Marketers Ride New Waves of Radio Advertising
Author: Tammy Greenberg, SVP/Business Development, RAB
Source: Radio Advertising Bureau®
One of the hottest trends in advertising is “screen-free media”, as people liberate their eyeballs and engage their ears with a potpourri of audio programming. However, for marketers to capitalize on the audio renaissance, they must develop an audio strategy that goes beyond ad buying and adopts a distinctive voice and sound for their brands, according to the Carat Trends 2021 report, titled “The Year of Emotionally Intelligent Marketing.”
The diversification of audio platforms and the attention audio commands among consumers has opened up tremendous opportunity for brands to expand their audio strategies and grow their audiences.
As broadcast radio remains the king of the audio universe, providing the pervasive scale and reach, omnipresent ease of access, local relevance and personalized, immersive experiences, the Radio Advertising Bureau (RAB) talked with media and marketing industry leaders and asked them to provide their experience, thoughts and advice that will help stimulate growth for marketers as they navigate audio’s effective use for their brands.
“The ad community is looking at audio in a totally new way, just as they looked at radio in a new way when FM came along and television in a new way when cable came along,” says Jack Myers, media ecologist and founder of MediaVillage. He adds, “Marketers are still catching up with the trend and, in many cases, radio continues to be somewhat of a second-class citizen when, in reality, all the statistics prove it is the dominant force in audio. As the shift from radio to a broader audio perspective continues to grow, the core value of radio must be recognized as the dominant force in audio.”
Painting a Picture
Myers’ advice to marketers evokes a strategy attributed to Phil Guarascio, former CMO at General Motors. To wit, five percent of every budget should be reserved for innovation. Looking to innovate in audio, for instance, brands have landed on podcasting. These brands often end up in the hands of radio broadcasters who can help them broaden their reach, leverage radio as a megaphone, and generate growth.
Asked about the role that radio plays in the marketing mix, Marla Kaplowitz, president and CEO of the American Association of Advertising Agencies (4A’s), says that because consumers “are inundated with ads, audio and radio offer a very different and effective alternative to capturing consumer attention while adding complementary scale”.
Kaplowitz stresses that the biggest challenge for brands and agencies tends to be creative. “It is a given that adding radio to a media mix is going to extend the reach and provide the opportunity to engage consumers differently”, she says. “To be successful, brands must be thoughtful about the right execution because audio is not stimulating the other senses in the same way as visual media can. Brands must really focus on allowing the consumer to create their own visual sense connected to the audio advertising that invites them in.”
Kristy Carruba, director of audio strategy and planning at Macy’s, who has been on the buy side of the media industry for decades, has always been a fan of audio branding.
Carruba took part in an Audacy-hosted webinar in which she emphasized that audio is at the forefront of media planning now more than ever. “People create habits and relationships with audio and there is a tremendous amount of comfort they have with the medium”, Carruba told the RAB. “Audio is so good at storytelling and podcast hosts have incredible influence over our customers; we see it in results.” Carruba adds that marketers ignore radio at their own peril. “It’s a big miss if audio is not part of the plan,” she says. “It’s easy, it’s efficient, and it connects with our audiences through the power of storytelling.”
Relaxium is a direct-to-consumer (DTC) natural sleep aid brand in an increasingly competitive market that established itself on television and has recently expanded into radio. Timea Ciliberti, CEO and founder of Relaxium, leverages the medium because it is cost-effective and provides the scale that can generate not only a profitable return, but also a boost in brand awareness.
“We know that our customers listen to radio and we want to make sure we reach others who struggle to get a good night’s sleep”, she says. “Radio endorsers bring an added layer of credibility to the advertising and have loyal fans who really trust their opinions.”
When it comes to identifying the radio endorsers, or influencers, Ciliberti advises marketers to partner with on-air talent who are also consumers with a deep passion for the brand. The more loyal a consumer, the more trusted the conversation for the listening audience.
National Reach, Local Flavor
Radio has a long and proven track record of partnering with the broadcast and theatrical industries to drive tune-in programming and theatrical releases through frequency-based plans, content integrations, and talent endorsements, among other marketing vehicles.
As media platforms diversify, brands continue to cultivate radio partnerships, with the goal of deepening the conversations among consumers. Take HBO Max: WarnerMedia’s direct-to-consumer platform, which features a wide array of programming from its HBO, Warner Bros., DC, and Cartoon Network properties, developed HBO Max Podcast Program in 2019 featuring companion podcasts for hit HBO series such as Chernobyl and Lovecraft Country.
The podcast program recently expanded to include scripted audio originals, brand podcasts, and look-back podcasts.
“Audio is a way to reach consumers in a different location; no one is driving their car while watching HBO Max,” Josh Walker, chief strategy officer at HBO Max, said during the Audacy webinar. “Audio opens up the opportunity to connect beyond the living room and it is really important to us and our talent as it allows them to create a deeper connection outside of the traditional video format and makes the bond tighter.” And it works, with 85 percent of HBO Max listeners saying they feel more connected to the shows they watch due to the podcast.
Kendra Clune, associate media director at Kroger, the national chain of grocery stores, refers to radio as the brand’s workhorse. Like most marketers, Kroger uses a 360-degree approach for its media and marketing efforts. “Broadcast radio in particular is used to build efficient reach,” Clune says. “It’s also a media channel that keeps the brand top-of-mind to build the mental availability for our customers.”
Kroger is on the air in its various markets 52 weeks a year, connecting locally with its key audiences. The company deploys a laser-like focus on ensuring its marketing mix modeling data and audio – inclusive of radio, streaming, and podcasts – delivers strong ROI, with double-digit growth year-over-year. “If you are looking for efficient reach with local impact,” Clune says, “radio is your answer because for Kroger it delivers one of the strongest ROIs.”
Andy Ehlen, senior media planner/buyer at Grady Britton, amplified the sentiment regarding the impact that audio provides to both local and national media plans. “Radio is truly mass media,” he says. “It’s one of the few forms of media that is versatile, free, and open to everyone, making it so easy to reach everyone while targeting niche and diverse groups of consumer audiences.”
From broad reach to content alignment to promotions and events, Ehlen says there are myriad ways to slice and dice an audio plan (depending on budgets, target audiences, and the brand objectives).
Maureen Carlson, chief programs and marketing officer at Children’s Miracle Network Hospitals, discussed the relationship that nonprofits have with radio broadcasting. “Radio in particular has an unbelievable social-responsibility attitude, one that is all about giving back,” she says. “It is one of our most effective fundraising vehicles, responsible for raising more than $700 million dollars over the last couple decades.”
Asked what sets radio apart, Carlson says it’s the ability for local storytelling. “When radio station talent share a passionate story about how the fundraising effects a local child, in a local community at a local hospital, magic happens,” she says. “These stories work better in radio than they do in any other media.” Children’s Miracle Network Hospitals deploys a three-pronged approach to its radio strategy: embedded spending within the brand marketing mix, annual radiothons, and partnerships with brands in which the nonprofit tells a story and raises funds simultaneously. From the nonprofit’s perspective, a beautiful story combined with a powerful delivery by a beloved radio talent leads listeners to take action.
Boosting ROI for Other Media Channels
Radio has been dialing up new opportunities for DTC brands. According to eMarketer, digital DTC sales are expected to grow another 15.9 percent in 2021, reaching $175 billion by 2023. That’s on top of the pandemic-fueled 45.5 percent growth for direct-to-consumer brands from 2019 to 2020.
Marc Osgood, owner of direct response advertising and marketing firm Direct Response Professional, says that radio should be considered when looking for the next acquisition channel. “Ad channel synergy is real,” he says. “The ad dollars you spend in radio not only drive their own ROI but can also help elevate other media, including television, print, and online, and the reverse is also true.”
Osgood says it’s easy to test marketing messages with radio, which provides brands and organizations with efficient cost-of-entry from both a creative and media standpoint. “Radio is at its best when your advertising speaks to the customer’s inner voice that visuals could distract and when used properly,” he adds. “It can really be a powerful platform.”
Full-service omnichannel agencies that are putting audio at the center of their client efforts are achieving results. Havas Edge, for instance, is a data-centric shop that provides brands with the ability to test, optimize, and scale their audio advertising campaigns.
“We are in an exciting time for audio, and measurement is different for every platform,” says Christina Wong, group media director at Havas Edge. “With streaming and podcasts, we can measure through pixels and broadcast. What we have found across the board, regardless of channel, is audio’s ability to drive lift across KPIs, and when you combine audio with other channels it’s an even greater lift in web traffic and conversions.”
For marketers who have yet to consider audio’s appeal, “don’t get overwhelmed with audio across all of its channels,” Wong adds. “You have to start with the trusted source, ask questions, don’t be afraid of it. The listeners are loyal, and when you tap into that loyalty it will be a long-term play that achieves both short- and long-term results for the brand.”
Marketers from both the client and agency sides agree that audio, and more specifically radio, when distributed across multiple platforms, brings ample benefits to brands and organizations: efficient reach, storytelling in its purest form, social responsibility, and immersive experiences that drive results.
The advice from brand to brand for effectively using audio is resoundingly clear: If a marketer is not using audio, jump in because it is a tremendous opportunity for increased engagement and growth. Audio is where the consumer wants to be. Sonic identities are key, and radio is fueling the entire audio ecosystem.
This article was originally published to the Association of National Advertisers (ANA) Knowledge Center.
People are Tuned In and On the Go
Author: Annette Malave, SVP/Insights, RAB
Source: Radio Advertising Bureau®
People are resilient. It is an awesome wonder of human nature. There’s no doubt that everyone has experienced challenges, but looking around, you see that people have returned to doing what they did pre-pandemic. They are tuned into radio and ready to go.
Nielsen’s online survey, which has been monitoring consumer behavioral trends since the pandemic’s onset, highlights how consumers across the country aren’t just ready – they are on the go. The results of their June survey found that 90% of adults believe that life is becoming more normal. Their sentiment is improving as businesses are opening and life is appearing more normal.
Radio listeners are back on the go. They are shopping for groceries in store, driving around, ordering takeout, shopping in store and dining out – more so than the total surveyed. While people are spending more time in car, heavy radio listeners are more likely to spend one hour plus than the average in their cars.
What are they doing in their car? Listening to radio, of course. Nearly 90% of those surveyed say the radio is always/sometimes on during the drive to school. Yes, cars and people are on the go and radio is there keeping them company, entertaining and informing them.
People aren’t just tuning in while in car – they are tuning in everywhere. Broadcast radio listening levels are now 97% of March 2020 listening levels (pre-COVID-19). While we know that media habits have changed, people have also rediscovered radio. Since the onset of the pandemic, 56% of adults 21+ started to listen to radio, according to the July COVID-19 study from MRI-Simmons. Of these adults, 74% consider broadcast radio very trustworthy.
Like people, radio is resilient. It continues to play a role in the lives of consumers – before, during and after (dare we use that word) a pandemic. People tune in to radio and that’s why it has the largest share of ear compared to other ad-supported audio options – 76% among adults 18+, according to Edison Research.
It doesn’t matter where people are, where they are going or what they are doing, radio is there. People are on the go and radio is with them and along for the ride.
Radio Post-Pandemic
Author: Tammy Greenberg, SVP/Business Development, RAB
Source: Radio Advertising Bureau®
The challenges that the marketing, advertising and media community faced throughout 2020 and the first half of 2021 have been like nothing any business has ever seen or experienced before. These challenges brought opportunity and have demonstrated a collective resilience in nearly every sector of business.
The next frontier for radio has been shaped by many of the lessons learned as consumers, businesses and brands have leaned in to audio across all platforms as the soundtrack to their daily journey.
What is new is old. What is old is new. Radio trends born from past truths.
With a goal of allowing a consumer to feel part of what is being presented to them, immersive experiences are not new to radio. Audio, in its purest sense, is an immersive form of media with nothing between the listener’s heart, mind and their headphones or speakers. They ingest content and contribute their own thoughts, making it a much more relatable and resonant experience. As Dr. Tiffany Eurich stated in a contribution to Medium, “Audio creates an opportunity for mental space for creativity to flourish.”
In early to mid-2020, there was an incredible surge in television binge-watching, which ultimately plateaued and began to decline due to screen fatigue. As consumers began to come out of their COVID-19 cocoons, radio harnessed what makes it such a special medium for its listeners, with a renewed focus on creating immersive experiences that are built on trust.
In March 2021, Audacy released a study to define and measure engaged impressions across media channels with immersion as the key metric, because immersion is predictive of action. This study showed that audio (comprising over the air, streaming over the air and podcasts) is more immersive than other media, including linear TV and social media, Google Search results, print media, and AI-driven pureplay platforms. Trust is at the basis of the most memorable content. Audacy found that their listeners trust audio brand recommendations more than non-Audacy listeners do, and that trust is earned by their consistent delivery of relevant local content. Listeners have confidence in what an audio host has to say, especially when immersed in an environment that is full of shared references and a sense of communal connection to their everyday lives.
Radio welcomes you to the club
One of the most prevalent media trends of the past year has been the rise of social audio platforms, such as invitation-only Clubhouse, Facebook’s impending launch of a suite of social audio tools, Twitter Spaces and dozens more. It has been noted that the 2020 quarantine accelerated social audio platform launches to capitalize on video and Zoom fatigue. These new audio-first social platforms are in the early stages of consumer adoption, some will survive and some will not, but the trend is here to stay.
The success of social audio stems from what radio knows and delivers. Radio is the original social medium, connecting communities of like-minded listeners, with a radio personality initiating the dialogue. The conversations, the storytelling, the connection to local and national news and information, the entertainment, pranks, celebrations and the live play-by-play sporting events that put you in the middle of the game – all of this provides the social connections consumers crave.
Radio’s social connections extend well beyond the broadcast, seamlessly moving to digital platforms and back again. Broadcasters have embraced social audio technology by bringing its trusted and brand-safe equities to these platforms. By hosting conversations on Clubhouse, driving increased engagement on Facebook, Twitter and other social media platforms and advancing technology on their own digital apps and online platforms, radio will continue to innovate on pace with technological advancements providing additional opportunities for brands to connect with listeners.
Access for all
Each year, millions upon millions of people attend radio-hosted and brand-sponsored small and large events in local markets across the country. But the pandemic upended live events and experiential marketing, and radio broadcasters were quick to reinvent the wheel. Throughout 2020, radio broadcasters produced events and experiences that ultimately drew wider appeal and increased engagement, delivered exceptional content and united communities when they needed it most.
One such example is how Connoisseur Media’s Chaz and AJ morning show delivered throughout 2020 and 2021. The morning show that airs on 99.1 WPLR and 95.9 The Fox in Connecticut has historically raised funds and toys to donate to countless families across the state through a series of events that lead to a December toy drive. In 2020, the Chaz & AJ Toy Drive event kicked off in September with a first-ever Food Truck Festival – a two-hour culinary extravaganza where attendees sampled their way through some of the best food trucks known in Connecticut, safely from their own vehicle and served by the station’s on-air personalities. The event sold out in an instant, helped to showcase many of the local restaurants who were struggling during the pandemic, brought people together for a couple of hours of pure joy and listeners have been more giving and more generous than ever before.
Making us better people for better communities
The extraordinary events of 2020 put the spotlight on the growing importance of inclusiveness, diversity and community – equity for all individuals and equity for all businesses and brands. Radio has always and will continue to be inclusive, meeting with, entertaining, informing, inspiring, connecting and supporting diverse audiences in the communities where they live. Consider the examples Annette Malave, SVP Insights for the Radio Advertising Bureau, shares in a Radio Matters blog post: “How often has someone called into a sports station to share their opinions on last night’s game or the more recent controversies that take place on the field? Consider the on-air personalities that ask their listeners to share their experiences with racism and discrimination. What about employees and family members of small-business owners who called a local radio station for help on notifying the community that the location was open for business?” These are all examples of the ways that radio has included the thoughts, concerns and emotions of those within their listening community. But it certainly does not end there, and there is more work to be done. Throughout 2020, radio stations across the country rallied more support for local communities and small businesses than any other medium. Look no further than the “Celebration of Service to America Awards” presented by The NAB Leadership Foundation, highlighting a selection of the significant impact radio stations have on the lives of those in the communities they serve.
Moving forward, radio’s unwavering commitment to supporting the communities it serves will continue to inspire and create positive change that improves the lives and livelihood of all people and all businesses.
America is on the move again
A Katz Radio Group analysis of Apple Mobility data shows that driving levels among Americans in April 2021 are up 37% from a pre-pandemic baseline, and they have increased 76% from April of 2020. Increased consumer mobility sets the stage for more radio listening in local markets as 75% of consumers state radio is the audio source used most often in the car, far exceeding any other audio option. According to Edison Research Share of Ear study, AM/FM radio enjoys an 88% share of ad-supported audio time spent in the car. So what will happen to time spent in a vehicle with AM/FM radio now that the country is on the move?
According to a MyMove.com study based on United States Postal Service data, over 15.9 million people moved their primary residence during the pandemic. This, coupled with increased sales in 2021 for used and new automobiles leads to the prediction that there will be more shuttling of children, more errands outside of walking distances and more driving in general.
2021 road trips are expected to surge. In a recent survey by Erie Insurance, 56% of consumers said they plan on traveling more than 100 miles from home, with the vast majority (80%) saying they will travel by car, SUV or truck. 51.2% of respondents said they plan on taking at least one road trip in their own vehicle this year, while another 30% would like to take a road trip in their own vehicle, depending upon the state of the pandemic. Of those who will travel, 55% plan to drive more than 500 miles from home.
Personal vehicles will dominate the work commute. A Cars.com survey referenced by NBC News revealed that among those who will go back to their offices, over 60% plan to swap public transportation for their cars. And almost a quarter have purchased a car during the past six month, with more than half of those saying they did so specifically because of the pandemic.
The flexibility that will be offered to employees to continue working from home part-time or full-time is likely to lead people to increase the time spent in a vehicle versus those that decrease it. According to Slate, teleworkers tend to travel quite a bit, and the places they reach are typically further than if they were at the office.
It is clear that the time spent in a personal vehicle is a trend that will not soon pass as consumers remain more comfortable in their own personal spaces. Radio is along for the ride as the primary audio companion to both drivers and passengers. The dayparts that listeners spend in their vehicles listening to radio will continue to evolve. Whereas all radio dayparts have always been important to an effective and efficient media plan, in a post-pandemic world, all dayparts are increasingly more important as commute times will vary, weekend road trips will surge and daily shopping, dining and other leisure activities will increase.
The hottest new audio platform is broadcast radio
Audio was experiencing tremendous growth prior to 2020 as platforms continued to expand, podcast consumption exploded, online and mobile listening grew and listening through voice assistants continued to climb. This growth continues in 2021 at an accelerated pace because audio provides consumers with a haven due to its immersive and intimate nature.
With its unrivaled reach and its pervasiveness across over-the-air broadcast, streaming, mobile, podcast and voice-enabled digital platforms, radio is not only the leader in the audio space, but it is leading the media industry, reaching more than 235 million people ages 12+ every week.
Broadcast radio is the definition of social audio. Broadcast radio provides access for all. Broadcast radio is the backbone of support for the individuals, small businesses and communities it serves. Broadcast radio is on the move with consumers across America.
In many ways, the year that was 2020 is analogous to a masterclass on flexibility, adaptation, survival, respect, understanding and purpose. The post-pandemic future for radio is bright and marketers poised to leverage its strengths have the opportunity to connect in a more immersive and inclusive way with consumers.