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Radio Advertising Effectiveness

Radio Advertising Effectiveness. Radio and television are a powerful and commonly used media combination Commercial Radio Australia commissioned Millward Brown to investigate and explore the multiplier effect of a combination of radio and television Objectives:

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Radio Advertising Effectiveness

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  1. Radio Advertising Effectiveness • Radio and television are a powerful and commonly used media combination • Commercial Radio Australia commissioned Millward Brown to investigate and explore the multiplier effect of a combination of radio and television • Objectives: • Understand the impact on sales and awareness that a strategy combining television and radio activity has over television activity alone

  2. Study Methodology • Timing: May and July 2005 • Control Market: TV only • Test Market: TV and Radio • Respondents: 18 - 54yrs of age, main grocery buyers who had listened to the radio in the past 7 days • Survey Method: online research of 800 respondents • Studied effectiveness of 30sec radio commercials

  3. Media Strategy Test Market - Brisbane TV and Radio 83% 17% Control Market - Perth TV Only 100% Brand A Personal Hygiene Radio 17% of budget $69,388 $36,220 $14,420 20% of total budget reallocated to radio 77% 23% 100% Brand B Food Radio 23% of budget $30,000 $12,600 $40,000

  4. Radio Television High reach of radio across the day • High reach of radio across the day complements televisions reach during the evening  Radio Source: Nielsen Media Research, Radio Advisor, Average Audience, 5 Cap Cities, Avg Survey 1-8, 2006, All people 10+, TV Source: OZTAM, 5 City Total, Average Audience, 12/2/06-1/12/06, All people 10+

  5. Commercial Radio Audience • Commercial radio reaches 77% of Australians aged 10yrs+ • Over 8.6 million Australian’s tuned into commercial radio each week in 2006 • Australians aged 10yrs+ spent an average 17 hrs 57 mins listening to commercial radio each week in 2006 • Nearly 70% said commercial radio is their primary source of hearing new music and a major purchasing influencer* Source: Nielsen Media Research, average Five Capital Cities, Mon-Sun 5:30-12 midnight. Surveys 1-8, 2006 * Source: Colmar Brunton Solutions, Omnibus Survey, 2006

  6. Commercial Radio Breakfast Listening • 6.6 million people tuned into metropolitan commercial radio breakfast in 2006 • Commercial radio breakfast average audiences were 2.02 million people per quarter hour throughout 2006 • Up to 20% of Australians listen to commercial radio during breakfast, compared to 4% watching commercial television • Commercial radio reaches over 4 times more people than commercial television from 6-9am  Radio Source: Nielsen Media Research, Radio Advisor, Average Audience, 5 Cap Cities, Avg Survey 1-8, 2006, All people 10+, TV Source: OZTAM, 5 City Total, Average Audience, 12/2/06-1/12/06, All people 10+

  7. Breakfast in Focus • Average Australian spent 7hrs 28mins with commercial radio during breakfast in 2006 • At any point in time during weekday breakfast, nearly one in five Australian’s are listening to commercial radio • Commercial radio delivers an average reach of 18% Source: Radio Ratings, Average of Survey 1-8 2006, Mon-Fri 5.30am-9am, All people 10+ unless otherwise stated

  8. Out of Home Listening Increasing • Portable, relevant medium • Travels with people throughout the day • Out of home listening is up 8% as a proportion of total listening in 2006 compared to 2001 • Greater than 50% of listening now occurs outside the home Source: Radio Ratings, Average of Survey 1-8 2001 vs 2006, Mon-Sun 5.30am-12MN, All people 10+ unless otherwise stated

  9. Commercial radio reaches more people across the day • Commercial radio retains higher reach than commercial television until early evening • Across the workday from 9am-5pm, commercial radio average reach is 15%, compared to commercial televisions average of 5% • Across the entire day, from 6am-5pm, during business hours and when people are out and about, commercial radio average reach is on average double that of commercial television  Radio Source: Nielsen Media Research, Radio Advisor, Average Audience, 5 Capital Cities, Avg Survey 1-8, 2006, All people 10+, TV Source: OZTAM, 5 City Total, Average Audience, 12/2/06-1/12/06, All people 10+

  10. Radio Closest to Point of Purchase • Commercial radio reaches shoppers before they buy • 51% of people who visit the supermarket weekday mornings (9am-1pm) also listen to AM/FM radio across that period of time • 70% of people who go to the supermarket 3 times a week for top up shops listen to AM/FM breakfast radio - 8% more likely than the average person • People who shop around for specials and bargains are 34% more likely to agree that radio grocery ads influence their purchase decisions Source: Panorama, Fused Metro Survey 9 (Nov05-Oct06), All people 14+ unless otherwise stated

  11. Radio Closest to Point of Purchase • 70% of people who go to the supermarket 3 times a week for top up shops listen to AM/FM breakfast radio - 8% more likely than the average person • Radio creates word of mouth • 61% of people who look out for new brands at the supermarket talk about what they hear on radio Source: Panorama, Fused Metro Survey 9 (Nov05-Oct06), All people 14+ unless otherwise stated

  12. Radio is top of mind with grocery buyers • Commercial radio dominates reach of grocery buyers across the day: • Prior to and whilst they are most likely to shop • Delivering timely, relevant messages close to the time of purchase • The majority of grocery buyers shop on weekday mornings and afternoons (59%) • Radio reaches over 41% of grocery buyers across this period • Additionally, radio reaches 64% of grocery buyers prior to visiting the supermarket during breakfast • Source: Nielsen Media Research, Panorama Survey 10 2006 (Jan-Dec 2006), Grocery Buyers aged 14+yrs unless otherwise stated.

  13. +22% Radio Drives Cut-Through • Moving just 20% of your television budget to commercial radio has been proven to increase brand awareness by 22% percentage points • Brand presence was 22% higher amongst those exposed to radio and television than television alone Brand Awareness ‘Have you seen, heard or read anything for (Brand) anywhere recently’?

  14. Findings for Brand B Food Brand

  15. +6% Radio boosts already high awareness to new levels • Even among well known brands, moving 20% of a TV budget to commercial radio has been proven to increase brand awareness by 6% percentage points among listeners • Exposure to the radio ad increased brand awareness from 93% to 99% 100 99 99 98 97 96 Brand Awareness % 95 94 93 93 92 91 90 Seen TV, non listeners Seen TV, regular listeners ‘Please select all the brands you have heard of’?

  16. +15% Brand B Sales Uplift • Even among well known brands, 20% of a TV budget on commercial radio has been proven to increase sales by up to 15% • In the test market, sales for the high profile, iconic food brand, test increased 15% • Sales were static in the control market of television activity alone Sales Index

  17. +61% Additional Findings • Commercial Radio has been proven to increase web hits by 60% • Web hits in the test market jumped over 60% post launch of the media activity as a result of an overt call to action in the personal hygiene radio creative Test Market – TV and Radio Web Hit Index

  18. Other International Radio Studies • This study draws connections to the following international radio effectiveness study findings conducted around the world: • Radio Awareness Multiplier Study - UK • Adding radio to TV has a 15% multiplier effect • If 10% of a given TV budget is re-deployed onto radio, the efficiency of the campaign in building awareness increases on average by 15% • Radio Sales Multiplier Study - UK • Radio advertising creates an average sales uplift of 9% • Radio advertising creates an average sales uplift of 2.2% per 100 radio ratings • Radio’s ROI Advantage - USA • Radio's return on investment (ROI) was 49% higher than observed for television • Radio ads increase sales even when national television is also present • Radio advertising consistently and significantly increased product sales and delivered meaningful profit for each dollar of advertising. Source: RAB UK & RAEL USA

  19. Summary of Key Findings • Moving just 20% of your television budget to commercial radio has been proven to: • Increase brand awareness by 22% • Increase brand awareness by 6% among listeners, even among well known brands • Increase sales by up to 15%, even among well known brands • Increase web hits by 61%

  20. Additional support material and sales information available commercialradio.com.au

  21. Terminology • Total communication awareness • ‘Have you seen, heard or read anything for (Brand) recently’? (asked prior to communication questions using stimulus material) • Seen TV’ • Respondents who identified having seen a particular execution when prompted with photographic stills • ‘Heard radio’ • Respondents who identified having heard a particular radio ad when prompted with audio stimulus • Regular listeners • Respondents who claim to be regular listeners of the particular radio station/s that carried the relevant radio advertising • Total awareness • Prompted brand awareness: ‘Which of these brands have you ever heard of?’ • ‘It would be my first choice’ • The ‘Top box’ of a scaled consideration question

  22. Methodology: Questionnaire Structured questionnaire included the following measures: • Brand health measures • Total Awareness • Consideration • Currently use/used in past • Spontaneous communication recall • Prompted TV communication recall/branding/diagnostics • Prompted Radio communication recall/branding/diagnostics • Consumer behaviour/demographics

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