The Power Of Radio


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The Power Of Radio

  1. 1. The Power of Radio
  2. 2. Power of Radio • Reach • Resilience • ROI • Reinvention
  3. 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. 4. Radio Listenership Is Growing 240,000,000 235 Million Listeners 230,000,000 220,000,000 Radio’s total 210,000,000 audience has grown 16% since 1994 200,000,000 __________ Radio has 190,000,000 added six million listeners since 2005 180,000,000 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. 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. 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 Radio Sources: 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. 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. 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. 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. 10. Radio Reaches 92 million More People 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. 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. 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. 13. Major Auto Study Recommends Increasing Radio, Reducing TV Share 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. 14. Case Studies
  15. 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. 16. Hershey’s Does More Radio Than TV Advertising And Results Soar •Hershey’s ad spending increased 25% in 2008 and earnings were up 98% •CEO David West said that Hershey’s has done more radio than TV advertising and “we've been feeling pretty good about the brand responses.” •Hershey’s plans to increase ad spending by another 20% in 2009, continuing to focus on core brands Source: Advertising Age, October 16, 2008
  17. 17. Radio Drives Leads and New Business for Wells Fargo Financial Services •Exclusive Entercom six-week campaign in select markets simplified the savings/investment process and made it relevant and fun for younger consumers •Integrated campaign generated tens of thousands of leads for Wells Fargo. Netbanker rated the program A+. “Radio Advertising A+” NetBanker, March 2008
  18. 18. Radio Propels Unprecedented Listener Response For Subaru Dealer •Creative audio and video cause-marketing campaign that planted a tree for each test drive •Carter Subaru planted over 11,000 trees during the campaign and helped to reforest a natural reserve outside of Seattle •“It’s only natural for Subaru to continue its engagement with Entercom – a passionate radio partner that consistently delivers results.” - Danny Levine, President NationAd (Carter Subaru agency of record)
  19. 19. Testimonials
  20. 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 spent to advertise on radio – it’s out of whack.” - Eric Schmidt, Google CEO - USA Today Eric Schmidt
  21. 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. 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 and allowed our creative audience to express themselves. The Snow Patrol Cover Art contest was truly amazing!” — Bobbi Simpson, Northwest VP Marketing - Scion
  23. 23. The Power of Radio