F ounded in 2001 To do objective research about how Radio works

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Radio and the Consumer’s Mind: How

Radio Works

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Founded in 2001 To do objective research

about how Radio works With serious financial

support from the Radio industry

And active participation of advertisers and agencies

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40+ top researchers from all industry sectors…

Coca-ColaGeneral MotorsGlaxoSmithKlin

eHome Depot

NovartisWal-Mart

Others:Arbitron

ARFRAB

BurrellCarat

InitiativeMediaCom

mediaedge:ciaMedia Kitchen

MindShareMPGOMD

Starcom MediaVestTargetCastUniversal McCannUniWorld

Vidal Partnership

Zenith

CBS RadioClear Channel

Univision Radio

WBEB-FM

AURNJones

PremiereWestwood One

InterepKatz

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Five New Studies Under This Umbrella A deeper look at how Radio works

1) Personal Relevance Two: Radio’s Ad Receptivity

2) Synergy between Radio and Internet 3) Subconscious Engagement (vs. TV)4) How Radio Generates Imagery—by itself5) Applying These Findings to the Creative Process

Radio and the Consumer’s Mind: How

Radio Works

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The First in the New SeriesThe First in the New Series

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Learnings from First Personal Relevance Study (2004):• Radio is personal and emotions-driven• Radio ads are expected to be more

relevant General Conclusions

• When Radio ads are created and bought properly…

• They can be very effective at connecting with emotions

• And the radio environment is powerful because listeners expect ads for “their” products

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Advertisers wanted more… More sample for more drill-downs

• Blacks and Hispanics• Younger and older• Different formats

And more media• Add the Internet to the original

study’s mix of radio, TV, and newspapers

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National RDD Telephone Study• June-July 2006, about 20 min. long• Randomly selected 2,500+ Adults 18-54• Conducted by Harris Interactive/Wirthlin

Serious Attention to Quality• 37% “true” response rate achieved• Comparable to currency media research• Sample weighted to Census estimates

Extra Efforts for Ethnic Sample• Higher premiums for high-density Black and

Hispanic ZIPs• Bilingual interviewers, Spanish translations

Radio and the Consumer’s Mind: How

Radio Works

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Radio Touches Emotions• Radio affects consumers in more

personal and emotional ways• Consistent with the first Personal

Relevance study…

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Radio ads are expected to be relevant• Reaching who they’re meant for• Reaching you personally

As well as…• For local products/services

See full paper for details …

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Overall: Radio is the medium with the receptive ad environment• It has the strongest emotional

and personal connections with consumers

• With listeners primed to expect ads that are relevant to them

• In an atmosphere where ads are better accepted than in TV or the Internet

Radio and the Consumer’s Mind: How

Radio Works

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Overall: The pattern of high ad receptivity for radio was even stronger for Blacks/African-Americans and Hispanics/Latinos

For example: Ad acceptance for Radio ads was very strong for Blacks and Hispanics, relative to TV and Internet ads

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A Little Different Pattern

for Repetition

More Ethnic Data

Radio and the Consumer’s Mind: How

Radio Works

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EmotionalEmotionalConnectionsConnections

AdAdRelevanceRelevance

AdAdAcceptanceAcceptance

The first two factors were first seen in 2004, and reinforced here.

The third factor emerged in this study.

And applications to Radio and the Internet are new.

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We think this study suggests that Radio offers a powerful ad environment with unique strengths.

However…

Advertisers and ad producers need to apply these learnings to get full benefit.

That includes:• Planning• Creating• Testing• Buying

Radio and the Consumer’s Mind: How

Radio Works

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The Second in the New SeriesThe Second in the New Series

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Radio and the Internet connect with consumers differently• See Personal Relevance Two• Radio ads make more emotional

connection• Internet has a more informational

function for consumers• Therefore: Different ways for ads

to break through in each medium

Similar findings in work done by RAB-IAB/UK

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Radio and the Internet have unique Reach patterns…

And that can make them a potent Reach combination…

27See full paper for similar data on Young Adults and Teens…

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Simultaneous Usage• Radio is often used

simultaneously with the Internet

• Especially during the day• And across all demos• TV simultaneous usage is

high, too, but that may have different implications for advertisers

29See full paper for similar data on Young Adults and Teens…

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Numerous reasons to see potential advertising synergy between Radio and the Internet

And many media people believe in mixed-media campaigns…

What’s missing?• Evidence of how a mixed

Radio/Internet campaign actually works…

Radio and the Consumer’s Mind: How

Radio Works

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Conducted Late 2006 with Harris Interactive Inc.

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Two Test Groups• Two exposures to an Internet ad,

compared to…• One exposure to an Internet ad + One

exposure to a Radio ad for the same product

…Or…

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Online study with Harris Interactive web panel• 800 Adults 18-54 per test group

“Evaluation” of website content and radio programs• Choice of six types of each

Embedded within: One of eight actual ad campaigns• Corresponding Radio/Web content• Web ads: Mixture of static images, animated images,

and Flash• Radio ads: All 30s, three with actual website mentions

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Recall metrics• Unaided recall: First question, no

prompting; “What brands did you see or hear advertised?”

• Aided recall: Second question, with assistance: “Which of the following brands did you see or hear advertised?”

We saw striking and consistent effects…

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In the full paper, you’ll see these same patterns repeated across:• Age groups• Gender• Race/Ethnicity• Education Level• And even across all eight campaigns…

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Branding—the recall of brand names—was consistently higher with a mix of Radio and Internet

The improvements were large, statistically significant, and widespread

Clearly, the potential for better marketing communications exists with a combination of Radio and Internet advertising

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Five of the eight brands showed greater impact with a Radio/Internet mix on Website Visitation and Purchase Likelihood

Four of those five brands also showed better Radio Mix results on Aspirational Fit and Emotional Connection (like/love the brand)

See the full paper for detailed data on all measures…

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Reaching Light Users of Other Media

(More in Paper)

SimilaritiesSimilarities

Unique to Both

ComplementsComplements EffectivenessEffectiveness

Type of Personal Connection

Unique Combo Reach

Simultaneous Usage

(More in Paper)

Combined Strengths

4½ Times Unaided Recall

Better Qualitative Effects with Good Ads

Synergy Effects

Powerful ComplementsPowerful Complements

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Radio and the Internet can be powerful advertising complements.

Whether the goal is to reach more people, or to reach them with greater impact, this combination of media seems to be a recipe that’s worthy of more consideration.

Full Paper at http://RadioAdLab.org

Radio and the Consumer’s Mind: How

Radio Works

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First study with Gallup & Robinson Subconscious Engagement (vs. TV)

• Continuous Emotional Response Analysis (CERA) measures positive and negative physiological responses

• Developed through intensive research at the Johns Hopkins School of Medicine

G&R’s RAEL project• Compare emotional engagement results for a group

of matching Radio and TV commercials, in media context

• Results in about three months

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Radio Works

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Change the Dialogue

Enhance Current Advertisers’ Use of and Effectiveness with Radio

Leverage New Learnings with Non-Radio Users

Radio and the Consumer’s Mind: How

Radio Works

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For More Information:http://RadioAdLab.org

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More on Personal Relevance (Black and Hispanic)

Other Personal Relevance Findings• Relevance by Format• Relevance by Age• Relevance by Gender

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Overall: The pattern of high ad receptivity for radio was even stronger for Blacks/African-Americans and Hispanics/Latinos

One sample: The ad-relevance factors by race and ethnicity…

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By Age Group, Blacks and Hispanics showed some differences in their perceptions of advertising

“Relevance” was a bit stronger 35+ But the acceptance of advertising

was still highest for radio regardless of age…

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Here’s where Hispanics look different on ad repetition…Return to Slide 21

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Radio and the Consumer’s Mind: How

Radio Works

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All radio formats showed strong overall ad receptivity• We asked respondents to pick the format

that described the station they listen to most

• One interesting comparison: Ad acceptance by format, vs. TV and the Internet…

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Return to End Slide

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Across discrete age cells:• Some differences in absolute value

– 35-44’s tended to score higher on relevance factors

• But radio always showed the same receptivity profile compared to other media

• One interesting example: Ad tolerance among 18-24s…

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Radio ads are better accepted

even among 18-24s

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No statistically significant differences for men and women on advertising questions• No differences on ad relevance

factors• No differences on ad acceptance

factors

But radio does trigger slightly different emotional connections…

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Emotional connections are a little

stronger for Women. But they’re still

high for Men.

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Though there were some interesting variations…• And more details are in the full paper at

RadioAdLab.org The overall findings about

Receptivity held true across…• Formats• Ages and genders• Races and origins

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