March 2011. Contents Radio Summary 2010 - Useful Facts Revenue Listening Digital Radio Engagement & Connection 2011 Brand Strategy and Campaign - Overview

March 2011

ContentsRadio Summary 2010 - Useful Facts• Revenue• Listening• Digital

Radio Engagement & Connection• 2011 Brand Strategy and Campaign - Overview• Supporting Research:

Neuro Insight Radio Engagement Study The Hoop Group Research

Increase in metro commercial radio revenue

• Metropolitan advertising revenue up 7.8%* from Jan-Dec 2009.• All five metro markets recorded significant increases in advertising

spend, with the biggest performers in Perth, Sydney & Brisbane*.• Radio revenue comprised of 7.1%** of the total expenditure in main

media – exceeding outdoor, cinema and magazine spend.

Radio in 2010 Summary – Revenue

* Source: Deloitte Jan to Dec 2010** Source: CEASA Advertising Expenditure Report Jan to June 2010

Increase in regional commercial radio revenue

• Regional advertising revenue up 4.7%* from Jan-Jun 2009.

Radio in 2010 Summary – Revenue

* Source: Deloitte Jan to Dec 2010** Source: CEASA Advertising Expenditure Report Jan to June 2009 & 2010

2010 was a strong year for commercial radio listening

• Metropolitan surveys recorded commercial radio listening at 9.19* million people each week.

• This is an increase of 2.8%* or 250 000* listeners when compared with 2009.

Radio in 2010 Summary - Listening

* Source: The Nielsen Company Radio Ratings Survey #1 to #8 2009 & 2010. Based on All People Aged 10+ Mon-Sun 5.30am to midnight

2010 was a positive year for digital radio listening

• Over 400,000* digital radios in the marketplace.• 691,000** listeners to radio via a DAB+ device each week (5.6% of

the total metropolitan population).• Time spent listening to digital radio double the TSL of listening via

the Internet. • There are up to 20 new digital only stations in the metro markets.

• The second Digital Radio Industry Report was released by CRA in March 2011. Visit digitalradioplus.com.au to download.

Radio in 2010 Summary - Digital

* In the market supply chain (chip maker, manufacturer, and retailer) supported by GfK sales data, and Frontier Silicon (80-90% of DAB+ chip market) reports. ** Source: The Nielsen Company Radio Ratings Survey #8 2010 (Brisbane) and Survey #1 2011 (S,M,A,P). Based on All People Aged 10+ . Mon-Sun 5.30am to midnight

Radio Engagement & Connection2011 Brand Strategy and Campaign - Overview

Objectives:

• Promote radio as an engaging, influential medium.

• Ensure radio is top of mind with advertisers and included in media campaigns.

• Give creative agency staff a new way of approaching the development of radio commercials.

• Increase radio share of advertising revenue.


People are 32% more engaged with their favourite radio station than they are with other media content


* Source: Neuro Insight Pty Ltd Radio Engagement Study 2010


Click for ‘Listen to’

Click for ‘Congrats’

Click for ‘Subliminal’

Click for ‘Heard’

Radio Engagement & ConnectionNeuro Insight Radio Engagement Study

Radio Engagement & ConnectionNeuro Insight Radio Engagement Study - Methodology

Commercial Radio Australia’s latest research project investigates:

• The neuro state of radio listeners• Consumer engagement with actual radio content

Neuro Insight has previously undertaken neuro studies for major media groups such as:

• EYE Corp • SBS• Channel 9• ACP


Radio Engagement & ConnectionNeuro Insight Radio Engagement Study - Definition

Engagement

• Personal relevance

• Involvement with content

• Connection with content

Neurostate

The degree to which people engage with that content.


Radio Engagement & Connection Neuro Insight Radio Engagement Study - Methodology

• Neuro data was captured via brain wave monitoring equipment and compared to effectiveness norms

• 64 respondents were tested for 26 minutes each

• Respondents listened to various real radio program formats, content and ad breaks


Radio Engagement & Connection Neuro Insight Radio Engagement Study – KISS Approach


Radio Engagement & ConnectionNeuro State – Different Levels

THE COMMON RANGE OF MOST BRAIN ACTIVITY

1.0

0.8

0.6

0.4

0.2

0.0

----------------------------------------------------------------------------------

----------------------------------------------------------------------------------

HIGH: 0.7

LOW: 0.3

NEURO GLOBAL AVERAGE = 0.5

TIME


Radio Engagement & ConnectionNeuro State of Radio Listeners

Example #1A



Example #1B


Radio Engagement & ConnectionMemory Detail versus Memory Global

Memory Left – DetailThe ‘Micro’

RationalThe Facts

Offers / Prices / Retail‘Call 1300 *** ***’‘Go to www.for....’

Executional elements eg. Pause

Memory Right – GlobalThe ‘Macro’Emotional

The Big PictureBranding campaigns

MnemonicsMusic/Jingles

‘Imagine you’re…’Mood & connotation



Example #2A


Memory Left = Rational, Detailed

Memory Right = Emotional, Big Picture


Example #2B


Memory Left = Rational, Detailed

Memory Right = Emotional, Big Picture

Radio Engagement & ConnectionOverall 32% Higher than the Neuro Global Average

The research shows the ‘Radio Average’ is 32% higher than the ‘Neuro Global Average’

High

Ave

Low


High

Ave

The Hoop Group Research

Radio Engagement & ConnectionThe Hoop Group Study - Methodolgy

• Radio relevance study

• 1500 people were interviewed

• 5 mainland capital cities + 3 regional hubs.

• The research will be released in 2 phases in 2011

* Source: Hoop Group / CRA Radio Relevance Study Oct 2010. n = 1 500

Radio Engagement & ConnectionThe Hoop Group Study - Active Listening

82% of Australians respond to what they hear on commercial radio

* Source: Hoop Group / CRA Radio Relevance Study Oct 2010. n = 1 500

%

Support Materials for Stations

• Join the website – updates, materials, enewsletters

• Presentation

• Brochure

For further information regarding the CRA Brand Strategy, Campaign and Supporting

Research contact:

Natalie Muir – Strategic Insights Executive

(02) 9281 [email protected]

Documents

March 2011. Contents Radio Summary 2010 - Useful Facts Revenue Listening Digital Radio Engagement & Connection 2011 Brand Strategy and Campaign - Overview