Radio has Receptivity. Radio has Relevance 3 Our Time-Starved Lives Americans are extraordinarily time-starved Unprecedented changes in technology and.

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Presentation transcript:

Radio has Receptivity

Radio has Relevance

3 Our Time-Starved Lives Americans are extraordinarily time-starved Unprecedented changes in technology and lifestyle have caused extreme time compression mobile phones internetgamingmobile gamingtextingmp3 playersblackberry

What Makes Great Consumer Businesses? Convenience Brands

Look at Convenience with Other Products: Microwave vs. Conventional Ovens Cell Phones vs. Wired Cable TV vs. Conventional Free TV Online vs. Offline Activities – Social Networks – – Vacations & Travel – Shopping – Research

Radio Adds Convenience… Consumers Do NOT Want To Be Their Own Programmers! Jukeboxes Home Taping Home Taping CD Burning CD Burning iPods and Playlists iPods and Playlists

The Perfect Media Plan Uses: TV to Create Demand Radio to Remind of Purchase Decision Internet and Very Targeted Niche Magazines for … Research Information Decision

Radio Has 3 Great Pluses 1)Human Voice to Convince 2)Reminder Medium = Fights Procrastination 3)Close to the Sale = It is Mobile Indispensable to Smart Marketers!

Drivers of Online Spend = Endemics, New Businesses Reflecting Effectiveness for SMEs… Source: MAGNA Global, US Census, Veronis Suhler

Communications Extends Beyond Media Large advertisers’ real shift: non-media marketing Source: MAGNA Global, Company Reports

Communications Extends Beyond Media Large advertisers’ real shift: non-media marketing Source: MAGNA Global, Company Reports

But Traditional Media Never Died This is true in established markets… Source: MAGNA Global, WARC, InternetWorldStats. Weekly reach figures for France and UK, daily for other countries. Reach definition for magazines = issue reach in France, Italy and Spain. Internet reach typically = % of population online monthly per Nielsen NetRatings, ITU and other sources as of June (except for US = March 31, 2007)

New Platforms Would Make Change Possible

Drivers of Online Spend = Endemics, New Businesses Largest advertisers drive TV, smaller advertisers drive online Source: MAGNA Global analysis of TNS-CMR data

Drivers of Online Spend = Endemics, New Businesses Online allows for lower cost, narrow reaching campaigns Source: MAGNA Global analysis of TNS-CMR data

Look At This Shift… Where Will It Lead? Advertising by Medium in Billions Source: Veronis Suhler Stevenson, 2007, PQ Media, Ball State Univ. Ctr. for Media Design 2006 Bear Stearns & Co. Inc. July 2006

Radio Dwarfs Newspaper 17 In fact, a single New York City radio station, WLTW-FM, alone reaches 5 million people! 11M 10M 9M 8M 7M 6M 5M 4M 3M 2M 1M RADIO NEWSPAPER 11M 10M 9M 8M 7M 6M 5M 4M 3M 2M 1M RADIO

And Looking At Usage Alone, Radio Is Not Getting Its Fair Share Of Ad Revenue Source: Veronis Suhler Stevenson, 2007, PQ Media, Ball State Univ. Ctr. for Media Design 2006 Bear Stearns & Co. Inc. July 2006 Time/Day $B 265 min $71.7B 126 min $20.8 B 85 min 29 min $56.2B $19.1B

Look At The “Sales Process” To Understand Radio’s Unique Position BrandingInformationPurchase Awareness Questions Transaction Awareness Questions Transaction Step 1 Step 2 Step 3

Different Media For Different Steps TVOld:Old: Radio - Newspapers- Stores - Direct Mail - Catalogues - Brochures - Magazines - Telephone Calls Addition:Replacement:Addition: - Internet- Internet- Internet BrandingInformationPurchase

And What’s In Step 1? 1. Creates Demand 2. Reminds Consumer of Purchase Decisions 1. Reminds Consumer of Purchase Decisions 2. Creates Demand TV TVRADIO

Newspapers General Interest Magazines Yellow Pages So, Which Media Funds Radio, Internet and Television?