Radio 101 Introduction to Using Radio in an Advertising Campaign

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Radio 101Introduction to Using Radio in an
Advertising Campaign
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The Value of Radio

• Radio is Emotional
• The emotional appeal of radio is unique among
  media.
• Radios emotional pull can be quite strong, as
  Orson Wells found when his War of the Worlds
  broadcast caused people to flee their houses
  armed with shotguns and pitchforks, convinced
  that Martians were invading Grovers Mills, New
  Jersey.
• Radio Motivates
• A radio message pushes buttons in listeners
  minds, activating memories of every picture ever
  seen and every emotion ever felt.
• Radios emotional appeal is immediate, and
  radios immediacy is a powerful motivator.
• Direct response advertisers everywhere testify to
  the tangible results generated by radio
  commercials.
• Listeners hear the message and react.

Sources RAB and Simmons Research.
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The Value of Radio

• Radio is Diverse
• Radios appeal to advertisers lies in its high
  targetability. Radio stations are lifestyle
  choices for listeners whose common attitudes
  produce format characteristics.
• Radios diversity allows advertisers to target
  consumers by
• Demo Group
• Ethnic Group
• Geographic Region
• Format Type
• Purchasing Likelihood
• Consumer Profile
• Every week radio reaches
• 96 of Hispanic Adults 18
• 95 of Black Adults 18
• 95 of Men 18-34
• 96 of Adults 25-54
• 96 of Women 35-64

Sources Arbitron, RAB and Simmons Research
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The Value of Radio

• Radio is Flexible and Adaptable
• Radio is a flexible medium for both the listener
  and the advertiser.
• For the listener, radios flexibility is
  physical radio is wherever you are, at home, at
  work, or in the car. Personal portable radios
  accompany the listener literally everywhere.
• For the advertiser, radios flexibility is
  mechanical Ad copy can be changed at a moments
  notice and spot execution time is minimal
  compared to the time needed to create a
  television or print advertisement.
• Radio allows advertisers to target different
  markets with different messages quickly and
  easily.
• Radio is Everywhere
• Radio reaches 75 of all people 18 every day and
  94 of all people 18 every week.
• The average person listens to the radio for over
  3 hours daily.
• The average person listens to the radio for over
  5 hours over the weekend.
• Among Adults 18, 46 of radio listening takes
  place in the car, 36 at home and 18 at work or
  other places.

Sources Arbitron, RAB and Simmons Research
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How to Purchase Radio?

• Buying radio effectively depends on a number of
  factors including
• Media usage how the consumer actually uses
  radio.
• Audience flow listening patterns.
• Survey Methodology what the numbers mean and
  reflect.
• Scheduling how spot advertisements are placed.
• Radio is Bought by Station
• Radio stations are programmed to deliver a
  specific target audience depending on their
  format. A Rock format delivers a very different
  audience than a CHR format. Radio for the most
  part is bought and sold by station and format
  using a mixture of time periods in order to
  deliver this target audience.
• Compare this to television which is bought by
  program.
• Television stations air a variety of programs
  that deliver a variety of demographic targets. A
  sitcom and a news magazine may air on the same
  station but will deliver a distinctly different
  audience. In order to deliver a specific
  audience television is bought and sold by
  specific program and time period.

Source RAB
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How to Purchase Radio? - Listening Patterns

• Radio Listening is Habitual
• Radio listening patterns usually have no clear
  start and stop times. Listeners know that they
  can tune in to a radio station at any point
  during the day and hear their favorite format.
• Radio listening is habitual and patterns do not
  vary widely on a day to day basis. Listeners who
  tune in to their favorite morning show on Monday
  are also likely to listen Tuesday through Friday.
• Compare this to television where viewing is by
  appointment
• Television viewing usually has specific start and
  stop times based on the start time of the
  program. Viewers know to tune in at 8 pm
  Thursday for 30 minutes to see a program they
  make an appointment to watch their favorite
  show.
• Television viewing varies by the day of the week.
  Viewers tune in and out to a station based on
  the day of the week their favorite program airs.

Source RAB
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How to Purchase Radio? - Audience Flow

• Radio Listening Flows Throughout the Day and the
  Week
• Radio is mobile and can be taken with the
  listener from the kitchen during breakfast, to
  the car on the way to work, to their desk during
  the work day, and back in the car on the way
  home.
• The next day, the same pattern is followed.
  Listening flows from one daypart to the next and
  from one day to the next.
• Compared to television where viewing stops and
  starts.
• Television is not portable - most viewing is done
  in the home. Viewers seek out a television for
  specific periods of time and either change the
  channel to view another program or leave when
  their viewing is done.
• Depending on what the most popular programs are,
  viewing can vary by day. Thursdays may have
  heavier viewing than Tuesdays and Sundays may
  have heavier viewing than Fridays.

Source RAB Katz Media
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How to Purchase Radio? - Survey Methodology

• Radio Measures Reach and Frequency
• Currently, radio measures radio listening on a 7
  day period using a diary. Not only does the
  diary capture the number of people listening
  (Cume) over that 7 day period, but it also
  captures how long each person listened (TSL) over
  the same 7 day period.
• Time Spent Listening may vary depending on how
  long people are tuning in and out during the
  week. Cume, when projected out over a 7 day
  period, remains constant for each station.
• Compare this to television which measures reach.
• Television is measured using a combination of
  meters and diaries. The meters capture
  occurrences of viewing how many people were
  watching at specific periods of time. Each
  program captures a new set of viewers Reach
  will vary daypart to daypart and day to day.
• Since programs are typically viewed in their
  entirety, time spent viewing is not a factor in
  determining the performance of a program.

Source RAB Katz Media
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How to Purchase Radio? - Scheduling Pricing

• Radio Spots Are Scheduled Throughout the Week
• Radio spots are usually bought and scheduled
  across broad dayparts. Due to radios steady
  audience flow throughout the day fixed positions
  and guaranteed placements would demand higher
  rates. Pricing on a daypart basis would not be
  cost efficient. Since radio costs are based on
  packages that include several dayparts, average
  CPPs for individual time periods would be
  misleading.
• Compare this to television where spots are
  scheduled at specific times.
• Television spots are ordered and scheduled at
  specific times during specific programs.
  Television programs are priced according to the
  audience they expect to reach during that time
  period. Daypart CPPs are therefore representative
  of TVs true costs.

Source RAB Katz Media
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Radio Terms Definitions

• 1st Preference Listening (P1) - are the number of
  listeners who tune into a station for more
  quarter hours than on any other station. (All
  Exclusive Listeners are P1 Listeners, BUT NOT all
  P1 Listeners are Exclusive Listeners)
• Average Quarter Hour Persons (AQH) - are the
  average number of people tuning into a station
  for at least 5 minutes during a 15 minute period.
• Average Quarter Hour Rating (AQH) - is AQH
  Persons expressed as a percentage of the
  population.
• Average Quarter Hour Share (SHR) - is AQH Persons
  expressed as a percentage of the Persons Using
  Radio (PUR).
• Cost Per Rating Point (CPP) - calculates the cost
  of each GRP.
• CPP Total Cost of Schedule
• Total GRPs
• Cost Per Thousand (CPM) - gives the cost of each
  1000 impressions a schedule delivers.
• CPM Total Cost of Schedule X 1000
• GI
• Cume - is the total number of Different people
  who tune into a station for at least 5 minutes
  during a daypart. Cume may also be referred to as
  Reach.
• Cume Rating - is the cume persons expressed as a
  percentage of the population.

Source RAB
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Radio Terms Definitions

• Duplication - is the amount of audience that
  listens to both station A and station B.
• Exclusive Cume - the number of Cume listeners who
  listen only to that station and no others during
  a specific daypart.
• Frequency - is the average number of times the
  unduplicated person will hear an advertising
  message.
• Gross Impressions (GI) - are the sum of AQH
  persons for a spot schedule.
• Gross Rating Points (GRPs) - are the total number
  of rating points a spot schedule will deliver.
• Median Age - the age where half of a stations
  listeners are older and half are younger. It is
  the midpoint of a stations audience.
• Reach - identifies the estimated number of
  different (unduplicated) people reached by a spot
  schedule. Reach can be expressed either as a raw
  number or as a rating.
• Time Spent Listening(TSL) - is the estimated
  number of quarter hours the average person
  listens to a station during a daypart.

Source RAB