On Target


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On Target

  1. 1. 2OUR GOAL:Provide a snapshot of radio’scapabilities in 2011 and into the future
  2. 2. 3RADIO• On Air – A mass medium capable of easily delivering your message to many people – Targetable (by demo, lifestyle and geography) to assure the right people are exposed to your message with little waste• Online – Digital capabilities offering interactive opportunities to complement and enhance your campaign and reach consumers using multiple touch points• On Target – An environment that delivers consumers who are engaged and passionate about the content – Exposure to your message when and where consumers are ready to buy or shop
  3. 3. 4 radioOn Air. Online. On Target.
  4. 4. 5 TODAY’S RADIO AUDIENCE Increase of almost 9 million over 4 years ago 241,362,000 The Weekly Broadcast Radio Audience Increase of nearly 1 million over 2010Sources: RADAR 110 September 2011, Arbitron (Persons 12+, Monday-Sunday 6a-12Mid Weekly Cume Estimates, % of Population Reached)
  5. 5. 6TODAY’S RADIO AUDIENCE What percentage of America listens to radio each week?
  6. 6. TODAY’S RADIO AUDIENCE 93% of Americans 12+ every weekSources: RADAR 110 September 2011, Arbitron (Persons 12+, Monday-Sunday 6a-12Mid Weekly Cume Estimates, % of Population Reached)
  7. 7. 8 PEOPLE CONTINUE TO SPEND TIME WITH RADIO % Daily Reach 331 P18+ 109 77 Minutes Per User 41 94% 22 77% 64% 35% 27% Magazine Newspapers Internet Broadcast Radio Television Note: Internet usage excludes e-mail: TV usage excludes time-shifted viewingSource: ―How U.S. Adults Use Radio and Other Forms of Audio‖, 2009; an Analysis of the Consumer Mapping Study by the Council of Research Excellence
  8. 8. 9 BROADCAST RADIO IS THE DOMINANT SOURCE FOR AUDIO CONTENT % Daily Reach of Audio 109 P18+ Minutes Per User 53 72 77% 81 37% 69 65 40% 67 15% 12% 10% 9% Broadc ast CDs/Tapes Satellite Radio iPods / MP3s Stored on Streaming on Other Audio Radio Portable MP3 Computer Computer players Note: ―Other Audio‖ includes background music at restaurants, retail, elevator music, etc.Source: Council for Research Excellence, Consumer Mapping Study, ―How U.S. Adults Use Radio and Other Forms of Audio‖, 2009;
  9. 9. 10 BROADCAST RADIO CAPTURES MORE THAN 14 HOURS OF TUNE-IN EACH WEEK 15:37 15:39 13:48 13:16 14:16 Hrs. & Min. With Radio Hrs. & Min. With Radio W18+ M18+ P18-34 P35-64 P65+Source: RADAR 110 September 2011, Arbitron (Monday-Sunday 24-Hour Weekly Cume Estimates)
  10. 10. 11 ETHNIC RADIO CAPTURES MORE THAN 15 HOURS OF TUNE-IN EACH WEEK 16:29 16:21 15:39 15:22 13:50 14:16 15:39 15:20 13:16 14:16 13:16 13:17 Hrs. & Min. With Radio 18-34 35-64 65+ 18-34 35-64 65+ General Market Hispanics General Market African-Americans • Slightly higher listening levels when looking at African-American and Hispanic listeners • African-Americans are heaviest usersSource: RADAR 110 September 2011, Arbitron (Monday-Sunday 24-Hour Weekly Cumes and Time Spent Listening Estimates)
  11. 11. 12 radioOn Air. Online. On Target.
  13. 13. 14 RADIO’S PLACE IN THE DIGITAL LANDSCAPE CONTINUES TO EXPAND Television 98% Local AM/FM Radio 93% Cell Phone 84% Broadband Internet 70% Online Radio 56% Online Video 54% Facebook® 51% YouTube® 49% Digital Video Recorder 36% Video on Demand 35% iPod 31% % of American 12+ Who Own/Use Smartphone 31% Platform or Device Audio Podcasts 25% Broadcast Radio is the second most used device/platform in American’s livesSource: The Infinite Dial 2011 – Arbitron Inc. Edison Media Research
  14. 14. 15 RADIO’S PLACE IN THE DIGITAL LANDSCAPE CONTINUES TO EXPAND Pandora 24% MP3 player (other than iPod) 23% Video Podcasts 22% Hulu™ 20% MySpace 17% Android™ Smartphone 13% Satellite Radio 12% BlackBerry® 11% iPhone 9% LinkedIn 9% Twitter® 8% E-Readers 7% % of American 12+ Who Own/Use Platform or Device iPad 4% Location-Based Services 4% Radio is available in many of these growing digital formatsSource: The Infinite Dial 2011 – Arbitron Inc. , Edison Media Research
  15. 15. 16 WEEKLY ONLINE RADIO AUDIENCE AT ALL-TIME HIGH 25% 20% 15% 10% 5% 0% Jan 01 Jan 06 Jan 11 89 million monthly listeners 12+ in the U.S.Source: The Infinite Dial 2010 & 2011 – Arbitron Inc. , Edison Media Research
  16. 16. 17 AUDIO STREAMING MIRRORS THE WORKDAY 35000 30000 Local Broadcast Streaming Audience (29 stations) 25000 AQH Persons 6+ 20000 15000 10000 5000 0 Mo-Fr 1P-2P Mo-Fr 2P-3P Mo-Fr 3P-4P Mo-Fr 4P-5P Mo-Fr 5P-6P Mo-Fr 6P-7P Mo-Fr 7P-8P Mo-Fr 8P-9P Mo-Fr 6A-7A Mo-Fr 7A-8A Mo-Fr 8A-9A Mo-Fr 9P-10P Mo-Fr 12P-1P Mo-Fr 9A-10A Mo-Fr 10A-11A Mo-Fr 11A-12P Mo-Fr 11P-12A Mo-Fr 10P-11PSource: Jul2011 – Local Streaming Station Audience as Reported in Arbitron Monthly PPM Data for Persons 6+ (29 stations from 21 metros)
  17. 17. 18 ONLINE RADIO LISTENING IS A COMPLEMENT TO OVER-THE-AIR RADIO, NOT A SUBSTITUTE Listening to Broadcast Radio 89% 11% Listening to only Online Radio % of weekly online radio listeners who listened to broadcast radio versus those who did notSource: The Infinite Dial 2010 & 2011 – Arbitron Inc. Edison Media Research
  18. 18. 19 DIGITAL GROWTH IN 2011 Projected 6,000 streaming More than 2,000 stations 31 million Americans stations by 2012 broadcasting in HD have downloaded a podcast in the past monthSource: Inside Radio/M Street Corp., The Radio Book 2010-2011; iBiquity/HD Radio Alliance; Arbitron/Edison Research: Infinite Dial 2011
  19. 19. 20THE EVOLVING DASHBOARDEXPANDING RADIO’S VISUAL CAPABILITIES In-dash technology offers listeners: • HD Radio • Multicast stations offering exclusive sports and music formats • News, sports and weather on demand • Navigation system offering real time traffic • Song-tagging • Applink – Pandora, Twitter, Facebook
  20. 20. 21 AM/FM RADIO IS STILL THE MOST ESSENTIAL IN-CAR DEVICE “Think about the time you spend in your primary car. What percent of the time would you say you listen to…”Sources: Arbitron-Edison-Scarborough Study 2011; The Road Ahead; BASE: use at least one audio device in car
  21. 21. 22RADIO’S DIGITAL PLATFORMS:HYPERLOCAL SITES Branded and non-branded station sites serving as an entertainment source delivering local events, news and sports updates
  22. 22. 23RADIO’S DIGITAL PLATFORMS:ON-DEMAND AUDIO • Offering sports, music, information and entertainment downloads whenever the listener wants it • News, weather, sports, private events, pre- and post-concerts videos, etc.
  23. 23. 24 RADIO’S DIGITAL PLATFORMS: AUDIO ON MOBILE • 23% of mobile phone owners listen to music or some other form of audio each month • An average of 4 hours per week is spent listening to audio content on a cell phone/smartphone – 18- to 34-year-olds listen an average of 5 hours per week • Radio apps consistently among the Top 10 free app downloads – 7.5M+ listeners have downloaded apps for AOL Radio, Yahoo! Music™ and Last.fm – 11.5M+ listeners have downloaded the iheartradio appSources: Arbitron-Edison Infinite Dial Study 2011; Simmons 2010 Mobile Consumer Report; Bridge Ratings Device Usage Update – Sample Size 1956;CBS Radio and Clear Channel Online Music & Radio; iheartradio.com
  24. 24. 25RADIO’S DIGITAL PLATFORMS:MOBILE APPS FOR YOUTH Radio Disney App allows listeners to gain access anytime, anywhere, plus interact with Radio Disney for FREE with features including: • Listen to live on-air, multi-task listening, song requests, shout-outs, recent playlists, listen to on-air activity and learn about local events
  25. 25. 26RADIO’S DIGITAL PLATFORMS:LISTENER INTERACTIVITY Listener Driven Radio ―Remote Control Radio‖ – WKLS-FM in Atlanta • Offers listeners real-time control of a radio • Increase of social media usage by radio stations programming • Listeners can ―program‖ the station by • Move songs in the playlist queue; recommend tweeting, texting, etc., and voting about the songs for airplay; receive SMS text messages, IMs songs on air—all in real time or e-mails when their favorite songs play; song dedications via Facebook
  26. 26. 27 RADIO’S DIGITAL PLATFORMS: LISTENER INTERACTIVITY Q: Which method do you use to communicate with any AM or FM radio station or one of its DJs? 215 Twitter INDEX 18-34 Facebook 170 INDEX Total 12+ 155Text message INDEX Email Telephone 0% 20% 40% 60% 80% 100% Arbitron/Edison National Media Survey 2011 (multiple answers accepted) 27Sample size: 536 people who have ever communicated with a radio station (27% of US population 12+)
  27. 27. 28SOCIAL NETWORK ANDRELATIONSHIP MARKETING • Many stations are integrating Facebook and Twitter with their loyalty clubs • Loyal listener databases extend the connection that listeners have with their stations by offering exclusive opportunities and deals • Databases are virtually untapped by advertisers
  28. 28. 29SOCIAL MEDIA USERS FAVOR RADIO OVERTV AND CABLE Index of Social Networking Usage (100 is average) RADIO USAGE TV/CABLE 106 HEAVY 63 111 MEDIUM/HEAVY 84 114 MEDIUM 103 98 MEDIUM/LIGHT 120 71 LIGHT 130 How to read: Light TV/Cable viewers are 30% more likely to be users of social networking sites like Facebook and Twitter Source: Scarborough USA+ Rel 1 of 2011 (12mo) ,Persons 18+ (sample size 77,480) Social Networking Usage on a mobile device vs Media Quintile
  29. 29. 30 DATA MINING AND GROUP COUPONING • Robust database – Offers insights into programming and marketing to listeners – Provides engagement metric with stations and advertised brands • 22% of people who visit a broadcast radio station Web site clip advertiser couponsSource: Arbitron-Edison Infinite Dial Study 2010
  30. 30. 31 RADIO DELIVERS GROUP COUPONING Household members use the internet for coupons • Radio reaches 94.4% of them each week • 33.2% NEVER use the Yellow Pages • 43.1% did NOT read a newspaper in the past 7 days Household obtains ―cents-off‖ coupon from e-mail or text messages • Radio reaches 94.6% of them each week • 32.4% NEVER use the Yellow Pages • 44.0% did NOT read a newspaper in the past 7 daysSource: Scarborough USA+ Release 1 of 2011 (12mo) , Persons 18+ (Sample size for internet coupons: 34,985 and e-mail/text coupons: 33,100)
  31. 31. 32 radioOn Air. Online. On Target.
  32. 32. 33 RADIO DOMINATES THE RETAIL DAY % of Media Time Spent per Day A25-54 40% 35% 30% 25% 20% 15% 10% 5% 0% Broadcast Radio Television Internet Magazines NewspapersSource: Gfk MRI - MediaDay 2009 Single Year (Fieldwork 08-09/Spring Respondents) Weighted to Population (000) Base All; A25-54
  33. 33. 34 RADIO REACHES LISTENERS OUTSIDE THE HOME WHEN THEY ARE READY TO BUY 100% 90% 80% 37% 49% 70% 58% 72% 72% 60% 50% 40% 30% 63% 51% 20% 42% 28% 28% 10% 0% M-F 5A-10A M-F 10A-3P M-F 3P-7P M-F 7P-12M M-F 12M-5A Proportion of Listening at Home Proportion of Listening Away From HomeSource: Arbitron Spring 2011, Persons 12+, National Regional Database
  34. 34. 35 RADIO REACHES CLOSEST TO THE POINT OF PURCHASE Radio is the most-used medium just prior to shopping • 62% of shoppers listened to radio 13 minutes prior to purchase • 90% of consumers are in their vehicles less than 6 minutes before shopping –Audio captures 89% of in-car media timeSource: ―Video Consumer mapping Study,‖ Center for Research Excellence, June 2010 – Adults 18+
  35. 35. 36 RADIO MOTIVATES BEHAVIOR • Radio drives sales – On air personalities were given KINECT for XBOX 360 prior to launch. The buzz they generated led Microsoft to increase their forecast by 40%. XBOX 360 sales doubled. • Radio builds brand trust – Wells Fargo coached radio personalities to evaluate their investments for retirement on the air. Campaign generated 50,000 inquiries for investment information. • Radio engages consumers – Guitar Center’s ―Get Schooled‖ program used radio to create a one-of-a-kind experience which led to 10,000 visitors to each event and outstanding reviews in the pressSource: Local Radio Case Studies
  36. 36. 37 LISTENERS HAVE EMOTIONAL CONNECTIONS TO THEIR FAVORITE RADIO PERSONALITIES My Favorite Local Radio Personality... Makes me laugh 8.4 Cares about his or her listeners and fans 8.1 Is genuine 8.0 Talks about things that I like to 7.9 share/discuss with my friends Is a credible source of information 7.7 Makes me think or reflect on a certain 7.6 topic Based on 1-10 Agreeability ScaleSource: Katz Marketing Solutions: 2008 Starcom Mediavest GM Study
  37. 37. 38PERSONALITIES VALUED WITHINTHE COMMUNITY Listeners are loyal to their broadcast radio personalities, have an emotional connection, rely on them for entertainment Listeners see radio personalities as ―heroes‖ within their community who have helped support organizations and cause-related events
  38. 38. 39 RADIO ADS ARE MORE PERSONALLY RELEVANT THAN OTHER MEDIA % Who Agree Strongly or Somewhat Agree 60% 50% Radio 40% Other Media 30% 20% 10% 0% Local Products Reach People Meant For Connected to Community Reaching You Personally Consumers perceive radio ads are more relevant and local than newspapers, TV or Internet adsSource: ―Personal Relevance Two: Radio’s Receptive Ad Environment‖ (2006), Harris Interactive/Wirthlin Worldwide; Radio ads compared to average of other media
  39. 39. 40 RADIO BOOSTS UNAIDED RECALL Unaided Brand Recall Two TV/Newspaper Ads vs. One TV/Newspaper Ad Plus Two Radio Ads 300 280 Test Advertiser Categories: • Fast Food • OTC Allergy Medicine Recall Score Indices 200 34% Better • Auto Recall for • Cell Phone Service Provider Radio Mix • Credit Card 134 Newspapers & Radio 100 100 100 Newspapers TV & Radio 0 When radio is included in a TV or newspaper campaign, brand recall significantly increasesSource: ―The Benefits of Synergy: Moving Money Into Radio‖ with PreTesting Company (2004); Approximately 100 Respondents per Group
  40. 40. 41 RADIO BOOSTS UNAIDED RECALL Unaided Brand Recall Nearly 4 ½ times greater when radio is added to Internet-only campaign 35 33 32 30 30 27 27 25 25 25 Percent Recalling Brands Test Advertiser Categories: 20 • Fast Food 20 • Other Restaurant • Grocery Meat 15 • Grocery Canned 12 • OTC Headache 10 9 • OTC Breath 7 • Travel 4 4 • Electronic Device 5 3 3 1 0 Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Brand 6 Brand 7 Brand 8 Two Internet Ads One Internet, One RadioSource: ―Radio and the Internet: Powerful Complements for Advertisers‖ With Harris Interactive (2006); Approximately 100 Respondents per Column
  41. 41. 42 RADIO DRIVES TRAFFIC, CONSIDERATION AND BUILDS BRANDS Theatrical Electronics Finance (Thriller) (Digital Cameras) (Consumer Banking) Goal Generate awareness about Increase purchase intent of Increase consideration and film brand purchase intent Radio Plan Top 20 markets – Summer ’10 Top 40 markets – 4Q ’10 Top 5 markets – 4Q ’10 Results 29% increase in film 12% increase in purchase 20% increase in likelihood of awareness among moviegoers intent among prospects who opening an account among exposed to radio campaign were exposed to radio prospects exposed to radio campaign campaignSource: Katz Marketing Solutions, Custom Research Study.
  42. 42. 43 RADIO’S TACTICAL STRENGTHS Control by Time of Day and/or Day of Week 96% Reach People out of Home 89% Geo-Targeting (Target by DMA or Metro) 82% Create/Rotate Messages Quickly 79%Source: Compose 2010; Based on Expert Panel (40 Senior Planners/Researchers From Leading Media Agencies)
  43. 43. 44RADIO’S ROLE IN THEMARKETING PLAN Radio across platforms, with mass reach and local sensibility fulfills multiple roles in the marketing plan Brand Equity Social Awareness Networking CONSUMER Word of Promotion Mouth Experiential
  44. 44. 45RADIO• On Air – A mass medium capable of easily delivering your message to many people – Targetable (by demo, lifestyle and geography) to assure the right people are exposed to your message with little waste• Online – Digital capabilities offering interactive opportunities to complement and enhance your campaign and reach consumers using multiple touch points• On Target – An environment that delivers consumers who are engaged and passionate about the content – Exposure to your message when and where consumers are ready to buy or shop
  45. 45. 46CONSUMING AUDIO HOW,WHERE AND WHEN THEY WANT IT GETTING WAKE UP READY FOR WORK AM COMMUTE AT WORK #1 Medium from More people listen Audio captures 89% of 89 million consumers 5AM-5PM daily than visit the Web in-car media time tune in online every month TELECOMMUTING PM COMMUTE FOR THE BIG GAME Consumers listen on their 90% of PM commuters tune Listening surges mobile device 5 hours/week in just before stopping to shop during sporting events
  46. 46. 47FOR ADDITIONAL INFORMATION• www.arbitron.com/home/radiotoday.htm• www.raisingthevolume.com ( Katz Marketing Solutions )• www.rab.com• www.radioadlab.org• www.radiomercuryawards.com• www.researchexcellence.com• www.thebestofradio.comAny brand names, product names, or titles used in this presentation are trademarks, trade names and/or copyrights of their respective holders. All images are usedfor purposes of demonstration only, and the entities associated with the products shown in those images are not affiliated with Arbitron in any way, nor have theyprovided endorsements of any kind. No permission is given to make use of any of the above, and such use may constitute an infringement of the holders rights.