Transcript Radio reaches 93% of Americans with 235 million weekly listeners

The Purpose and Use of this Slide Library:
· Radio has enormous competitive advantages versus other media, particularly during tough economic times.
The intention of the following slide library is to provide you with the most compelling and succinct reasons why
choosing radio makes more sense now than ever before.
· This is NOT a presentation. It is a series of slides and discussion points that can and should make a
difference to your clients. These slides can be dropped into most presentations…a “red deck” capabilities
presentation, a “Why Radio” presentation, a recap presentation, an annual pitch, etc. These slides can be
meaningful for local, national, business development and digital.
· Each slide has multiple uses and you are encouraged to commit to memory the essential points on each page.
These pertinent points will come in handy when you develop VBR’s, in creating powerful emails and when you
are in general discussions with your clients. The more articulate you are about the information contained on
these slides, the more compelling the case for radio you will make.
· We live in a time where all of our decisions are under greater scrutiny. Please do not assume that because
your client has been doing radio for years that their choice of advertising/radio isn’t being questioned. These
points are powerful reminders of why radio is a good choice for our existing advertisers, as well as a confidence
builder for those advertisers that are considering their first foray into radio.
· The deck is divided into 4 sections for ease of use: The Power of Radio, Case Studies, Testimonials, and
Appendix. The appendix is a separate PDF attachment and contains some of the full length articles/studies that
are noted on the slides.
· This is a beginning. We will add and delete from these slides as we go. If you have suggestions on how we
can improve these slides or have additional information that you think would be helpful to the group, please
forward your suggestions to Marijane Milton.
The Power
of Radio
Radio Reach Is Enormous
• Radio reaches 93%
of Americans with 235
million weekly listeners
• Radio reaches 96%
of adults 18-49 with
$75,000+ household
income
• Radio reaches 94% of
college graduates 18+
• Radio reaches 90% of
American teens
Source: Arbitron Radar – June 2008
Radio Listenership Is Growing
235 Million
Listeners
240,000,000
230,000,000
220,000,000
Radio’s total
audience has
grown 16%
since 1994
210,000,000
200,000,000
__________
Radio has
added six
million
listeners
since 2005
190,000,000
180,000,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: RADAR, Fall Survey Reports, Copyright Arbitron (Monday-Sunday, 24 Hours, based on Weekly Cume, 12+
Radio Listenership
vs. Newspaper Readership
% of U.S. Population
Radio is steady-Newspaper is in free fall
Sources: NY Times, Newspaper Association of America, Radio Advertising Bureau
Americans spend the majority of their
listening time with AM/FM radio.
Percent of Time Spent Per Week by Audio Platform
4%
2%
AM/FM Radio
Satellite Radio
94%
Online Radio
Sources: Local AM/FM Radio – Radio Today/American Radio Listening Trends; Online Radio – Arbitron Edison Infinite Dial 2008 Report; Satellite – Fall 2006 National Satellite Report
Newspapers Are In Big Trouble
•
In Detroit, newspaper delivery
has been reduced to three
days a week
•
The Seattle P.I. printed its last
edition on March 17 and
moved to web-only reporting
•
The Minneapolis Star Tribune
has filed for bankruptcy
•
The Rocky Mountain News
closed on Friday, February 27
leaving Denver with just one
daily paper
Source: The New York Times – 1/16/09
Significantly More People Listen
To Daytime Radio Than Watch
Primetime Network TV
•
In Los Angeles, 94.7% of
Working Adults Listen to
Radio During the Week
•
Only 51% Watch
Primetime Network TV
Source: Scarborough Research - 2008
DVRs Are Zapping The
Life Out Of TV Ads
• 27% of US homes have DVRs
• 63% of $100,000+ households
have a DVR
• 85% of DVR owners skip
75% of the ads
Source: Ipsos Mendelsohn Research | Source: Nielsen Nov 2008 Estimates | Content Agenda Aug 6, 2008
Radio Reaches 92 million More
People Each Week Than Google
Reaches In An Entire Month
Sources: Radar 97, June 2008 (Monday-Sunday, 24hrs, based on daily cume 18+) ; ComScore May 2008
Used Together, Radio And Internet
Expand Ad Effectiveness
Adding Radio to
an Internet-only ad
campaign increases
ad recall by 400%
Source: RAEL/Harris Interactive, 2007
The Internet Powers Radio’s Growth
• Entercom listenership
over the Internet grew
65% in 2008
• Entercom listenership
on mobile devices is
growing rapidly
Source: Webcast Metrics, December 2008, FlyCast Reports, Jan 09
Radio Is The Most
Cost Effective Medium
Cost Comparisons of Various Media (CPM)
Sources: Deutsche Bank, Media Dynamic, Universal McCann, Radio Effectiveness, RADAR and June 2007 (Arbitron); Nielsen Online and JPMorgan; www.radioadlab.com
Major Auto Study Recommends
Increasing Radio, Reducing TV
Share of Media Spend
“…the amount of radio consumed, its influence to purchase,
combined with lower costs makes it a stronger media option.”
— Prosper Technologies/Big Research – Dec 2008
Source: Prosper Media Allocation Model/Big Research - 2008
Case Studies
Wal-Mart’s Heavy Radio
Advertising Boosts Sales
• Heavy radio campaign boosted Halloween candy sales up double digits.
Radio helped advance Wal-Mart’s market share from 31 to 33 percent.
• Radio drove Wal-Mart’s exclusive sales of AC/DC’s CD to second largest
new album of 2008.
Source: Advertising Age, November 2008
Hershey’s Does More Radio Than
TV Advertising And Results Soar
•Hershey’s ad spending
increased 25% in 2008 and
earnings were up 98%
•CEO David West said that
Hershey’s has done more
radio than TV advertising and
“we've been feeling pretty good
about the brand responses.”
•Hershey’s plans to increase ad
spending by another 20% in
2009, continuing to focus on core
brands
Source: Advertising Age, October 16, 2008
Entercom Creates Unforgettable
Consumer Experiences With
Guitar Center
•“Get Schooled” connected Guitar
Center to unique events where listeners
learned to play music
with top bands
•Secured 60+ major rock artists
(Foo Fighters, Linkin Park, Motley Crue)
across 11 markets/19 stations and
generated over 290,000 visitors to view
Get Schooled sessions online
•Generated national and regional press
coverage that recognized the reinvented
artist “meet and greet” into a memorable
hands-on experience for the aspiring
and wannabe musician
“[Entercom is] creating truly unique
experiences for aspiring musicians and
music fans – Creating real dream come true
moments is powerful magic”
David Martin, N=1 (blogosphere), June 2008
Entercom Drives Leads and New Business
for Wells Fargo Financial Services
•Exclusive Entercom
six-week campaign in select
markets simplified the
savings/investment process
and made it relevant and fun
for younger consumers
•Integrated campaign
generated tens of thousands
of leads for Wells Fargo.
Netbanker rated the program
A+.
“Radio Advertising A+”
NetBanker, March 2008
Entercom Propels Unprecedented
Listener Response For Subaru Dealer
•Creative audio and video
cause-marketing campaign
that planted a tree for each test
drive
•Carter Subaru planted over 11,000
trees during the campaign and
helped to reforest a natural reserve
outside of Seattle
•“It’s only natural for Subaru to
continue its engagement with
Entercom – a passionate radio
partner that consistently delivers
results.”
- Danny Levine, President NationAd
(Carter Subaru agency of record)
Testimonials
Google’s CEO knows:
Radio is highly undervalued
“Radio is greatly under monetized.
Look at the time people spend with radio
versus the money currently being spent
to advertise on radio – it’s out of whack.”
- Eric Schmidt, Google CEO - USA Today
Eric Schmidt
Radio Pulls Best for Citigroup
“In multiple, separate market comparison
tests of Citigroup ads in newspapers,
TV and Radio, Radio ads consistently
pulled the best response.”
— John Mittnacht, Director, Global Advertising, Citi Global Wealth Management
John Mittnacht
Entercom and
Shaw’s Supermarkets
“By far the best partnership that Shaw’s
has ever had and for that matter the best
(media) company that I’ve ever worked with
in my 25-year career.”
— Bill Nasshan, SVP of Marketing and Merchandising – Shaw’s Supermarkets
Bill Nasshan
Entercom Raises Brand
Awareness for Papa Murphy’s
“Entercom raised brand awareness in the
community and generated excitement
amongst franchise owners in a historically
quiet broadcast season. Summer sales
increased by double digit numbers!”
— Carol Gleeson, General Manager , MEDIA SOLUTIONS
(Papa Murphy's agency ).
Entercom and Scion
“Our marketing partners at Entercom
Portland listened when we explained who
Scion targets. They created a grassroots
campaign that was viral and unique and
allowed our creative audience to express
themselves. The Snow Patrol Cover Art
contest was truly amazing!”
— Bobbi Simpson, Northwest VP Marketing - Scion