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October 6, 2014:
The DASH Issue
CEA President/CEO
Gary Shapiro

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Clear Channel Helps Radio Tell Story


The fancy radio group head catch phrase in 2012 was that radio "needed to tell a better story," in order to prove to advertisers radio was still a viable medium in an age of fancy new devices producing super-targeted ads. The argument needed to be emphasized that radio is still strong, and, despite not having an easy way to describe R.O.I. to advertisers, radio can bring you customers and increase your business. Clear Channel's Research and Analytics division, Insights, has released data it conducted that the entire industry can now use to help sales reps make a stronger pitch for radio when they hit the streets. No doubt, this is part of what Clear Channel CEO Bob Pittman says radio needs to do more of, tell the radio story. The data highlights how much more effective radio can be for advertisers while pulling ad money from Television.

And, sales reps who take the data to the street can make the pitch without actually bashing TV. The study, conducted by Insights EVP by Radha Subramanyam (pictured right), and the Media Behavior Institute, showed that even a small reallocation of advertising dollars from television to radio significantly increased brands’ reach, receptivity and frequency.

The study across several sectors, including automotive, quick-service restaurant, home improvement, and financial services, showed that when advertisers reallocated up to 15% of their ad spend from TV to radio, they increased their brand’s total reach up to 28%, with no negative impact on TV reach. The study also showed that these advertisers reached a more receptive audience, since radio use corresponds more directly to key times in consumers’ lives when they may be open and responsive to marketing ideas or suggestions.

One example Clear Channel cites in the study comes from the restaurant category. "When a quick-service restaurant brand shifted 15% of its TV dollars to radio, audience reach increased 12% and receptivity to its ad messages jumped 84%. Additional information can be found in the three charts below.

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