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Radio Ads Reach Receptivity - A Smarter Mix 2013

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Radio Ads Reach Receptivity - A Smarter Mix 2013

  1. 1. RADIO ADDS REACH & RECEPTIVITY – A SMARTER MIX! February 2013 1
  2. 2. Objectives • Commission MBI’s USA Touchpoints to work with seven actual brand 2012 media plans in diverse categories • Demonstrate that reallocating to radio a portion of the budget from TV results in: • Higher Reach • Higher Frequency • Enhanced Receptivity* • Reallocate 5%, 10% and 15% of the TV budget to radio and assess the impact of the new media mix on campaign effectiveness*MBI TouchPoints measures the social-emotional context of target audiences’ livesto identify the moments of highest receptivity – something they identify as the Receptivity Potential Index 2
  3. 3. Seven Actual Campaigns And Media Plans In The Study 2 Financial Services 2 Automotive OEMs 2 Quick Service Restaurants 1 Home Improvement3
  4. 4. Challenge:• Hold Dollars Constant• Enhance Reach, Frequency And ReceptivityResults:• Reallocating a portion of the budget to radio measurably increased both the reach and frequency of each campaign without compromising the delivery of the TV campaign 4
  5. 5. Radio Increases Campaign Reach As Much As 24%, For The Same Money • Percent Gains In Campaign Reach – 15% Reallocation of TV Dollars 24% Average 15.5% 18% 15% 15% 16% 12% 8% Auto 1 QSR 1 Financial Home Services 1 QSR 2 Improvement Financial Services 2 Auto 2Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 5
  6. 6. In Every Case, Reallocating Television Spend To Radio Increased Reach Significantly At No Incremental Spend • Campaign Average Weekly Reach Original TV Schedule 5% to Radio 10% to Radio 15% to Radio +8% +28% +15% +24% +16% +18% +15% 82% 86% 86% 69% 76% 74% 80% 59% 64% 65% 54% 56% 47% 50% Financial Services 1 Financial Services 2 Auto 2 Home Improvement QSR 2 QSR 1 Auto 1Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 6
  7. 7. The Reallocations Had Negligible Impact On Overall TV Reach • Weekly TV reach after reallocation Auto 1 Auto 2 QSR 2 WEEKLY REACH OF LIVE TV WEEKLY REACH OF WEEKLY REACH OFLIVE TV SCHEDULES TARGETS SCHEDULES TARGETS LIVE TV SCHEDULES TARGETSFULL SCHEDULE 79.5% FULL SCHEDULE 55.8% FULL SCHEDULE 65.0%5% CUT SCHEDULE 79.3% 5% CUT SCHEDULE 55.3% 5% CUT SHCEDULE 64.7%10% CUT SCHEDULE 79.3% 10% CUT SCHEDULE 55.2% 10% CUT SCHEDULE 64.2%15% CUT SHCEDULE 77.4% 15% CUT SHCEDULE 53.2% 15% CUT SHCEDULE 63.8% Financial Financial QSR 1 Services 2 Services 1 WEEKLY REACH OF LIVE TV WEEKLY REACH OF WEEKLY REACH OFLIVE TV SCHEDULES TARGETS SCHEDULES TARGETS LIVE TV SCHEDULES TARGETSFULL SCHEDULE 74.4% FULL SCHEDULE 50.1% FULL SCHEDULE 47.3%5% CUT SCHEDULE 74.1% 5% CUT SCHEDULE 49.2% 5% CUT SCHEDULE 45.6%10% CUT SCHEDULE 74.0% 10% CUT SCHEDULE 47.8% 10% CUT SCHEDULE 45.0%15% CUT SHCEDULE 73.6% 15% CUT SHCEDULE 47.6% 15% CUT SHCEDULE 43.3% LIVE TV WEEKLY REACH OF SCHEDULES TARGETS FULL SCHEDULE 64.1% Home 5% CUT SHCEDULE 63.8% Improvement 10% CUT SCHEDULE 63.5% 15% CUT SHCEDULE 63.0% Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 7
  8. 8. And In Every Case, Average Frequency Increased Along With Reach • Average Frequency Original Reallocate 5% Reallocate 10% Reallocate 15% +29% +62% 8.0 7.6 +5% +52% +64% +43% +39% 6.2 4.3 4.4 3.6 4.3 4.5 4.7 3.2 2.3 3.0 2.2 2.9 Financial Services 1 Auto 2 QSR 2 Home Improvement Financial Services 2 QSR 1 Auto 1Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 8
  9. 9. In Every Case, Reallocating TV Spend To Radio Increased Receptivity Significantly At No Incremental Cost • Increase In RPI* Weighted Dollars When 5%, 10%, 15% Of TV Spend Is Reallocated to Radio Original TV Schedule 5% to Radio 10% to Radio 15% to Radio +42% +64% +84% $14.0 $14.3 $12.6 +47% $10.6 +84% $10.1 $8.6 $6.9 $7.2 +20% +74% $5.4 $ in Millions $0.7 $1.3 $1.8 $2.2 $3.0 Financial Financial Services 1 Services 2 QSR 2 QSR 1 Home Source: MBI TouchpointsTM Improvement Auto 1 Auto 2*MBI TouchPoints measures the social-emotional context of target audiences’ livesto identify the moments of highest receptivity – something they identify as the Receptivity Potential Index 9
  10. 10. Conclusions • Radio can significantly extend the reach of television plans … at no additional cost, with negligible change to original TV delivery goals • And since Radio use corresponds more directly to key times in consumers’ lives - when they may be open and responsive to marketing ideas or suggestions - marketers can use radio’s selectivity to increase receptivity to their messages These seven studies help prove that radio can be a game changer for the potential of a campaign to deliver more effectively with no change in budget10

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