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2. Radio and the Consumer’s Mind: How Radio Works 2

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4. 4  Founded in 2001  To do objective research about how Radio works  With serious financial support from the Radio industry  And active participation of advertisers and agencies

5. 5 40+ top researchers from all industry sectors… Coca-Cola General Motors GlaxoSmithKline Home Depot Novartis Wal-Mart Others: Arbitron ARF RAB Burrell Carat Initiative MediaCom mediaedge:cia MindShare - Team Detroit MPG OMD Starcom MediaVest TargetCast Universal McCann UniWorld Vidal Partnership Zenith CBS Radio Clear Channel Univision Radio WBEB-FM AURN Jones Premiere Westwood One Interep Katz

6. 6 Five New Studies Under This Umbrella  A deeper look at how Radio works 1)Personal Relevance Two: Radio’s Ad Receptivity  2)Synergy between Radio and Internet  3)Subconscious Engagement (vs. TV) 4)How Radio Generates Imagery—by itself 5)Applying These Findings to the Creative Process

7. Radio and the Consumer’s Mind: How Radio Works 7 The First in the New Series

8. 8  Learnings from First Personal Relevance Study (2004): Radio is personal and emotions-driven Radio ads are expected to be more relevant  General Conclusions When Radio ads are created and bought properly… They can be very effective at connecting with emotions And the radio environment is powerful because listeners expect ads for “their” products

9. 9  Advertisers wanted more…  More sample for more drill-downs Blacks and Hispanics Younger and older Different formats  And more media Add the Internet to the original study’s mix of radio, TV, and newspapers

10. 10  National RDD Telephone Study June-July 2006, about 20 min. long Randomly selected 2,500+ Adults 18-54 Conducted by Harris Interactive/Wirthlin  Serious Attention to Quality 37% “true” response rate achieved Comparable to currency media research Sample weighted to Census estimates  Extra Efforts for Ethnic Sample Higher premiums for high-density Black and Hispanic ZIPs Bilingual interviewers, Spanish translations

11. Radio and the Consumer’s Mind: How Radio Works 11

12. 12  Radio Touches Emotions Radio affects consumers in more personal and emotional ways Consistent with the first Personal Relevance study…

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14. 14  Radio ads are expected to be relevant Reaching who they’re meant for Reaching you personally  As well as… For local products/services See full paper for details …

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16. 16  Overall: Radio is the medium with the receptive ad environment It has the strongest emotional and personal connections with consumers With listeners primed to expect ads that are relevant to them In an atmosphere where ads are better accepted than in TV or the Internet

17. Radio and the Consumer’s Mind: How Radio Works 17

18. 18  Overall: The pattern of high ad receptivity for radio was even stronger for Blacks/African- Americans and Hispanics/Latinos  For example: Ad acceptance for Radio ads was very strong for Blacks and Hispanics, relative to TV and Internet ads

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20. 20 A Little Different Pattern for Repetition

21. Radio and the Consumer’s Mind: How Radio Works 21

22. 22 EmotionalConnections AdRelevance AdAcceptance The first two factors were first seen in 2004, and reinforced here. The third factor emerged in this study. And applications to Radio and the Internet are new.

23. Radio and the Consumer’s Mind: How Radio Works 23 The Second in the New Series

24. 24  Radio and the Internet connect with consumers differently See Personal Relevance Two Radio ads make more emotional connection Internet has a more informational function for consumers Therefore: Different ways for ads to break through in each medium  Similar findings in work done by RAB-IAB/UK

25. 25  Radio and the Internet have unique Reach patterns…  And that can make them a potent Reach combination…

26. 26 See full paper for similar data on Young Adults and Teens…

27. 27  Simultaneous Usage Radio is often used simultaneously with the Internet Especially during the day And across all demos TV simultaneous usage is high, too, but that may have different implications for advertisers

28. 28 See full paper for similar data on Young Adults and Teens…

29. 29  Numerous reasons to see potential advertising synergy between Radio and the Internet  And many media people believe in mixed-media campaigns…  What’s missing? Evidence of how a mixed Radio/Internet campaign actually works…

30. Radio and the Consumer’s Mind: How Radio Works 30 Conducted Late 2006 with Harris Interactive Inc.

31. 31  Two Test Groups Two exposures to an Internet ad, compared to… One exposure to an Internet ad + One exposure to a Radio ad for the same product 3 Test Groups 2 Internet Exposures 1 Internet Exposure 1 Radio Exposure 1 Internet Exposure 2 Radio Exposures …Or…

32. 32  Online study with Harris Interactive web panel 800 Adults 18-54 per test group  “Evaluation” of website content and radio programs Choice of six types of each  Embedded within: One of eight actual ad campaigns Corresponding Radio/Web content Web ads: Mixture of static images, animated images, and Flash Radio ads: All 30s, three with actual website mentions

33. 33  Recall metrics Unaided recall: First question, no prompting; “What brands did you see or hear advertised?” Aided recall: Second question, with assistance: “Which of the following brands did you see or hear advertised?”  We saw striking and consistent effects…

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36. 36  In the full paper, you’ll see these same patterns repeated across: Age groups Gender Race/Ethnicity Education Level And even across all eight campaigns…

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38. 38  Branding—the recall of brand names— was consistently higher with a mix of Radio and Internet  The improvements were large, statistically significant, and widespread  Clearly, the potential for better marketing communications exists with a combination of Radio and Internet advertising

39. 39  Five of the eight brands showed greater impact with a Radio/Internet mix on Website Visitation and Purchase Likelihood  Four of those five brands also showed better Radio Mix results on Aspirational Fit and Emotional Connection (like/love the brand) See the full paper for detailed data on all measures…

40. 40 Reaching Light Users of Other Media (More in Paper) Similarities Unique to Both ComplementsEffectiveness Type of Personal Connection Unique Combo Reach Simultaneous Usage (More in Paper) Combined Strengths 4½ Times Unaided Recall Better Qualitative Effects with Good Ads Synergy Effects Powerful Complements

41. 41  Radio and the Internet can be powerful advertising complements.  Whether the goal is to reach more people, or to reach them with greater impact, this combination of media seems to be a recipe that’s worthy of more consideration. Full Paper at http://RadioAdLab.org

42. 42  We think these studies suggest that Radio offers a powerful ad environment with unique strengths.  However…  Advertisers and ad producers need to apply these learnings to get full benefit.  That includes: Planning Creating Testing Buying

43. Radio and the Consumer’s Mind: How Radio Works 43

44. 44  First study with Gallup & Robinson  Subconscious Engagement (vs. TV) Continuous Emotional Response Analysis (CERA) measures positive and negative physiological responses Developed through intensive research at the Johns Hopkins School of Medicine  G&R’s RAEL project Compare emotional engagement results for a group of matching Radio and TV commercials, in media context Results in about three months

45. Radio and the Consumer’s Mind: How Radio Works 45 For More Information: http://RadioAdLab.org