Radio - Association of Advertisers in Ireland

Everybody‟s listening so whyisn‟t everybody Advertising?

Who are we ?IBI is the representative body for Ireland’sindependent commercial radio broadcasters.2 national stations1 multicity station4 regional stations28 local radio stations

Commercial Radio…..We have no licence fee fundingAdvertising is ONLY source of revenueServe our clients with great creative andsubstantial audiencesMaking advertising budgets go further

• 85% of people listen everyday• Up to 4 hours listening daily• Not all in one slice• Tune in several times during the day

Everybody is listening85% of Irish adults listen to the radio dailyListen up to 4 hours each day67.1% of the population tune intoindependent radio each day – a daily totalof 2.442 million listeners.

Vibrant and Growing MediumIt is a relationshipSpecial relationship between a listener and theirfavourite radio stationOne to One, not One to Many

Radio is Everywhere……………becauseradios are found everywhere !Kitchen radio, bedroom radio, car radio, radioon your i Phone, radio on your laptop, radio onyour TV.Radio provides the Soundtrack to your day

Different Modes and Mindsets

How do respondents feel about the different media ?

TelevisionNewspaperRadioOnlineBigger than MeSame as MeVery ExpensiveExpensiveAffordableExpensiveNot InteractiveNot InteractivePersonalInteractiveNot PortablePortablePortablePortableNationalNational/RegionalMass CoverageWorldwide

Radio offers efficient targeting with minimal waste• Radio targets audiences efficiently – it‟s everywhere• Different stations attract different types of listeners• In Dublin alone we have Q102 for housekeepers withkids, FM104 for under 35‟s, 98FM for 20-44 yearolds, Spin for 15 to 24 year olds, Sunshine/Countryfor country music, Phantom for indie rock niche andnow Nova with Classic Rock.• Advertisers can talk selectively to the groups they aremost interested in reaching• Locally and Nationally.

Radio Reaches People at Relevant Timesand Places• Listeners are engaged in another activity• Advertisers can reach listeners at key „touchpoints‟– school run, daily commute• Radio can now be heard on mobiles – touchpointsare becoming more widespread• UK research shows that advertising which isrelevant to a listener‟s other activity is over 60%more likely to be recalled

Radio reaches out in an Ad avoidance worldUK research shows that radio has the lowest level ofad avoidance – people rarely switch stations and areavailable to listen to any message that is relevant,creative and intriguingGreat opportunity for advertisers who want to reachout to• New customers• Existing customers

Radio has a „Multiplier Effect‟ on other media• Radio‟s way of multiplying this effect of other mediais a feature of multi-media research studies

Radio creates a large „Share of Mind‟ for a brandRadio stations create a sense of ubiquity for a brandTwo reasons:• Radio ads are frequent• Listeners tend to spend a long time listening(avg 14hrs p/week, 4 hrs p/day)A brand which is big in radio can create adisproportionately large share of mind for itself

Radio drives Response… especially online• Radio is a strong „call to action‟ medium – made trueby consumers accessing brands via the internet• Recent UK research revealed that at any given time 1out of every 5 internet surfers are listening to radio –just a click away from interacting with a brand

Radio is a „Friend‟• Radio used for emotional reasons – keep their spiritsup, to stop feeling bored in the car.• Radio is their friend – a valuable context foradvertisers to appear in• Even more powerful through sponsorships andpromotions – teamed up with Q102 - listener ishearing about a friend of a friend• Brings the brand closer to the listener

“Television must be the most visualmedium in the world”

INCORRECT !!

Radio is the most visualmedium in the world!

Choose Radio

How Does it Work?The evidence for radio‟s effectiveness

The Evidence for Radio‟s Effectiveness• Radio effectiveness – the headline findings• How ad avoidance challenges media effectiveness• How radio successfully combines with other media

Radio is 4 Times more Cost-effective than TV7531AWARENESS INDEXMEDIA COSTRADIOTVSource: Millward Brown

Advertising is Increasingly Ubiquitous

“There are so manycommercial messagesthese days it isoverwhelming”65% AGREE

High Levels of AD Avoidance HinderOutreach in Traditional Media% of ads by medium which are “hard avoided” by medium31%37%34%18% 18%TV Newspapers Magazines Radio CinemaSource: Clark Chapman Research

High Levels of AD Avoidance HinderOutreach in Traditional Media% of ads by medium which are “hard avoided” by medium31%37%34%18% 18%TV Newspapers Magazines Radio CinemaSource: Clark Chapman Research

High Levels of AD Avoidance HinderOutreach in Traditional Media% of ads by medium which are “hard avoided” by medium31%37%34%18% 18%TV Newspapers Magazines Radio CinemaSource: Clark Chapman Research

Even Higher AD Avoidance forInternet Advertising% of ads by medium which are “hard avoided” by medium62% 65% 73%31%37% 34%18% 18%BannersPopupsSource: Clark Chapman Research

Radio and TV

Radio and TVLow ad avoidance gives radio greater outreachTotal exposure*Net exposure*21.3m23.1m17.5m15.9m* Exposure = total reach of16-44s, net = reach adjusted foravoidance levelsSources: Rajar, Barb, Caviar (15-44), Clark Chapman

Radio and TVWhat happens when 10% of a TV campaign is redeployed to radio?+15%Source: The Awareness Multiplier, Millward Brown

Radio andNewspapers

Radio and NewspapersAd avoidance challenges an advertiser‟s abilityto reach new consumersIN-MARKET AUDIENCE(ready to respond now)Source: RAB

Radio and NewspapersAd avoidance challenges an advertiser‟s abilityto reach new consumersPRESSRADIOIN-MARKET AUDIENCE(ready to respond now)Source: RAB

Radio and NewspapersAd avoidance challenges an advertiser‟s abilityto reach new consumersPRESSRADIOIN-MARKET AUDIENCE(ready to respond now)WIDER AUDIENCE(not yet ready to respond)Source: RAB

Radio and NewspapersAd avoidance challenges an advertiser‟s abilityto reach new consumersPRESSRADIOIN-MARKET AUDIENCE(ready to respond now)The effect of ad avoidanceWIDER AUDIENCE(not yet ready to respond)Source: RAB

Radio and NewspapersRadio‟s low ad avoidance enables it to get messagesunder the radarPRESSRADIOIN-MARKET AUDIENCE(ready to respond now)The effect of ad avoidanceWIDER AUDIENCE(not yet ready to respond)Source: RAB

Radio andNewspapersWhat happens when50% of press ads areredeployed to radio?Source: RAEL, The Benefits of Synergy

Radio and NewspapersUnaided brand recall increases threefold70%25%NewspapersOnlyRadio andNewspapersSource: RAEL – The benefits of synergy. Base c 100 respondents per group

Radio and the Internet are Natural Partners…The internet is best at…• Helping me find information• Saving me time and trouble• Giving me what I want whenI want itRadio is best at…• Keeping me company• Helping me to relax• Making me feel happy

Radio andthe InternetWhat happens when50% of internet ads areredeployed to radio?Source: RAEL – Radio and the Internet Study

Radio and the InternetUnaided brand recall increases four-fold27%6%InternetOnlyRadio andInternetSource: RAEL – Radio and the Internet StudyBase c 800 respondent

Radio in Isolation

Radio‟s Multiplier Effect• Radio with TV= + 15% prompted awareness• Radio with Newspapers= + 180% unaided brand recall• Radio with Internet= + 350% unaided brand recall+ 15%+ 180%+ 350%

• But that’s all UK research.......• We hope to have an Irish Case Studyfor release at the IBI BroadcastingConference in Spring 2011.

Brand recognition through audio• Ten audio signatures• Name each brand…………….

How many did you get ?

• Add radio to your marketing mix• Get greater share of voice• Benefit from the multiplier effectwhen used with TV, Newspapers,Cinema and On-Line• Radio is personal• Radio is everywhere

TRY IT !

• Talk to your Agency about Radio foryour brand in 2011.

• ANY QUESTIONS ?

• Get in touch• scott.williams@Q102.ie• Thank You !