Conducted
by Millward Brown International, in October
1999 - April 2000. Commissioned by Radio
Advertising Bureau (RAB) UK
- Toplines
of Research
- Findings
Research Summary
- More
Research Results
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Toplines
of Research Findings
Toplines of Research
Findings
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A
large-scale continuous tracking survey
of radio and TV
This Millward Brown study involved nearly
5500 interviews in continuous research
to track awareness and attitudes to
17 brands. The media tested were Commercial
Radio and TV in the Central Region of
UK.
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Adding
radio to TV has a 15% multiplier effect
If 10% of a given TV budget is re-deployed
onto radio, the efficiency of the campaign
in building awareness increases on average
by 15%
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Radio in isolation was measured
to be three-fifths as effective as TV
at raising advertising awareness
On average, in this test, radio was
three-fifths as effective as TV at increasing
advertising awareness amongst an audience
of 16-44 year old radio listeners
- But
this radio effectiveness result was achieved
at one-seventh of the cost
On average, in this test, radio prices
were about one-seventh of those for TV.
While the price relativity for other audiences
will vary, the achievement of three-fifths
of the result at one-seventh of the cost
makes radio significantly more cost effective
than TV.Obviously price variance between
radio and TV will vary depending on area
and audience.
- More
effective radio campaigns
The most effective radio campaigns outperformed
even the average for TV. Enjoyability
is an important factor but, above all,
the best-performing ads are well branded
Misattribution
There is clear evidence that consumers
often think they have seen a campaign
on TV when in fact radio was the only
advertising medium used; splitting the
sample into listeners and non-listeners
helps to offset this misattribution
Research Summary
This
study was devised to find out how effective
radio advertising can be relative to TV,
and to learn more about what kind of radio
advertising is more effective: effectiveness
was gauged in terms of measuring increases
in advertising awareness.
The study tracked perceptions amongst
consumers aged 16-44 for seventeen brands
advertised in two comparable regions.
For each brand, one town had radio advertising
while the other did not. TV advertising
was the same across both towns.
Millward Brown, who conducted the study
across October 1999 to April 2000, model
effectiveness in terms of the Awareness
Index
Across the seventeen brands:
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the average Awareness Index for radio
was 3
- the
average Awareness Index for TV was 5
Therefore
radio was, on average, three-fifths as efficient
as TV at driving advertising awareness amongst
radio listeners.
In
terms of price advertising agency Universal
McCann, advise that for the TG 16-44 Yrs,
TV is around seven times the cost of radio.
So, by achieving three fifths of the awareness
at one seventh of the cost, the radio campaigns
were significantly more cost-efficient than
the TV campaigns.
Obviously price
variance between radio and TV will vary
depending on area and audience.
This cost effectiveness advantage means
that radio has a multiplier effect when
added to a TV schedule. If 10% of a given
TV budget is re-deployed onto radio, the
efficiency of the campaign in building awareness
increases on average by 15%.
Some
radio campaigns performed much more strongly
than others - indeed the strongest outperformed
the TV average.
Radio
campaigns with higher scores were characterised
by good branding - these were campaigns
where consumers were in little doubt which
brand was being advertised. Enjoyability
was also a characteristic of the better
performing campaigns, although this could
not overcome weak brand linkage.
Branding
and enjoyability appear to be significantly
more important factors than spot length
or media laydown.
Proprietary branding devices (e.g. jingles,
theme music) were strong contributors to
the effectiveness of radio advertising,
even though they may have originally been
established on TV.
Misattribution
is an important issue. Consumers may think
they have seen a campaign on TV even when
it has only run on radio. This has important
implications for measuring the effect of
radio - most importantly, research samples
need to be split into listeners and non-listeners.
More
Research Results
Using
the findings about the relative efficiency
of radio and TV advertising, it is possible
to quantify the "media multiplier"
effect of adding radio to a TV campaign.
It
is a long-established media planning convention
to maximise TV campaign effectiveness by
taking a portion of the TV budget and re-deploying
it in another complementary medium (not
necessarily radio). This study allows us
to gauge the true effect of applying this
favoured technique to radio.
How
the calculation works
The original TV-only campaign in the example
below had a weight of 267 ratings (or GRPs).
Given that the average TV Awareness Index
is 5, this gives a total awareness score
of 1335 (267 x 5).
The revised campaign shows what happens
when 10% of those TV ratings (27) are taken
from TV and re-deployed to radio - because
of the seven-fold price differential in
the test, this amounts to 189 radio GRPs
(27 x 7). This is multiplied by the average
radio Awareness Index, then Millward Brown
also apply a reducing factor of 0.6 to take
account of the fact that radio's total reach
in the region is 60% of that for TV. Altogether
this gives a total awareness score for radio
of 340, while the remaining 90% of the TV
activity delivers an awareness score of
1200.
Added together, the radio and TV scores
(340 and 1200) amount to a total campaign
awareness score of 1540 - 15.4% higher than
the original 1335 for the TV-only campaign.
This
example has been worked out on the basis
of a given brand re-deploying 10% of its
TV budget to radio, and assumes the same
price differential as in the test. The effect
for different brands, and under different
conditions, will naturally vary - Millward
Brown can offer advice on this.