Why radio advertising is effective?

(http://www.1049.fm/wp-content/themes/heartfm/inc/images/why-radio-advertising-is-effective.pdf)

Your market listens to the radio. The people who buy your product or use your service listen to the
radio. In fact, close to 90% of the population listens to the radio.
Radio is targeted. Each radio station is operated with specific market segments in mind, so despite
there being many radio stations nationwide there are particular stations that target your specific
market. In the car, at the office, in the garden you can reach your customer on the radio throughout the
day or night. This increases the frequency that your message can be delivered.
Radio reaches your customer with frequency. Advertising works by repetition. You may need to be
exposed to a commercial three or four times before you take action. To reach this viable frequency
radio advertising is often more cost effective than other media.
Radio offers additional promotional opportunities. Announcers in your store can sample your product
on air and running a competition. Hard to do with print or on TV, but radio can offer this sort of added
value, personalizing your product to your customer.
Sound is memorable. Sound is stored in the memory more effectively than the written word. Sound,
the spoken word offers emotion and encourages the listeners imagination to produce their own
desirable image of a product. Radio is the theatre of the mind.

FOR ADVERTISERS, RADIO IS WORTH LISTENING TO

(http://www.nielsen.com/us/en/insights/news/2014/for-advertisers-radio-is-worth-listening-
to.html)

Radio has come a long way since it first began crackling across the airwaves in broad fashion 100 years
ago. Today, in addition to entertaining listeners around the globe, radio is a powerful way for companies
and brands to engage with consumers.

In fact, a recent Nielsen Catalina Solutions (NCS) study found a direct link between radio advertising and
brick-and-mortar retail salesevidence that money spent on radio is money well spent. In this first
major radio effectiveness study, the research found that each dollar of ad spend generated an average
sales return of $6 from the listeners in the 28 days after they heard the ads.

For the study, NCS reviewed the effectiveness of radio advertising by looking at the impact of specific ad
campaigns across 10 brandseight consumer packaged goods (CPG) brands and two retail brands. To
reach its findings, NCS used a combination of data collected from Nielsen Portable People
Meters (PPMs) and information from 60 million shopper households to arrive at a single-source
methodology that measured the specific media buys of the 10 brands across all radio commercials
measured by Media Monitors on national and local stations.
RADIO WORKS

While the study found that advertisers gained an average $6 return for every $1 spent, it identified
significantly different returns across categories. Notably, the two retailers generated more than 10 and
23 times the return on the high end, while a soft drink brand and breakfast bar pulled in less than two
times the return on the low endthough all provided positive return.

RADIO AD RESPONSE ALSO VARIES BY AUDIENCE SEGMENT

In addition to measuring across categories, NCS measured the response among African American and
Hispanic households for the brands with large enough sample sizes. Overall, the radio campaigns proved
to have a substantially stronger impact on sales among both of these demographics than the total
population.

For African Americans, the indexes range between about 150-240 and 140-185 for Hispanics. For
example, the share point gain driven by radio for the soft drink category among African Americans was
7.7 percent, or 92 percent higher than the 4.1 percent share gain among the total population

RECENCY MATTERS

In addition to proving to be strong sales generators, radio ads deliver the goods quickly. In fact, the
study found that radio had an immediate impact in delivering a powerful sales lift when the audience
heard the ad within a few days of purchase. A consumer exposed to an ad within one day of purchasing
increased the brand share by 9 percent, while messages delivered 28 days prior to purchase only
increased share by 3.4 percent.

THREE ADVANTAGES OF RADIO ADVERTISING

(https://www.strategicmediainc.com/newsroom/three-advantages-radio-advertising)

Marketing and brand managers have never had it tougher. Today there are more marketing channels,
mediums and opportunities than at any other time in our history. But the age-old question remains:
Where do you get the biggest bang for your buck?

You would be surprised to learn that even in our modern age of streaming content, smart TVs and
increased consumer control over media choices radio (yes, radio!) still dominates in several key
metrics. Hard to believe that nearly one hundred years after the first radio ad aired 1922 on WAEF in
New York City, radio is still a consumer favorite.

Here is a run-down of three direct response radio advantages.

Reach

A few years ago, consumer research giant Nielsen acquired its competitor Arbitron, greatly expanding
the scope of their audio marketing analytics to more accurately measure and compare all media
platforms. What happened next surprised everyone. Radio they discovered - the old man of media
channels - reached more consumers than every other channel out there! The numbers werent even
close. More than social media, more than smart phones, more than television. America, across all
demographics and age groups, still loves its radio.

Years later, that hasnt changed. In fact, radios audience continues to grow, adding new listeners by the
millions every year! And now with podcast and more streaming audio in the mix, the universe of
listeners continues to expand.

Retention

When it comes to impacting consumer behavior, nothing succeeds quite like radio. This has been
studied over and over, and the results are always the same. Whether it is getting people to go online
and make a purchase, stopping into a restaurant, or boost memorability for a product nothing works
better than radio.

When you think about it, this makes sense. We interact with radio differently from other media. We
dont watch, we listen. Listening, unlike watching, is never passive. It is an activity that involves our
attention, our imagination and our engagement. The rapid growth of podcasts, a medium rich in
storytelling supports this too. Psychologists believe this sort of cognitive processing is why radio is so
much more effective at influencing behavior. And because radio is often part of our communities and
daily habits, it is trusted more than online advertising.

ROI

So whats the most cost effective medium for your ad dollar? You guessed it, radio. More reach, more
influence and better retention generally add up to better financial returns on your marketing dollar! To
prove that point, Nielsen recently matched credit and debit card purchases to exposure of radio ads,
comparing the lift to the same purchase data in markets where the ads didnt run. In every measured
category, they saw dramatic returns on ad spends (ROAS). Another study by Nielsen compared ROAS on
radio to all other mediums by studying specific brands. They concluded that these brands averaged a
sales lift of more than six dollars for every one dollar spent on radio ads an ROI double that of even the
best results from many recent studies of digital or TV media.
Radio still a vital part of advertising mix, Kantar Media says

MANILA Even in the age of Facebook and Twitter, good old radio is still an important medium, with a
growing number of FM listeners tuning in via mobile.

"Radio is a medium that's there. It has retained its effectiveness and potential. It just has to protect
what is already theirs so they wouldn't be encroached upon by existing or emerging media," Kantar
Media general manager Gabriel Buluran said at a media roundtable on May 13.

Buluran presented the results of "Tuning in to Radio", a study by Kantar Media and the Radio Research
Council - Kapisanan ng mga Brodkaster ng Pilipinas which gathered 2013 radio industry data.

According to the study, 33 percent of Filipinos' FM radio listening is done through mobile devices. "The
problem is, we know TV stations are going mobile. Don't wait for the dominant medium to encroach on
the space that is exclusive to you now," Buluran said.

Still, most radio listening still happens at home. "That's kind of ironic, because before gadgets came to
be, the only real mobile medium is radio," said Buluran.

Buluran said radio should strengthen their programs during peak hours, which occur when TV is half-
asleep. While TV's peaks are during noontime and in the evening, radio has its listening peaks in the
early morning and late at night. From 6 a.m. to 10 a.m., there are over four million listeners, while there
are almost two million listeners from 9 p.m. onwards, according to the study.

"Radio is still an important medium and has its share of listening peaks throughout the day. When it
comes to measuring return on investment, we have found that it is a vital means of communication at
this current day and age of the internet and social media," Buluran said.

At home, work, in transit

While over two million Filipinos listening during primetime when they reach their houses, Buluran
stressed that radio reaches touch points that other media cannot reach: There are 300,000 Filipinos
listen to the radio at work. "This is something broadcasters should keep in mind. Radio is really a
background medium whereas with TV, productivity goes lower," Buluran said.

The study also showed that there are 100,000 who listen while in transit from 9 to 10 a.m. Of those who
listen in transit, 45 percent are from upper to middle class. "2.34 million people pass through EDSA
every day. This is your potential. The only touchpoint you have is through mobile device, one of which is
radio. For advertisers and networks this is something they should probably seriously look at," Buluran
said.

Billboards could also be used to stimulate the appetite for listening to a particular radio station. "If you
see a billboard telling you to tune in, you don't have to wait to get home to listen to it," he said.
"Now that there is a way to measure the lasting relevance of radio, advertisers and media planners can
take advantage of available data and come up with a more comprehensive tri-media plan for brands in
the Philippines market," Buluran said.

According to him, brands can maximise radio to further promote their products and services through
these underutilized air time slots. In urban Philippines, radio can reach up to 20 million, according to the
study.

"The whole of your waking hours, you can be reached by radio. That's the strength of radio. If only you
could maximise that, there's merit in using the medium," Buluran said.

Longer sessions on radio

While TV gets the lion's share of advertising expenditure (77 percent), radio is the second largest
medium, getting 18 percent. According to the 'Tuning in to Radio' study, although people spend less
time on radio than they do watching TV, radio captures audiences for longer periods per session. While
TV viewers spend 16 sessions per day, radio listeners spend almost two sessions, but each session for TV
lasts an average of only 20 minutes compared to the average radio session of 105 minutes.

The 'Tuning in to Radio' study was conducted through the diary methodology, in which 38,000 sample
individuals were asked to record their radio listening information in an official monitoring sheet, which
was collected daily. The research was done in Mega Manila as well as in seven key cities: Cebu, Davao,
Iloilo, Bacolod, Dagupan, Cagayan de Oro, and General Santos.

Dont Count it Out Just Yet: Radio Still Gets Turned On

(http://pana.com.ph/dont-count-it-out-just-yet-radio-still-gets-turned-on/)
Despite the prevalence of digital everywhere you look, there is still that one medium that is still as
reliable as the day it took to the airwaves. Whether it was Guglielmo Marconi or Nikola Tesla that is
credited for its creation, radio remains the chosen source of news and information, public service, and
entertainment in the Philippines. This, according to the Kantar Media Tuning in to Radio survey
conducted in 2013, and in partnership with the Radio Research Council-Kapisanan ng mga Bodkaster ng
Pilipinas (RRC-KBP).
The report recently released by Kantar Media, radio is still the second largest medium after TV, both in
terms of ad expenditure and research, in the Philippines. According to Gabriel Buluran, Kantar Media
General Manager, In some Asian countries, print medium is bigger than radio.
The research coverage is Mega Manila and key cities, covering 41 areas, 63 sweeps of over 38,200
respondents.
Anywhere, everywhere versatility
It is obviously its ubiquitous state that gives radio the edge. Today, radio is a mere shadow of its static-
ridden, bulky box version. Radios bandwidth is already digital, ergo its readily deployed in mobile
phones, and other tech gadgets. Radio stations, in fact, have cloned themselves on to digital versions.
Radios twin peaks are in the morning and at late night, with 4M and 2M listeners, respectively, which
is more pronounced in Mega Manila. However, TV is also encroaching on radios territory in the early
morning through shows like Unang Hirit airing during the early morning, said Buluran.
Most radio listening still happens at home, more like an extended habit created way before tech gadgets
came to be. Then, only radio was the real mobile thing, followed by the newspaper which could be
folded, and light to carry, he added. And even then, tuning in to radio was during the early morning
and late evening.
A truly neat element of radio is its ability to stay in the periphery. Radio reaches an additional 300K plus
listeners because it is one medium allowed in most offices and workplaces. It can remain in the
background, and because it is not visual, work output is not affected, explained Buluran.
Radio also captures over 100K pairs of ears from MRT commuters stuck in transit during rush hour. For
brands, thats an opportunity to reach 2.34M consumers that pass through EDSA everyday!
This is where TV is not yet the choice medium because on FX or bus, there is a TV monitor already that
shows either live TV, or plays videos, Buluran added.
Where else, but go mobile
Given the numbers, radio does look to survive the digital barrage, perhaps becoming part of our DNA.
Ever notice that once youre done with TV, you turn it off, while radio, on the other hand, is left on the
whole time?
The figures also show that one-third of radio listening in Mega Manila is done through mobile
phones. Radio has rarely changed. It is the same through the years. If radio wants to make itself new,
it has to look to mobile. But, only FM can be on mobile, so thats the challenge for radio, shared
Buluran. But, there is a big network that is now looking into getting a radio chip placed on mobile
phones that will allow AM on mobile. That will return the excitement for people on radio, he shared.

Maximize the potential of its reach

In Urban PH, radio can reach up to 20M unique listeners that is one-fifth of the Philippine population.
While TV can capture 80 percent audience, the cost of TV ad placement is 10x more.
Radio can also strive to be more interactive because radio can hit straightaway. There is no need to cut
up the activity. Beyond that, radio audiences seemingly have longer patience with or higher tolerance of
radio.
Radio must also act at once, and protect its reach, its property. TV is starting to go mobile, and radio
stations must not wait. Radio listenership will further decline. ABS-CBN and Globe Telecom have
already joined interests. Radio show hosts are now on Viber, Twitter, and SMS so connecting to the
audience is more interactive and direct. But, this element is not exclusive to radio, said Buluran.
Nielsen: 91% of Filipinos trust word-of-mouth recommendations

Word-of-mouth recommendations from people they know and trust continue to be the most effective
form of advertising for Filipinos, according to a new report released September 28 by Nielsen.

More than 9 in 10 Filipino consumers (91%, up one point from 2013) trust word-of-mouth
recommendations from people they know, the highest trust level indicated among Southeast Asian
consumers for this ad format. "Trust, however, is not exclusive to those in their inner circle," Nielsen
noted.

Based on the results of the Nielsens Global Trust in Advertising Survey, 80% of Filipino consumers trust
editorial content (such as stories) while 75% find consumer opinions online credible.

While word-of-mouth endorsements continue to earn the biggest trust of consumers, extending the
conversation in the digital format can result in quicker and viral results, Stuart Jamieson, Nielsen
Philippines managing director said.

He added that marketers can widen the circle of trust of consumers by engaging passionate brand
advocates to amplify their message and give them a compelling reason to talk.

"Trust is fragile. Practice transparency and accountability because if trust is broken, your advocates also
have the power to damage credibility and reputation, Jamieson said. (READ: Marketing to millennials)

Most trusted

Ads on television, newspapers, and magazines continue to be among the most trusted forms of paid
advertising in the Philippines, surpassing global trust level averages.

Seventy-five percent of consumers in the Philippines say they trust ads on TV (versus 63% global
average), closely followed by ads in newspapers at 74% (compared to 60% globally), and ads in
magazines at 70% (versus 58% global average).

While digital ads offer considerable advantages such as precision-focused campaigns, in-flight
adjustments and more creative options TV still delivers unequalled ability to reach the masses," said
Jamieson.

Cross-platform ad exposure drives greater memorability and brand lift than single platform exposure,
even when adjusted for frequency, he said.

Online video: Positive shift

Close to 6 in 10 (59%) Filipino respondents say they completely or somewhat trust ads on social
networks while ads served in search engine results have stayed consistent since 2013 at 56%.
Online video ads recorded a positive shift in trust levels compared to 2013, up 5 points to 56% while
trust for online banner ads also improved by 3 points to 49%.

The Nielsen report also showed that although trust and action are clearly linked, credibility alone does
not drive purchase.

Filipino respondents (the survey polled 30,000 online respondents in 60 countries) said they are more
likely to take action on advertising formats, exceeding trust in all formats except editorial content (80%
trust and action).
Respondents that trust the recommendations of people they know said they take action on these
opinions majority of the time (91% trust; 93% take action.

Apart from being highly credible among consumers, TV ads also received the highest self-reported
action among traditional offline formats at 85%, exceeding trust by 10 points.

TV continues to be a major influencer in the purchase decision of consumers, Jamieson said.

Mobile formats, self-reported action

But formats which earned lower trust levels can be still very effective in driving consumers to the point
of purchase, the survey results also noted.

Self-reported action exceeds trust by more than double digits for text ads on mobile phones (33% trust;
52% take action) and ads on mobile devices (47% trust; 58% take action).
The formats where action exceeds trust by the greatest margin share a common attribute: easy access
to products or services. Online and mobile formats make it easier for consumers take quick action on
the advertisement, Jamieson said. With just a click, consumers are directed to a place where they can
receive more information or purchase the item.

Advertising that used real-life situations was the most likely to resonate with Filipino consumers,
followed by ads that are family-oriented, health-themed, value-oriented, and humorous (see chart 2).

The advertising medium is only part of the formula for reaching consumers. Its important for
consumers to identify and connect with both the brand and message, Jamieson said.

Advertisements that feature relatable situations and comedic relief, and which focus on family, values,
and health greatly appeal to consumers and elicit the most positive response, he added.
CONNECTING WITH RADIO CHANGES AS MILLENNIALS MOVE THROUGH LIFE STAGES
(http://www.nielsen.com/us/en/insights/news/2016/connecting-with-radio-changes-as-
millennials-move-through-life-stages.html)

Despite falling into one generation, Millennials are not a uniform, homogeneous group with a common
set of beliefs, interests and behaviors. Their lives are in rapid transition: They're joining the workforce,
moving into their own homes and starting families. And these changes influence their media
consumption habits, including how and when they listen to the radio.

To better understand the media habits of the different sub-groups within the overall Millennial
generation, Nielsens fourth-quarter 2015 Total Audience Report separated the 18-34 crowd into three
different groups: Dependent Adults (those living in someone elses home), On Their Own Millennials
(those living in their own home without children), and Starting a Family Millennials (those living in their
own home with children). The data showed that 97% of 18-year-olds live in someone elses home,
primarily a parents or parents; by their mid-30s, 90% of Millennials live in their own home, and more
than half have children. Interestingly, one-third of 26-27 year olds falls into each of the three life stages.

RADIOS REACH AMONG MILLENNIALS

For Millennials, radio is an important part of their lives, and they listen in many ways as they are moving
through different life stages. Getting insight into their radio listening habits is critical for advertisers,
agencies and radio broadcasters as they need to know when and how to reach these different groups of
Millennials.

In the average week, radio reaches about 90% of Dependent Adult Millennials and 89% of On Their Own
Millennials. But that number rises to 92% among Millennials who are Starting a Family. This group also
contains a higher percentage of Hispanics, who tend to be heavy radio listeners.
On average, radio reaches nine out of 10 Millennials across all three life stages each week.

MILLENNIALS TOP FORMATS

What Millennials listen to is also greatly driven by life stage. Although Pop Contemporary Hit Radio is the
No. 1 format for all three groups, other format preferences within these groups vary by life stage
experience.

Dependent Adult Millennials, who tend to live at home with their parents or another adult, listen to
more Classic Rock, Classic Hits and Urban Adult Contemporary than the overall Millennial group.
According to the recent Total Audience report, Dependent Adult Millennials listen to these formats
because theyre exposed to them by older adults in the home.

On Their Own Millennials are the least ethnically diverse group and show a preference for non-ethnic
formats like Hot Adult Contemporary and Alternative. They also listen to sports stations more than the
other two Millennial groups.

On average, radio reaches 97% of all Hispanics each week. Starting a Family Millennials include the
highest percent of Hispanic and Spanish-speaking listeners. In this group, Mexican Regional has the
third-highest share of listening time. Overall, 16% of this group's listening is spent tuned in to Spanish
language formats more than triple the amount of On Their Own Millennials. Comparatively, radio
reaches 90% of all African-Americans 18-34 each week. Urban Adult Contemporary is the No. 1 format
among this group.
RADIO EFFECTIVELY REACHES MILLENNIALS

With 265 million Americans 6 and older listening to the radio each week, the medium reaches more
people each week than any other platform. Despite the proliferation, many advertisers perceive
Millennials as unreachable by radio because of the abundance of media options available to them.

The reality, however, is that Millennials account for 66.5 million radio users each week. And no matter
which life stage Millennials are in, nine out of 10 listen to radio weekly. Thats where ungrouping them
can help advertisers, agencies and radio stations understand each group more closely so they can
develop meaningful radio advertising that appeals to this large and varied group of young consumers.