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Why Radio Works

For Advertisers

that they match your own. and spend over 3 hours each day with just 2 -3 radio stations. It’s the only medium that offers the opportunity to participate and to hear a human voice any time you want. where you know who lives there. react and respond to listeners and events on the spot – where they are engaged. 7 days a week.Why Radio Works Radio is different from any other medium. 24 hours a day. It is a place 8 out of 10 people chose to visit every day. Radio connects with people . about what’s going on that affects that Virtual Neighborhood. making it an even greater part of most people’s daily routine. instantaneously. It’s the only medium that can talk. The changing natures of our lifestyles and technology have affected the role radio plays in peoples lives. It’s a Virtual Neighborhood that lets people participate and feel as if they belong. what their values and interests are.

because people are rejecting media that fail to meet their specific interests and lifestyles. and it’s more difficult than ever. .It’s about Connection “People relate to media in much the same way they relate to other people. 2004 Radio stations connect emotionally to consumers and provide the opportunity for organic integration into the “virtual neighborhoods” of radio stations. they must benefit from the relationship. To feel involved. February 9. It’s about connecting.” Mike Drexler CEO Optimedia USA Adweek.

“Radio and its Advertising are More Personal and More Relevant to People’s Daily Lives” .Do people relate? Wirthlin says Yes.

more values-based relationship with the ads they hear on radio. Radio listening is a one on one and emotion driven experience.Radio Advertising is More Personal and More Relevant to People’s Daily Lives A study done by Wirthlin Worlwide recently compared consumers’ attitude toward radio. 2004 . When people cite radio ads’ greater association with honesty. and listeners believe that both the medium and its advertising are more relevant to them (compared to television and newspapers). Their findings: When compared to television ads. Radio connects one-on-one Source: 2004 Wirthlin Worldwide Study Findings Study conducted for Radio Advertising Effective Lab (RAEL) a two-phase survey among adults 18-54: August 18. trust. We also see…radio’s ability to connect with people emotionally. we believe consumers have a more internal. newspaper and TV. and reliability. radio ads are seen as being more personally connected to the consumer.

0% 30.2% 24.6% Source: Arbitron Edison NAB In Car Study October 2003.0% 5.1% 21.0% 13. 40.0% 35.2% 14.0% 15.0% 20.About cell phones….4% 18.0% Used Cell Phone to Call A Radio Station While Driving/Riding In Car Adults 18+ Hispanics 18-34 Women 25-54 Used Cell Phone To Call A Business In Response To Ad Heard on Radio Adults 25-54 With HHI $75K+ Men 25-54 26.3% 15. People call into the virtual neighborhoods that they choose to be part of.1% 23. Base – Use cell/car phone .0% 25.3% 10.0% 0.0% 20.0% 10..

.com) has a collection of studies that illustrate how adding radio to an ad campaign measurably improves its effectiveness.radioadlab. Advertisers who use radio tell us the same thing: “Radio makes all other media work better. Jiffy Lube Owner) Radio brings advertisers into the Neighborhood.Radio Can Improve Advertising ROI The Radio Advertising Effectiveness Lab (www.” (Tom Burney.

radioadlab. 2004 by the Radio Advertising Effectiveness Lab ( .Unaided Brand Recall 2 TV/Newspaper ads vs. 1 TV/Newspaper + 2 Radio Ads Radio groups indexed to No Radio groups 280 Recall Score Indices 300 250 200 150 100 50 0 TV & Radio Newspaper & Radio 100 134 100 No Radio (Approximately 100 respondents per group) With Radio Source: PreTesting Lab Study released December 8.

. 1 TV/Newspaper + 2 Radio Ads +8 Pre/Post Shift in #1 Preference 8 6 4 2 0 -2 TV & Radio No Radio Newspaper & Radio With Radio +5 pts +6 -1 (Approximately 100 respondents per group) Source: PreTesting Lab Study released December 8.Radio Can Influence FirstChoice Brand Selection 2 TV/Newspaper ads vs. 2004 by the Radio Advertising Effectiveness Lab (www.

The listeners have told us that.…and is it likely to work? Absolutely. .

8% 46.6% Adults 18+ Hispanic Adults 18-34 Women 25-54 % Saying “Yes” Source: Arbitron Edison NAB In Car Study October 2003. .9% 51.8% Later That DAY 55.9% 55.6% Later That WEEK 51.Radio Listeners React to Advertising “While listening to the radio while in a car. have you ever heard of a sale or special that motivated you to visit a certain store…?” 64.

. Always/Usually Informative 22.0% Source: Arbitron/Edison Media Research. “Spot Load Study 2005: Managing Radio Commercial Inventories for Advertisers and Listeners.0% Rarely/Never Informative 19.0% Sometimes Informative 57.0% Don't Know/No Answer 2.” Persons 12+.Real Relevance Seventy-nine percent say radio commercials are “always” or “usually” or “sometimes” informative.

0 10.0 Internet Newspaper Video Games 5. .0 1999 2000 2001 2002 2003 2004 2005* 2006* 2007* 2008* 2009* Source: Veronis Suhler. Hours Using Media Per Person Number of Hours Per Week 25. Communications Industry Forecast *Hours are projected.0 Radio Cable/Satellite TV 20.0 0. August 2005.0 Television 15.Here’s where V/S says we’ll spend our media time.

Radio works with other media and improves both the response rate and the efficacy of the advertising. That gives advertisers strategic advantages -. comfortable and familiar to your potential customer. .Strategic Advantages It is the most time-flexible of any of the media. Good radio advertising never stops working.000.000 to produce) (average TV spot is $335. so advertisers can try multiple executions of messages without blowing out the budget (average cost of radio spot ranges from FREE to about $5.the opportunity to react instantaneously to sales and marketing opportunities. It gives your client a personality and makes it credible. Radio reaches people who don’t know they’re looking for a product or service—yet. according to AAAA in 2003). It has one of the lowest production costs of any medium. It sells your business today while still building business for tomorrow.

According to TOMA research virtually every one of the leaders devoted 50% or more of their ad budget to radio and used radio regularly. mattress companies. etc).Top of Mind Awareness A company called TOMA© surveys consumers in medium to small markets around the country looking for “Top of Mind” leaders in various categories (plumbers. They found there are either one or two leaders with 40% to 60% mindshares. or a single leader with typically a 70% mindshare. or no leader and all competitors had 3-4% shares of mind. Radio generates Top of Mind Awareness .TOMA -.

Are you using it to your best advantage? . This is how people are spending at least 28% their media time every day.The fact is… RADIO is the most possible of media in our daily lives.

Brought to you by the radio stations of the Southern California Broadcasters Association .