synergy: the benefits of moving money into radio
DESCRIPTION
Newspaper: Decreasing Market Penetration Daily Circulation Source: Editor and Publisher Daily Circulation Source: Editor and Publisher Daily Circulation Source: Editor and Publisher Daily Circulation Source: Editor and PublisherTRANSCRIPT
Synergy:The Benefits of
Moving Money Into Radio
In 2004, LOCAL newspaper revenue increased
+6.7% to $24.6 billion
62.3
60.7 60.2 59.8 59.358.2
57 56.7 56.2 56 55.8 55.6 55.2 55.2
1990 2004
Newspaper:Decreasing Decreasing
Market Market PenetrationPenetration
Daily CirculationDaily CirculationSource: Editor and Source: Editor and
PublisherPublisher
Daily CirculationDaily CirculationSource: Editor and Source: Editor and
PublisherPublisher
State of News
0%10%20%30%40%50%60%70%80%
1994 2004
TVNewspaperInternet
Source: Pew Trust
72%
49%
0%
60%
42%
24%
Over the last 10 years traditional media has been loosing ground …
State of News
0%
10%
20%
30%
40%
50%
60%
70%
Sources
TVNewspaperRadioCableNetworkOnlineTV MagazineNews Magazine
Source: Pew Trust
59%
42% 40%38%34%
29%
Regular news sources include …
22%
13%
State of News
0%
10%
20%
30%
40%
50%
60%
70%
80%
Read a Daily Paper
Source: Newspaper Association25-34
38.8%
67.4%
2004 – Read a Daily Newspaper …
55+
Stemming the Tide
• Free papers aimed at young non-readers
Editor and Publisher -- Newspapers aimed at youth are popping up in all kinds of markets, most affluent neighborhoods where those aged 25 to 44 live and work.
Synergy:The Benefits ofMoving Money Into Radio
What’s Inside:• RAEL Overview• Synergy Study & Findings • Key Implications• RAEL Future Study
RAEL Overview
RAEL OverviewThe Mission
To work with advertisers, agencies and Radio broadcasters to further the industry’s understanding of how Radio works and to measure its effectiveness
RAEL OverviewThe Goal
To better understand issues concerning Radio and consumers including:
– Maximizing Radio effectiveness– Synergy– ROI
RAEL OverviewWirthlin Study
• Inaugural RAEL study exploring the relationship consumers have with Radio and Radio Ads
• Key findings include:– Consumers connect emotionally with the
medium and the advertising– Radio ads are seen as more personally
relevant than television or newspapers– Effectiveness in Radio advertising is
enhanced when built on a personal and emotional connection
Synergy Study
Background
• Numerous studies showcase Radio’s strength in comparison to television on recall and persuasion
• Most recent comparative studies have occurred outside the U.S.
• Few have examined the direct effect of moving some (but not all) ad investment into Radio
Synergy Study
An Introduction
Introducing the second major consumer research study funded and designed by the Radio Ad Effectiveness Lab (RAEL) - conducted by the PreTesting Company
Synergy Study
The Rationale
Based on a synergy mandate, the research committee designed a study for quantifying media mix effects including:
– Television with and without Radio– Newspaper with and without Radio
Synergy Study
The Objective
Determine the impact on key effectiveness metrics when Radio is used to replace some, but not all, of investment placed in a television or newspaper campaign
Synergy Study
Key Metrics
• Brand Recall• Persuasion (Brand Choice)• Competitive Imagery Association• Main Message Playback
Synergy Study
Core Learnings
• Substituting two Radio ads for one of two TV ads increased unaided brand recall by 34%
• Substituting two Radio ads for one of two newspaper ads almost tripled unaided brand recall
Synergy Study
Core Learnings
The media mix … – Resulted in more people choosing the
advertised brand as their first choice product– Consumer playback of main message was as
good if not better than stand alone television or newspaper
Synergy Study
Methodology• Pre-work: Selecting test campaigns
– Fast food chain, OTC allergy medicine, auto, cell phone service and credit card
– Real, recent campaigns utilizing all three media– Wide mixture of product categories– High quality executions
• Phase One: Ensuring good ad executions– Comparisons to PreTesting norms
Synergy Study
SMethodology
Phase Two: Evaluation of media mixes– 396 respondents– Four matching samples of respondents:
– Television and newspaper only participants also exposed to radio session with no test ads
TV Only(Two TV)*
TV & Radio(One TV, Two Radio)*
Newspaper Only(Two Newspaper)*
Newspaper & Radio(One Newspaper, Two Radio)*
* Represents ad exposures
Synergy Study
SMethodology
• Utilization of central-facility distraction methods
• One-on-one interaction in private setting
• Administered by trained interviewer
Synergy Study
SMethodologySynergy Study
• Invited to attend programming
screening• Three programming
choices provided (current primetime shows)
• Requested to review current newspaper copies
• Asked to read through entire paper
in order to comment on content
• Asked to view video taken during auto “test drive”
• Requested to look for road signs
• Given choice of three simulated “radio stations
* Test and other ads inserted in all three media* Effectiveness measures taken before and after* Visit RadioAdLab.org/reports.htm for more information
Synergy Findings
Synergy FindingsRecall
The question (unaided, then aided):“Please tell me all the names of the brands or products that you can remember being advertised either during the television programming or during the drive.”
Synergy FindingsUnaided Recall – The Results
Synergy FindingsAided Recall – The Results
Synergy FindingsPersuasion
The question (asked before & after the exposure):
“If, today, you were going to purchase a product or utilize a service in each of the categories, which would be your first choice?
Synergy FindingsPersuasion – The Results
+5 pts
+8
-1
+6
Synergy FindingsCompetitive Imagery
The question:“Please tell me how you would rate TEST compared to COMPETITOR on each of the following statements. ‘9’ means TEST is better…”
Synergy FindingsCompetitive Imagery – The Results
Synergy FindingsMain Message Playback
The question:After the advertising exposures, the respondent was asked to state the main idea of the test ads to which they were exposed.
Synergy FindingsMain Message Playback – The Results
In SummarySynergy Findings
• +34% unaided brand recall vs. television only• +3 point first-choice brand selection shift vs. television only• Equal main message playback vs. television only
• +280% unaided brand recall vs. newspaper only• +7 point first-choice brand selection shift vs. newspaper only• +62% main message playback vs. newspaper only
Replacing one television or newspaper exposure with two Radio exposures resulted in equal or better effectiveness
Key Implications
Key ImplicationsWhat it means for Advertisers
Integrating Radio increases consumer impact, without increasing costs, against effectiveness measures including:
– Brand Recall– Message Playback– Persuasion
Key ImplicationsWhat it means for Advertisers
The impact on persuasion metric is extremely noteworthy as it’s a precursor to purchase intent
Key ImplicationsWhat it means for Advertisers
Radio may be undervalued:– Redeploying a portion of the budget into
Radio appears to make marketing sense– A synergy mix with Radio was shown to
work across five product categories providing validation for increased usage within current/pending campaigns
Key ImplicationsWhat it means for Advertisers
Radio may be undervalued:– Effectively communicates a message that
can be received, remembered and played back by consumers
– Already known to be powerful in isolation but also significantly potent in media mix settings
Key ImplicationsWhat it means for Advertisers
Radio is multifaceted:– Research demonstrates Radio’s ability to
extend reach – However, Radio is an important way to
communicate with consumers already reached by television and newspapers
– Radio is more than a “supplement”
Key ImplicationsIn the End
It’s not about spending more. It’s about more wisely investing what you have.
RAEL – The Future
RAEL – The FutureThe Third Study
Millward Brown/IRI– Is the “Holy Grail” of accountability research– Conducted by Millward Brown and IRI– Measures in-market Radio sales effect with
and without TV– Uses 4 IRI BehaviorScan Markets to control
TV exposures– Key advertisers being solicited for participation– Fieldwork now underway for first 5 advertisers – Second phase with different advertisers
planned for 2005
Synergy:The Benefits ofMoving Money Into Radio