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Introduction To Radio Advertising

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This is an introduction to how radio works, comparisons with other forms of media and how to buy radio in the Palm Springs Market

This is an introduction to how radio works, comparisons with other forms of media and how to buy radio in the Palm Springs Market


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  • In market after market, working people are spending about 1-1/2 hours a day during working days, 5A-8P in their vehicles.
  • We even stop at least once every week at a retail store—that we most likely have not planned to go to until that very day.
  • Transcript

    • 1. The Power of Radio to Reach Customers
    • 2. RADIO is the most accessible medium in our daily lives Where do people spend their media usage time on a typical day?
    • 3. Hours per person per week USA Radio: America’s #2 Leisure Activity *Recorded Music, Newspaper and Magazine categories do not include those downloaded or viewed on the internet – those are included in Internet category. **Home Video includes VHS & DVD’s only. PPV & VOD are included in Cable; DVR viewing is included in appropriate TV category. Cable includes satellite. Source: Veronis Suhler Stevens Communication Industry Forecast 2008 and AMS Study August 2008.
    • 4. Which Media Do People in the Coachella Valley Use? Media Availability % Household Penetration – Coachella Valley Source: AdReaction Study Aug 2008; "U.S. Broadband Forecast, 2007 to 2012; hi speed internet Pew conducted telephone interviews with 2,251 18+ adults between April 8, 2008 and May 11, 2008; Cable/ADS/TV HH Penetration – Nielsen, July 2008
    • 5. Adults spend about 20 hours per week with RADIO! Listening habits are consistent. Radio Listening Trends in the Coachella Valley Source: Arbitron, Spring 2005 – Spring 2009, Palm Springs Metro, Monday-Sunday 6am-mid. 19:28 21:45 20:51 18:31 22:11 13:23 19:32 2005 21:36 21:21 24:01 22:41 17:45 15:46 21:02 2006 20:18 22:15 21:43 21:02 20:41 12:16 20:05 2007 19:58 19:38 22:20 21:36 18:15 10:52 19:27 2008 2009 Persons 12+ 20:34 Teens 12-17 13:16 Adults 18-24 18:41 Adults 25-34 20:39 Adults 35-44 24:57 Adults 45-54 21:37 Adults 55+ 21:07
    • 6. So where and why are we using radio? And what roles does it play in our lives?
    • 7. Engagement Is the Key
      • “ Where engagement is a benefit to the viewer, the network and the advertiser is that it’s saying we’re getting someone who is paying attention. If someone is more engaged in the programming, there is a high correlation that they will be engaged in the advertising.”
      • Kim McCullough
      • Corporate Manager of Marketing Communications
      • Toyota
      Source: Media Economy Newsletter August 4, 2006 . Radio is and has always been one of the premiere Engagement Platforms available in commercial media. People can engage with their radio stations through numerous portals – cell phones, text messages, websites, phones, faxes, public events and more. It is a community that is open 24/7, with continuous fresh content. When radio speaks, people react.
    • 8. Radio Ad Lab Studies
      • The Radio Ad Lab is an independent organization established in 2001.
      • Initiated by the American Association of Advertisers, and funded by Radio industry companies.
      • Goal is to understand how radio advertising works, measure its effectiveness, and increase advertiser and agency confidence in radio.
      • RAL committee and Board are made up of advertisers, ad agencies, broadcasters and networks.
      • Studies on engaging emotions, personal relevance, consumer connections, and complements with other media.
    • 9. Radio is an Engagement Platform
      • Radio listeners appear to be especially receptive to the advertising they hear on Radio .
      • Radio connects with consumers at a very high emotional level
      • Radio advertising is perceived as much more personally relevant to consumers than advertising on other media
      • Receptivity to Radio advertising is greater with consumers than advertising on other media
      • These findings suggest that Radio:
      • Provides a pathway to the consumer’s mind that can provide better emotional connections to brands and products when the advertising is designed and placed properly
      • Offers a unique advertising environment in which listeners actually expect ads to be more interesting to them
      • Delivers a more positive environment for advertisers
      Source: Radio Ad Lab Study “ Personal Relevance Two: Radio’s Receptive Ad Environment, September 2006.
    • 10.
      • A study done by Wirthlin Worldwide recently compared consumers’ attitude toward radio, newspaper and TV. Their findings:
      • When compared to television ads, radio ads are seen as being more personally connected to the consumer .
      • Radio listening is a one on one and emotion driven experience, and listeners believe that both the medium and its advertising are more relevant to them (compared to television and newspapers).
      • We also see…radio’s ability to connect with people emotionally. When people cite radio ads’ greater association with honesty, trust, and reliability , we believe consumers have a more internal, more values-based relationship with the ads they hear on radio.
      Source: 2004 Wirthlin Worldwide Study Findings Study conducted for Radio Advertising Lab (RAL) a two-phase survey among adults 18-54: August 18, 2004 Radio connects one-on-one Radio Advertising is More Personal and More Relevant to People’s Daily Lives
    • 11. Download RAL Studies Free
      • www.radioadlab.org
    • 12. What Makes Radio Different for Advertisers? People use their radios as Virtual Neighborhoods to replace some of the social networks, the physical neighborhoods they just don’t have time for anymore.
    • 13. Radio Breeds Familiarity and Mindset
      • The majority of Radio listening is repeatedly spent with just one or two Radio stations – like Virtual Neighborhoods, Radio stations attract the same people back again and again
      • Radio is people talking with real people. Friends playing new and favorite music, always open to accept you. It’s used live, in real time, and it’s interactive
      • Each station attracts a core audience that has a distinct set of attitudes, values and lifestyle attributes, or Mindset
      • People believe “My radio station is relevant to me”, with a halo effect for advertisers
      • That mindset environment is the same 24/7, so advertisers can control their reach and frequency by mindset
    • 14. Radio is There When it Matters
      • All Radio listening is done LIVE, in real time, whether online or over the air—the message gets through when you want it to
      • Offers a place where most of the same people choose to return day after day, like a virtual neighborhood, so your message can build frequency in a controlled environment
      • Has live access to working people every work day, especially just before they make purchasing decisions
      • Delivers the same unique content on the Internet as over the air, on websites that give advertisers interactive access to listeners
      Radio allows consumers and advertisers the ability to build a home in the neighborhood
    • 15. Radio Stations Offer
      • Many “doors” to the neighborhood
        • Websites
        • Internet Streaming
        • Fan Clubs
        • Phones, cell phones and fax lines
        • Instant Messaging
        • Text Messaging (for requests, contests and more)
        • Podcasts
        • Appearances
        • Events
        • Email blasts
        • Contests
        • Coupons
      More Portals = More Participation = Engagement
    • 16. Survey Shows Radio Has Strong Appeal
      • Americans rate the importance and relevance of local commercial radio very highly, despite the entry of high-technology competition.
      • The survey found that 78% said radio is important in their everyday lives , and 91% said radio is important in American life in general .
      • Nearly three-quarters or 74% said they listen to radio at least once a day.
      • 64% said they were listening to radio as much as, or more than, they were five years ago.
      Source: Yahoo April 20, 2006. national survey commissioned by American Media Services.
    • 17. What About All This New Media?
      • 1,857 people interviewed to investigate Americans use of traditional, online and satellite media.
      • Awareness of satellite radio remained flat for the last 3 yrs. Two companies became one.
      • iPod and Portable MP 3 player ownership continues to skyrocket, but only 10% report less time with over-the-air radio. 21% own a device, but say it has no impact on their radio listening.
      • Awareness of HD Radio has not generated momentum.
      • Among respondents, time spent listening to AM/FM radio by users of digital platforms has not changed.
      “ What I have always appreciated about radio over the iPod is there is something spontaneous about the radio that you don’t get from an iPod. There is that lovely moment when you are listening to the radio that you go: oh, Ringo Starr had a solo career after the Beatles.” -Nancy Hill, President/CEO, American Association of Advertising Agencies *2008 Arbitron Inc/Edison Media Research
    • 18.
      • Radio reaches 93% of people 12+ every week.
      • 321,500 people age 12 and older listen to the radio in a typical week.
      • And despite new threats like satellite radio and iPods – 84.4% of adults 18+ listen to the radio while in their cars and 26.5% listen while at work.
      And 92.4% of Coachella Valley Adults 18+ spend an average of 2:59 hours every single day listening to radio. Arbitron Fall 2008/Spring 2009, Palm Springs Metro Ratings, Monday-Sunday, 6am-12am. Is Radio Listening Declining in the Coachella Valley? Not a Chance!
    • 19. Case Study -
      • Faced marketing challenges when General Motors introduced this new service
      • Objective was to:
        • Establish product identity
        • Brand recognition
        • Motivate consumers to action
      • Launched real stories campaign in 2002
      • Used radio to reach consumers on a personal level while in their cars
      • Each consumer has their own image and perceived benefit
    • 20. Case Study -
      • 1986 Tom Bodett was selected as spokesman
      • Sought to reach prospective customers while in their cars
      • Bodett’s folksy, down-to-earth style sounded like the kind of person who stays there
      • Campaign is multi-award winning
      • Carol Kirby, VP of Marketing for Motel 6 said, “We can produce new spots so much more inexpensively than on TV. It’s because of this that we are able to constantly refresh the campaign.”
    • 21. How Can I Make Radio Advertising Work For Me?
      • A Successful radio campaign MUST reach:
      • The RIGHT PEOPLE ( REACH )
      • The RIGHT NUMBER OF TIMES ( FREQUENCY )
      • With the RIGHT MESSAGE ( CREATIVE )
      • All 3 elements need to be present for a radio campaign to have the best chance of success!
    • 22. What Does This Really Mean?
      • REACH
      • Defined as the number of different people that will be reached by your ad schedule. More important for your schedule to target the right people, instead of just lots of people.
      • FREQUENCY
      • Defined as the average number of times a person will hear your message. Rule of thumb is that a frequency of 3 is considered effective. On average, a person needs to hear the message at least 3 times for recognition, retention and then action.
      • CREATIVE
      • Your commercial message; also referred to as copy. Your commercial should be engaging, informative, and more importantly targeted to the lifestyle of your intended consumer.
    • 23. What are your Strategies and Goals? Long-term Kevin Jewelers (Buy Gold campaign) High Depends Build Top of Mind Awareness : Create a unique marketing identity Continuous Cell phones; Grocery; Cable Television; Internet Service Providers High High Competitive Strategy : The more Competition, the greater the need for Reach and Frequency Long-term Financial or service categories Lower Lower Brand Loyalty : For products that already have high Brand Loyalty, the need for Reach and Frequency is reduced Short-term Cash for Clunkers; Ross Shoe Week Lower Lower Established Product : Already has high Awareness, so it requires lower Reach and Frequency Short-term Grand opening or new product line (McCafe) High High New Business or Product : Build Awareness Campaign Length Examples Frequency Reach Campaign Strategy
    • 24. Ideas To Consider
      • What is your Unique Selling Proposition (USP)
      • Step away from your own preferences and think like a consumer
      • Value matters more than price
      • Look for ways to “connect the dots” – event marketing, cross promotion, etc.
      • Develop a partnership relationship – ask for research
    • 25. Qualitative Criteria : Adults 18+ Metro Survey Area Qualitative Population: 300,234 Qualitative Respondents: 1,006 QUALITAP TM Arbitron Instant Qualitative Profile PALM SPRINGS - Jul-Aug08/Jan-Feb09 Retail Direct Sex Age % Male 50.4 % Female
      • Employed Full-Time/Part-Time
      • Full-Time 42.2%
      • Part-Time 17.4%
      • Not Employed
      • Homemaker 7.4%
      • Student 3.7%
      • Retired 15.4%
      • Not Employed-Looking For Work 9.6%
      • Other 4.4%
      15.1% 22.5% 19.7% 16.9% 11.1% 14.7% P 18-24 P 25-34 P 35-44 P 45-54 P 55-64 P 65+ Household Income (Hh) Occupation Craft & Repair/Precision 7.1% Farming/Forestry/Fishing 1.6% Managerial/Professional 11.3% Operator/Trnsprt/Laborer 6.3% Service Worker 17.9% Technical/Sales/Admin 15.3% Blue Collar 33.0% White Collar 26.6% Less Than $25,000 $25,000-$34,999 $35,000-$49,999 $35,000-$49,999 $75,000 Or More 35.9% 11.8% 14.8% 22.1% 15.3% Number Of Persons Under 18 (Hh) No persons under 18 48.9% 1 Person 14.2% 2 Persons 18.3% 3 Or MorePersons 18.6% Own or Rent Home (Hh) Own 62.3% Rent 33.7% Other 4.0% 49.6 Education Prepared with QUALITAP v1 0.1. © 2009 Arbitron Inc. QUALITAP is a service mark of Arbitron Inc. TAPSCAN® is a registered mark of TAPSCAN Inc., used under license. Data © Jul-Aug08/Jan-Feb09 Retail Direct. Subject to the limitations and restrictions stated in the original report. 18.8% College Degree Or More 30.7% Some College 33.5% High School Graduate Or Ged 17.1% Less Than 12th Grade
    • 26. RAB Instant Background Report For Pest Control
    • 27. And Finally…
      • * Be realistic
      • * Be patient
      • * Be consistent
      • The rest is up to YOU !
    • 28. Only Radio
      • Reaches nearly everyone every week in real time, so Radio gets the message there when it matters
      • Can respond live to, or get voiced consumer generated content from listeners who expect to find advertising there
      • Offers a place where most of the same people choose to return day after day, like a virtual neighborhood, so your message can build frequency in a controlled environment
      • Has as much live access to working people every work day, especially just before they make purchasing decisions
      • Delivers the same unique content on the Internet as over the air, on websites that give advertisers interactive access to listeners
      Radio – a unique way to connect advertisers to people
    • 29. Radio is Used in Real Time
      • Live Mass Reach
        • 96% of people 12+ in Los Angeles listen to Radio every week in real time (Monday-Sunday, 6am-mid)
        • They spend an average of over 2 ½ hours each day with Radio
        • Nearly 8 out of 10 persons 12+ listen on any given day
        • About 95% of working adults in LA are exposed to radio every week for 2-1/2 hours each work day (Monday-Friday, 5am-8pm)
      Radio gets the message there when it matters. Sources: Arbitron PPM, October-November 2008, Los Angeles Metro Report; Radio Ad Effectiveness Lab Study “ Personal Relevance Two: Radio’s Receptive Ad Environment, September 2006; LA Arbitron PPM Reports from Aug – Nov 2008 metro; “What Happens When the Spots Come On” Arbitron, Media Monitors and Coleman Study which analyzed 93,876 radio commercial breaks from November and December 2005 in Houston, Texas
    • 30. Source: Arbitron PPM, October - November 2008, Los Angeles Metro Ratings, Monday – Friday, 5am-8pm. Used with permission from The Arbitron Company. About 9 out of 10 Working People listen to the radio out of home between 5A and 8P . Los Angeles 87.7% 92.3% 95.0% 97.0% 94.8% 95.1% 95.1% 92.7% 96.5% 95.0% 94.7% Average Weekly Total 78.7% 86.0% 90.3% 92.0% 87.5% 89.9% 87.4% 85.6% 90.2% 89.5% 89.2% Average Weekly Total Out of Home 2:30 2:15 Working Adults 18-34 3:00 2:30 Working Men 25-54 2:30 2:15 Working Men 18-34 2:30 2:00 Working Adults 25-54/ HHI $75K+ 2:45 2:15 Working Adults 18+ 3:00 2:45 Hispanic Working Adults 25-64 2:30 2:00 African-American Adults 18-49 2:45 2:15 Working Adults 25-64 2:45 2:30 Hispanic Working Adults 18-34 Hispanic Working Adults 18+ Working Adults 25-54 3:00 2:30 2:45 2:30 Average Daily Time Exposed Total Average Daily Time Exposed Out of Home
    • 31. Manage the Mindset
      • Targeting and Mindset Environments
        • Each station attracts a core audience that has a distinct set of attitudes, values and lifestyle attributes, or Mindset
        • People believe “My Radio station is relevant to me,” with a halo effect for advertisers
        • That mindset environment is the same 24/7, so advertisers can control their reach and frequency by mindset
      Source: Radio Ad Effectiveness Lab Study “ Personal Relevance Two: Radio’s Receptive Ad Environment, September 2006
    • 32. Radio Breeds Familiarity
      • Frequency of Exposure
        • The majority of Radio listening is repeatedly spent with just one or two Radio stations – like Virtual Neighborhoods, Radio stations attract the same people back again and again
        • Whenever you run a spot, about 90% of the people listening to a given Radio station are people who primarily use that station and will return, so you can build familiarity among them
      Source: Arbitron PPM, October-November 2008, Los Angeles Metro Report
    • 33. Be There When It Matters
      • Control of Time and Environment of Message Delivery
        • All Radio listening is done LIVE, in real time, whether online, wireless or over the air -- the message gets through when you want it to
        • On average, radio holds more than 92% of its lead-in audience during commercial break
        • Domino’s says 74% of working women don’t know what’s for dinner until they are on their way home – listening to their radios
        • 90% of decisions on where to stop on the way home are made that very day
      Radio gets the message there when it matters. Sources: LA Arbitron PPM Reports from Aug – Nov 2008 metro; “What Happens When the Spots Come On” Arbitron, Media Monitors and Coleman Study which analyzed 93,876 radio commercial breaks from November and December 2005 in Houston, Texas; Arbitron Edison NAB In Car Study October 2003.
    • 34. Build a Place in the Virtual Neighborhood
      • Unique Content, Multiple Platforms
        • It’s the only medium that is directed to YOU, that can talk, instantaneously, about what’s going on that affects that Virtual Neighborhood, react and respond to listeners and events on the spot, even call you by name.
        • Radio is people talking with real people, friends playing new and your favorite music, instant consumer generated content, always open to accept you. It’s used live, in real time, and it’s on demand, it’s interactive.
        • All these portals are also ways advertisers can connect to Radio’s listeners while still benefiting from the Virtual Neighborhood connection
      Radio connects advertisers with people.
    • 35. Radio’s Unique Assets
      • Live Mass Reach
        • 96% of people 12+ in Los Angeles listen to Radio every week (Monday-Sunday, 6am-mid)
        • They spend an average of over 2 ½ hours each day with Radio
        • Nearly 8 out of 10 persons 12+ listen on any given day
        • About 95% of working adults in LA are exposed to radio every week for 2-1/2 hours each work day (M- F 5am-8pm)
      • Targeting and Mindset Environments
        • Each station attracts a core audience that has a distinct set of attitudes, values and lifestyle attributes, or Mindset
        • People believe “My Radio station is relevant to me,” with a halo effect for advertisers
      • Frequency of Exposure
        • The majority of Radio listening is repeatedly spent with just one or two Radio stations – like Virtual Neighborhoods, Radio stations attract the same people back again and again
        • Whenever you run a spot, about 90% of the people listening to a given Radio station are people who primarily use that station and will return, so you can build familiarity among them
      • Control of Time and Environment of Message Delivery
        • All Radio listening is done LIVE, in real time, whether online, wireless or over the air -- the message gets through when you want it to
        • On average, radio holds more than 92% of its lead-in audience during commercial break
      • Unique Content, Multiple Platforms
        • It’s the only medium that is directed to YOU, that can talk, instantaneously, about what’s going on that affects that Virtual Neighborhood, react and respond to listeners and events on the spot, even call you by name.
        • Radio is people talking with real people, friends playing new and your favorite music, instant consumer generated content, always open to accept you. It’s used live, in real time, and it’s on demand, it’s interactive.
      Unique content, real time, live, interactive mass reach that provides frequent mindset targeting opportunities, especially among working people Sources: Arbitron PPM, October-November 2008, Los Angeles Metro Report; Radio Ad Effectiveness Lab Study “ Personal Relevance Two: Radio’s Receptive Ad Environment, September 2006; LA Arbitron PPM Reports from Aug – Nov 2008 metro; “What Happens When the Spots Come On” Arbitron, Media Monitors and Coleman Study which analyzed 93,876 radio commercial breaks from November and December 2005 in Houston, Texas Radio connects advertisers with people. Radio gets the message there when it matters.
    • 36. TV Viewers Are Timeshifting – So More Are Seeing Less
      • 36.2% of Los Angeles TV households now have a digital video recorder (DVR)
      • More than 90% of DVR owners “almost always” or “always” skip through ads.
      • About 45% of daily TV viewing is to recorded , not live programs
      • Over 16% of most program ratings currently come from DVR replay.
      • Most of those are in key target age groups.
      Source: Nielsen Nov 2008 Estimates. Media Daily News December 12, 2008 from TiVo Power||Watch ratings service based on 20,000 households. Sept 2008 “DVR Report” by Consumer Analysis Group; Nov 6, 2008 -- recent study from Magna, Interpublic Group of Cos.' media consulting group.
    • 37. About Half of TV Viewing Time is Spent With DVR’d Programming
    • 38. Radio Beats the Internet Source: Gallup Poll from Marketingcharts.com, January 27, 2009, and Arbitron, December 2008 PPM, Atlanta, Chicago, Dallas, Detroit, Los Angeles, New York, Philadelphia, San Francisco, and Washington. * About the poll: Internet results are based on telephone interviews with 1,009 national adults, aged 18 and older, conducted December 4-7, 2008. Interviews are conducted with respondents on land-line telephones (for respondents with a land-line telephone) and cellular phones (for respondents who are cell-phone only). ** Radio data is based on an electronically monitored, year round base of over 30,000 people in the top 9 markets in the country. % of People who spend an hour or more each day with Internet or Radio More people spend more time with Radio each day than they do with the Internet
    • 39. Where They Really Are Source: Scarborough, February 2007 – January 2008, Los Angeles and Arbitron PPM, October – November 2008, Los Angeles Metro ratings, Monday – Friday, 5am-8pm. Note: Primetime TV Monday-Saturday is 8pm-11pm and Sunday 7pm-11pm, over 100 different TV programs (vs. 64 different radio formats) Networks included : CBS, CW, NBC, FOX, and ABC . Workday Radio reaches more people than Primetime Network TV
    • 40. The Analysts Know Radio
      • SNL Kagan sums up its relatively bullish analysis this way: “Although some press recently has called for the eventual extinction of broadcast radio as old media, the industry still reaches more than 235 million listeners and will likely remain a viable business in the long term.” 
      Sources: Per ComScore May 2008 ratings, 143,389,000 people logged into Google in the month of May, and 190,858,000 logged onto the internet in the U.S..  According to Radar Radio reaches more than 235 million listeners over the course of the week according to the RADAR 97 June 2008 Radio Listening Estimates.
    • 41. The Pundits Know Radio
      • Unlike other media such as newspapers, which may never recover, those forecasters generally think radio will see ad spending begin trending up again around 2011.
      • Recovery will be slow, though, and when it comes radio will be a changed industry with a far bigger online presence than it has today.
      • What radio has going for it is a huge and stable audience, with some 90 percent of Americans listening at some point each week, and it’s also inexpensive relative to television.
      • No less important, media buyers say radio works for advertisers, reaching their targets and driving sales.
      Kevin Downey Media Life Magazine Feb 24, 2009
    • 42.
      • There are over 2.8 million vehicles registered in the Riverside/San Bernardino Metro – that’s a 38.3% growth since 2000. In the same period, the population increased by 26.5% . (DMV, May 2009 and U.S. Census, 2008 Population Estimates)
      • There are nearly 12.5 million vehicles registered in the 5 county area of the Los Angeles Media market. That’s a growth of 19.7% since 2000, compared with an 8.6% growth in population. (DMV, May 2009 and U.S. Census, 2008 Population Estimates)
      • 1 out of 5 people in Riverside/San Bernardino left for work before 6am in 2007 . (U.S. Census, 2007 American Community Survey)
      • 62.5% of working adults in the Riverside/San Bernardino Metro have driven 100+ miles in the past week. 31.0% have driven 250+ miles in the past week. (Scarborough, February 2008 – January 2009, Riverside/San Bernardino Metro)
      • People in the Riverside/San Bernardino Metro drive over 13.5 billion miles per year. (Texas Traffic Institute, 2007 Urban Mobility Report )
      • Our traffic is legendary (not in a good way). The average peak traveler in Riverside/San Bernardino spends 49 hours just stuck in traffic each year . (Texas Traffic Institute, 2007 Urban Mobility Report )
      • 89.0% of working Adults 25-54 in households with $75K+ income and 90.8% of working adults 18+ spend on average over 2 hours every day, Monday-Friday between 5A and 8P listening to radio out of home. (Arbitron PPM, April-May 2009, Riverside/San Bernardino Metro)
      • 93.0% of Persons 12+ say they use their AM/FM Radio in the car, and 74.0% say it is the device they use most often in their vehicles. (Bridge Ratings, Digital Audio Growth Projections , August 15, 2007)
      • Radio – It’s where people are when they’re not at home.
      SOUTHERN CALIFORNIA BROADCASTERS ASSOCIATION 1849 Sawtelle Blvd., Suite 543, Los Angeles, CA 90025 Phone: 310-444-1412, Fax: 310-444-1463 www.scba.com Crowded Roads Lead to Lots of Radio Listening
    • 43. Younger People Don’t Read Print Younger, Heavy Online-News Consumers Don't Read Newspapers Source: comScore Plan Metrix study March 15, 2008 Segments were defined based on the number of days respondents said they read a print version of a newspaper in an average week, excluding the Sunday edition: Heavy newspaper readers: 6 times per week Medium newspaper readers: 3-5 times per week Light newspaper readers: 1-2 times per week Non-readers: 0 times per week
    • 44. Source: MRI Spring 2006; SRDS Circulation 2006 Prepared by Newspaper Association of America Business Analysis and Research Department, Media Audit March – May 2008, Los Angeles - Weekday Newspaper (net), Sunday Newspaper (net), and Arbitron, PPM September 2008, Los Angeles Metro, Monday-Friday, 5am-mid. % Adults who Los Angeles is Different… The younger your target, the more you need radio to reach your prospective customers. Los Angeles 73% 76% 80% 79% 77% 68% National Los Angeles DMA Age Group Daily Sunday Daily Sunday 18-24 years 37% 47% 22% 26% 25-34 years 42% 52% 26% 26% 35-44 years 53% 63% 33% 43% 45-54 years 65% 72% 47% 55% 55-64 years 72% 76% 51% 56% 65+ years 75% 80% 65% 71% Read Newspaper Used Radio Yesterday Avg. Day
    • 45. Consumers’ Media Choice Changes The change in people’s media choices reflects what’s possible for them in their daily lives. The number of people listening to Radio in Los Angeles since 2003 has increased while the number of people reading the L.A. Times or the Orange County Register has gone down. Radio L.A. Times Orange County Register Source: Arbitron, Spring 2003 – Spring 2007, Los Angeles Metro, Monday-Sunday, 5a-mid, Adults 18+ and RAB Newspaper Performance Reports, Audit Period Ending September 30, 2008, (Circulation numbers from Audit Bureau of Circulations). *Arbitron, PPM, November 2008, Monday-Sunday, 5a-mid, Adults 18+. Note: Between 2002-2005, the reader per copy (RPC) varied from 2.2 to 2.3 per the Newspaper Association of America. To be as fair as possible, we have elected to use the higher, 2.3 RPC, for this comparison. Bottom Line: LA Times, down 21.1% . Radio, up 5.4%
    • 46. Consumers’ Choice The change in people’s media choices reflects what’s possible for them in their daily lives. The number of people listening to Radio in Los Angeles since 2003 has increased while the number of people reading the L.A. Times or the Orange County Register has gone down. Radio - Hispanic Adults 18+ L.A. Times – Total Market Orange County Register - Total Market Radio - Spanish Dominant Hispanic Adults 18+ La Opinion Source: Arbitron, Spring 2003 – Spring 2007, Los Angeles Metro, Monday-Sunday, 5a-mid, Adults 18+ and RAB Newspaper Performance Reports, Audit Period Ending September 30, 2008, (Circulation numbers from Audit Bureau of Circulations). *Arbitron, PPM, November 2008, Monday-Sunday, 5a-mid, Adults 18+. Note: Between 2002-2005, the reader per copy (RPC) varied from 2.2 to 2.3 per the Newspaper Association of America. To be as fair as possible, we have elected to use the higher, 2.3 RPC, for this comparison.
    • 47. Recommended Proportion of Ad $ Based on Ability of Medium to Influence Auto Purchase Source:, Prosper Media Allocation Model/BIGresearch SIMM with Medill School at Northwestern U. Based on 18,000 participants and a 6 year study December 16, 2008 Radio is Stronger Media Option For Selling Cars * % of Total U.S. Advertising Spend in 2007 ** Media influence weighted by consumption and media cost for people planning to buy/lease a car/truck in the next 6 months. People planning to buy/lease a car/truck in the next 6 months are more influenced by Radio than any other media. Prosper Technologies developed a new Media Allocation Model that utilizes the SIMM Survey of over 18,000 consumers to determine “what” and “ which” media forms are most influential to consumers for buying a car , the consumption of the media and pricing of various measured media. 17.3% Television 15.6% Magazines 16.3% Other 8.5% Internet 21.5% Radio Outdoor Newspaper Medium 14.6% 6.2% Prosper Allocation Model**
    • 48. Radio Ads Are More Likely to Sell Cars
      • Prosper Technologies developed a new Media Allocation Model that utilizes the SIMM Survey of over 18,000 consumers to determine “what” and “ which” media forms are most influential to consumers for buying a car , the consumption of the media and pricing of various measured media.
      • The results represent the first cross platform, consumer-centric media planning and allocation tool. The service will enable advertisers such as the automakers and their agency partners to dramatically increase the effectiveness and efficiency of marketing communication and increase their ROI .
      • Said the report: “One glaring difference is the disproportionate allocation of spending on TV versus other media. An example is that the amount of radio consumed, its influence to purchase, combined with lower costs makes it a stronger media option, which according to consumers is under-utilized . On the other hand, the percentage of dollars spent on TV is not relative to its influence to purchase, consumption and cost.”
      Source:, Prosper Media Allocation Model/BIGresearch SIMM with Medill School at Northwestern U. Based on 18,000 participants and a 6 year study December 16, 2008
    • 49. Automotive Current Ad Spend vs. Prosper Media Recommended Allocation Model Source: Ad Age Domestic Ad Spending by Category (2007)/Measured media from TNS Media Intelligence’s Strategy, Prosper Media Allocation Model/BIGresearch SIMM with Medill School at Northwestern U. Based on 18,000 participants and a 6 year study December 16, 2008. Radio is Stronger Media Option For Selling Cars * % of Total U.S. Advertising Spend in 2007 ** Media influence weighted by consumption and media cost for people planning to buy/lease a car/truck in the next 6 months. BIGresearch Recommend Reallocation of Ad $ Distribution to Improve Sales and ROI People planning to buy/lease a car/truck in the next 6 months are more influenced by Radio than any other media. 31.5% 7.0% 3.5% 39.1% 1.5% 5.0% 12.4% General Motors Spend Share* 34.5% 6.5% 2.3% 38.9% 0.7% 5.2% 11.9% Ford Spend Share* 17.3% 43.2% Television 15.6% 10.5% Magazines 16.3% 34.0% Other 8.5% 3.0% Internet 21.5% 1.9% Radio Outdoor Newspaper 14.6% 0.5% 6.2% 6.9% Prosper Allocation Model** Chrysler Spend Share*