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ROI and Radio Ppt

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Slide show done for Ohio Hospital Association speaking engagement on ROI for Hospitals: Radio's Effectiveness.

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ROI and Radio Ppt

  1. 1. RADIO in the 21 st Century: Have You Heard it? By Erin Al-Mehairi, Marketing and Public Relations Samaritan Regional Health System
  2. 2. 96% of the population listens to Radio… *Radio Advertising Bureau (RAB)
  3. 3. Why Should I Consider Radio? <ul><li>Utilizing in tandem with other advertising to increases results </li></ul><ul><li>It’s targeted marketing </li></ul><ul><li>It reaches customers with frequency at less of a cost </li></ul><ul><li>Offers additional promotional opportunities </li></ul><ul><li>Sound is stored more effectively in the mind; memorable </li></ul>
  4. 4. Radio can also… <ul><li>Expand your market reach </li></ul><ul><li>Motivate people “to-do” something </li></ul><ul><li>Establish a more personal relationship with your customer and you </li></ul><ul><li>Break through clutter </li></ul><ul><li>Help the customer feel loyal to you </li></ul><ul><li>Bring advertisers more local reach </li></ul>
  5. 5. Flexibility <ul><li>Radio copy can be easily and quickly changed every day, and offers a chance for live interviews, DJ promotion, and other alternatives such as community calendars. </li></ul>
  6. 6. “ How do you measure?” <ul><li>Marketing in the 21 st century is not about ROI anymore. It’s about RETURN ON the CUSTOMER, maximizing the lifetime relationship with an individual. </li></ul><ul><li>However…if you need tangibles- </li></ul><ul><li>Arbitron ratings </li></ul><ul><ul><ul><li>Can help guide you to a target audience. </li></ul></ul></ul>
  7. 7. Arbitron <ul><li>An informational source much like TV’s Nielsen </li></ul><ul><li>Recall-based paper survey </li></ul><ul><li>2 times a year </li></ul><ul><li>Can help you with demographic targeting </li></ul><ul><li>Not very accurate </li></ul><ul><li>Other electronic radio measuring devices are in the works </li></ul>
  8. 8. Engagement and Emotions <ul><li>Radio helps people learn about many different things quickly--the weather, road work, the news, entertainment, etc. </li></ul><ul><li>Offers wide array of various types of programming, to reach anyone of any demographic. </li></ul><ul><li>Most advertising researchers believe that emotions can be considered as the gatekeeper for further advertisement processing. (Journal of Advertising Research, vol. 46 no. 1) </li></ul>
  9. 9. Personal Connections <ul><li>In simple terms, people believe that “my station” carries “my ads.” Radio is the medium that people most personally choose for themselves. </li></ul><ul><li>People’s perceptions toward the radio advertiser then is that they are trying to reach them personally. </li></ul><ul><li>It makes a personal, emotional connection with a listener, which becomes a very powerful environment for an advertiser. </li></ul>
  10. 10. For Example: <ul><li>Radio ads trigger emotional reactions in listeners such as “advertisements make me feel more connected to my community.” “advertisements in this medium are more honest,” “I feel like the advertisements are directed more toward me personally.” </li></ul>
  11. 11. It Shows that… <ul><li>Radio listeners have a unique relationship with Radio as a medium because they are more emotionally connected than they are with TV or newspaper. </li></ul><ul><li>The relationship is also much more personal. </li></ul><ul><li>A good emotional relationship like this is like getting something “word of mouth” from a friend. </li></ul>
  12. 12. How Radio Affects Consumer Emotions—Study <ul><li>Physiological testing system used to better assess the emotional connection that advertising messaging makes with its audience </li></ul><ul><li>Created by Gallup & Robinson for Radio Ad Lab </li></ul><ul><li>Called CERA (Continuous Emotional Response Analysis), it utilizes leading-edge measures of emotional response supplemented with traditional validated metrics of advertising effectiveness. </li></ul>
  13. 13. <ul><li>Facial electromyography (EMG) gathers emotional activation </li></ul><ul><li>Two EMG’s measures taken: </li></ul><ul><li>Negative measure of the brow frown muscles </li></ul><ul><li>Positive measure of the smile muscle </li></ul><ul><li>Four of the radio campaigns showed EMG scores that were significantly higher than the TV campaigns, while only one TV ad showed the reverse </li></ul>How Measured
  14. 14. Other Study Facts <ul><li>Traditional cognitive response of advertising collected through conventional face-to-face interviews </li></ul><ul><li>Copy content was average or better </li></ul><ul><li>Respondents exposed to both programming and advertising as former research showed that radio programming is a significant component of attitudes toward radio ads. </li></ul><ul><li>Choice of programming to ensure “fit” between respondent and program content </li></ul>
  15. 15. Conclusions <ul><li>Four of the radio campaigns showed EMG scores that were significantly higher than the TV campaigns, while only one television ad was higher. </li></ul><ul><li>Overall, radio ads have emotional impact on consumers that is equal to that of television ads. </li></ul><ul><li>Radio listeners do have an emotional bond with their programming, and it’s now clearer that radio advertisers can benefit from that connection. </li></ul>
  16. 16. Moving Money to Radio: Synergy Works! <ul><li>A media mix that includes radio can be more powerful than television-only or newspaper-only campaigns. </li></ul><ul><li>(Radio Ad Effectiveness Lab 2004) </li></ul>
  17. 17. Trends in Society <ul><li>People are avoiding advertising, some more than others... </li></ul><ul><ul><ul><ul><ul><li>Print– readers skim and stop; only read if interested </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Radio—can intrude but hard to avoid </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>TV—People can turn their heads and close their eyes </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet—Pop-ups and banners are annoying and sometimes blocked </li></ul></ul></ul></ul></ul>
  18. 18. Integrated Marketing <ul><li>The challenge for planners now isn’t just to pick a good medium it’s to understand each medium’s strengths so that the best communication occurs across media. </li></ul>
  19. 19. It’s Called Duplication Planning <ul><li>Use Radio to assist other mediums for better campaign results </li></ul>
  20. 20. The Implications <ul><li>Shows that radio is not only valuable in reaching those missed or underserved by other media, but is also an undervalued way to affect consumers that ARE reached by other mediums such as TV, newspaper, Internet. </li></ul>
  21. 21. Shifting Money <ul><li>Radio can reach people not reached with other media AND it can increase the effectiveness of ads which do reach people via other media. </li></ul><ul><li>Moving some money into radio may increase the total power of the campaign. </li></ul>
  22. 22. Radio plus TV Strong <ul><li>Radio reaches 83% of the 24.9% of adults who watch TV 7-9 a.m., and 84.3% of the 75.1% of adults who don’t watch 7-9 a.m. </li></ul><ul><li>Radio reaches 86.1% of the 60.7% if adults who watch primetime TV , and reaches 80.7% of the 39.3% of adults who don’t watch primetime TV. </li></ul>
  23. 23. TV vs. Radio Study <ul><li>Swapping out one of two TV ads for two radio ads increased unaided brand recall by 34% ! </li></ul><ul><li>Replacing one of two newspaper exposures with two radio ads almost tripled unaided brand recall </li></ul><ul><li>When two radio ads replaced one of two TV exposures more people chose the advertised brand as their first-choice product. The newspaper swap-out was even more striking. </li></ul>
  24. 24. Brand Name Recall <ul><li>Radio generated significantly better top of mind recall and total recall for the test brands than exposure to only the television or print advertising (2 exposures). </li></ul><ul><li>On an unaided basis, the group with two radio exposures generated a third more brand recall than did the TV-only group. </li></ul><ul><li>In the newspaper grouping, the use of radio almost tripled the amount of unaided recall. </li></ul>
  25. 25. Shift in Brand Preference <ul><li>Respondents receiving two radio exposures, instead of one TV exposure, showed an 8% shift in first preference. </li></ul>
  26. 26. What Does that Mean to TV <ul><li>Some people Nielsen counts as viewing are not seeing advertising. It means reach, a major reason we buy television, isn’t reach anymore. </li></ul><ul><li>Today is takes more than one TV exposure for a consumer to see an ad, but reach at a frequency of two costs too much. Trying to reach light-viewers more than once means reaching the heavy viewers 5 to 7 times and that wastes money. </li></ul>
  27. 27. Grab Light Viewers with Radio <ul><li>Buying more TV to build frequency to increase this reach can be a dead-end. BUT… </li></ul><ul><li>… problematic light viewers are average Radio listeners, so substituting Radio for part of a TV schedule can balance message frequency across the entire TV audience and restore TV’s lost reach. </li></ul><ul><li> (Erwin Ephron, 2007) </li></ul>
  28. 28. Radio and the Internet <ul><li>Radio ads improve recall dramatically when added to Internet ads </li></ul><ul><li>Recall of advertising is dramatically enhanced ( 27% vs. 6%) when a mix of radio and Internet ads is used compared to Web site ads alone. </li></ul><ul><li>Radio ads can also improve Web site traffic and a brand’s emotional bond with consumers when added to Internet exposures. </li></ul><ul><li> (Radio and the Internet: Powerful Complements for Advertisers, 2006 Harris Interactive, Inc.) </li></ul>
  29. 29. <ul><li>The daily reach of radio and the Internet together is similar to that of television. </li></ul><ul><li>On a daily basis, radio and the Internet together reach about 83% of the 18-54 population. </li></ul>
  30. 30. Somewhat Similar <ul><li>Both radio and the Internet reach light users of other media: </li></ul><ul><li>41% of light or non-users of television are actually heavy users of radio and or the Internet </li></ul>
  31. 31. <ul><li>Radio is well-known for its ability to reach more tightly-defined groups. “Narrowcasting” is the nature of radio with its multitude of formats and demographic niches. </li></ul><ul><li>Internet too can be focused more narrowly than other mass-oriented media, using Web site content or presumed interests of the surfer, to determine placement. </li></ul>
  32. 32. <ul><li>Radio is often used simultaneously with the Internet. </li></ul><ul><li>Up to a third of Internet usage time includes simultaneous radio listening to some day-parts. </li></ul>
  33. 33. Search Categories- Medical <ul><li>65% of Radio listeners searched online for Medical information, the No. 7 topic </li></ul><ul><li>20.4% of listeners researched medicines/vitamins/supplements online, No. 6 topic </li></ul><ul><li>(Radio Marketing Guide and Fact Book 2007-08) </li></ul>
  34. 34. Consumer Connections <ul><li>Radio ads may be more effective at making emotional connections with consumers, thanks to the much more emotional link that listeners have with the medium itself. </li></ul><ul><li>Radio provides a fertile medium for ad receptivity, in that consumers expect ads to be relevant to them, and are significantly more accepting of radio ads compared to the Internet. Radio “speaks.” </li></ul><ul><li>Consumers see a connection between radio and their local communities. </li></ul>
  35. 35. Meanwhile, the Internet <ul><li>Connects at a more factual level, providing information that “helps you understand what is going on in the world around you.” </li></ul><ul><li>Some people may feel more focused when looking for something particular. </li></ul>
  36. 36. <ul><li>“ Online is perceived as a convenient channel for helping people find what they want, when they want it, whereas radio is perceived as offering the human touch, helping to shape the moods and rhythm of the day.” </li></ul><ul><li>(Publication: Using Radio with Online: How radio and online combine to fulfill brand interactions, 2005) </li></ul>
  37. 37. Internet Ads More Annoying <ul><li>67% believe that Internet ads get in the way of enjoyment vs. 37% radio </li></ul><ul><li>60% believe that Internet ads appear at inconvenient times vs. 24% radio </li></ul>
  38. 38. Radio Receptive Environment <ul><li>Radio is believed by people to be more relevant to them (than ads on TV or Internet) probably because people choose stations they like and advertisers can target more easily. </li></ul><ul><li>So, radio listeners actually expect ads to be more interesting to them and are naturally more accepting. </li></ul>
  39. 39. Planning and Synergy <ul><li>Use Radio advertising to cause Web site visitation </li></ul><ul><li>Some evidence that Radio can drive traffic </li></ul><ul><li>Radio prompts significant follow-up online: </li></ul><ul><ul><li>62% say that hearing things on the radio will remind them to look-up something when using the Internet. </li></ul></ul><ul><ul><li>59% say that if they hear something on the radio while using the Internet they will search the Web for more details. </li></ul></ul><ul><ul><li>57% have checked out things on the Internet after just hearing about them on the Radio. </li></ul></ul>
  40. 40. Utilizing Together <ul><li>As in TV, unaided recall of advertised brands, in adults 18-54, was better using a combination of radio ads and Internet ads. </li></ul><ul><li>1 Radio to 1 Internet ad=27% recall </li></ul><ul><li>2 Internet ads only=6% recall </li></ul>
  41. 41. Age <ul><li>Unaided recall in the 35-54 group was at 32% for 1 Internet ad + 1 Radio ad, compared to 7% recall for only an Internet ad </li></ul>
  42. 42. Education <ul><li>Unaided recall in the Some College/College group was at 30% for 1 Internet as + 1 Radio ad, compared to 6% recall for only an Internet ad. </li></ul>
  43. 43. Yellow Pages <ul><li>There is consistent affirmation that Radio also helps boost Yellow Pages’ high percentages of use. </li></ul><ul><li>Many people might hear a Radio ad, then use the phone book, skewing survey results towards Yellow Pages: </li></ul><ul><li>Adults ages 18+ who consulted to the Yellow Pages for hospitals/care facilities in the past year was 67.1% for females, and 32.9% for men </li></ul>
  44. 44. Newspaper and Radio <ul><li>Using Radio with newspaper helps you reach consumers who don’t read the paper and strengthens the impact of your message on those who did see the newspaper ad. </li></ul><ul><li>Radio reaches 87.3% of the 52.9% of readers who usually read the Front Page section, and reaches 80.2% of the 47.1% who don’t usually read it. </li></ul>
  45. 45. Radio Helps Shift Toward Brand <ul><li>Those receiving two newspaper exposures showed no positive shift in brand preference after the test, while 6% of the radio-exposure groups shifted toward preferring the tested brands. </li></ul>
  46. 46. Radio Reaches Everyone <ul><li>Everyone, Everywhere—at home, work, in the car, in the store, etc., regardless of age, gender, time of day or geography. </li></ul><ul><li>Radio is America’s true media companion. </li></ul>
  47. 47. What Format is Your Format? <ul><li>Country wins for the third straight year! It enjoys the largest listener share in every daypart, and was No. 1 in all the age cells between 18 and 54 years old. It was No.2 in the 55+ age group. </li></ul><ul><li>News/Talk/Information was No. 1 in five of the nation’s top 25 markets and in the age groups of 55-64 and 65+, and ranked No. 2 among the age groups of 35-44 and 45-54. </li></ul><ul><li>(Radio Today 2008 Arbitron report/ 400,000 Arbitron listening diaries, representing 100% of every </li></ul><ul><li>county in the U.S.) </li></ul>
  48. 48. Country <ul><li>No. 1 in terms of number of stations and in popularity </li></ul><ul><li>Popular 53.7% Women and 46.3% of Men </li></ul><ul><li>At home: 33.5%; In Car: 38.3%; At Work: 25.5% </li></ul><ul><li>Monday through Friday, 10 a.m. to 3 p.m., at 13.3% </li></ul><ul><li>Time spent listening, highest in 35-64 age range: 10.00 </li></ul>
  49. 49. News/Talk/Information <ul><li>Popular among 56.1% men and 43.9% women </li></ul><ul><li>At home: 51.5%; In Car: 34.4%; At Work: 12.8% </li></ul><ul><li>Monday through Friday, 6 a.m. to 10 a.m., 12.4% </li></ul><ul><li>Time spent listening highest in 35-64 age group: 9.00 </li></ul>
  50. 50. East North Central U.S.--Ohio <ul><li>Country had 14% of the audience share (national average is 12.7%) </li></ul><ul><li>News/Talk/Information had 12.2% of audience share (10.7 was national average) </li></ul>
  51. 51. When/Where People Listen <ul><li>Weekdays: 6-7 a.m., noon to 1 p.m., and 3-4 p.m.—72 % listening away from home during 3-5 p.m. </li></ul><ul><li>Weekends: Noontime—50% at home, 50% away </li></ul><ul><li>Women listen at home more, and those 65 + </li></ul>
  52. 52. Keeps Listeners <ul><li>Radio does a good job of keeping its listeners even during longer commercial breaks. The audience levels of the lowest-rated minute during breaks of three to six minutes are almost identical, ranging from 88% of the lead-in audience. </li></ul><ul><li>People in cars especially do not like to change pre-set favorite stations and generally do not do so more than once a year. (Arbitron In-Car Study) </li></ul>
  53. 53. On the Subject of Cars <ul><li>76% of Americans are spending more or the same amount of time in their car than they were one year ago, and are equally about the same time on weekdays as on weekends. </li></ul><ul><li>On average, people spend nearly 14% of their waking hours in the car (or 15 hours per week). </li></ul><ul><li>Radio still predominant listening choice in-car: 96% </li></ul><ul><li>(Edison Media Research for Arbitron, 2003) </li></ul>
  54. 54. Tidbit on Giving <ul><li>Radio reaches contributors to causes/organizations: </li></ul><ul><li>88% contributed to a healthcare/medical organization within the past year! </li></ul>
  55. 55. Conclusion <ul><li>People love to listen to the Radio while they are checking the day’s mail, watching TV, surfing the Internet, working, driving and more. </li></ul><ul><li>Radio spots can reinforce the impact of your ad campaign or direct listeners to check-out something all with cost effectiveness. </li></ul>