REAL releases first study:
How Radio Ads Affect Consumers
The RAB's Radio Ad Effectiveness Lab (RAEL) released the first of several major new research studies yesterday in NYC that identify how radio and radio advertising works with listeners, how to maximize ROI and how radio ads can improved upon for effectiveness.
"I've asked the captains of our industry to come together in a sign of unity to show this is an industry effort," said RAB CEO Gary Fries in opening the event that was well-attended by most radio groups. "They all believe in radio and are joined together to show the industry how effective the medium is...We don't want to just present this research, but to embed it, present this documented information to the ad community. It's completing the circle. We are putting forth an unprecedented marketing effort. We have a team to get the message out, take it to the streets to the advertising community."
The project, "Personal Relevance; Personal Connections: How Radio Ads Affect Consumers," conducted by Wirthlin Worldwide, demonstrates how radio advertising affects consumers in ways that are different from TV and newspapers.
Susquehanna President David Kennedy spoke next and asked all group heads to join him at the podium: "These folks up here are competitors, but today we are allies. We are realizing it is important to put our industry first. Fundamentally, we know radio works. We have plenty of real-world examples, but RAEL will help us show how radio works empirically."
Jerry Lee, WBEB-FM Philadelphia owner, was given credit as the father of the RAEL idea. "It gathered a lot of steam quickly," confirmed Kennedy.
Among the key findings in the two-phase study survey among 600 adults 18-54 were:
* Radio listening is a one-on-one and emotion-driven experience, and listeners believe that both the medium and its advertising are more relevant to them (compared to TV and newspapers).
* Consumers see TV and newspapers as being designed to satisfy the masses, but radio is where they turn to get gratification of their personal wants and needs.
* Consumers believe their radio programs carry ads that are appropriate for them as individuals, and listeners are therefore more ready to react at an emotional level-if the advertisement is well suited for that program's context.
* The ability of radio advertising to make personal, emotion-driven connections with listeners helps explain why radio can be so effective when the advertising is done well and placed appropriately.
* The personal nature of the radio medium is reflected in the expectation that radio advertising is directed personally to the listener, and that radio advertisers are "trying to reach me personally."
* Radio ads, more than for other media, need to be compatible with their surroundings. There is no one-size-fits-all ad for Radio (at least not one that's effective) and format-specific advertising matters.
* Radio ads need to speak to people at a personal level, not as a group. Consumers expect television and newspaper ads to try reaching a large population, but Radio ads need to speak to the individual.
* While radio can be used to provide synergy with advertising on other media, that doesn't mean that radio ads can simply duplicate the content or style of the other medium. Effective radio communication requires an approach that is more personal.
* Radio reaches people at an emotional level at least as well as television, and much more than newspapers.
* Given how strongly people identify with "their" stations (and "their ads"), radio's ability to be effective and to generate excellent ROI shouldn't come as a surprise.
Radio makes personal, emotional connections with listeners, and that's a very powerful environment for an advertiser.
Mary Bennett, RAB EVP/Marketing and Vice Chair of the research committee, told the audience one of the things they wanted to do was to get a sense of direction on what the implications might mean for advertisers and agencies. She said the study includes a variety of tips for the most effective use of radio: "For brand planners and managers-as they're thinking about the brand positioning, think about how it can be personalized. Pre-test the creative idea whenever possible--focus groups. Is it striking the emotional triggers so it will be more impactful?"
She added, "We think this study will help media planners plan with radio with higher level of confidence. The buzzword: if you speak honestly and directly to listeners, they will reward the advertiser. We are suggesting: Proper formats and proper daypart placement are key. The messaging should be different. Not that every format needs a different ad, but format groupings...Go beyond age and sex cells....go into lifestyle breakdowns. Advertisers' knowledge of key consumers can help radio work better for them in targeting."
Bennett also spoke about the creative execution: "If we had a dollar for each time they said, 'We'd spend more in radio if it were more creative,' we'd be rich. Radio should be more direct...speak directly to listeners....be honest....it breaks the preconceptions listeners have about advertising."
Other speakers at the event included Owen Charlebois, President, U.S. Media Services, Arbitron and Co-Chairman of RAEL; Jim Peacock, President, Peacock Research and Consultant to RAEL and Pat Kidd, VP/Advertising & Communications Consultancy Leader, Wirthlin Worldwide
The full report can be downloaded at http://RadioAdLab.org/reports.htm.
During 2004 and 2005, RAEL is funding several new studies about Radio advertising effectiveness and how to maximize ROI.
RBR observation:
We're still not sure if the radio groups are kicking in enough dollars to fund all of this (RAB doesn't supply the funding details for RAEL), but the big turnout (Hogan, Smulyan, Field, Kennedy, etc) should be a good sign. With folks in attendance on the agency side like Natalie Swed Stone, US Director, National Radio Investment, OMD and Kim Vasey, Senior Partner/Director of Radio, mediaedge:cia praised the study with statements like, "This will be an invaluable study to share with clients, account managers, planners and creative teams" (more tomorrow), we hope the money was well spend and can be useful. These are people that believe in radio and have been asking for more tools to help them sell their clients.
Bottom line: Any study can say people have a more personal feeling with radio spots, increasing effectiveness. But too many spots and annoying spots from any medium will turn them away. We're glad the presentation also included how to make creative and positioning better and how the issue has got to be addressed. Next step: Let's fix the programming. Allow stations to once again have a "magnetic personality" through skilled and unique playlists. Hearing the same predictable songs on the same predictable formats in market after market across the country is turning too many people to satellite listening.
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