Statistics & Studies
The following articles and information feature the inherent strengths and weaknesses of various advertising mediums. The features and benefits of adding Radio to the media mix is included to showcase the effective partnership roles radio plays in multi-level advertising strategies and campaigns.
For the past 30 years, if there has been a soundtrack for Radio's battles against newspaper, it would have to be "The Impossible Dream" from The Man of La Mancha.
To dream ... the impossible dream ...
To fight ... the unbeatable foe ...
To bear ... with unbearable sorrow ...
To run ... where the brave dare not go ...
In more contemporary terms, we would have to say that newspaper has been Radio's daddy for decades. Advertisers have been so convinced that they had to be in the newspaper that they have continued to give the medium the lion's share of their ad budgets in spite of arrogant pricing and lackluster service. Meanwhile, Radio salespeople have had to prove themselves and our medium constantly in return for table scraps.
While it's true that commercial Radio has been around for almost a century, newspaper is almost two-and-a-half times older. With longevity comes credibility, and newspaper is considered to be part of America's very foundation. Another thing advertisers find compelling about newspaper is that their competitors also use it. Many believe they have to be in the newspaper for that reason alone. On a more practical basis, newspaper is definitely effective at providing advertisers with a visual representation of their goods and services. Newspaper also allows advertisers to list a lot of details and technical information. Finally, newspaper is where consumers habitually go for prices and sales when they have made the decision to buy. Those are some pretty good justifications, and you run the risk of looking self-serving and less than credible if you tell a client or prospect that advertising in the newspaper is foolish.
Demographically, if an advertiser is targeting consumers younger than 55, newspaper will not be as effective. According to the Newspaper Association of America, 34% of individuals ages 18-34 read a daily newspaper in 2007, compared to 64% of those ages 55+. Circulation for the nation's major daily papers continues to trend downward, based on Audit Bureau of Circulations figures.
When you compare their decrease in circulation to the astronomical rate increases most newspapers are imposing on their advertisers, it's not hard at all to raise the question of value, and let the clients answer it for themselves.
While newspaper is great at communicating price to consumers who have made the decision to buy, it does a very poor job of communicating the emotional value of a product or service, and we all know people decide to buy based on emotion. People who do read the newspaper usually don't read every section, and most people who see an ad in the newspaper don't recall the ad after they've seen it.
Finally, the most important concern is the inability of most local advertisers to afford an effective level of frequency. Frequency is critical to the branding process, and it is cost-prohibitive for most of the advertisers you are calling on.
The most effective strategy is to explain the benefits of simply reducing the size of the client's ad and reallocating the savings into Radio. It's been said that opposites attract, and the polar differences between Radio and newspaper make them a very attractive advertising combination for clients who want to see a substantial increase in their return-on-investment without an increase in the investment itself.
It's time for all in Radio sales to wake up to the fact that converting newspaper dollars into Radio schedules is no longer "the impossible dream."
History: One of the oldest, most highly regarded media in the U.S. Among its loyal readers and advertisers, it enjoys a high degree of familiarity, acceptance, credibility and respect.
Visuals: The newspaper's combination of text and graphics, when used effectively, can create visual appeal that reinforces the messages of its advertising.
In-Depth: Newspaper ads have the ability to communicate lengthy, complex or detailed information and descriptions.
Mass Audience: Newspapers reach a relatively large mass audience throughout the market with a single exposure. A single ad in the newspaper typically can create more impressions than a single commercial on television, a single Radio commercial, a single outdoor billboard, or single insertion in any other medium.
Ad Variety: The medium offers a variety of ad sizes that allow advertisers to meet their budgetary constraints, from a one-column-inch ad to two full-page ads side by side called a double-truck.
Ease of Tracking: It's relatively easy to track response, primarily through couponing.
Lead Time: Advertisers can place orders and copy with a relatively short lead time.
Exposure: The reader controls the amount of exposure to a given ad. They can spend as much or as little time with an ad as they like.
Geographic Targeting: Zoned editions of newspapers in large metro areas allow for less than full-run advertising.
Decreasing Penetration: Decreasing Penetration: Gone are the days when almost every American household subscribed to at least one newspaper. Today, newspaper's household penetration is right around 50%. (RAB Newspaper Performance Reports, based on ABC data, are available for most U.S. markets.) (Media Life, )
Ad Clutter, No Separation: Your ad placed next to your competitors' can only be an advantage if your price is absolutely the lowest.
Passive: The paper provides information once consumers decide to buy, but it does not build brand awareness or create product demand. Newspaper advertising thus works mainly for comparing prices.
Browsers, Not Readers: Most people don't read all sections of the paper every day. Ads in a given section reach only those who read that section.
Can't Target: It's difficult to accommodate selective approaches that improve your cost efficiency and enhance frequency against clearly defined, high-potential customer segments.
Couponing is Declining: Despite increased coupon face value, redemption has been declining for years.
New Competition from Outside: : One of newspaper's ad categories (classifieds) is under attack both from Internet sites and savvy Radio stations.
Radio Excels: Where newspaper is deficient, Radio excels. Combining the two in a media mix capitalizes on the advantages of both media.
Excellent Reach: Radio reaches 74% of every American aged 12 and older every day. Radio reaches 93% every week. Using Radio together with newspaper increases the reach of your advertisement among light readers and younger consumers.
Time: Radio reaches 63% of shoppers age 25-54 within one hour of purchase time - providing the greatest "purchase proximity" of all major media. Combining Radio with newspaper allows you to influence more customers and closer to the point of purchase when they are most receptive to critical marketing information.(Arbitron, 2005)
Linear Medium: Commercials featured one at a time: Radio is a linear medium, unlike newspaper where the reader can skip past ads. The listener hears commercials between other programming elements.
Intrusive: The success of your marketing strategy depends greatly on how you reach and motivate your customers before their decision to purchase has been made. The intimate power of Radio can stimulate new demand by creating emotional reasons to buy your product and then directing customers to the newspaper for detailed information. It can help maintain loyal customers by keeping your name or brand image top-of-mind.
Listeners hear commercials: Newspapers like to be judged on how many subscribers or readers they have, not on how many people read an ad. Radio judges itself on how many people are available hear a commercial (Average Quarter Hour). Newspaper readership is more comparable to Radio's cume audience.
Targetable: Radio programs many different formats, each attracting a particular demographic or lifestyle listener. Advertisers targeting a specific audience often find Radio more efficient than newspaper.
Message Frequency: Radio adds impact through message frequency. That means bigger and faster results because repetition sells.
Radio Advertising Effectiveness Laboratory: Additionally, information in the RAL study on Synergy shows when used in conjunction with newspaper, the use of Radio added 100% of total brand recall when compared to newspaper alone.
Yellow pages have been around almost as long as the telephone itself. In fact, they've been a part of America's culture for over 100 years. Only newspaper can claim more longevity. And, as with newspaper, longevity begets credibility. In fact, most businesses cannot imagine not having an ad in the yellow pages. Despite significant changes the advertising landscape, the yellow pages still finished first in a survey of people who were asked to name the place they would go to first if trying to find a business in their area. No wonder advertisers feel they have to be in the yellow pages.
But what does "being in the yellow pages" really mean in the context of modern advertising? Does it mean being in every "yellow pages" directory that's published, or just the one that is best known? Does it mean being in the online version as well as the print version? Like all other media, the yellow page industry is faced with trying to maintain and grow their relevance while contending with new competitors and evolving consumer shopping behaviors.
Radio salespeople who tell a customer or prospect that they shouldn't be in the yellow pages run the risk of undermining their own credibility. A better strategy might be to point out the benefits of scaling back on the bells and whistles, such as color and bigger-than-necessary ads, and then reallocating the savings into a complimentary Radio schedule. The addition of Radio can be used to brand the company, which will make their yellow pages ad more effective. A portion of their Radio copy can be written to actually draw attention to their yellow pages ad.
Point out how effective Radio is in capturing the attention of consumers, creating interest in a product or service, and driving the desire to purchase. Then let the yellow pages take credit for helping consumers find the business so they can take the action of buying the product or service being advertised. Otherwise, the advertiser runs the risk of losing customers to one of the many companies whose ads surround theirs in their business category.
Widespread: Ninety-nine percent of U.S. adults are familiar with the Yellow Pages. (Yellow Pages Association, 2009)
Emergency Reference: Consumers often rely on the Yellow Pages during emergency situations.
Targets Consumers: Ads primarily target consumers already interested in purchasing a product or service.
Traditional Acceptance: Having a listing in the Yellow Pages has historically been a "must" for retailers.
Limited Exposure: Less than half of U.S. adults (46%) refer to the printed Yellow Pages directory during an average week. The other 54% will not see your ad. (Yellow Pages Association, 2009)
Minimal Consumer Awareness: Since the Yellow Pages typically are consulted after the decision to buy has been made, top-of-mind awareness must be built in other ways. As products continue to proliferate and the retail business becomes saturated, you must create demand for your products before the buying decision has been made.
Ad Clutter: Your ad is lumped in with all the others for the same product, where shoppers can compare.
Inconvenient: Phone books tend to be bulky, hard to store, and not readily available to consumers outside of the home or office. Their availability is limited to the locations where most purchases are made. How many pay phones have you seen that have a complete book? (Indeed, with the ever-increasing use of mobile phones, how many people even us phone booths anymore?)
Inflexible: Most directories are published once a year, and advertising must be purchased well in advance of the publication date. You can't make corrections or changes resulting from dynamic business conditions or opportunities.
Too Many Books: In many communities, there are several different directories all competing for listings. Who reads them all?
Encroaching Competition from the Internet : Yellow Pages-like services on the Web are appearing more often. They can offer a more logical organization of data, and the capability to update information more often.
Limited Exposure: The combination of Radio and Yellow Pages can work more effectively to reach, motivate and inform your customers. Radio can create demand and influence shoppers before they decide to buy, and the Yellow Pages can reinforce where they should buy once they have made the decision.
Top-of-Mind Awareness: While your competition is content with advertising only in the Yellow Pages, you can increase your top-of-mind awareness through Radio - and greatly increase your market share. Radio can help you communicate the unique selling proposition of your business and help draw attention to your Yellow Pages ad instead of those of your competitors.
Flexible: Radio's great flexibility lets you make copy revisions at your discretion to accommodate changes in your business. You're not stuck with the same ad for more than a year, you increase your creative options, and you can generate maximum impact when you combine Yellow Pages with Radio.
It's hard to think of the internet as a competitive medium when Radio has as much of an opportunity to sell online inventory and e-commerce tools as anyone else. Nobody owns the internet, and everyone has access to its potential for revenue generation. So, when it comes to internet advertising, we aren't competing against the web, we're competing against ourselves.
Radio's adoption of the internet and all its potential has been sluggish, especially when compared to the newspaper industry and all the internet entrepreneurs. Many Radio salespeople have been given only token online revenue goals and still resent having to meet the responsibility. Given the astronomical growth in online revenue generation and e-commerce, a lack of interest in the medium is clearly not the problem.
The business community is enthusiastic about online opportunities, and most businesses have developed at least a moderate level of sophistication in their online efforts. More importantly, we have reached the point where the internet is no longer an interesting experiment for marketing departments. It is now considered an essential part of conducting business in the modern marketplace. Therefore, it is essential that Radio sales departments educate themselves regarding the internet.
Next, Radio must bring as much creativity to the process as we have in the past to creating traditional promotions for our clients. Banner ads and online coupons are not going to generate much excitement or revenue. The good news is that advertisers are paying bigger money for better online ideas, and the inventory is infinite. The only limitations on the revenue potential are our lack of understanding the medium and our limited ability to combine creativity with technology. Education is the key to Radio's future in online revenue generation, and you don't need to wait for your company or station to educate you. There is an abundance of internet marketing and e-commerce information available to any individual who is committed to learning.
Don't compete with the internet. Instead, adopt and embrace it. You and your clients have as much right and access to the virtual marketplace as everyone else. There is a substantial and still-growing online consumer population, and your station's web presence is an important portal to reach them. You also have the added advantage of your station's connection to its listeners, which can be used to drive them to your client's virtual space.
By combining Radio advertising with traditional promotions and a dynamic online presence, you can deliver impressive results to your clients in virtually no time at all.
Direct Response: With the Internet, you can reach highly educated and affluent consumers who are able to purchase your products or services with a click of the mouse.
Interactivity: The Internet allows your customers to communicate directly with you; they can tell you what they do and don't like, what they want, and what they will buy. They spend as much time as they choose with any amount of information you provide.
Tracking: Internet technology allows you to measure exactly how many people saw your message. . . and how they responded.
Immediacy: Thanks to online commerce, your message can reach consumers just before they buy online. . . and offer detailed information to shape the buying decision.
Enhanced Capabilities: As more and more households upgrade to faster broadband Internet connections, advertisers will be able to incorporate rich media formats, which include streaming video, into their ads.
Perception: Advertising is becoming more accepted on the Internet. However, the flip side of increased acceptance is decreased awareness. Many Internet users simply tune out ads or even block them with software designed for the purpose.
Consumer Concerns: Legitimate ads are hard to distinguish from those that are malicious. Individuals using the Internet for spreading viruses or electronic fraud have created worries among Internet users. Phishing (pronounced "fishing"), where apparent legitimate businesses ask for credit card and security information, gives rise to identity theft.
Time: Despite the growing broadband penetration rate, there will probably always be a core base of dial-up Web subscribers. Hardware bottlenecks make navigating the Net a slow, tedious process. Many users, turned off by the time it takes to view graphic-heavy pages, move on quickly when they don't think the site is worth the wait.
Infrastructure Problems: As an increasing number of consumers access the Internet looking to shop and buy, sites that don't prepare for the growth in traffic (particularly around the Christmas holidays) will be plagued by painfully slow loading times or outright crashes. Moreover, e-tailers are very dependent on timely shipping, a possible weak link that could break down just when it's needed most. Loss of online visitors means your advertising will be less effective.
Rising Costs: Much of the advertising on the Internet is being sold on a bid basis. The higher the advertiser bids, the better placement of the ad. Premium positions are often higher on a Cost-Per-Thousand basis than Radio.
New Technology: The Internet, with its rapid advancements in hardware and software, creates confusion among consumers who turn away from many of the newest attention-getting forms of advertising.
Age Concerns: A 2008 BurstMedia survey of 13,000 adult Web users revealed that only 38.6% of the respondents believe Internet advertising is focused on people their age. It is only among respondents 18-24 and 25-34 years that a majority feels online ads are directed at their age groups. (Burst Media, )
Retailer Concerns: According to a 2008 Booz Allen Hamilton survey, which focused on marketers' possible objections to online advertising, 62% of the respondents cited ROI as a chief concern. In addition, 98% of the respondents said a lack of standardization in reporting of Internet statistics (page views, etc.) inhibits spending. (BrandWeek, )
Perception: Radio is reducing clutter at a time when the Internet is becoming more cluttered. Draw attention to the advertising message by supporting Internet with Radio.
Trusted: From the beginning, consumers have expressed caution in using and believing the Internet. Radio is consumers' local, trusted source for information. Add credibility to your advertising campaign with Radio.
Efficient: Cost-Per-Thousand impressions is still a bargain on Radio.
Easy to Use: Radio is fast and simple. Turn on the receiver and begin enjoying a favorite station immediately. The Internet's complex, confusing, and often slow processes turn the user's experience into a negative one. Reach consumers within a positive environment.
Marketing Partners: Radio and the Internet make perfect marketing partners. Radio has proven its ability to drive consumers to advertised Web sites, and many Radio stations have their own Web sites offering advertisers unique multi-media marketing opportunities.
Target Specific Customers: With Radio, you can target specific customers by demographic group, lifestyle trends, and specific product affinity. And since the average Radio listener spends almost three hours each weekday and five hours per weekend with their favorite stations, it's easy to generate enough message frequency to get them to check out your online advertisement. As Radio draws consumers to your online message, it can encourage them to print special coupons directly off the Web and redeem them at your place of business. (Radio Marketing Guide & Fact Book, 2007 edition)(Radio Marketing Guide & Fact Book 2007, )
The past couple of decades have been tumultuous for broadcast television. Up until the mid-'80s, the big three networks (CBS, NBC, and ABC) ruled the television airwaves and, along with newspaper, they dominated advertising revenues, as well. Then the cable industry began its expansion into neighborhoods and homes all across America. Since then, things haven't been the same. The technology that made it possible to deliver dozens of channels into America's television sets also created a programming vacuum. We all know how nature feels about a vacuum, and it wasn't long before fledgling networks began springing up to fill the void. As programmers experimented and gained experience, new and better programming was developed, and new networks became more competitive. Still, local affiliates of the big three networks thought their dominance, while chipped, was safe. They hadn't seen anything yet.
Twenty years later and the big three are still major players, but they are no longer the only ones. If viewers want news, they also have Fox News, CNN, and MSNBC to select from. If they want sports, they have multiple ESPN networks to watch. If they want movies, they have premium and vintage movie channels. And if they want first-run prime-time serial dramas and comedies, they can find them on dozens of channels in addition to the big three. High-tech services such as video-on-demand, internet TV, and cellular phone video programming all threaten to further fragment America's viewing habits in the future. To further complicate matters, broadcast TV also is dealing with pricing and value questions created by digital video recorders (DVRs) because of the ability they provide to avoid commercials.
Broadcast TV still remains expensive to buy, and television commercials remain expensive to produce. Agencies still like to buy broadcast TV for their clients due to the commissions they earn, but establishing effective reach and frequency is something only national advertisers and large local companies can afford to do.
Buying targeted TV programs and augmenting that with Radio buys on complementary formats is a great way for advertisers to get the ego gratification from being on TV while still getting cost-efficient and effective reach and frequency.
Explain the realities of TV to your clients, and help their business be a survivor.
Mass Appeal: In addition to the 98.9% penetration rate among U.S. households enjoyed by television in general, 83.0% of these homes are multi-set households. (Nielsen Media Research, 2009)
Reach Vehicle: TV reaches 92% of the population on a daily basis. (Television Bureau of Advertising, 2009)
Big Events: Programs such as the Super Bowl or popular series finales can reach a large mass of audience.
Visual appeal: TV has the ability to capture attention through sight, sound and motion.
Water-cooler appeal: Broadcast has the ability to generate next-day conversation about nightly programming, especially popular programs.
Fragmentation: Marketers distinguish between Broadcast TV and Cable TV because of the differences in the way they are bought. Broadcast TV is generally sold locally by one staff for one station. Cable TV is typically sold locally by one staff for all the advertising-supported cable channels. On the other hand, viewers do not differentiate between Broadcast TV and Cable TV channels. Time spent viewing Broadcast TV is being divided among Cable TV channels.
Diminished: Consumers' broadcast television time is being further diminished by Video On Demand (VOD), video games, Internet video downloads, and Internet browsing.
Commercial Avoidance: As many as 38% of all U.S. TV homes are now equipped with digital video recorders (DVRs). The commercial "zapping rate" when programs are seen on a delayed basis is 50-70%. (TV Dimensions, 2009)
Commercial Clutter: Clutter, particularly on ABC, CBS and NBC during primetime hours, has risen almost 60% over a 40-year period. In the early 1980s, 19% of TV content was devoted to commercials. By the late 2000s, it had climbed to 25%. (TV Dimensions, 2009)
Escalating Costs: According to NBC Universal, one :30 in the 2009 Super Bowl cost an estimated $3.0 million, up from $2.7 million for the 2008 championship game. Apart from one-time programs or large special events like the Super Bowl, one average :30 can cost double or triple the amount of one :30 in Radio.
Production Costs: According to the American Association of Advertising Agencies, production costs for a network TV commercial averaged over $400,000. Producing quality commercials significantly impacts ad budgets.
At-home Medium: TV is primarily an at-home medium.
Lack of Recency: According to TV Dimensions 2009, peak viewing hours occur in the evening from 8-10 PM, when consumers are less likely to be making purchases.
Seasonal: TV usage is greatly affected by vacation and weather cycles and the effects these have on viewer interest and availability. Usage is highest in the colder winter months and lowest during the summer months. (TV Dimensions, 2009)
Excellent Reach: Radio reaches 93% of all Americans 12 years and older every week, based on 2007 Arbitron studies. Cable TV reaches 67% of adults ages 18-49 and 70% ages 25-54 on a weekly basis, according to TV Dimensions 2008. And branding requires reach. Can you think of a single advertiser who has used cable to create a brand?
Personal Relevance: The Radio Ad Lab (RAL) study on Personal Connection, Personal Relevance shows consumers connect with Radio stations, saying their Radio station plays commercials personally relevant to them. The study shows consumers do not feel a connection with a television channel nor the commercials played on the channel.
Efficient Schedules: According to the Trade Promotion Management Association, more than 75% of consumers recall TV ad images after hearing a Radio commercial with the same or similar audio.
Quality Production: Quality Radio commercials can be produced for a fraction of the cost of a quality television commercial. Most Radio stations offer free creative and production for advertisers.
Mobile Medium: Radio is listened to at home, work and in-car and reaches people closest to the time of purchase intent.
Recency: Consumers are most influenced by advertising most recently exposed to before making a purchase. Radio is most often the medium used before making daily purchases.
Consistent: According to an early-2008 survey, 77% of Americans ages 12+ indicated they would continue to listen to AM/FM Radio in the future as much they do now, despite increasing advancements in technology. This includes 76% of monthly online Radio listeners, 71% of satellite radio subscribers, and 79% of those individuals who had ever listened to an audio podcast(Arbitron/Edison Media Research, 2008)
Increase Brand Recall: The Radio Ad Lab (RAL) study on Synergy shows replacing one of two television commercials with two Radio commercials increases brand recall by 34%.
Billboards have come a long way since the Burma Shave days. From the first advertising mural painted on the side of a building to today's animated "diamond vision" boards, outdoor advertising is an established part of the great American landscape. If it stands or rolls, chances are it has an advertisement on it. Bus sides, transit shelters, sidewalk benches, even privately owned automobiles, all reflect the value the business community sees in making their name visible to the public.
Many of today's billboards are impressive. Vinyl technology provides advertisers with the ability to display images that are photographic in quality. Diamond Vision technology is turning some billboards into giant flat screen televisions. Inflatable and structural attachments make an advertiser's message 3-D. These technologically evolved billboards do more than create visual impressions; they create word-of-mouth message proliferation. As a result of these advancements, the outdoor industry has been able to grow their revenues at an impressive rate.
Still, there are distinct limitations to what outdoor messages can achieve. While outdoor is effective at brand maintenance (assuming an adequate number of boards are bought), it is ineffective at initial branding. Due to the minute amount of time consumers can spend reading them, billboard messages must be brief. Some experts recommend no more than eight words. As a result, comprehensive messages cannot be conveyed with a billboard. Advertisers regularly must alter the messages they communicate to consumers. Marketing situations such as new locations, new departments, new products or services, and special events all require a new message. However, changing messages on existing billboards is cost-prohibitive and require significant amounts of time to accomplish.
For all these reasons, Radio is the perfect partner for outdoor advertising. Not only can Radio do the things that outdoor cannot, we do them all cost-efficiently. And considering the primary purpose of billboards is to reach consumers in their cars, can you think of a more compatible medium than Radio?
And by the way ... the Burma Shave outdoor campaign was brilliant.
Attention Grabbing: The combination of size, color and illumination attracts attention.
Strategic Placement: Billboards can be placed in high-traffic areas or other strategic locations, while transit signs can be affixed to the backs and sides of buses, in bus stops, and in rail stations.
Low Cost: Based on research by the Outdoor Advertising Association of America, outdoor's cost-per-thousand is significantly lower than any other advertising medium.
Building Word of Mouth: Billboards can generate curiosity in "teaser" campaigns.
Full-Time Audience: Outdoor's message can appear year-round. For additional fees, outdoor advertisers can purchase evening lighting - or in some cases, even 24-hour illumination.
Directional: Billboards can be used as directionals, guiding consumers to the location of a given business.
Brevity: The very nature of outdoor advertising demands that the commercial message be brief and relatively simple. Therefore, it is difficult to communicate product details, competitive advantages, and specific consumer benefits. Billboard companies generally recommend no more than seven words on a billboard, or people speeding by will not have time to read the message.
Limited Availability: Prime outdoor locations (in high-traffic areas) often are controlled by large, long-term advertisers. Construction of new billboards is restricted by costs, space availability, and sometimes-rigid municipal codes and environmental regulations.
Lack of Effective Measuring Tools: Unlike other advertising media, outdoor advertising has no truly reliable method to measure its effectiveness. A few studies have been done, but they mostly apply to limited geographical areas and employ widely varying methodologies.
Low Recall: Commuters behind the wheel and other potential customers are exposed very briefly to outdoor messages, minimizing message retention. Such adverse conditions as heavy traffic or bad weather also can limit message impact and recall.
Ugly Image: Because of growing environmental concerns, many communities have eliminated, reduced, or limited the volume and placement of outdoor advertising.
Inflexible: Once a message is up, it generally stays up through the duration of the contract, even if the advertiser's needs have changed. In addition, printing a new message is expensive, possibly taking weeks to produce and days or weeks to have it displayed.
Power of Sound: To be effective, billboard messages must be brief. That's where Radio can help. Use Radio to enhance and expand on the message displayed in your billboard showing.
Recall: Radio blankets the market. Your outdoor message can be seen only where it is displayed, but Radio allows your message to travel with your customers wherever they go - at home or at the office as well as in the car. By combining Radio with outdoor, you can build your message's range and frequency - and reach more of your customers more often building recall.
Personal Connection: The Radio Ad Lab (RAL) shows that Radio listeners enjoy listening to their station and believe the advertiser's message is directed toward them.( Radio Ad Lab (RAL), )
Flexible: Radio gives you the option to easily make copy changes. Use Outdoor for image, and Radio for timely information. A billboard can grab your customers' attention; Radio can give them the details. By combining these two complementary marketing forces, Radio can deliver all the information on your products and services your customers need in order to make intelligent purchasing decisions.
Bad weather and adverse traffic conditions: Both are known to decrease outdoor ad exposure, but Radio listening actually increases under these circumstances. American consumers depend on their car Radios for weather and traffic reports, so billboards and Radio make an effective drive-time combination.
America has a love/hate relationship with direct mail, otherwise known as "junk mail." It's in our mailbox virtually every day. If it weren't for junk mail, some days we would get no mail at all. Some people don't even bother to go through it. They just immediately trash it, almost as an act of defiance aimed at the businesses that dare to pollute their private space with propaganda. But occasionally there is a nugget among all that silt. Sometimes we find a valuable money-saving offer at a store that we patronize or for a product or service that we want to buy. When that happens, we march through the door waving it in the air like a banner that proclaims that we qualify for the "special deal."
Regardless of what we call it, direct mail is a comfort zone for many businesses. Radio salespeople know that direct mail advertisers view coupon redemptions as proof of a return on their investment. Not all media deliver such tangible proof, including Radio. But the benefits of direct mail go beyond the redemption rate of just over 2%, according to the Direct Marketing Association.
First of all, if you have a mailbox, you can be reached by direct mail (which is pretty much everyone), making it an effective reach vehicle. It is also extremely effective at generating a precise consumer response. If worded properly, a coupon or incentive offer can direct people to a specific location on a specific date, and cause them to make a specific purchase. Finally, by buying the right mailing list, an advertiser can reach a consumer group that has been sorted based on a number of marketing criteria such as geography, age, sex, past purchases, and lifestyle.
Conversely, the disadvantages of direct mail also go beyond the average redemption rate of 1 to 3 percent. Direct mail is abysmally poor at creating brand conversion or store loyalty conversion. It relies almost exclusively on price discounts for effectiveness, which means it primarily motivates transactional customers. Those are the folks who will leave as quickly as they came when they find a better deal somewhere else. If compared to other media on the basis of cost-per-impression, direct mail is one of the most expensive ways to advertise. And if image is important to an advertiser, it's hard to imply prestige in an ad when it's in amongst all the local Chinese buffet restaurants, dry cleaners, and pizza joints.
Adding Radio can do many things for users of direct mail. First of all, it can do the things that direct mail cannot. It can stimulate brand and store loyalty conversion. It can convey the emotional value of a product or service. It can cost-efficiently build frequency. Further, it can actually draw attention to the direct mail piece and increase the percent of redemption. So, even if your customers are going postal, you can still show them that Radio delivers results.
Targetability: With direct mail, an advertiser can target potential customers by geographical area, product affinity, previous purchases, and potential interest based on accumulated or purchased databases.
Reach: The medium potentially can reach every household in the market, or at least every consumer the marketer wishes to target, usually through mail-merge options where multiple advertisers are combined in a single envelope or package.
Maintenance: Direct mail can be helpful in building and reinforcing existing consumer relationships through personalized mailings.
Tracking: The response rate is easily measured, and can be tracked through coupon redemption and return-card/call-back options.
Precision: Direct mail allows an advertiser to convey highly detailed information about their product or service, as well as deliver product samples for consumers to try.
Low Response Rates: With an average response rate of just over 2%, most of the people you market to will reject or ignore your offer.
Attention: When consumers actually do read their direct mail, they tend to read mailings from advertisers they know and like.
New Customers: Direct mail is less effective in attracting prospects than in reinforcing existing customers. For any business whose future depends on expanding its consumer base, this is a significant liability.
Consumer Perception: Most consumers refer to direct mail as "junk mail" - and they have an even lower opinion of the most cost-efficient mail-merge packages that combine pieces from a number of different advertisers in one envelope.
Outdated Mailing Lists: Even among consumers who are not actively trying to have their names stricken from direct mail's rolls, there are many who move each year, making it difficult for direct-mail companies to identify and maintain accurate databases.
Declining Couponing: Time-crunched consumers are not clipping and redeeming coupons the way they once did, reducing the impact and trackability of many direct marketing campaigns.
Growing Expense: Impending increases in postal rates, paper costs, production charges, and database fees could turn direct mail into one of the least cost-efficient of all media.
Intrusive: Radio is linear, where consumers listen through commercials, unlike direct mail that quickly gets discarded after little more than reading a headline - if it is even opened. Only one commercial is heard at a time on Radio, drawing attention to that one advertiser. How do you get people to open the direct mail they usually discard? By augmenting your marketing strategy with Radio to call attention to your mailings, and precondition recipients to the benefits of reading and responding to your direct mail offers.
Creates Brands: Radio generates new customers by branding an advertiser. Radio, with its reach and frequency, develops an image for the advertiser.
Personal Connection: The Radio Ad Lab (RAL) in its study called "Personal Connections, Personal Relevance" shows how consumers connect with radio. Consumers listen to a station because they enjoy it, unlike the "junk" perception associated with direct mail.(Radio Ad Lab (RAL), )
Excellent Reach: Radio reaches 72% of every American aged 12 and older every day. Radio reaches 93% every week. Using Radio together with newspaper increases the reach of your advertisement among light readers and younger consumers.(Radar 93, June 2007)
Point of Purchase
According to Point of Purchase Advertising International, marketing-at-retail is "the point where products meet the consumer who has the capability and desire to buy." It is the last opportunity for brand marketers to influence the consumer with their marketing campaigns." Anyone who's instinctively taken advantage of an in-store "50% Off" promotion can attest to the persuasiveness of point-of-purchase marketing. The operative word for Radio in the quote above is "desire." Radio drives desire and is, therefore, the perfect partner for a POP campaign.
So why is Radio largely absent from all the POP marketing that goes on all around us everyday? Radio's lack of involvement in POP promotions can be traced to one single cause: POP promotions are not created by, administered by, or paid for by advertising contacts. For the most part, Radio salespeople still limit their sales efforts to advertising contacts. We are not calling on the people who buy and sell POP.
A 2004 report by Point-of-Purchase Advertising International, involving the country's largest drug store chains, concluded that at-retail advertising generates 6.5 percent in incremental sales. But the research also found that a greater sales increase - in some cases three to four times greater -- comes from adding advertising to promotion programs. Advertising makes a POP promotion three to four more times more successful! And yet, adding advertising is not a decision that is made by someone in the advertising department. Interesting. In fact, some might call that a conundrum.
So who are the people making these decisions? To understand the answer, you must first understand the schematic of both manufacturing and retail companies. In simple terms, manufacturers make products and wholesale them to retail companies who, in turn, buy them and resell them to the consuming public. The relationship between those two entities is where Radio must find a point of entry of we want to be a part of the POP process. The decision-makers we must work with are the sales contacts from the manufacturers and contacts from either merchandising or operations inside the retail company. They both have needs, but they are not advertising needs. The manufacturer's need is to sell more goods to the retailer and the retailer's need is to be more profitable. Radio can be very effective at helping both sides of that equation.
By identifying and contacting merchandising or operations managers at retail companies and discussing their needs, a savvy Radio salesperson can create POP programs that will drive the exact consumer response the retailer is looking for. Then, by identifying the manufacturer's sales contacts who work with the retailer and discussing their needs, the Radio salesperson can secure funds from them in return for the retailer's agreement to provide in-store promotional involvement for the manufacturer's products. In the end, the retailer enjoys the increased profitability from a successful promotion, the manufacturer enjoys the resulting additional sales to the retailer, and Radio enjoys the new revenues from a non-advertising source.
And, isn't that the point of all this?
Placement: P-O-P advertising can be placed almost anywhere in stores - next to merchandise, on shopping bags, at the checkout counter, even suspended from the ceiling or laminated into floor tiles.
Targeted: P-O-P is most effective when it is positioned to reach a clearly defined consumer target closest to the time of purchase.
Effective: Place-based advertising directly affects sales, brand switching, portfolio purchasing and multi-unit sales.
Influential: P-O-P advertising gives retailers the opportunity to influence consumers in a competitive environment.
Incremental Sales: P-O-P advertising can persuade shoppers to purchase additional quantities of a product, or to buy related products that are merchandised together.
Limited Reach: By definition, place-based advertising only reaches that small group of consumers walking past displays, waiting at the checkout counter, or carrying their bags to the car. Moreover, studies show P-O-P marketing works best when geared toward younger, single, less-affluent shoppers.
Product-Oriented: Place-based advertising influences what products consumers may buy, but not where they will buy them. Though often effective for improving product sales, place-based media inherently are limited in their ability to attract new customers, build traffic, and improve market awareness for retail advertisers.
Consumer Perception: Many consumers report that in-store TV monitors, electronic signs, and in-store broadcasting have little impact on them as they shop they also claim that these devices blend into the environment.
Limited Targeting: Despite its key placement, general-reach, place-based advertising such as in-store television delivers limited results and can be prohibitively expensive.
Excellent Reach: Excellent Reach: By adding Radio to your place-based promotions, you can greatly enhance the frequency and impact of your campaign. Radio reaches consumers everywhere - at home, in the car, at work and on the street. On a typical day, 73% of adults 18+ listen to the Radio.(Radio Marketing Guide & Fact Book 2007, 2007)
Product and Retailer Oriented: Radio is a synergistic companion to P-O-P advertising. If you want to promote a specific product or service, Radio can deliver the customers you want, and even offer on-site broadcasts that are proven marketing winners. By using a combination of Radio and P-O-P advertising, you can "sell the store" as well as increase average unit sales.
Personal Connection: The Radio Advertising Effectiveness Laboratory (RAEL) study shows Radio listeners connect with their Radio station and its advertisers. Create an image and awareness for a product before consumers see the Point-Of-Purchase, making the POP more effective.
Targetable: Place-based media targets highly likely potential prospects. . . and Radio will expand the targeted reach and message frequency of your program. Because each format attracts a specific segment of the population, Radio can help you influence your best prospects effectively and efficiently by age gender, race, income and lifestyle.