Mike Mahone, RAB Executive VP/Services

Today’s Marketing Challenges CompetitionCompetition New Product s Brand Erosion Consume r Attitudes Time Poverty Geo Political Uncertain Economy

Effective Media Strategies n Target best prospects n Generate needed frequency n Reach mobile consumers n Build confidence n Maintain brand n Target best prospects n Generate needed frequency n Reach mobile consumers n Build confidence n Maintain brand n Steal share n Establish value n Stimulate purchases n Maximize media investments n Create effective, affordable messages n Steal share n Establish value n Stimulate purchases n Maximize media investments n Create effective, affordable messages

2002 Ad Revenues 4 Radio: +8.2% to $18.5B 4 Cable: +5.9% to $14.4B 4 Direct Mail: +5.4% to 45.8B 4 TV: +5.2% to $ Outdoor: +3.6% to $4.4B 4 Newspaper: -.6% to $50B 4 Radio: +8.2% to $18.5B 4 Cable: +5.9% to $14.4B 4 Direct Mail: +5.4% to 45.8B 4 TV: +5.2% to $ Outdoor: +3.6% to $4.4B 4 Newspaper: -.6% to $50B All media: 3.96% increase to $233B Corzen Research, st Qtr %

The most effective advertising is... Word of Mouth!

The closest advertising can come to Word of Mouth is … … a good commercial on Radio!

Radio is the Power of Sound

95%95% Radio Reaches of All Consumers Every Week

Radio Reaches 77% of All Consumers Every Day Average daily reach: persons Source: Statistical Research, Inc. (Monday-Sunday, 24 hours, based on daily cume)

2020 Consumers spend more than Hours listening to Radio every week!

Radio is the Medium of Choice All Day Average daily share of time spent with each medium Persons 12 and older, Monday-Friday 6 a.m. to 6 p.m. Source: Arbitron/RAB - Media Targeting 2000

Radio Reaches Customers Everywhere Radio listening by location Source: Statistical Research, inc. Numbers are Monday-Sunday, 24 hours

63%63% Radio Reaches 25 to 54 year-old consumers within one hour of making their largest purchase of the day.

“I can’t advertise on radio because I need to… … show a picture of my product!” … show a picture of my product!”

Mission Work closely with the advertising creative community to spotlight the awesome power of Radio's unique "pictures“ – the vivid sights, sounds and emotions that listeners see while hearing a great Radio commercial. Work closely with the advertising creative community to spotlight the awesome power of Radio's unique "pictures“ – the vivid sights, sounds and emotions that listeners see while hearing a great Radio commercial.Mission

Since 1992, we've awarded close to $1.8 Million in prize monies to honor the writers and producers of the finest Radio commercials in America. Since 1992, we've awarded close to $1.8 Million in prize monies to honor the writers and producers of the finest Radio commercials in America.

Awards include the coveted $100,000 Grand Prize Awards include the coveted $100,000 Grand Prize $5,000 prizes in the General, Spanish-Language categories $5000 prize in the Radio Station Produced category. Awards include the coveted $100,000 Grand Prize Awards include the coveted $100,000 Grand Prize $5,000 prizes in the General, Spanish-Language categories $5000 prize in the Radio Station Produced category. WZSR – Crystal Lake, IL

Beginning with this year, we'll offer a $2,500 donation to a charity designated by the PSA winner, and we've also established the College Mercury Award. Beginning with this year, we'll offer a $2,500 donation to a charity designated by the PSA winner, and we've also established the College Mercury Award.

The Radio Creative Fund Annual competition Production and distribution of CD RadioMercuryAwards/com Radio Creative Workshops The Radio Creative Fund Annual competition Production and distribution of CD RadioMercuryAwards/com Radio Creative Workshops The 2003 Radio-Mercury Awards will be held at an exclusive, invitation-only luncheon ceremony at the Starlight Roof Room of the Waldorf Astoria Hotel in New York City on Thursday, June 19 th.

* Great station * Great station + Great schedule + Good plan + Poor creative = Poor results * Great station * Great station + Great schedule + Good plan + Poor creative = Poor results

A good commercial is one that... Sells the advertiser’s products and services!

In order to sell, a commercial must... Motivate the target audience to act upon the message!

The key to successful radio advertising is to trigger or paint a picture in the mind of the listener. The Pine Street Inn

Real pictures can sometimes limit the power and effectiveness of a commercial message.

Source: The PreTesting Company Message Recall RadioTV

“In business for 30 years” “We’re the plumbing experts” “Quality sales and service” “We wont be undersold” “Factory trained mechanics” “In business for 30 years” “We’re the plumbing experts” “Quality sales and service” “We wont be undersold” “Factory trained mechanics” Avoid the trite and the ordinary

“Free delivery and installation” “Get in and out in five or less” “Your personal satisfaction...” “Custom built to your specs” “Free delivery and installation” “Get in and out in five or less” “Your personal satisfaction...” “Custom built to your specs” Sell the benefits, not features!

u Many purchases made on emotion u Identify the emotional angle u Give people an excuse to buy u Offer logical reasons to justify their purchases u Don’t try to sell with facts alone u Many purchases made on emotion u Identify the emotional angle u Give people an excuse to buy u Offer logical reasons to justify their purchases u Don’t try to sell with facts alone Use the emotional power of radio!

è Determine problem, want or need è Reinforce in mind of listener è Show how product will fill need è Find the emotional key è Entertain to engage the prospect è Communicate how owner will feel è Present from listener’s point of view è Determine problem, want or need è Reinforce in mind of listener è Show how product will fill need è Find the emotional key è Entertain to engage the prospect è Communicate how owner will feel è Present from listener’s point of view Sell the results, not the product!

Use obvious exaggeration to dramatize key points!

BMW Southern California Sell the results, not the product

Jim Paul Valley Olds, Pontiac, GMC Do something different

Stir emotions to generate response

Create a visual presence on radio

The value of consistency & frequency

n Who is the consumer target? n Who cares about the product benefits? n What will the product do for them? n What questions might they have? n What objections might they have? n Why should they act now? n Why patronize this merchant? * n Who is the consumer target? n Who cares about the product benefits? n What will the product do for them? n What questions might they have? n What objections might they have? n Why should they act now? n Why patronize this merchant? * Some key questions to answer...

n HUMOR n DRAMA n NARRATIVE n MUSIC/JINGLE n PACING/RHYTHM n DIALOGUE n LIVE COPY n SFX n HUMOR n DRAMA n NARRATIVE n MUSIC/JINGLE n PACING/RHYTHM n DIALOGUE n LIVE COPY n SFX

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