Accord Radio Factsheet 2017

Accord Radio Factsheet 2017

creating better response

radio advertising

march 2017

1. The UK loves radio 2. Radio brands 3. 7 reasons to use radio 4. Radio is direct response 5. The brand multiplier research 2016 6. Rajar MIDAS survey 7. Spotify 8. DAX 9. Radio creative contents

Source: RAJAR/Ipsos-MORI/RSMB

the UK loves radio Surprising though it is to

Digital platforms Almost 6 in 10 adults aged 15+ are listening to radio via a digital platform in terms of weekly reach*. With 31 million people now tuning in to radio via a digitally-enabled receiver (DAB, DTV, Online) each week.

the many people dazzled by the constant stream of new technology launches, good old radio (meaning that broadcast linear stream of predominantly live presenter-led audio content) remains in great shape. Britain’s love of radio means that the medium wields incredibly powerful emotional influence for advertiser brands. Despite the advent of new technology and new ways to consume media, radio is still as popular as ever and highly cost-effective for advertisers. The most recent research shows 48.7 million adults or 90% of the adult UK population tuned in to their selected radio stations.

of the population tune in to digital radio p/w 58% Average hours per listener: hours of radio p/w 21.5

Digital listening The share of all radio listening via a digital platform now stands at 45.2% .

DAB

Online/App

DTV

32.9%

7.4%

4.9%

Adult UK population tuning into radio:

The digital share of all radio is comprised of:

Year-on-year %

Year on Year %

45.2

41.7

37.9

36.1

33.0

89.8

89.8

90.9

89.4

90.0

90.1

29.1

Q4 2011

Q4 2012

Q4 2013

Q4 2014

Q4 2015

Q4 2016

Q4 2011

Q4 2012

Q4 2013

Q4 2014

Q4 2015

Q4 2016

*Weekly reach is the number of people (adults 15+) in the UK who listened to a radio station for at least five minutes in the course of an average week during the quarter.

radio brands

average age

average age

average age

average age

average age

32

34

37

41

41

average age

average age

average age

average age

43

44

51

56

7 reasons to use radio

1. Radio offers efficient targeting

6. Radio drives response, especially online

switch stations and are therefore available to listen to any message that is relevant, creative, intriguing etc. This is a great opportunity for advertisers who want to reach out to new customers, or to tell existing customers something they didn’t know.

Radio has always been a strong call-to action medium, and this is even more true in a world where consumers access brands via the internet. The RAB’s Radio: The Online Multiplier study found that radio can drive brand browsing* by over 52%. 7. Radio is “a friend” Listeners use radio for emotional reasons – to keep their spirits up, to stop themselves from feeling bored in a car or while doing daily chores. This leads to them seeing radio as a kind of friend, and this is a valuable context for an advertiser to appear in. Radio presenters actively cultivate this relationship so that listeners feel they are being spoken to on a one-to- one basis. This makes for a more powerful advertising opportunity as when, for example, a radio presenter talks about “our friends at Company X”, the listener is hearing about a friend of a friend – and this has a strong effect on bringing a brand closer.

Radio targets audiences efficiently because different stations attract different listeners. This allows advertisers to talk selectively to the groups they are most interested in. Added to this is radio’s regional/local structure, which means that brands can focus their activity very effectively onto key market areas.

4. Radio has a “multiplier effect” on other media The original Millward Brown Awareness Multiplier Study showed how radio multiplies the effect of TV and since then the finding has been re-echoed when looking at radio alongside other channels. Radio’s multiplier effect seems to originate in the fact that it is an audio-only medium, and therefore stimulates a different part of the brain.

2. Radio reaches people at relevant times and places

Most radio listeners are engaged in another activity, and this means that advertisers can reach listeners at key touchpoints during the day – when they are on the school run, at work, before going out of an evening, and so on. Research shows that advertising, which is relevant to what the listener is currently doing, is likely to be more effective.

5. Radio creates a large “share of mind” for a brand

In the same way that the music industry uses radio to gain airplay of their artists and create chart hits, radio also creates a sense of ubiquity for brands. This is for two main reasons – firstly, because radio ads are on frequently and secondly because listeners tend to spend so long listening (on average 13 hours per week).

3. Radio reaches out in an ad avoidance world

Research shows that radio, together with cinema, has the lowest level of advertising avoidance. People rarely

*Browsing a brand’s website or searching for a specific brand on a search engine.

radio is direct response With its huge reach, low ad

avoidance, and ability to reach people at relevant times, radio is a strong call-to-action medium. The medium can drive response directly ‘go to this website now’ or also more subtly as an indirect response medium to reach out to listeners to give them new information or stir their interest in an offer. Radiocentre, commercial radio’s trade and marketing body, have commissioned several pieces of research which provide evidence of radio being truly effective.

Our ongoing campaign measurement research reveals the extent to which radio drives awareness and consideration for campaigns seeking to drive response:

51% 28% uplift in ad awareness for call-to-action campaigns. *

average uplift in brand consideration for call-to-action campaigns. *

Most popular call-to-action methods used within radio ads:

77% visit website

23% go in store

13% phone

5% search term

5% SMS

1% Facebook

(Based on 388 call-to-action radio campaigns measured on radioGAUGE)

*Based on average uplifts experienced across 388 call to action radio campaigns

the brand multiplier research 2016 Radiocentre’s most recent piece of research in 2016 used theories presented in Byron Sharp’s How Brands Grow It showed how radio advertising:

Whilst two TV ads helped to boost the average number of times a consumer would consider a brand, one TV ad and two audio ads had an additional 6% benefit, and was about 15% cheaper – making radio more than 20% more cost-effective. The findings reveal that audio plays an important and distinct role in enhancing the brand level effects of advertising and offer some practical guidance for advertisers seeking to optimise these effects.

Expands a brand’s network of mental associations and increases share of mind for a brand, significantly increasing the effect of brand communication over TV alone.

U s e r a d i o t o e n h a n c e c o s t - e f f e c t i v e n e s s

to reveal compelling new evidence about radio’s ability to drive strategic brand growth. Independent research agency Differentology tested ads for six consumer goods brands on six groups of 600 people and compared the effect of two TV ads with one TV ad and two audio ads.

o f b r a n d a c t i v i t y

Rajar MIDAS survey (Measurement of Internet Delivered Audio Services)

The MIDAS survey is designed to provide context and insight into how, when and where radio content is being consumed in this liberated environment. With the increasing penetration of connected devices, such as tablets and smartphones, MIDAS shows how listeners are embracing the multi-platform and multi- device offering, as well as how radio on demand is contributing to listening behaviour. It also reveals the activities they are doing whilst listening, where they are listening, and who they are listening with. provide additional research over and above traditional radio listening. Radio’s research company, Rajar, now

Live Radio ‘Live radio’ listening hours are dominated by traditional AM/FM and DAB radio sets.

Listen Again 5.3 million adults use the “listen again” or “catch up” radio function.

DAB 42%

AM/FM share 44%

Smartphones have a 44% share of total listening again hours. 75% of all “listen again” hours are listened to in home.

Followed by desktops/laptops with 33%.

Desktop/laptop 6% TV set 5%

Smartphone 2%

Tablets 1%

80% of “listen again”/”catch up” radio hours are listened to alone.

Apps 24 million or 44% of the UK population have downloaded a radio app.

Share of Audio % (excluding visual):

5.3 million (59%) of 25-34 year olds. 5.1 million (64%) of 15-24 year olds.

of all users who downloaded a radio app use it on a weekly basis.

51%

Digital tracks 9%

OMS 7%

CDs 4%

Live radio 76%

Podcast 2%

Podcasting 4.7. million adults use a podcast, whether it be speech or music.

Listen again 2%

The smartphone is the most popular way to listen to a podcast with a reach of 66%.

Almost two-thirds of all podcasts downloaded are listened to (65%) .

Cassettes/vinyl 1%

(OMS represent On Demand Services re Share of Audio%). Sample comprised of 2191 re-contacted respondents from the main RAJAR Survey Fieldwork conducted during November 2016.

Spotify Spotify now has 100 million users worldwide across 58 countries. In the UK, there are 13.6 million users, of which 30% are premium customers (do not take ads) whilst 70% are members for free (are targeted with advertising). Advertisers can communicate with Spotify users using audio adverts which play out approximately once every 7 songs. Because Spotify has the power to control exactly which users hear the adverts, campaigns can be specifically targeted to reach specific target audiences, thus minimising wastage.

Advertising formats available are:

Audio

Display

Current CTR s are as follows:

Branded Moments

Overlay

Spotify can target based on the following criteria:

- A g e - G e n d e r - L o c a t i o n - D e v i c e

Display

0.02%

Sponsored Playlist

Sponsored Session

Audio

0.11%

Homepage Takeover

0.20%

Video Takeover

Homepage Takeover

Desktop Overlay

0.56%

Video Takeover

0.59%

- M u s i c g e n r e - T i m e o f D a y - P l a y l i s t

Branded Playlist

Advertiser Page

Mobile Overlay

0.71%

0.92%

Sponsored Sessions

DAX

PERSONAL FINANCE Switcher/Deal Seeker Coupon Hunter HH Budget Controller Recent House Mover Loan Seeker

Audience Segmentation

DEMOGRAPHICS Male  18-24 Female  25-34 AB  34-44 ABC1  45-54 C2DE  55-64  65+

ENTERTAINMENT Music Lover Movie Lover Home Entertainment Fan Culture Vulture Live Events/Ticket Seeker

Property Seeker Mortgage Seeker Landlords

AUTOS New Car Seeker Family Car Seeker Luxury Car Seeker Hybrid Car Seeker Commuter

DAX (run by Global Radio) offers audio advertising across 140 premium audio publishers spread across Live Radio, Music Streaming and On-Demand Audio for a variety of media owners (including Bauer Radio). Currently have 7 million unique users spread across brands such as SoundCloud, Jango, Capital FM, Capital Xtra, Classic FM, Gold, Smooth Radio, Radio X, Heart, LBC, Radionomy, 181.FM, BlogTalkRadio, 1.FM, Kiss, DI.FM, Jazz FM, Empire Streaming, Planet Rock, Big R Radio.

Gaming Enthusiast Celebrity Follower

LIFESTYLE Fashionista Health/Fitness Enthusiast Fast Food Lover Organic/Ethical Shopper Healthy Eater Budget Shopper Convenience Shopper Gardening Enthusiast DIY Enthusiast

LIFESTAGE HHWC

Student Married Single Career Climber Mum Home Owner

TRAVEL Travel Enthusiast Travel Intender Winter Sports Lover

TECH Early Adopter Electronics Intender Personal Tech Enthusiast

Budget Holiday Seeker Domestic Holiday Seeker Cruiser

Sun Seeker City Breaker 5* Traveller

WEBSITE OVERLAPS Capital Visitor Capital Xtra Visitor Classic Visitor

A u d i e n c e s t h at c a n b e ta r g e t e d a r e a s f o l l ow s :

BRAND OVERLAPS Supermarkets ISP TV Provider Mobile Provider Mobile Device

Gold Visitor Heart Visitor LBC Visitor Smooth Visitor XFM Visitor

radio creative

Clients don’t have to be radio experts, because our writers and producers have all the expertise required. Our talented team have created thousands of response-generating radio commercials for a wide range of clients. We can manage the entire creative process, from developing stand-out radio concepts to casting and directing voices, and recording the final mixes with appropriate sound effects and music. We’ll clear your commercial with the radio advertising clearance centre and we’ll distribute the finished commercials to the radio stations on the media schedule. Whether you need a simple commercial or one with custom music, special sound effects or a consistent sonic identity, our radio team can provide a brilliantly joined-up service that delivers. At Accord, we make the process of producing radio commercials simple.

To find out more, speak to your account manager.

accordmarketing.com @accordmarketing