AAM 103 Radio Research


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AAM 103 Radio Research

  1. 1. RADIO “ The misunderstood medium ” By: Antonietta Robino, Luke Lopez
  2. 2. Radio Research
  3. 3. <ul><li>Who Conducts Research? </li></ul><ul><li>Radio research is conducted by, small lab or research groups. </li></ul><ul><li>Research is then given to organizations who help release to their clients and distribute to the public. </li></ul>
  4. 4. <ul><li>Who Conducts Research? </li></ul><ul><li>BBM - A leading provider of TV, radio and consumer information to Canadian Broadcasters, advertisers, and agencies. </li></ul><ul><li>RMB - The Radio Marketing Bureau which is the premier marketing and resource centre for radio advertising in Canada </li></ul>
  5. 5. <ul><li>Research Study </li></ul><ul><li>The Ironing Board Study </li></ul><ul><li>Commissioned by Saatchi and Saatchi in 1980 the study successful quantified the recall of commercial radio messages among women under test conditions. </li></ul><ul><li>Purpose: Ironing Board was focused on assessing how changes have affected the listeners' ability to recall radio messages effectively while performing an activity. </li></ul><ul><li>Method: replicated an environment and procedure, inviting 306 adults to test a new starch product. Radio played in the background. Respondents listened to a taped version of their local station in real time consisting of regular personalities, features, advertising breaks and news updates. </li></ul>
  6. 6. <ul><li>Response </li></ul><ul><li>25% of respondents were able to mention some aspect of each of the commercials broadcast in a conventional advertising break. </li></ul>
  7. 7. <ul><li>Study Example 2 </li></ul><ul><li>Emotions Study of How Radio Affects Consumer </li></ul><ul><li>Done by Radio Ad Lab, recently published in August 2008. </li></ul><ul><li>Investigation of emotional reactions to Radio ads at pre-cognitive level. </li></ul><ul><li>Methods: CERA (Continuous Emotional Response Analysis), this system uses leading edge measures of emotional response, supplemented with traditional validated metrics of advertising effectiveness. </li></ul><ul><li>EMG – technical facial electromyography </li></ul><ul><li>Environment in which respondents were exposed to both programming and advertising. </li></ul><ul><li>Provided respondents with a choice of programming, so that there would be a reasonable “ fit ” between respondent and program content. </li></ul>
  8. 8. In what ways does this medium work? <ul><li>FM radio Reach 81% of persons 12+, while AM reaches 34% </li></ul><ul><li>DISTRIBUTION </li></ul><ul><li>Commercial radio stations 627. HHs with radio 99% </li></ul><ul><li>CONSUMPTION </li></ul><ul><li>1 week reach 92%. Avg hours per week 20 </li></ul><ul><li>TOP FORMATS </li></ul><ul><li>News/talk </li></ul><ul><li>Adult Contemporary </li></ul><ul><li>Country </li></ul><ul><li>Hot Adult Contemporary </li></ul><ul><li>Contemporary Hit Radio </li></ul><ul><li>Rock </li></ul><ul><li>Classical </li></ul>
  9. 9. In what ways does this medium work? <ul><li>Canadians have never stopped tuning into radio. Always accessible, radio reaches into the heart of communities with news, insight, entertainment, companionship and a soundtrack for life. </li></ul><ul><li>Adults spend close to 1/3 of their daily media time with radio. This translates to 93% reach of adults 18+ every week, second only to TV at any age group. </li></ul><ul><li>Busy, mobile Canadians are particularly strong radio listeners because of its accessibility while they are on the go – at work, driving, relaxing at home or using the internet. </li></ul>
  10. 10. In what ways does this medium work? <ul><li>Radio’s relevance to today’s lifestyle is reflected by the fact that the following groups are reached better by radio on a daily and weekly basis than by any other medium: </li></ul><ul><ul><ul><li>Working adults, especially owners, managers and professionals </li></ul></ul></ul><ul><ul><ul><li>Women with kids and teens at home </li></ul></ul></ul><ul><ul><ul><li>Adults 25-54 with over $75,000 annual household income </li></ul></ul></ul><ul><ul><ul><li>Adults with post-secondary education </li></ul></ul></ul><ul><li>Radio’s daily presence provides competitive edge </li></ul><ul><li>Because consumers spend a significant part of their day listening to radio, it delivers higher adult reach than newspaper and TV in all day parts from early morning to early evening. (Source: BBM-RTS Spring 07) </li></ul>
  11. 11. In what ways does this medium work? <ul><li>This ongoing, daily presence in the marketplace is key to creating a competitive edge because it enables advertisers to stand out amongst the increasing volume of consumer-targeted messages. </li></ul><ul><li>Radio’s cost-efficiency enables advertisers to be heard not only every day, but multiple times throughout the day. This  average frequency is critically important for quickly delivering advertising response – web visits, store traffic, sales, brand recall and intent-to-purchase. </li></ul>
  12. 12. Radio offers a unique environment for engaging consumers – Get Personal <ul><li>Radio is a one-on-one medium. Listeners tune in regularly in their own personal space , developing a relationship with the stations that reflect their tastes and lifestyle. They listen to programming that is live and spontaneous; its tone genuine and its ambience intimate. </li></ul><ul><li>Current research shows that listeners see radio as “speaking to me” and trust the information they hear, finding credibility and relevance in both the programming and the advertising. They feel more emotionally connected to radio, and to their community through radio, than with any other media. </li></ul>
  13. 13. Radio offers a unique environment for engaging consumers <ul><li>Radio is therefore a powerful marketing tool for speaking directly to consumers from various lifestyle segments. </li></ul><ul><li>It’s a proven results-driver for brands and businesses that “speak the language” of their target audience(s). Advertisers can effectively engage the right consumers with memorable conversations, stories and experiences through the right tone-of-voice and attitude – an ideal fit for the radio environment. </li></ul>
  14. 14. Get Local <ul><li>Radio is a local medium – an information and entertainment source that is central to each community’s culture and activities – from major news, entertainment and sporting events to the smallest community initiatives that bind people together in a common cause. </li></ul><ul><li>In fact, radio stations contribute millions of dollars each year to supporting charitable and other local causes that are important to their community of listeners. And listeners respond in droves, demonstrating their unique connection to the radio stations that serve their communities. </li></ul><ul><li>Marketers can become a part of a community’s way of life through radio, which offers a unique local flavour, tone of voice, and presence within communities across the country. Radio is a powerful medium for advertisers that want strong engagement with consumers. </li></ul>
  15. 15. Radio delivers precise targeting to the right consumers <ul><li>The local aspect of radio offers advertisers tremendous flexibility to target the consumers that are most important to reaching their business goals. Targeting results are optimized through radio’s cost-efficient creative and production process.   </li></ul>
  16. 16. Capitalize on low ad avoidance <ul><li>Listeners’ personal connection to their radio stations results in less ad avoidance than any other medium </li></ul>
  17. 17. Capitalize on low ad avoidance <ul><li>Listener loyalty is further demonstrated by 2006 research that tracks listener-tuning during commercial breaks. On average, 92% of listeners stay tuned during the commercials. </li></ul>
  18. 18. Sound engages listeners in a powerful way <ul><li>Sound is a powerful form of engagement. </li></ul><ul><li>Think of the role of music in our lives. It is a universal language evoking feelings and memories that stay with us for a lifetime. It is an influential part of our society, and through the ages has come to represent the culture and mores in every area of the world, in every era of time. </li></ul><ul><li>Similarly, the spoken word – stories passed down through the ages – create unique, memorable connections between people. Today verbal stories have no less impact and undoubtedly explain radio ’ s ongoing viable role in current society. </li></ul><ul><li>Marketers that leverage sound to its full advantage, create a unique bond with their target consumers, and gain competitive edge in the marketplace. </li></ul>
  19. 19. Targeting at the right time <ul><li>Radio is a highly effective and efficient medium for targeting mobile listeners while they are likely to be in the market for a specific product or service. Meal options on the drive home, retail advertising while people are out and about close to the point of sale, beer advertising prior to holidays and during weekends. The options are plentiful. </li></ul>
  20. 20. Targeting through creative <ul><li>Targeting is further strengthened by creating advertising messages that fit the station’s brand profile, programming and tone of voice, and “speak the language” of various consumer segments listening to different radio formats. Radio very affordably allows multiple creative executions so marketers can optimize their ability to engage the various target audiences that have strong customer-potential. </li></ul>
  21. 21. Integrated radio solutions deliver effective consumer engagement <ul><li>Radio has always engaged its listeners on and off-air, gaining consumers ’ attention and share-of-mind at local and contest-prize events, community festivals and grand store openings to name a few. Here consumers connect not only with the station ’ s brand, but with advertisers that sponsor, sample and become an integral part of the activity. </li></ul><ul><li>Today, radio ’ s level of engagement with audiences is growing exponentially with new platforms like the web, online podcasting, mobile communication and email marketing to stations ’ listeners. </li></ul>
  22. 22. Integrated radio solutions deliver effective consumer engagement <ul><li>Creative, integrated radio solutions abound, utilizing on and offline tools such as promotions, endorsements, sponsorships, spot campaigns and integration with programming. </li></ul><ul><li>This multi-faceted approach to radio drives a deep engagement with target consumers, builds a strong connection to advertisers ’ brands, and ultimately enhances recall, intent to purchase and sales. </li></ul>
  23. 23. Integrated radio solutions deliver effective consumer engagement <ul><li>Creative, integrated radio solutions abound, utilizing on and offline tools such as promotions, endorsements, sponsorships, spot campaigns and integration with programming. </li></ul><ul><li>This multi-faceted approach to radio drives a deep engagement with target consumers, builds a strong connection to advertisers ’ brands, and ultimately enhances recall, intent to purchase and sales. </li></ul>
  24. 24. Proof this medium work CASE STUDY - IKEA <ul><li>Challenge </li></ul><ul><li>With 30 years in Canada and counting 11 stores in operation, today Ikea has developed exceptional brand equity in this country. The company aims to widen the appeal of its product range for new and existing customers. The objective is to </li></ul><ul><li>build awareness of priority business areas; drive traffic by communicating events, activities and news; and achieve maximum reach and a dominant market presence. </li></ul>
  25. 25. Proof this medium work CASE STUDY - IKEA <ul><li>Solution </li></ul><ul><li>Radio offers Ikea an excellent opportunity to reach its target audience quickly, frequently and cost effectively; to capitalize on radio's flexibility to communicate multiple creative messages; and to ensure strong market presence during opportune retail time periods. </li></ul><ul><li>An additional benefit of the medium is its refined and personalized targeting ability. As Ikea's key audience is women aged 25 to 54, radio provides an ideal way to reach this group through optimum station selection and scheduling. News and traffic tags are incorporated into the media plan to add further market presence in prime listening and commuting times of the day. Radio also offers highly affordable opportunities for frequent promotion of events over a four-to-five-week period. </li></ul>
  26. 26. Proof this medium work CASE STUDY - IKEA <ul><li>Solution </li></ul><ul><li>From a creative point of view, radio is an excellent choice to effectively showcase Ikea's star character whose distinctive voice grips the consumer's imagination and whose Swedish accent and message becomes instantly identifiable with the brand. The consistency of message and tone executed throughout a variety of creative spots is ideally suited to the medium. Radio also affords high frequency of message and the flexibility to run multiple variations on a branding theme that builds store traffic and sales through specific tactical messages. </li></ul><ul><li>Using radio's one-on-one personal consumer reach, Ikea's unique creative style commands wide appeal and inspires high-volume store visits and sales. Ikea ramps up sales growth with fresh radio creative. </li></ul>
  27. 27. Proof this medium work CASE STUDY - IKEA <ul><li>Results </li></ul><ul><li>Ikea's inventive radio ads are driving record awareness and recall for the retailer, healthy sales growth and increased top-of-mind brand awareness . Radio has played a key role in this success. Without adding more to the budget, Ikea made radio a lead element in its media strategy and got more efficiency, reach and mileage for the media dollar . </li></ul>
  28. 28. Proof this medium work CASE STUDY - MOORE’S <ul><li>Situation Analysis: </li></ul><ul><li>Moores is in the price-sensitive segment. Competitors include The Bay, Sears, Tip Top, and independents. Advertising had been promising &quot;Well Made. Well Priced. Well Dressed.&quot; However, some executions looked so high-end that the brand was having an identity crisis. Sales were drifting down. What should Moores do? </li></ul>
  29. 29. Proof this medium work CASE STUDY - MOORE’S <ul><li>Strategy and Insight: </li></ul><ul><li>Something was needed beyond &quot;great fashion at reasonable prices.&quot; But what? It wasn't feasible to out-promote the Bay and Sears. And margins wouldn't sustain deep discounting. The answer came from tapping into men and shopping. The &quot;Well Made. Well Priced. Well Dressed.&quot; campaign had aimed at the man who sees clothes as a statement. But there's another man-and he accounts for over 35% of the population. He's not involved in fashion at all. He hates anything image-y. He'd sooner spend money at the hardware store than on a new suit-because he's the type of man who likes to fix things. He's the man to go after. But if advertising was going to appeal to this guy it would have to change. </li></ul>
  30. 30. Proof this medium work CASE STUDY - MOORE’S <ul><li>Execution: </li></ul><ul><li>The new campaign presented clothing as a problem to be fixed, and it did it in a lighthearted way. It also went against the tactical wisdom, and focused on brand-building, with 12 TV commercials and a range of radio executions. Each focused on a different problem. </li></ul><ul><li>Results: </li></ul><ul><li>They have been immediate and sustained. Prior to the ad launch in February 04 Moores' same-store sales were sliding at - 4.5% a year. For the launch year sales jumped to +6.5%. And similar growth has continued into Spring 05. </li></ul><ul><li>Cause and Effect: </li></ul><ul><li>There was no significant change in merchandising strategy, or pricing, or the competitive arena. There was no improvement to stores or staffing. No additional discounting or promotional effort. No increase in marketing spend. Advertising was the only thing to change, and we can be confident that it caused the turnaround. </li></ul>