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Audio Advertising – Medium Effectiveness Study

Presented by To Date

The Nielsen Company Vritti Solutions Ltd June 14th 2011

Confidential & Proprietary • Copyright © 2011 The Nielsen Company

Contents
• Background • Advertising Media at bus depot • Brands recalled • Audio Quality • Travel habits • Demographics • Summary

Vritti Audio Advertising Report

June 24, 2011

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Confidential & Proprietary Copyright © 2011 The Nielsen Company

Background

Vritti Audio Advertising Report

June 24, 2011

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Confidential & Proprietary Copyright © 2011 The Nielsen Company

Background • Vritti Solutions Ltd. 2011 Page 4 Confidential & Proprietary Copyright © 2011 The Nielsen Company .Needs to compare this medium with other outdoor media at bus depots • Vritti Solutions has approached the Nielsen Company to undertake a research to provide them specific insights as desired • This document details the findings of the research conducted in bus depots in western Maharashtra Vritti Audio Advertising Report June 24. One such solution Vritti offers is audio advertising. offers innovative advertising solutions that help companies market and advertise their products and services.The effectiveness of this medium . • Vritti Solutions plays audio advertisements along with the announcement on bus schedules at various bus depots across Maharashtra • The company needs a tool to convince potential advertisers of .

Research Objective The research objective for this study is:• To evaluate the effectiveness of audio advertising / announcements as a medium. 2011 Page 5 Confidential & Proprietary Copyright © 2011 The Nielsen Company . compared to other outdoor media at bus depots in western Maharashtra Vritti Audio Advertising Report June 24.

Research Approach • This study offers an opportunity to compare diverse media at a given location i. • We conducted a face to face survey among passengers at each of the study Bus depots. 2011 Page 6 Confidential & Proprietary Copyright © 2011 The Nielsen Company . • Basic information collected was on – – Recall of various media present at the bus stand – Recall of brands advertised on these media – Utility / Clarity / Sound Volume of Announcements Vritti Audio Advertising Report June 24.e. • Passengers awaiting their buses were interviewed. ST bus stands / depots. Passengers were selected in a ‘random’ manner and were spread across all bus platforms • We ensured that all time bands in the day were represented.

• Respondents present at the respective bus depots • Male/ Female • Age – 18-60 years Fieldwork Locations Bus Depots Nashik Swargate Ichalkaranji Sangli Narayangaon Wai Total SS . 2011 Page 7 Confidential & Proprietary Copyright © 2011 The Nielsen Company .Proposed 100 100 75 75 75 75 500 SS .Target Audience • Fieldwork conducted between 12 to 25 May 2011 across all locations and at each location was spread over two days.Achieved 109 110 80 79 80 81 539 Vritti Audio Advertising Report June 24.

Sample distribution across the day • Field work was spread across the working hours in the day – from early morning to late night.8 PM 12PM .8AM 8AM .5 PM 5 PM . • FW represented the morning peak hours and evening peak hours as well as the afternoon lull hours 14 12 10 8 6 4 2 0 10AM 11AM 11AM 12PM 2 PM .10 PM Total Swargate Ichalkaranji Sangli Narayangaon Wai Nashik Vritti Audio Advertising Report June 24.7 AM 8 PM .9 PM 9AM .9AM 9 PM .2 PM 7AM .7 PM 7 PM .4 PM 4 PM .3 PM 3 PM .6 PM 6 PM . 2011 Page 8 Confidential & Proprietary Copyright © 2011 The Nielsen Company .1 PM 6 AM .10AM 1PM .

2011 Page 9 Confidential & Proprietary Copyright © 2011 The Nielsen Company .Advertising Media at Bus Depots Vritti Audio Advertising Report June 24.

could be because respondents may not be considering audio advertising / announcements as a medium because these are coupled with announcements. • Older age travelers likely to be more tuned to the audio advertising / announcements medium.Advertising Media Recalled • Total recall for audio advertising / announcements is on par with the more established conventional outdoor media like outdoor hoardings and bus panels – 98%. 2011 Page 10 Confidential & Proprietary Copyright © 2011 The Nielsen Company . • Lower unaided recall for audio advertisement / announcements. • Some variation across SECs in medium recall 99 25 74 17 41 62 58 5 49 62 47 66 66 31 33 43 31 SEC B 99 98 98 96 99 97 100 100 98 98 61 46 66 0 54 48 2 50 4 32 28 49 57 47 36 33 23 2 21 0 2 Digital Screens 36 4 33 Audio Advertising 5 39 5 54 34 SEC D SEC E 26 SEC C SEC 10 Outdoor Hoardings Bus Panels Audio Advertising SEC A 71* 206 149 74* 28** 416 18 to 30 123 30+ AGE Bands TOM SPONT Aided Unaided Total Total Recall TOM SPONT Aided Unaided Total Total Recall Base: All Respondents (n:539) •Indicates small base •** Indicates very small base Vritti Audio Advertising Report June 24.

the total recall of audio advertising / announcements as a medium is comparable with other conventional media like outdoor hoardings and bus panels • Total recall of Digital screens is very low at all bus depots with the exception of Nashik.Advertising Media – Total Recall – By Location 99 99 98 100 100 99 100 99 99 100 99 98 100 100 96 100 96 97 92 100 10082 16 23 6 Total (n:539) Swargate (n:110) Ichalkaranji(n:80) 14 4 Sangli(n:79) Narayangaon(n:80) 1 Wai(n:81) Nashik (n:109) Outdoor Hoardings/ Billboards Bus Panels Digital Screens Audio Advertising Base: All Respondents at each Bus Depot • At all the bus depots. Vritti Audio Advertising Report June 24. 2011 Page 11 Confidential & Proprietary Copyright © 2011 The Nielsen Company .

• A Gender wise break up for Audio Advertising-Total Recall.Audio advertising / announcements – Total Recall 98 99 99 100 100 100 92 98 98 27 62 57 53 51 64 49 42 46 70 72 65 71 46 36 30 32 19 10 29 67 36 41 47 30 27 33 ji Sa ng li (7 9) (1 09 ) (1 10 ) ar an (8 0) ai ( (4 84 ) 53 9) (8 0) To ta l( N ar ay an ga on ar ga te hi k al e W Na s Sw Ic ha lk SEC AGE Bands TOM SPONT Aided Unaided Total Total Recall • Nashik had the least total recall for audio advertising / announcements at 92%. shows an equal division between Males and Females Vritti Audio Advertising Report June 24. • Overall 98% respondents recalled audio advertising / announcements as a medium at Total level. 2011 Page 12 Confidential & Proprietary Copyright © 2011 The Nielsen Company Fe m M al e (5 5) 81 ) .

Brands recalled Vritti Audio Advertising Report June 24. 2011 Page 13 Confidential & Proprietary Copyright © 2011 The Nielsen Company .

3 1.42.0 2.12.4 1.0 2.0 2.2 1.0 Outdoor Hoardings Bus Panels Digital Screens Audio Advertising 4.1 1.Number of brands recalled • On an average 2.20. the number of brands recalled is marginally higher among frequent travelers for all the media.0 1.0 0.30.2 brands are recalled on audio advertising / announcements which is the same as the average of 2.2 2.0 1.0 3.0 0.2 3.1 brands recalled for outdoor hoardings • Understandably.0 Outdoor Hoardings Bus Panels Digital Audio 2.0 0. 2011 Page 14 Confidential & Proprietary Copyright © 2011 The Nielsen Company . • The highest number of brands recalled by a single respondent is from Audio Advertising medium Average Number of Brands recalled Up to Once a week Up to Once in a month Less Often 4.11.2 2.2 0.1 2.8 Outdoor Hoardings Base: Respondents who recall respective medium Highest no of brands recalled 534 4 Bus Panels 532 5 Digital Screens 124 2 Audio Advertising 528 6 Vritti Audio Advertising Report June 24.

Maxx Mobile and Uninor is primarily from Sangli All figures in Percentage Vritti Audio Advertising Report June 24. Ghadi Powder and Mahatma Phule Abhiyan is highest in Narayangaon depot. • Recall of all the brands is very low in Nashik as compared to other depots • Recall of Vikram tea. 2011 Page 15 Confidential & Proprietary Copyright © 2011 The Nielsen Company . followed by Ghadi Powder • Recall of Kirti Gold.Top recalled brands on Audio Advertising Total Base: Those respondents recalling audio advertising / announcements as a medium Kirti gold Ghadi powder Mahatma Phule abhiyan Agriculture department Vikram tea Maxx mobile Uninor Swargate Ichalkaranji Sangli Narayangaon Wai Nashik 528 63 44 25 17 16 13 12 109 65 38 18 36 22 10 20 79 68 30 10 29 NA NA NA 79 48 46 22 9 32 30 34 80 90 69 53 15 NA NA NA 81 72 58 36 11 31 17 NA 100 37 28 14 2 NA 0 NA NA : as per Information given by client these Ads were not played at the respective Bus Depots • Kirti Gold is the most recalled brand across all Bus Depots.

2011 Page 16 Confidential & Proprietary Copyright © 2011 The Nielsen Company .Audio Quality Vritti Audio Advertising Report June 24.

2011 Page 17 Confidential & Proprietary Copyright © 2011 The Nielsen Company .3 Brands Recalled 83 51 38 28 40 43 Swargate (n:110) Ichalkaranji(n:80) Sangli(n:79) Narayangaon(n:80) Wai(n:81) Nashik(n:109) Very Useful Base: All Respondents (n:539) Somewhat Useful Cannot Say Not Very Useful Not at all Useful Base: All Respondents at each Bus Depot Vritti Audio Advertising Report June 24.Audio Announcement .0 Brands Recalled 2.Percentages across Locations 99% 1 Cannot say 1% 98% 1 100% 0 99% 1 97% 4 97% 1 14 56 Somewhat Useful 49% Very Useful 49% 62 70 59 46 2.Usefulness Across all Bus Depots a majority of respondents found audio announcements as a medium either “Very Useful” or “Somewhat Useful” Particularly in Nashik. significantly high number of respondents found the audio announcements “very Useful” Top 2 Box .

Percentages across Locations 100% 91% 100% 99% 95% 97% Not sure 2% 1% 0 Extremely Unclear 0% 4 6 0 0 1 2 0 2 42 64 61 68 64 54 Very Clear 39% 2. Top 2 Box .6 1.Clarity Most of the respondents find the clarity of audio announcements “very clear” or “Somewhat clear”.Audio Announcement . Vritti needs to focus on Audio Clarity – as the benefits in brand recall are very apparent. 2011 Page 18 Confidential & Proprietary Copyright © 2011 The Nielsen Company .9 Brands Recalled Somewha t Clear 58% Brands Recalled 55 36 23 Swargate (n:110) Ichalkaranji(n:80) Sangli(n:79) Narayangaon(n:80) Wai(n:81) Nashik(n:109) 39 35 41 Base: All Respondents (n:539) Very Clear Somewhat Clear Base: All Respondents at each Bus Depot Not sure Not very Clear Extremely Unclear Vritti Audio Advertising Report June 24.

2 Brands 2.8 Brands Recalled Recalled 2.Audio Announcement . 66% of the respondents found the volume of audio advertising / announcements to be “Very Loud” or a “Little too Loud” The volume of the audio advertising / announcements needs to be reduced specifically in Nashik and Ichalkaranji One – Third of the total respondents across Bus Depots were of the opinion that the volume used for audio advertising / announcements was “Just Ideal” The average number of brands recalled is as high as 2.8 among the respondents who think the volume was “just ideal” The respondents who call the volume to be “just Ideal” mention it to be “Very clear” Little Soft soft Too 1% Very Loud 15% 3 35 19 38 34 1 28 44 19 60 Just Ideal 33% 1.0 Brands Recalled Little too Loud 61 59 19 65 51 52 5 Swargate (n:110) Ichalkaranji(n:80) 3 Sangli(n:79) 1 Narayangaon(n:80) 4 Wai(n:81) Nashik(n:109) Very Loud Base: All Respondents (n:539) A little too loud Just Ideal A little soft Too soft to be heard Base: All Respondents at each Bus Depot Vritti Audio Advertising Report June 24. 2011 Page 19 Confidential & Proprietary Copyright © 2011 The Nielsen Company .Volume Overall.

2011 Page 20 Confidential & Proprietary Copyright © 2011 The Nielsen Company .Travel Habits Vritti Audio Advertising Report June 24.

2011 Page 21 Confidential & Proprietary Copyright © 2011 The Nielsen Company .3 times a month Once in 6 months to 1 year 1 . Swargate – 38% of the respondents travel infrequently. one among four respondents visit the bus depots on daily basis Wai and Narayangaon have higher proportion of passengers travelling on daily basis.3 times a week Upto once in 3 months Very rarely Base: Total Respondents at respective bus depots *Figures in % Vritti Audio Advertising Report June 24.Frequency of visiting Bus Depots Overall. 5% 27% 24% Nashik (n:109) Wai (n:81) Narayangaon (n:80) 8% 26 37 36 24 26 12 6 8 14 3 6 1 5 18 22 29 20 21 14 21 26 23 21 28 15 12 10 1 5 13 38 1 0 Sangli (n:79) Ichalkaranji (n:80) 14 20 23 22% 14% Swargate (n:110) Base: All Respondents (n:539) Everyday 1 .

Activities – While at Bus Depot Most respondents Read or Rest while waiting at bus depot. 15% of the respondents listen to radio while waiting at bus depot. 94% listen to it using mobile phone Majority of the respondents at Nashik bus depot spend their time reading. Among those who listen to radio while waiting at bus depot. 100 80 60 40 20 0 Total (n:539) Reading Swargate (n:110) Listening to the radio Ichalkaranji (n:80) Sangli (n:79) Narayangaon (n:80) Resting Wai (n:81) Nashik (n:109) 39 57 51 41 28 15 14 17 10 12 11 8 10 28 32 15 8 33 22 10 10 11 13 11 7 12 27 8 10 6 50 58 78 70 70 Talking with co-passengers Talking on the mobile phone Base: Total Respondents at each Bus Depot Vritti Audio Advertising Report June 24. 2011 Page 22 Confidential & Proprietary Copyright © 2011 The Nielsen Company . At overall level.

2011 Page 23 Confidential & Proprietary Copyright © 2011 The Nielsen Company .Demographics Vritti Audio Advertising Report June 24.

Demographics 6% 15% 2% 14% 6% 14% 77% 18-30 years 40-50 years 30-40 years 50-60 years 28% 38% SEC A SEC D SEC B SEC E SEC C •Younger age group respondents formed higher proportion of sample • Respondents of all Socio-Economic Class are interviewed with higher proportion of Higher SEC Base: All Respondents (n:539) Vritti Audio Advertising Report June 24. 2011 Page 24 Confidential & Proprietary Copyright © 2011 The Nielsen Company .

9 10 + Self Employed Professional Clerical / Salesman Supervisory Level Officers / Executives – Junior Officers / Executives – Middle / Senior 1 2 3 4 5 6 7 8 9 10 11 12 E2 E2 E2 D D C B1 D D D C B1 E2 E1 D D C B2 B1 D D D C B1 E1 D D C B2 B2 A2 D D C C B1 D C C B2 B1 B1 A2 B2 C C B2 B1 D C C B1 A2 A2 A1 B1 B2 B2 B1 A2 D B2 B2 A2 A2 A1 A1 A2 B1 B1 A2 A1 Vritti Audio Advertising Report June 24. of employees None 1. with the Qualification in columns. The SEC Grid consists of Occupation in rows.How is SEC derived? The SEC of a household is derived from the qualification and occupation of the Chief Wage Earner of the Household. 2011 Page 25 Confidential & Proprietary Copyright © 2011 The Nielsen Company . Each combination of Occupation and Qualification indicates a certain SEC of the household. OCCUPATION EDUCAT ION Illite rate Literate but no formal schooli ng E2 E1 D D C B2 B1 D D D C B1 School upto 4 years School 5 to 9 years SSC / HSC Some College but not graduate Graduate / Post Graduate General Graduate / Post Graduate Profession al D B2 B2 A2 A1 A1 A1 A1 B1 A2 A2 A1 Unskilled Worker Skilled Worker Petty Trader Shop Owner Businessmen/ Industrialist No.

Monthly Household Income Distribution 100% 8 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total 1 5 26 4 19 24 25 36 3 34 9 2 10 20 27 35 44 45 53 35 36 48 49 24 16 3 Ichalkaranji Sangli Narayangaon 18 21 Swargate 5 Wai Nashik Base: All Respondents (n:539) Less than 1500 1501 .10000 10001-25000 25001 . 2011 Page 26 Confidential & Proprietary Copyright © 2011 The Nielsen Company .5000 5001.55000 Above 55000 Vritti Audio Advertising Report June 24.

10+ Self employed professionals Clerical / Salesman Supervisory level Officers/Executives Junior Officers/Executives Middle/Senior 539 7 16 12 8 27 3 3 1 9 8 4 2 Swargate 110 5 15 11 5 17 4 6 1 12 11 7 5 Ichalkaranji 80 16 24 10 9 26 0 0 0 3 9 3 1 Sangli 79 8 9 6 6 29 4 0 3 14 16 4 1 Narayangaon 80 3 11 26 5 43 3 3 1 4 1 1 0 Wai 81 6 19 4 12 27 2 2 0 19 6 1 1 Nashik 109 5 19 14 8 27 5 4 2 6 5 5 3 Vritti Audio Advertising Report June 24. of employees :.None Businessmen / Industrialists with no. 2011 Page 27 Confidential & Proprietary Copyright © 2011 The Nielsen Company .1-9 Businessmen / Industrialists with no. of employees :.Occupation of Chief Wage Earner Total Base: All Respondents Unskilled worker Skilled worker Petty trader Shop owner Businessmen / Industrialists with no. of employees : .

Frequency of Listening to the Radio 35 30 25 20 15 10 5 0 31 24 16 12 11 6 Everyday 2-3 Times a week Once a week Once a fortnight Less Often Never Listen to Radio Base: All Respondents (n:539) The percentage of respondents who listen to the radio everyday is the highest at 31% We see that a lesser percentage of people listen to the radio rarely. with only 6% of the respondents claiming that they never listen to the radio Vritti Audio Advertising Report June 24. 2011 Page 28 Confidential & Proprietary Copyright © 2011 The Nielsen Company .

Some action points for Vritti • Vritti need’s to ensure volume of the advertisements at bus depots is “just right” as this directly correlates with number of brands recalled – Fewer Ichalkarangi & Sangli respondents find announcements to be Very Clear – Ichalkaranji respondents also find announcements to be too loud. Vritti Audio Advertising Report June 24. 2011 Page 29 Confidential & Proprietary Copyright © 2011 The Nielsen Company .as do passengers in Nashik • The proportion of daily travelers is higher at bus depots in smaller cities like Wai.. Narayangaon and Ichalkaranji. – Is there a time band advertising schedule? • A high proportion of respondents spend their time resting (doing nothing) while waiting at bus depot and hence represent the undistracted Target Audience.

It is comparable with average number of brands recalled from outdoor hoardings at 2.Summary • Audio advertisement as medium is effective despite being restricted to confines of a bus depot • The recall of audio advertising / announcements as a medium is at par with outdoor hoardings and bus panels at 98% • On an average 2.2 brands are recalled on audio advertisements. 2011 Page 30 Confidential & Proprietary Copyright © 2011 The Nielsen Company .1 • Virtually everyone (97%) find announcements to be very useful or somewhat useful • Thus audio advertisements coupled with announcements appears to be an effective advertising medium Vritti Audio Advertising Report June 24.

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