31%Outside Target Demo
69%
TargetW25-54
28%Outside Target Demo
72%
The power of radio broadcasting allows you to reach all your customers
Douglas RushkoffNoted author (“Present Shock,” “Wired”), futurist, corporate advisor June 2014 New York State Broadcasters Assn. Conference
If you continue down the road of narrowing the target by eliminating people who do not match exactly your criteria, you will eventually eliminate your business.
“Radio is my community”
• Connections to personalities, on air and online with two-way communication
• A place to belong to, identify with… a VIRTUAL NEIGHBORHOOD
• Local information -- entertainment, news, traffic, weather, opinions, sports, events, opportunities
• Community support and involvement
• Instant information about disasters or other critical community news
BROADCAST RADIO’S ROLE IS UNIQUE
“Radio is my community”
Consumers look for different things from Radio that Music Streaming Services cannot match
BROADCAST RADIO DOMINATES THE A18-34 AUDIO UNIVERSE
Music Streaming Service19%
94% or more of all 18-34, 18-49 and 25-54 Pandora users listen to AM/FM radio weekly
Source: 2014.1 USA TouchPoints. Share of Daily Time Spent Listening for Adults 18-34. Note: AM/FM Radio includes HD Radio and Radio Station Streaming; Scarborough USA+ 2014 Release 2 Total (Aug 2013 - Sep 2014)) Persons 18-34, 18-49,
18-54 who used Pandora (website or app) in the past 30 days
AM/FM Radio81%Daily Time Spent Listening
202M217M
35M
86M
22M31M
BROADCAST RADIO CONTINUES TO DOMINATE EVEN AS THE DIGITAL LANDSCAPE GROWS
Internet Radio 51 million new listeners
Radio15 million new listeners
Satellite Radio9 million new listeners
2010
Note: Streaming Audio includes AM/FM Radio Station Streaming midSource: Scarborough 2010-2014 Release 2. Weekly Users of Broadcast and Satellite Radio, and Monthly Users of Streaming Audio 18+
Today
BroadcastRadio
StreamingAudio
SatelliteRadio
BroadcastRadio
StreamingAudio
SatelliteRadio
Adults 18+
164B
1.1B 151M
55%
-12% -12%
Music Units Consumed Y/Y Growth
SALES OF PHYSICAL OR DIGITAL MUSIC CONTINUE TO DECLINE AS STREAMING GROWS
USA Music Consumption, 2014
Physical Album Sales
Digital Track SalesMusic Streams
Consumers are listening to less of their personal music collections, not less Radio.
Source: 2014 Nielsen Music U.S. Report. Note: Absolute consumption comparisons are apples-to-oranges as the digital tracks/physical album sales are likely played multiple times, but the data is illustrative as grown rate is key indicator
RADIO DIGITAL OFFERINGS CONTINUE TO GROW
Technology has allowed Radio to touch listeners across devices and platforms
• Personalities in just the top 25 markets have more than 47 million Facebook friends and 60 million Twitter followers
• More than 7,200 streaming Radio stations in 2013
• More than 20 million HD radios now in use (20+ million in automobiles)
• Databases and outbound texting ability remain a source for targeted marketing by advertisers
• FM chips embedded in various mobile devices allow data-free listening
Sources: Inside Radio / M Street Corp., 2014 - No Canadian or Mexican stations are included ; HD Radio stat from iBiquity – Inside Radio 9-5-13; RadioWorld.com “Automakers Speed HD Adoption” 2/13/2014; KMS Radio personality Facebook and Twitter accounts research October 2014
RADIO IS THE ORIGINAL SOCIAL NETWORK FOR CONNECTING WITH CONSUMERS 18-34
On a typical day for people 18-34:
• 160% more will use Radio than will go to all Google Sites
• 160% more will use Radio than will go to Facebook
• 190% more will use Radio than will go to YouTube
• 1000% more will use Radio than will go to Twitter
55
21 21 19
5
Radio TwitterFacebook YouTubeGoogle Sites
Adults 18-34 in Millions
Sources: Source: comScore Inc Ratings for March 2015 Average Daily Visitors, Multiplatform 18-34, factored from PC composition; RADAR 125 June 2015, P18-34, M-M plus KDR digital from comScore
Mass Media with the Community TouchWhether it’s on-air personal endorsements, community events, sampling or local sponsorships… no other medium gets your brand closer to consumers in their own neighborhoods.
Local RadioConsumers
Personal Endorsements
Community Event Sponsorships
Experiential Brand Events
Product Sampling
PEOPLE HEAR COMMERCIALS ON RADIO
TUNE-IN IS HIGH DURING COMMERCIAL BREAKS ACROSS AGES AND GENDER
6+ 12-17 18-34 25-54 35-64 65+ Male Female
93% 90% 89% 92% 93%98%
93% 92%
Radio’s Audience Delivery During an Average Minute of Commercial Breaks by Age/Gender
Source: Arbitron, Media Monitors and Coleman analyzed 17.9 million radio commercial breaks from October 2010 to September 2011 across the aggregate markets measured by PPM and Media Monitors, comparing the audience level for each minute of a commercial break to the audience for the minute before the commercials began.
THE POWER OF WHEN – RADIO TOPS ALL OTHER MEDIA IN USAGE OUTSIDE OF THE HOME
Closest to where it matters… Consumers spending their money shopping, going to the movies, finding a restaurant, looking for something to do, etc.
Note: Radio includes radio station streaming, Internet excludes email, Television includes live and time-shifted, but excludes Spanish language channelsSource: 2014.1 USA TouchPoints. Percent of daily usage occurring out of home for Adults 18-54, M-Su 12a-12a.
Radio
Mob
ile In
tern
et
Inte
rnet
via
Compu
ter
Broad
cast
TV
Cable
TV0%
40%
80% (Adults 18-54 / 12A-12A)
Other
All Audio Streaming
Satellite
Radio
2%
6%
8%
84%
RADIO TOPS ALL OTHER IN-CAR AUDIO OPTIONS
(% total listening hours by platform in the car)
Even in connected cars
Source: Audio Demand Landscape (2014); Custom primary research, not Nielsen measured data sources; TCG Analysis Audio Demand Framework
Radio Outdoor Television Newspapers Internet Magazines0%
25%
50%
% of consumers using an advertising supported medium one half-hour before shopping
48% OF PURCHASE DECISIONS OCCUR WITHIN 30 MINUTES OF THE PURCHASE
Source: Arbitron Inc. and Edison Research. The Infinite Dial 2013; POPAI 2014
Radio engages more consumers in that period than any other medium
6:00
AM
7:00
AM
8:00
AM
9:00
AM
10:0
0 AM
11:0
0 AM
12:0
0 PM
1:00
PM
2:00
PM
3:00
PM
4:00
PM
5:00
PM
6:00
PM
7:00
PM
8:00
PM
9:00
PM
10:0
0 PM
11:0
0 PM
0%
5%
10%
15%
20%
25%
30%
35%
40% % Reach of OOH Media by HourNET Mon-Sun / Women 25-54
Shopping AM/FM Radio Internet via Computer
AM/FM Radio
Mobile Internet
In-Store Shoppin
g
Cable TV
Broadcast TV
80% of weekly In-Store Shopping takes place during midday
Radio Rules During Key Shopping Time
Source: 2014.1 USA TouchPoints. Reach of Media consumed Out of Home by Women 25-54 NET Mon-Sun. AM/FM Radio includes HD Radio and radio station streams; Internet excludes email; Television includes live and time-shifted viewing; Cable TV excludes premium channels
Radio is the medium most consumed during these peak shopping hours
Internet via Computer
HEAVY RADIO LISTENERS ARE ALSO HEAVILY ENGAGED WITH SOCIAL MEDIA
12% more likely to write online blogs
9% more likely to use Twitter
6% more likely to use Facebook vs. the average US adult
Note: Internet and Social Networking activities done in the last 30 daysSource: 2014 Doublebase GfK MRI. Heavy Radio Listeners 18+ (Quintiles I & II);
Radio has enormous power to multiply a brand’s message
Radio29B
Billions in Word-of-Mouth Impressions across all key product categories
49% more…Word of Mouth,Recommendations,Introductions,Trials & Sampling,Passing Along,Town Criers,Buying for Two,Friends Talking to Friends,Maven Activity,Spreading the Word
…Consumer BuzzSocial Media
19.4B
RADIO’S INHERENT SOCIAL PROGRAMMING + RADIO’S ACTIVE SOCIAL LISTENER = MASSIVE BRAND AMPLIFICATION
Source: Keller Fay Group. 2013
WHAT IS RADIO ROI?
A breakthrough collaboration between Nielsen and various partners creating the first single-source ROI tool for radio.
NIELSEN AUDIO DATA
CONSUMER DATA
Copyright ©2014 The Nielsen Company. Confidential and proprietary
$6.21
All Category Average
$11.15
Retail “Y”
SPENDING ON RADIO MAKE YOU MONEY…OVER $6 OF INCREMENTAL SALES FOR EVERY $1 SPENT
PAYBACK Per $1 Ad Investment
$1.81Breakfast Bar
$7.33
Snacks “X” $4.17Beer
Ratio of incremental sales revenue per thousand to advertising cost per thousand = Payback
$3.81Soft Drink “A”
$4.33Snacks “W” $23.21
Retail “Z”
$1.38Soft Drink “B”
$3.12Candy
$1.97Soft Drink “C”
Source: Nielsen Catalina Solutions Studies of 10 radio ad campaigns, March 26, 2014
RADIO GENERATED A $14 RETURN FOR EVERY AD DOLLAR SPENT BY A TELECO
NOTE: “Telco” spend defined as having made purchase from “Telco,” including but not limited to wireless plans and accessories.
MONTHLY SPEND PER EXPOSED
“Telco” CUSTOMER
People who heard ads on radio spent more and Millennials spent twice as much more
SOURCE: Nielsen Buyer Insights, P18+. Full Campaign (1/1/14-3/31/14
$14 : $1Campaign ROAS
+$8
+$16
Copyright ©2014 The Nielsen Company. Confidential and proprietary
RADIO DRIVES TV RATINGS
Nearly 1 in 5 listeners who heard the spot tuned into the TV broadcast.
Radio demonstrated
conversion rate for promos
16%
Online
Cinema
Radio
Television
2%
3%
18%
76%
Copyright ©2014 The Nielsen Company. Confidential and proprietary
RADIO DRIVES TV TUNE - IN
In only one week, radio delivered nearly
a QUARTER of the reach that TV did in 14 weeks.
Cable Drama Premier: Promo Campaign% of Campaign Reach by Platform
(1 week)
(14 weeks)
(12 weeks)
(10 weeks)
Copyright ©2014 The Nielsen Company. Confidential and proprietary
RADIO ADVERTISING KEEPS CUSTOMERS
Radio increased retention by as much as
for a big box retailer
Radio works well for driving
loyalty 11%
Advocacy
Affinity/Likeability
Purchase Intent
Consideration
Awareness
37%
38%
19%
23%
17%
Nine Study Average % Lift:
RADIO’S EMOTIONAL CONNECTION DRIVES BRAND METRICS ASSOCIATED WITH WOM
(Exposed consumers vs. unexposed consumers)
Source: Ipsos MediaCT / OTX Custom Research 2011-2013
RADIO IN THE MEDIA MIX ELEVATES AWARENESS LEVELS OF ALL OTHER ADVERTISING
TV Online on a PC Online on a mobile phone or tablet
0
20
40
60
40%
2% 1%
54%
8%
2%
No Radio Exposed to Radio
Awareness Lift Among Total Decision Makers
+300% +100%
Copyright ©2015 The Nielsen Company. Confidential and proprietary, study conducted in early 2015
35%
Q: Where else have you seen or heard advertising recently for X Brand?
I will consider buying the brand
I will visit the brand's website
I will look up more information about the brand
I am more interested in the brand
57%
51%
48%
55%
47%
39%
39%
44%
National Localized
+23%
+31%
+21%
BRAND ACTIONS
LOCALIZED ADS GENERATE BETTER REACTIONS THAN NATIONAL ADS
+25%
Source: Jan-Feb 2015 IPSOS study for Fortune 500 Insurance Co.
% LIFT
21%
34%
+13%
% B
ran
d A
wa
ren
ess
62%
Toyota TeenDrive365 Campaign – Aided Recall
Source: Ipsos MediaCT custom research 2014
Not Exposed to Radio
Exposed to Radio
RADIO ADVERTISING DRIVES BRAND AWARENESS
“We know based on the positive results that we have seen since launch that Radio will continue to be an important piece of the TeenDrive365 campaign.”
Marjorie SchusselCorporate Marketing DirectorToyota North America
Bra
nd A
war
enes
s Le
vels
+34%
Including radio in media campaigns significantly improves consumer awareness
Macaroni Grill and iHeartMedia Campaign -- Using a mix of 77% TV and 23% Radio
Source: Marketing Evolution Study for Macaroni Grill and iHeartMedia 2014
Not Exposed to Radio
Exposed to Radio
RADIO ADDS VALUE TO TV ADS
Adding radio to the mix can positively impact not only short term retail traffic objectives, but branding and sales metrics as well.
Eric Solomon, Senior Vice President and Managing Partner for Universal McCann
+1.3%
Frequency
Reach
Receptivity +62%
+41%
+17%
REALLOCATING 15% OF THE TV BUDGET INTO RADIO SUBSTANTIALLY INCREASES REACH, FREQUENCY AND RECEPTIVITY OF MESSAGES
Average Weekly % Improvement of Campaign Metrics
Notes: Results in each case study based on the specific target audience for that particular client; USA TouchPoints measures the social-emotional context of target audiences’ lives to identify the moments of highest receptivity, known as the Receptivity Potential Index.
Source: MBI TouchPoints Custom Research 2013
7 Campaign Avg.% Improvement
Auto 1 QSR 1 Financial Services 1 QSR 2 Financial Services 2Auto 2 Home Improvement
+8%
+15% +15% +16% +18%
+24%+28%+29%
+62%
+5%
+52%
+43%
+64%
+39%+42%
+64%
+47%
+84% +84%
+20%
+74%
Reach Frequency Receptivity
WHY RADIO DRIVES RESULTS
Massive reach of everyone, everywhere, with a high share of consumer usage but deserves a larger share of advertising budgets – Radio in the Media Landscape
Status as a trusted friend, with local focus and personal connections to content – Radio as America’s Companion
Dominant and unique position and experience in the audio universe, not replaced or displaced by music streaming services – Radio vs. Music Streaming Services
Real time use, dominating out of home and in car, generating traffic at the point of sale and highly targetable – Radio’s Unique Capabilities
Proclivity to reach listeners with higher levels of social connections and likelihood to generate massive Word-of-Mouth – Radio’s Power to Amplify
Unique ability to generate advocacy, brand affinity, intent to purchase and, ultimately, sales – Radio: Advertising that Works