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Rich and Co.

Radio Works – Probably Best. Opportunities May Exist in B2B and for Professional Services

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Technology still hasn’t disrupted radio – really.  New research suggests that it is the best way to “reach” people – still.   It is also fairly cheap and it’s really easy to measure results.  You do some radio spots and see what response you get.  We say it’s good for B2B professionals as well as retailers and car dealers.

“according to a recent Nielsen report, radio is far from dead. In fact, it now has the number one reach among adults, meaning 93 percent of U.S. adults listen to AM/FM radio weekly (compared to the 87 percent who watch television and the 70 percent who use smartphones in a given week).”

Remember, older, male decision makers are the B2B target for professional services and investors – not Millennials.  Tip:  When trying to reach business decision makers – use news radio formats, of course.  Baby-Boomer/Oldies stations can work as well but they are very expensive.  Public radio is mainly for image and doesn’t produce results.  Sports radio is working class folks.

“Radio, one of the original mass media, continues to play a big part in the lives of Americans everywhere—with 243 million Americans listening weekly. That means more than 91% of Americans (age 12 or older) are tuning in each week.

In today’s rapidly evolving world of consumer choice and technological advancement, audio—and more specifically local radio—remains an integral part of our lives. Radio is a trusted companion while fighting traffic in the morning, finding a soundtrack for the workday, or setting the mood for the weekend as Saturday and Sunday approach.

From NAB SmartBrief: Radio continues to reach more than nine in 10 Americans every week, a level of engagement that’s greater than any other platform, according to Nielsen’s latest Total Audience Report. Radio also is able to connect equally with various demographics better than other platforms. “It’s impressive how radio’s reach has remained really high, and really consistent,” said Jon Miller, Nielsen’s vice president of audience insights

For advertisers, radio delivers a mass audience in real-time across markets large and small that is highly qualified; reached outside the home when they’re ready to buy, the vast majority of radio listeners are in the workforce. More than three quarters of the national adult audience works full or part time during the week.

“Advertisers have long believed in the power of radio advertising, but many struggle to draw direct correlations between their investment and campaign performance metrics. The days where advertisers can get by without justifying their investments are dwindling, which is why it’s never been more important for them to have direct insight into whether their efforts are paying off.

The good news is that advertisers can assess whether their radio ad campaigns affect consumer purchase behavior, as illustrated by the results of a recent case study that looked at the return on ad spend (ROAS) of a top five telecommunications (telco) company…The listeners who were exposed to the radio campaign spent $210 million more on the telco’s products and services over the three-month period than if they had not been exposed to the radio campaign. The telco advertiser spent approximately $15.3 million dollars in radio advertising in the PPM markets during the quarter.

  • When the increase in sales is compared with the radio investment level, the study found the ROAS for this radio campaign to be $14 to $1.
  • There was also meaningful lift in average spend per month during the campaign period among those exposed to the radio ad campaign. Their outlay was $8 more per month than consumers who were not exposed.

The impact of this particular campaign resonated particularly well with Millennials, who represent the largest generation of nationwide radio listeners, according to Nielsen’s recent Audio Today Report. In fact, Millennials exposed to the campaign had double the increase in their monthly spending ($16 verses $8) for the Telco’s products and services.

– See more at: http://www.fmqb.com/Article.asp?id=2912851#sthash.3g9UVapE.dpuf

Terrestrial radio is cheap for advertisers and free for listeners. Ms. Walker tells a story of two young hipsters discovering that you don’t have to pay for bandwidth if you listen to the radio instead of stream it.  “Young folks are discovering that you can turn on the radio for free,” Ms. Walker said. “There is no entry fee.”

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Written by Rich and Co.

July 12, 2015 at 8:03 pm

Posted in Uncategorized

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