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The Power of Radio
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The Power of Radio


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  • 1. The Power of Radio
  • 2. Power of Radio• Reach• Resilience• ROI• Reinvention
  • 3. Radio Reach Is Enormous • Radio reaches 93% of Americans with 235 million weekly listeners • Radio reaches 96% of adults 18-49 with $75,000+ household income • Radio reaches 94% of college graduates 18+ • Radio reaches 90% of American teens Source: Arbitron Radar – June 2008
  • 4. Radio Listenership Is Growing240,000,000 235 Million Listeners230,000,000220,000,000 Radio’s total210,000,000 audience has grown 16% since 1994200,000,000 __________ Radio has190,000,000 added six million listeners since 2005180,000,000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: RADAR, Fall Survey Reports, Copyright Arbitron (Monday-Sunday, 24 Hours, based on Weekly Cume, 12+
  • 5. Radio Listenership vs. Newspaper Readership% of U.S. Population Radio is steady-Newspaper is in free fall Sources: NY Times, Newspaper Association of America, Radio Advertising Bureau
  • 6. Americans Spend The Majority Of Listening Time With AM/FM Radio. Percent of Time Spent Per Week by Audio Platform 2% 4% AM/FM Radio Satellite Radio 94% Online RadioSources: Local AM/FM Radio – Radio Today/American Radio Listening Trends; Online Radio – Arbitron Edison Infinite Dial 2008 Report; Satellite – Fall 2006 National Satellite Report
  • 7. Newspapers Are In Big Trouble• In Detroit, newspaper delivery has been reduced to three days a week• The Seattle P.I. printed its last edition on March 17• The Minneapolis Star Tribune has filed for bankruptcy• The Rocky Mountain News closed on February 27• The Tucson Citizen closed on May 15 Source: The New York Times – 1/16/09
  • 8. Significantly More People Listen To Daytime Radio Than Watch Primetime Network TV• In Los Angeles, 94.7% of Working Adults Listen to Radio During the Week• Only 51% Watch Primetime Network TV Source: Scarborough Research - 2008
  • 9. DVRs Are Zapping The Life Out Of TV Ads• 27% of US homes have DVRs• 63% of $100,000+ households have a DVR• 85% of DVR owners skip 75% of the ads Source: Ipsos Mendelsohn Research | Source: Nielsen Nov 2008 Estimates | Content Agenda Aug 6, 2008
  • 10. Radio Reaches 92 million MorePeople Each Week Than Google Reaches In An Entire Month Sources: Radar 97, June 2008 (Monday-Sunday, 24hrs, based on daily cume 18+) ; ComScore May 2008
  • 11. Radio Is The Most Cost Effective Medium Cost Comparisons of Various Media (CPM)Sources: Deutsche Bank, Media Dynamic, Universal McCann, Radio Effectiveness, RADAR and June 2007 (Arbitron); Nielsen Online and JPMorgan;
  • 12. The Internet Powers Radio’s Growth • Entercom listenership over the Internet grew 65% in 2008 • Entercom listenership on mobile devices is growing rapidly Source: Webcast Metrics, December 2008, FlyCast Reports, Jan 09
  • 13. Major Auto Study Recommends Increasing Radio, Reducing TVShare of Media Spend “…the amount of radio consumed, its influence to purchase, combined with lower costs makes it a stronger media option.” — Prosper Technologies/Big Research – Dec 2008 Source: Prosper Media Allocation Model/Big Research - 2008
  • 14. Case Studies
  • 15. Wal-Mart’s Heavy Radio Advertising Boosts Sales• Heavy radio campaign boosted Halloween candy sales up double digits. Radio helped advance Wal-Mart’s market share from 31 to 33 percent.• Radio drove Wal-Mart’s exclusive sales of AC/DC’s CD to second largest new album of 2008. Source: Advertising Age, November 2008
  • 16. Hershey’s Does More Radio ThanTV Advertising And Results Soar•Hershey’s ad spendingincreased 25% in 2008 andearnings were up 98%•CEO David West said thatHershey’s has done moreradio than TV advertising and“weve been feeling pretty goodabout the brand responses.”•Hershey’s plans to increase adspending by another 20% in2009, continuing to focus on corebrands Source: Advertising Age, October 16, 2008
  • 17. Radio Drives Leads and New Business for Wells Fargo Financial Services•Exclusive Entercomsix-week campaign in selectmarkets simplified thesavings/investment processand made it relevant and funfor younger consumers•Integrated campaigngenerated tens of thousandsof leads for Wells Fargo.Netbanker rated the programA+. “Radio Advertising A+” NetBanker, March 2008
  • 18. Radio Propels Unprecedented Listener Response For Subaru Dealer•Creative audio and videocause-marketing campaign thatplanted a tree for each test drive•Carter Subaru planted over 11,000trees during the campaign andhelped to reforest a natural reserveoutside of Seattle•“It’s only natural for Subaru tocontinue its engagement withEntercom – a passionate radiopartner that consistently deliversresults.” - Danny Levine, President NationAd (Carter Subaru agency of record)
  • 19. Testimonials
  • 20. Google’s CEO knows:Radio is highly undervalued “Radio is greatly under monetized.Look at the time people spend with radio versus the money currently being spentto advertise on radio – it’s out of whack.” - Eric Schmidt, Google CEO - USA Today Eric Schmidt
  • 21. Radio Pulls Best for Citigroup“In multiple, separate market comparison tests of Citigroup ads in newspapers, TV and Radio, Radio ads consistently pulled the best response.” — John Mittnacht, Director, Global Advertising, Citi Global Wealth Management John Mittnacht
  • 22. Scion Champions Radio “Our marketing partners at Entercom listened when we explained who Scion targets. They created a grassroots campaign that was viral and unique andallowed our creative audience to express themselves. The Snow Patrol Cover Art contest was truly amazing!” — Bobbi Simpson, Northwest VP Marketing - Scion
  • 23. The Power of Radio