RAB wants to clear up misunderstandings about radio

The RAB has identified eight issues about radio it says are misunderstood, exaggerated or underestimated. It sent journalists covering the industry a reference guide and data to support its arguments. We think it may be a good tool for sales as well.

Dispelling the 8 Major Myths About Radio:

1. Clutter

• a. A Harris Nesbitt Study from February, 2005 found that spot loads on Radio had been reduced by 13% in the top 10 markets since October, 2004
  
• b. Overwhelmingly, consumers perceive TV to have more commercials than Radio, according to an Arbitron/Edison Media Spot Load Study released in May of 2005
  
• c. Radio is the medium at the forefront of addressing clutter with initiatives such as Less Is More from Clear Channel and various spot load restriction policies from other Radio groups
  
• d. Listeners prefer more frequent and shorter breaks, with 57% voting for three breaks of four spots over two breaks of six spots in the Arbitron/Edison Media Spot Load Study
  
• e. Less Is More is noticed by listeners... Two studies from early in 2005, the Burke and the Navigauge Studies, revealed that Clear Channel listeners noticed fewer commercials, shorter commercial breaks, and more music.
  
• f. The Navigauge Study from January 2005 corroborated this finding. While conducted in only one market, the study supports the larger studies, confirming that with shorter commercial breaks (i.e., those having four or fewer ads), roughly 80% of the qualified audience was still listening after the second commercial, and roughly 70% was still listening after the third spot.
  

2. Not Innovative/Not Cool/Fearful/Slow To Change

• a. HDRadio
  
  • Multicasting - May 2005, Infinity announces WUSN-FM will broadcast separate programming on second channel using HDRadio technology
    
• b. New Formats - JACK, BOB, HURBAN, Progressive Talk, DOUG, CHILL, SAM, CHARLIE
  
• c. WebCasting
  
  • Format Variation Streaming
    
  • Infinity's K-ROCK, NY streaming a niche version of its broadcast format
    
  • Clear Channel plans include webcasting videos of specially produced concerts on station site
    
  • Simulcast Streaming- more delivery options for listeners (computer at work)
    
• d. Visual Radio from Infinity - listeners can tune in to local FM radio via their mobile phones while simultaneously receiving interactive information and graphics that are synchronized with the broadcast
  
• e. Podcasting
  
  • Infinity's KYOU, San Francisco - listeners submit their own podcast
    
  • Premier Radio Networks offers podcasts of nationally syndicated shows to "subscribers"
    

3. Youth Market

• a. According to a Kaiser Family Foundation Study released in 2005, 74% of 8 to 18 year olds listen to the Radio.... That's more than listen to a CD, tape, or MP3 player
  
• b. The Kaiser Study also found that 84% of 8 to 18 year olds have a Radio in their bedroom -- that's more than have a TV (68%) and a lot more than have a computer (31%)
  
• c. Over one-third of 12 to 24 year olds noticed stations playing fewer commercials (36%) and shorter breaks (39%) in the Arbitron/Edison Media Spot Load Study
  
• d. The same Spot Load Study found that younger listeners (12 to 24) are more likely to increase Time Spent Listening to Radio when a decrease in spot loads is perceived
  

4. Creative

• a. Mercury Awards have encouraged and rewarded Radio creative excellence and brought more awareness to agency creative departments
  
• b. Mercury Creative Workshops have elevated level of Radio creative
  
• c. The 2005 Cannes Advertising Festival added Radio as a category
  
• d. Clear Channel's Creative Services Group has helped national and local clients develop successful creative
  
• e. The Wirthlin Study revealed that advertising and programming are part of the same experience for listeners. Radio ads work best when they are compatible with their surroundings and are format- and lifestyle- specific
  

5. Not A Branding Medium

• a. Motel 6
  
• b. Budweiser
  
• c. On Star
  
• d. Snapple
  
• e. Mt. Sinai
  
• f. AT&T
  

6. Declining Listenership

• a. Reach 94% of the population; over 228 million unique listeners
  
• b. Total number of listeners has consistently grown each year; over 25 million new listeners in the past ten years.
  
• c. Drop in TSL is comparable to other media, as consumers become multi-media users. According to the Simultaneous Media Usage Study by BIG Research, 70% of consumers, at one time or another, use media simultaneously
  
• d. According to the Veronis Suhler 2004 Communications Industry Report, consumers are spending more hours per year with Radio than other media (over 1000 hours; over 28% of total hours with all media)
  

7. Commercial Length

• a. The Burke Study revealed that a commercial's effectiveness is not dependent on length. Creative, well-executed, relevant spots generate strong recall.
  
• b. In that same study, a significant number of 30- and 15- second commercials had recall scores equal to or greater than many 60-second commercials, suggesting that recall and impact relate to things other than commercial length
  

8. Schedule Integrity

• a. Advances in ED
  
  • Over 25,000 invoices monthly are delivered electronically from the rep firms and the station traffic systems. That figure was only 1,000 in 2003 and should triple or quadruple at a rapid pace
    
• b. AAAA/RAB - Radio Buying/Selling Guidelines Task Force
  
• c. Fox Network-24/Clear Channel Case Study - unique, serialized campaign demanded accurate implementation of the schedule
  
• d. Susquehanna Guarantee
  
  • Two for one make goods for elite customers
    
  • Promotional recaps within ten days