Does Radio Deliver $14 For Every $1 Spent On Advertising?

4-2-15

Nothing is more powerful to a radio salesperson than hard data proving how radio delivers advertisers a return on their investment. When you sell air using ratings that are far from perfect (or no ratings at all), you start your pitch at a disadvantage, especially in the digital age when companies can tell an advertiser exactly how many consumers use their media, how often, and at what times. Radio needs to constantly show advertisers it works, and on Thursday Nielsen released some very interesting data that you can bet you'll hear many radio executives bragging about at upcoming conventions and quarterly earnings calls.

Over the past few years companies like iHeartMedia, Nielsen, and others have been trying to put more hard data in the hands of sellers and Nielsen believes a recent study it conducted has done just that. A first-quarter R.O.I. study conducted by Nielsen, in conjunction with the Katz Radio Group, focused on a telecommunications advertiser. Nielsen and Katz linked PPM data from the radio campaign with consumer purchases using credit and debit card transaction data from more than 125 million Americans 18-plus who heard the ads. Nielsen says the results show radio delivered $14 dollars in incremental sales for each dollar invested in radio advertising.

Nielsen says it was able to come to that conclusion because the listeners who were exposed to the radio campaign spent $210 million more on the telco?s products and services over the three-month period than if they had not been exposed to the radio campaign. "The telco advertiser spent approximately $15.3 million dollars in radio advertising in the PPM markets during the quarter. When the increase in sales is compared with the radio investment level, the study found the return was $14 to $1."

Nielsen also says more money was spent per month during the campaign period among those exposed to the radio ad campaign. "Their outlay was $8 more per month than consumers who were not exposed. The impact of this particular campaign resonated particularly well with millennials, who represent the largest generation of nationwide radio listeners, according to Nielsen?s recent Audio Today Report. In fact, millennials exposed to the campaign had double the increase in their monthly spending ($16 verses $8) for the Telco?s products and services."

(4/4/2015 10:28:09 AM)
What could be "negative" about demanding compelling evidence.
Amazing Richard reminds me of the guy who steps in front of his mirror - only to see Bradley Cooper.
Hell, radio hasn't even figured out ways to produce high quality spots.
My advice: Snap out of it!
(4/4/2015 8:55:03 AM)
As a radio AE, I see this data being used out of context by advertisers for negotiating -ugh! Thank you Nielsen for making my job a bear (sarcasm). It's good to share your data, but this release IMHO should have been released as relevant to local, large, agency, etc, clients. I hope you provide talking points for addressing. I want ROI 3rd party sources, (testimonials for local, small advertisers are still a better bet) but I want responsible data too.
(4/3/2015 10:44:04 AM)
Ronald is the negative sort to which I referred. The ROI of 14 (could be 18, could be 22) is probably correct if all schedules and carryover businesses are included. Radio has UNDERestimated it's worth for decades. It has had an inferiority complex since TV came on the scene and the internet delivered a left hook from which it is still reeling. But, the listeners love it. And the advertisers know it.
(4/3/2015 10:35:57 AM)
Does this broad brush paint in the tight corners of small markets and much smaller budgets?
(4/3/2015 10:17:00 AM)
If these numbers were categorically accurate and, most importantly - consistently demonstrated throughout the medium, advertisers would be buying radio stations.

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NextRadio Advertising Campaign Launches

2-19-2015

NAB President and CEO Gordon Smith announced NextRadio is launching a national marketing campaign promoting FM radio on mobile devices. Smith stated the benefits to the future of radio from NextRadio and put his weight behind supporting the new ad campaign. The spots, produced to align with various formats and available in both English and Spanish, are available for download Here.

Traffic and sales managers can go to the website FreeRadioOnMyPhone.org. Spots and traffic instructions are available here: www.NextRadioApp.com/campaign. 

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The Value of Radio Advertising

11-10-14
It's almost axiomatic among radio people that radio is undervalued,  and that we're not getting our fair share of the advertising pie. But do advertising agencies agree? Will radio's value in their eyes rise -- or decline -- as new platforms gain in popularity with consumers and with agency clients? At Forecast 2015, November 19, in New York, a panel of agency and radio group heads go head-to-head on the pros, cons, and challenges of radio advertising. If an agency is spending less on radio, why? Does radio really need to change, or is the agency missing something? If it's a perceptual problem, what can radio do -- now -- to solve this powerful medium's image issues?

Look at the lineup below. They're all top executives, and they'll be speaking frankly and off the record (no reporters allowed) about the most crucial issues in radio today. If they're talking, you need to be listening. Only at Forecast 2015. Register today.

Moderator:
Michael Kassan is chairman and CEO of MediaLink. Kassan founded MediaLink in 2003 as a transformational partner for leading media, marketing, and technology companies. MediaLink guides its clients through an ever-more-fragmented media landscape. As its CEO, Kassan led the strategic advisory firm's expansion into executive search, agency benchmarking/review, and marketing optimization. Kassan himself is a special adviser to numerous CEOs on issues from corporate strategy and partnerships to mergers and acquisitions. He is also a noted blogger and an in-demand speaker at industry conferences, and hosts MediaLinked: Inside Advertising and Media with Michael Kassan on WOR/New York and iHeartRadio.

Panel:
Tim Castelli is president of national sales, marketing, and partnerships for iHeartMedia. He oversees iHeartMedia?s National Platform divisions including Digital, Connections, Radio Sales, and Premiere Radio Networks sales. Castelli joined iHeartMedia in March 2012; he has more than 20 years of experience in building advertising solutions for major U.S. clients and previously served as SVP of Sales for AOL?s Eastern U.S. Region. Prior to AOL, Castelli led advertising and partnership activities for technology, wireless, and consumer electronic partners as the technology industry director for Google. He also held the role of the company?s East Coast Managing Director overseeing the Eastern Region search and display advertising sales teams.

Dennis Donlin, president of Team AT&T at MEC, joined the agency in 2011 to oversee its largest global client, the $1.7b U.S. traditional and digital media assignment servicing all divisions of AT&T. He also serves on the agency's North American ExCo. Donlin is a veteran of more than 30 years at the highest levels of media management, starting with the legendary training program at Benton & Bowles New York in the early 1980s. He was a principle in several independent shops that were sold to major holding companies in the 1990s, including the Bloom Agency, now Publicis Mid America, and Ross Roy, now part of BBDO. In 2000, he led the team that won what still remains the largest media review in history, the $2.9 billion U.S. consolidated assignment for all General Motors divisions, and on the fly built the unit of more than 400 staffers to service the assignment.

Bill Koenigsberg, CEO of Horizon Media, founded Horizon in 1989, with leadership and client service as its central tenets. Today, with more than $4.5 billion in client investments and more than 950 employees, Horizon Media is the largest and fastest-growing privately held media agency in the world, representing clients including Geico, Capital One, Burger King, and A+E Networks. Under Koenigsberg's leadership, Horizon Media was awarded the 2014 Large Agency O'Toole Media Award by the 4A's. The agency was named the 2011 Independent Media Agency of the Year by Mediapost Magazine, and Media Agency of the Year in 2010 by Advertising Age and Adweek, Mediaweek, and Brandweek. Koenigsberg was inducted into the Broadcasting and Cable Hall of Fame in 2014.

Michael Weiss was named CBS Radio's President of Sales in October 2007, overseeing the sales management teams at the division's 126 stations and helping to drive revenue performance and accountability with advertisers. In addition, he directs CBS Radio's national sales representation at Katz Radio Group. Weiss joined CBS Radio from Interep, where he'd worked since 1984; he was most recently president of sales for the CBS Radio division of Interep. From 1992-94, Weiss was regional executive of Interep's Midwest office, overseeing Chicago, Minneapolis, and St. Louis.

Register NOW
Forecast 2015
November 19, 2014
Harvard Club
New York
www.radioinkforecast.com

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Pandora More Than Doubles Local Advertising Revenue

10-23-14
The Internet Pure-play reported Q3 revenue of $239.6 million on Thursday afternoon, which is an increase of 40% over the same three months in 2013. Mobile revenue increased 50% to $188 million and now makes up about 78% of Pandora's overall revenue. And the big number radio should be looking at was the local revenue number which is up 118% to $41.8 million. That's where Pandora directly targets radio's advertising dollars. Pandora also says it now has 9.06% of all radio listening in the United States. Pandora now has 109 local salespeople in 37 markets. An inside sales office addresses more than another 150 DMA's with more sales investment on the way. CFO Mike Herring said, "Our sales force is operating very well. Pricing has been very strong and we are hitting sell out points in certain markets as advertisers compete for prime positions.."

(10/24/2014 11:45:48 AM)
Wonder how much of that is coming directly out of radio's pocket?

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HOT 97's Funk Flex Part Of Advertising Week

9-25-14

Lithium Technologies is hosting a panel during Advertising Week called, ?Turn the World into Your Publisher.? On that panel will be HOT-97 New York's Funk Flex along with the founder of Klout, Joe Fernandez, COO and partner of United Entertainment Group David Caruso, and recording artist Corey Andrew. Adweek?s Garett Sloane will moderate. The panel will explore why celebrities and marketers need to identify and nurture relationships with the people who can make or break their brand ? their superfans. Flex will discuss how he's catapulted his brand into the digital era.

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Borrell Updates Advertising Forecast

9-2-14

A lot of forecasting experts have revised and updating their 2014 and 2014 ad spending predictions now that they've had an opportunity to see an improving 2014 economy and more data on digital platforms, which will continue to be the shiny new toy for marketers. The new Borrell advertising forecasts paint a rosy picture overall but "a fairly bleak one for traditional media."

Earlier forecasts by Borrell have shown mixed levels of growth or decline for expenditures on print and broadcast media. The organization now says, ad spending on print and broadcast media is forecast to decline 3% in 2015 while online advertising will grow 44%. Borrell says two online formats ? paid search and untargeted banner advertising ? are forecast to fall 4% and 13%, respectively while targeted display advertising will take over. "By the end of 2015, one of every five dollars spend on local advertising will be spent on targeted banners."

Borrell's Director of Research Corey Elliot, says ?The future we all knew was coming has shown up. The days of saying things like ?mobile is the next big thing? and ?targeted digital ads are going to be big? are over. In the next two years, we will see a tremendous growth in these ad formats, eclipsing any gains in any other media ? and even taking away a bit from other digital formats.?

Borrell?s new forecasts are based on an assessment of U.S. ad spending during the first half of 2014. The company focuses on the $104.0 billion spend by locally-based businesses across 3,000

U.S. counties. Here are some highlights:

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The Advertising Shift to Digital Continues

6-26-14

According to a new report from eMarketer, U.S. industries will spend about $50 Billion on digital advertising in 2014, up from $42.7 Billion in 2013. That number is expected to grow to $80 Billion by the end of 2018. The retail industry continues to be the single largest spender among the 10 industry groups, making up 22.1% of the $50 Billion total this year, according to the report. Financial Services and Automotive follow Retail at about 12% of the total with Telecom (11.2%) and Consumer Products (8.4%) rounding out the top five. Read more about the eMarketer digital advertising report HERE

(6/27/2014 11:27:23 AM)
Meanwhile, I am also reminded that every Thursday we get a body of advertising flyers delivered to our door - so many, they could sing a battleship.

Besides the digital threats, what is radio doing to counteract the "hard copy" gang? Short answer: Dick.

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Internet Advertising Revs Hit Record High

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Continued Growth

Here's good news for your sales department -- internet advertising revenues in the U.S. hit a record-breaking high of $10.69 billion for the third quarter of 2013, according to the latest IAB Internet Advertising Revenue Report figures released today by the INTERACTIVE ADVERTISING BUREAU (IAB) and PwC US. This represents an uptick of 15% over the record-setting revenues of $9.26 billion reported in Q3 2012. In addition, it marks a 4.2 percent rise from the second quarter of 2013, which came in at $10.26 billion.

“These figures reflect marketers’ trust in interactive to deliver,” said IAB Pres./CEO RANDALL ROTHENBERG. “It is indicative of the digital age in which we live, and within which advertisers need to effectively reach targeted audiences wherever they are consuming information or entertainment — often on several screens at once.”

“Continuous growth has been a hallmark of the digital advertising space for several years now, and these numbers support the fact that interactive has become crucial to the marketing mix,” said IAB SVP/Research, Analytics & Measurement SHERRILL MANE.

“Once again, interactive marketing is seeing remarkable gains,” said PwC Partner DAVID SILVERMAN. “Digital’s momentum is undeniable, as interactive advertising has proved itself to be an incredibly powerful channel for reaching consumers that are spending more time on digital screens than ever before.”

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(WIZARD) The Snowy Truth Of Advertising

10-2-2013

Every employee has opinions about the advertising that represents their company. This is natural, I suppose, because those ads, by extension, represent the employee as well. And so they tell the boss what they think, adding, ?and all of our customers think that, too.?

But if the development of successful advertising were as instinctive as most people believe, a higher percentage of ads would be successful.

Most business owners trust their instincts and personal preferences in the creation of their advertising. Others empower a ?creative? family member, an ?artistic? employee, or, worse, a group of employees ?who studied advertising in college? to craft their messages and select the media that will move their businesses to the next level.

And the results of these advertising campaigns are nearly always disappointing.

Philip Stanhope addressed this situation when he said, ?Every young man thinks himself wise enough, just as every drunk man thinks himself sober enough.?

Joss Whedon, too, might easily have been talking about writing ad copy when he said, ?Remember to always be yourself. Unless you suck.?

But no one ever thinks they suck. No one considers their own company to be boring or their own product to be average. Each of us is from Lake Wobegon, ?where all the women are strong, all the men are good-looking, and all the children are above average.?

We look in the mirror and assume that everyone sees what we see. And then we ?hold these truths to be selfevident? in our advertising.

But does anyone ever see us the way we see ourselves?

Most people have an opinion when it comes to advertising. And they feel certain they know what would work. But it?s only when you?re allowed to play with live ammunition ? real dollars ? that you begin to feel the slip of the ice beneath you and draw the sharp air of reality into your lungs.

The amateur believes an ad will be successful if it captures an aspect of the business that is unique and beautiful.

But every business is unique and beautiful, just like every snowflake in a snowbank.

When you have walked on that snow and slipped and fallen again and again and left the stain of your blood on the whiteness, you learn some hard truths that are not self-evident:

1. The world of advertising is noisier and more crowded than you ever dreamed possible.
2. Even though you are paying money to reach them, prospective customers are not required to give you their attention.
3. Until you win the customer?s attention, your message does not exist.
4. People turn their attention ? moment by moment ? to whatever is most interesting.
5. It is hard to make ads interesting.
6. The message contained in your ad must be relevant.
7. The message contained in your ad must also be credible.
8. True isn?t always credible. And credible isn?t always true. Competitors know this.
9. Ads soft enough not to repel anyone are also too weak to strongly attract anyone.
10. If you evaluate each ad by asking, ?Who might this offend?? you will never craft an ad sharp enough to pierce the clutter.
11. Every brand attracts a different set of core values in the hearts of its customers. The strategy that grew Apple computers into a worldwide brand won?t work for J.C. Penney. Just ask Ron Johnson.
12. The best ads contain entertainment, information, and hope.

The hardest part of my job as an ad man is telling my clients how to respond to people they care about when those people begin telling them how they should advertise.

You face the same problem, I know.

When you?re held accountable for real ad dollars, you spend your formative years experimenting with a lot of ideas that make perfect sense and absolutely should work.

They just don?t.

But every amateur thinks they will.

Roy H. Williams is president of Wizard of Ads Inc. E-mail: roy@wizardofads.com.

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Advertising Giant To Co-Chair Radio Ink's Forecast

8=2=13

Jim Palmer, CEO of leading ad agency Lowe Campbell Ewald, has agreed to serve as Advertiser Chair for Radio Ink's Forecast 2014, set for November 20, 2013 at the Harvard Club in New York. Palmer said, "I am honored to join in the conversation regarding the evolution and value of radio," Palmer said. "The innovation in this medium has provided marketers with new and unique  opportunities to deliver cross platform and personalized experiences to engage. This is an exciting time for everyone involved in radio."

Palmer is a 22-year agency vet who served as Lowe Campbell Ewald's chief client officer for four years before moving up recently to CEO. As chief client officer, he was responsible for leading all agency accounts, includingincluding Alltel Wireless, Cadillac, Carrier, Chicken of the Sea, Consumers Energy, General Motors, Ghirardelli, Kaiser Permanente, Olympic Paints and Stains, OnStar, USAA, the United States Navy, the University of Michigan, and Western Governors University. He was also responsible for spearheading the development of the agency's specialty expertise and proprietary research in the areas of marketing to women and youth.

Radio Ink Publisher Eric Rhoads said, "Jim Palmer is not only an advertising icon, he is directing and living the latest trends in advertising. His contribution to the content and direction of Forecast will be powerful."

Streamline Publishing EVP/Radio Deborah Parenti added, "We are thrilled to have Jim Palmer join us as Advertiser Chair. He is a powerful, dynamic leader whose understanding of media and how to grow business will certainly inspire and help strengthen this year's conference agenda."

Radio Ink's Forecast is the radio industry's exclusive financial conference, gathering radio owners, CEOs, CFOs, group executives, and managers with Wall Street and private equity investors and analysts to forecast the upcoming year. Well informed and noted economic, political, and media participants present trends, opportunities, projections, and analytical commentary on the state of business, especially as it impacts media. Now in its 11th year, Forecast has become the premium event in radio financial circles. The event is held at the Harvard Club in New York City and is closed to the press.

Immediately following Forecast, Radio Ink's "40 Most Powerful People in Radio" are honored at an exclusive, invitation-only reception, also at the Harvard Club. Forecast attendees will get the exclusive opportunity to mingle with these industry luminaries. Only registered conference attendees are guaranteed invitations to this premier networking after-party. Attendance is limited to 200.

To register, call 561-655-8778 or go to www.radioinkforecast.com.

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Advertising Giant To Co-Chair Radio Ink's Forecast

8=2=13

Jim Palmer, CEO of leading ad agency Lowe Campbell Ewald, has agreed to serve as Advertiser Chair for Radio Ink's Forecast 2014, set for November 20, 2013 at the Harvard Club in New York. Palmer said, "I am honored to join in the conversation regarding the evolution and value of radio," Palmer said. "The innovation in this medium has provided marketers with new and unique  opportunities to deliver cross platform and personalized experiences to engage. This is an exciting time for everyone involved in radio."

Palmer is a 22-year agency vet who served as Lowe Campbell Ewald's chief client officer for four years before moving up recently to CEO. As chief client officer, he was responsible for leading all agency accounts, includingincluding Alltel Wireless, Cadillac, Carrier, Chicken of the Sea, Consumers Energy, General Motors, Ghirardelli, Kaiser Permanente, Olympic Paints and Stains, OnStar, USAA, the United States Navy, the University of Michigan, and Western Governors University. He was also responsible for spearheading the development of the agency's specialty expertise and proprietary research in the areas of marketing to women and youth.

Radio Ink Publisher Eric Rhoads said, "Jim Palmer is not only an advertising icon, he is directing and living the latest trends in advertising. His contribution to the content and direction of Forecast will be powerful."

Streamline Publishing EVP/Radio Deborah Parenti added, "We are thrilled to have Jim Palmer join us as Advertiser Chair. He is a powerful, dynamic leader whose understanding of media and how to grow business will certainly inspire and help strengthen this year's conference agenda."

Radio Ink's Forecast is the radio industry's exclusive financial conference, gathering radio owners, CEOs, CFOs, group executives, and managers with Wall Street and private equity investors and analysts to forecast the upcoming year. Well informed and noted economic, political, and media participants present trends, opportunities, projections, and analytical commentary on the state of business, especially as it impacts media. Now in its 11th year, Forecast has become the premium event in radio financial circles. The event is held at the Harvard Club in New York City and is closed to the press.

Immediately following Forecast, Radio Ink's "40 Most Powerful People in Radio" are honored at an exclusive, invitation-only reception, also at the Harvard Club. Forecast attendees will get the exclusive opportunity to mingle with these industry luminaries. Only registered conference attendees are guaranteed invitations to this premier networking after-party. Attendance is limited to 200.

To register, call 561-655-8778 or go to www.radioinkforecast.com.

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(SALES) Must-Haves For Your Advertising Strategy

5-6-2013

In my advertising seminars for business owners, I cover many points in a short period of time. By far, the most asked about section is the one on developing an overall advertising and marketing strategy. Listed below are the tips that I share with business owners on advertising and marketing.

Creativity:

1) Make sure the commercials rise above the clutter. Especially in broadcast media; there is 10 seconds or less to grab the attention of a potential customer.

2) Use musical images/jingles and signature identification whenever possible. Use color in print and online ads to make ads stand out to the readers.
Consistency:

1) No need to change for change?s sake: Many companies alter the continuity in their advertising just when it is starting to make an impact. A business cannot build a lasting impression position in the consumer?s mind in three months. Once a business starts advertising, they should never stop.

2) Do not use the shotgun approach in advertising: Do not scatter an advertising budget and allocate a little here and there. Focus and dominate. A business does not have to spend money like McDonald?s to dominate SOV (Share of Voice) and SOM (Share of Mind) in a market. The business just needs a leading presence in the market where they advertise. A business needs to take a laser beam to their target audience.

Accountability:

1) Set up a monthly tracking system. A car dealer can track prospects and closing ratios. A retailer can track store traffic with a door counter. Keep track of average sales.

2) A business can compare YTD and month-to-month sales. Make sure to take into account the seasonality of the market and the products that are sold.

3) Evaluate it. Don?t just let those numbers sit there. Use them to get better.

Share marketing plans with employees. I encounter many employees who have no idea what media the business they are working for is using.

1) Have a meeting and share with employees the various forms of company advertising that is running in the marketplace.
2) Tell the employees what media is running the ads.
3) ALWAYS make employees aware of the special offers and what is on sale.
4) Share with the employees the purpose and goals of each SPECIFIC advertising program.

Listed below are several ideas to enhance a business? advertising: Use in-house advertising to trigger recall in the consumer?s mind about current running advertising.

1) Use counter cards and signage at the cash register.
2) Ceiling hangers.
3) Point-of sale material.
4) Point-of-purchase material.

Measurement strategies:

1) Tracking: Make sure to sample customers from time to time to see if the advertising is being effectively targeted. Don?t ask, ?What brought you in today?? Most likely the sign out front or a friend will be the reply. Instead ask them, ?Have you been exposed to our advertising on: (and then list the media companies the business is using).

2) Sourcing: In my experience, especially when a business is sourcing over the phone, they need a secret shopper in place. Far too often, the front office fails to effectively ?source? or ask the right questions of a customer. After all, advertising can be the biggest expense or the greatest investment. Make it a great investment!

Miscellaneous points for building a marketing strategy.

1) Store visibility: Can the store be easily seen from the street? If not, make sure to emphasize location in the advertising.
2) Inventory: Carry what is advertised.
3) Prices: Are they higher or lower than the competition?s? A must-know.
4) Service: Satisfied people tell seven people about a business. Poorly treated customers tell 24. Many business owners think ?word of mouth? is the best form of advertising. If a business is not providing the service and a satisfying experience, then chances are 3 to 1 that word of mouth will be badmouthing.
5) Marketing materials: Are marketing materials of a professional caliber?
6) In-store displays: Are they easy to read?

These are a few tips for advertisers. No magic bullets, just straight up common sense. Every business owner should take time to follow these steps in order to maintain a healthy and long-term business.

Sean Luce is the Head International Instructor for the Luce Performance Group and can be reached at sean@luceperformancegroup.com or visit www.luceperformancegroup.com.

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(SALES) Advertising Above The 60th Parallel

4-29-2013

Over the past week, I?ve spent time with advertisers and marketers in the Canadian north -- the Yukon Territory -- in a city called Whitehorse. Being somewhat of a history buff, it was always one of my dreams to come to where the last great gold rush happened at the turn of the 20th century which was located in the Klondike region of Alaska and the Yukon. Whitehorse is the largest city above the 60th parallel. We figured that late April would be warm enough for flatlander Sean. The weather on my trip was a whole other story. How did those gold rushers go over the Chilkoot pass in the dead of winter? Ugh.

The seminar was a big hit and congratulations to Rush 96.1 for perfect execution. You impressed me by putting some of the biggest powerbrokers in the city in the same room at the same time. After a few million miles of speaking and consulting, I?m not easily impressed. After our 90-minute seminar, the advertisers had a chance for me to come and visit them personally and explore more in-depth their current advertising, and if I could offer some tips to them. The seminar was on Tuesday, and we offered up Wednesday through Friday for the follow-up calls. We were overwhelmed with the response and could only manage to fit in18 calls -- 6 per day. Is advertising above the 60th parallel any different than below it? No. It?s the same and the basic principles of marketing in today?s new media have similar threads no matter if you?re in Whitehorse or Timbuktu. The only things that change are the media outlets to advertise with.

When you give a seminar, you try to focus on and emphasize certain points. For example, in the seminar, my advice on running advertising is to drill home one idea at a time. My goal was to offer expertise on my experience, how you should advertise and approximately how much of your money you should allocate to specific media as an advertiser.

On the 18 follow-up calls, to a person, came back the impetus of the seminar. I try to make it easy for advertisers to remember, so I use an analogy of warfare and I believe marketing is warfare -- just marketing warfare -- and you have to know how to execute a marketing campaign so you win. Losing in marketing warfare can be very painful and very expensive. On the 18 follow-up calls, to a person, came back:

1) Air Force: Your ?Air Force? drives the top-of-mind awareness in the mind of the consumer. Not everybody shops price and item. Some people still shop at the business that comes to the top of their mind. Price is a consideration -- it?s just not always the number one consideration. Trust, credibility, superior service, and name recognition play a huge part in the top-of-mind battlefield. Radio, TV, cable TV, and Internet display advertising do an outstanding job in driving awareness when people first come into the buying cycle for a product or service. Based on how people shop today, from the NPD Group?s Consumer Tracking survey 2010, 45 percent of people shop top-of-mind awareness. Invest 45 percent of your money in top-of mind-awareness media with a message that rises above the clutter.

2) Ground Force: Once you have established control of the ?air? -- and in warfare, if you don?t control the air, you will not win the war -- it's time for the ground force. Fifty-five percent of people today shop price and item. This is where the ground force comes in --your print, direct mail, yellow pages, outdoor, magazines, and hand-to-hand combat with your POS and POP materials inside your business. Your ground troops and tanks have a better chance of succeeding when you have dominant air power in the skies. Depending on the ground force media in your market, and if you can dominate without spreading your money around, invest up to 30 percent of your money in the ground force.

3) Special Forces: In reality, and in today?s warfare, the ?Special Forces? go in first and identify the points of opportunity where you can take a laser beam to your targets. No different in your marketing warfare. This is where the Internet comes into play along with your mobile and social media advertising. Your ?Special Forces? enhance your traditional ?above the line? media and make your ?Air Force? strike their targets with better precision. Some markets have superior ?Special Forces? that can take up to 70 percent of the advertising dollars. Your ?Special Forces? can build up both top-of-mind awareness/branding and is also very potent with direct-response advertising. Most markets, however, do not have top-flight Internet domains to dominate in advertising and it can become hit and miss on the Internet. Mobile is starting to come on and your social media is starting to become more utilized and effective, though in most cases a retailer cannot survive on social media alone. If you have a normal market, you should allocate up to 25 percent of your money for your ?Special Forces.?

The above is a guideline on where and how to allocate your advertising dollar. If you spread your money around and do a little bit here and a little bit there to satisfy the media reps who call on you, then take your money to Las Vegas. It will go further and you?ll feel a lot better. Scattershot, spray-and-pray advertising is not effective. As in warfare, focus and dominate ?share of voice? in your Air, Ground, and Special Forces media mix.

Also, Slovakian born Ms. Eva Bidrman (General Manager of Klondike Broadcasting) gets a distinguished service medal for hanging with me minute by minute, hour by hour, and call by call over an entire week. Well done, Eva. You?re the only person I know that has ever done that.

You can reach Sean in the midnight sun at sean@luceperformancegroup.com or at www.luceperformancegroup.com.

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(SALES) Make Your Advertising Rise Above The Clutter

4-1-2013

According to research from "Advertising Age" magazine, a typical consumer encounters between 254 and 5,000 advertising messages per day in one form or another. That number includes signage on cars, t-shirts, radio, TV, newspapers, and so on. If a business is going to be remembered, the advertising message must rise above the daily clutter of messages.

This following story is one of the best examples that I have encountered of an ad rising above the clutter. This week I am consulting for a media company in Ricky Land, Missouri. Ricky Land was made famous by the business owner who calls everyone ?Ricky? to keep things simple. While in Ricky Land, I traveled to Mountain Grove, Missouri which is home to Southern Missouri Financial Investments owned by Jim Bukowsky. Like me, Jim does seminars but in the financial field. We were comparing traveling notes and some small talk before we got to the meat of the call.

We discussed the meaning of rising above the clutter in advertising, and how to make one?s message memorable. Jim told me that his best rise above the clutter of advertising consisted of a billboard advertisement he did once showing the business name, his name, and a photo of himself. I thought that sounded like a fairly typical ad for the investment industry.

One day Jim was in his car listening to the local radio station and he heard the talk show host discussing how terrible it was that a local billboard had been defaced. The host continued to talk about how degrading this act was, and how he felt so badly for the local business owner who was advertising on this billboard. Jim certainly agreed. The host then said it was Southern Missouri Financial?s billboard. Jim slumped in his car seat in utter shock. He then drove over to his billboard to see that an artist had climbed up the billboard the night before and put a mustache thick with curls on his face. It was the perfect Doc Holliday mustache.

The story gets better?maybe. Also on the billboard, the artist had drawn on top of the photo of Jim?s head an obviously phallic representation. Jim said it kind of looked like a hat drawn on his head to go with the mustache.

Needless to say, it was graffiti on Jim?s billboard. However, Jim said it was the best advertising that he has ever utilized. Several local radio stations interviewed him about the graffiti on his billboard. In one case, he was interviewed for 20 minutes and had a chance to plug his business while talking about the ?terrible? thing that had been done to his billboard. Jim was the talk of the region which stretches about 100 miles in any direction. To the billboard company?s credit, they called the next day and told Jim they could take it down immediately and replace the billboard for free. Jim thought about it, and he said that he wanted to review the offer. I asked Jim how long he was able to keep it up (no pun intended). He said he was able to keep the graffiti billboard up for three weeks before the company insisted they take it down and restore it back to its original design. Jim knows something about helping his business? message rise above the clutter.

I highly doubt that Jim was the one who climbed up the billboard and defaced his photo. I also doubt that one of hiscompetitors did it. To this day, no one has 'fessed up to the great artistry that was laid on Jim?s billboard. However, keeping it purposely in place for three weeks, Jim understood more than most business owners about the concept of ?rising above the clutter.?

I am not suggesting that business owners conjure up something disgusting for their advertisements. My point is that to be different it has to be memorable. Since 99.9 percent of what a consumer encounters every day is washed and forgotten, the message must stand out in a crowd. Try asking a group of 10 consumers how many advertisements that they remember from yesterday. Out of 10 people, maybe one person might remember one advertisement from the previous day. In my seminars, the usual response is about three percent of attendees will remember one ad from the day before. For business owners, make sure your message is there every day, all day, over and over again. Building top-of-mind awareness does not happen overnight. 

As we wrapped up the meeting, Jim, and I discussed the possibility of a ?slogan? for his business. Jim is a clever guy. He said, ?It could be Southern Missouri Financial Investments -- the place where you can hang your hat on your investments.? Hmmm?.maybe Jim did climb up that billboard after all!

NOTE: If you have rise-above-the-clutter ads that you would like to share, please email them to sean@luceperformancegroup.com. I will feature the best stories in a future article.

Sean Luce is the Head National Instructor for the Luce Performance Group.

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Katz Says Audio Enhances TV Advertising

2-25-2013

According to a new study released by Katz Marketing Solutions, Television ads using audio elements can efficiently enhance a brand's identification and messaging. The Katz study examined TV commercials from 14 brands (see below) where all audio and visual brand references were removed, and 300 respondents were served either the de-branded television clip or an audio-only version of the same clip.

The respondents were asked to identify the brand, pinpoint their ?aha? moment of recognition, and describe their emotional response to the audio and video segments. Katz Marketing Solutions President Bob McCurdy says, "This data strongly supports the strategic and creative use of radio to supplement a television campaign.?

From the Katz study: "The audio clips generated 93% of the brand identification metrics that the television commercial clips generated. Even with the absence of visual stimuli, consumers were able to correctly identify the brands being featured in the ads. The results also indicated that in certain instances audio triggered brand identification at a much greater rate than visual cues."

"For example, 25% of the respondents exposed to the Taco Bell television clip referenced visual cues as the brand trigger, while 55% mentioned the sound of the iconic Taco Bell ?bong? as the "aha? branding moment. In Duracell?s television clip, 50% more viewers referenced its distinctive three-note audio signature as the brand trigger than any visual stimuli. And for Outback Steakhouse, four times as many respondents cited the announcer?s distinguishing voice as the brand trigger than any visual element of the commercial."

McCurdy adds, ?Marketers often allocate large sums of ad dollars to broadcast television commercials, which results in the creation of tremendous audio equity?a brand?s audio logo or signature?that can continue to carry the marketing punch of a television commercial."The study examined television commercials from:Allstate, Apple, Capital One, CoverGirl, Diet Pepsi, DirectTV, Dos Equis, Duracell, GEICO, Old Spice, Outback Steakhouse, Snickers, Taco Bell, and Warner Brothers.

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Australia Station to Resume Advertising Today

12-11-2012

The prank call that has turned into an international incident rolls on. Once news broke that the nurse, Jacintha Saldanha, who took the call was dead, the Australian radio station 2Day FM suspended all advertising. Today the station says advertising will resume again on Thursday and Southern Cross Media will donate the advertising profits to an "appropriate fund."

A minimum contribution of AUD$500,000 will be made. SCA CEO Rhys Holleran said, "We hope that by contributing to a memorial fund we can provide the Saldanha family with the support they need at this very difficult time." Authorities suspect the nurse committed suicide after revealing personal information about Kate Middleton's pregnancy over the phone.

(12/11/2012 5:25:20 AM)
Just like to point out that Jacintha Saldanha only transferred the call to another nurse. She did not reveal any information herself. Which makes it even more sad and shocking that she would take her own life.

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(SALES) Which 50% of Advertising is Wasted?

11-14-2012 

John Wannamaker, of retail fame, is credited with that jewel of a statement ?I know that 50 percent of my advertising is wasted, I just don?t know which 50 percent.? Being a business owner myself, quite frankly, that statement scares the heck out of me just to think that half of my marketing efforts are going to waste. I am sure that if any of your clients are thinking this way, it?s pretty tough to convince them how effective electronic media works or, more aptly, how effective electronic media is.
Let?s start with radio. Does it work? It works very well if used properly. Just recently a sales rep whom I work with in one of our markets was dejected after having just come back from a auto dealer where the station did a remote and five people showed up. I would be dejected as well in that scenario. I asked how long the client had been using the station before the remote? Response, ?Not as much as they should have -- a little here and there.? In my seminars, I tell sales reps, especially in radio, that you have to make sure there is some ?Top of Mind Awareness? built in with your audience before you break a promotion on them -- and doing a remote is a promotion. TOMA in this case, with the station's audience, would have been a minimum schedule of three months, considering that the National Auto Dealers Association says it's 3.2 months that the consumer is in the ?thought process" before they walk into their first showroom.
Let?s look at some keys to effective radio advertising.

1)      Schedule: Small-medium market-minimum of 40 commercials per week. I would bunch them up in four days running 10 units per day. Large to major market-minimum of a 3.29 frequency schedule of what is called OES or Optimum Effective Schedule (which can be figured up on your computer with the latest Arbitron software)

Remember, you first have to define the objectives and the expectations. If you are advertising for a bank, and they are looking for long-term Top of Mind Awareness and their expectations are to build their brand in the mind of the consumer, then use a horizontal schedule with some sponsorships to complement the schedule and attach themselves to a fixed position rotating every three months.

2)      Creative Strategy: This goes for all size markets. Here is a list of eight key components of selling copy. You should try to get all eight in your copy but don?t settle for less than six.
?         Hook -- first 10 seconds
?         Offer
?         Call to action
?         Price points not % off
?         Unique selling proposition
?         Urgency -- limited time
?         Name -- at least 3 Xs
?         Location (not address) at least twice

3)      Client responsibility: In many cases we leave this all-too-important element out of our quest for success. Can the client close the people you bring in? Can they answer the phone without running off potential customers? Recently, I attended a behind-doors meeting with an unnamed automotive dealer at one of their corporate meetings. With 60 of their dealers from around their region, their No. 1 problem was employee turnover, which limited their closing ratio. In some cases, they have to fix their own problems before you can fix their ?walk in? problems.
If we focus on what we do best, which is the above, and don?t short-sell our stations, I happen to believe that we?ll do much better than John Wannamaker?s statistics of only having 50 percent of our advertising dollar pay off.

Sean Luce is the Head International Instructor for the Luce Performance Group and can be reached at sean@luceperformancegroup.com.

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Internet Advertising Makes Huge Jump in 2012

10-12-2012

According to the Internet Advertising Bureau the first half of 2012 has already seen $17 billion spent on web ads. That's more than what the entire radio industry will see in 12 months and it represents a 14% increase over 2011. Mobile revenue jumped 95% over 2011 to $1.2 billion in the first half of 2011. Search revenue increased 19% to $8.1 billion.

IAB CEO Randall Rothenberg said, ?This report establishes that marketers increasingly embrace mobile and digital video, as well as the entire panoply of interactive platforms, to reach consumers in innovative and creative ways."
Highlights of the report include:
? Mobile generated significant growth ? almost doubling year-over-year ? up 95 percent to $1.2 billion in half-year 2012 from $636 million in the comparable 2011 period
? Digital video, a component of display-related advertising, saw an increase of 18 percent year-over-year, bringing in a little over $1 billion in revenue in the first two quarters of 2012 compared to nearly $900 million in the first six months of 2011
? Search revenues in the first half of the year totaled $8.1 billion, up 19 percent from nearly $6.8 billion during the same timeframe in 2011
? Display-related advertising revenues in the first half of the year totaled almost $5.6 billion, accounting for 33 percent of 2012 half-year revenues, up 4 percent from $5.3 billion in the first half of 2011
? Retail advertisers constitute the largest category of internet ad spending for the first half of this year, claiming 20 percent of the total revenues at $3.4 billion, while Automotive brought in $2.2 billion for first-half 2012, marking an uptick to 13 percent versus 11 percent of category spend reported for half-year 2011 at $1.7 billion

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What Advertising Agencies Really Want From You

10-2-2012
Carol Grothem is the vice president and associate director of media investments at Compass Point Media, a unit  of Campbell Mithun. Grothem has been with Compass for 17 years and was recently named to her second term as a member of the national board of  directors of the Alliance for Women in Media. The Compass Media client roster includes SuperValu, Land O?Lakes, Schwan?s, General Mills, and Toro, among others.

What does Compass Media specialize in?
The goal at Compass Point Media is to ?Make Everything Talk.? Making everything talk for Compass Point Media involves the seamless integration of strategic planning, tactical planning, and negotiation, resulting in greater effectiveness and efficiency for our clients. One key element in our success is the experienced depth and breadth of our team. We have more than 125 media strategists, analysts, and negotiators, covering all media forms.
All are located in our Minneapolis office to maximize integration and effectiveness across disciplines.

How do you use radio for your clients? Or do you?
We develop and execute effective audio/radio initiatives for all of our clients. Our strategy is to negotiate the best rates and best inventory available. We also secure and coordinate significant on-air, online, and at-event promotions tailored to each client?s initiatives. We have also emphasized the importance of streaming audio and online radio in our radio campaigns. We are in the top 15 in radio spend in the country.

Could you use radio more?
Yes. We have key partners ? Katz Radio Group and many major ownership groups ? across the country that create new and innovative ideas to bring to our clients. A creative idea will always sell.

What is radio?s strongest quality when it comes to using it for your clients?
Engagement. Targetability. Immediacy. Creativity. Local. Personality radio is still one of the most impactful ways to communicate a client?s message. We are strong proponents of ?radio triggers,? such as cold- or warm-weather triggers. It?s a strategy we use for two of our clients that has produced excellent results.

When do you know a client campaign is just not going to work on radio?
It all begins with our marketing/creative strategy meetings. Although our team is a huge advocate for radio, there are certainly times when a plan proposal doesn?t make sense.

Does radio play too many commercials per hour?
It depends on the format of the station. Some formats, such as News/Talk/Sports, have a more active listenership that is more apt to stay with the station during their commercial breaks. It is important for advertisers to make sure that their creative keeps listeners engaged so they won?t tune out.

Are you satisfied with radio?s ratings service?
I think PPM measurement is the way to go, but they need to have more panels in each market in order to give us a more accurate sample of listenership. We wish they could measure engagement of the listener. Satisfied? Yes. Could it be better? Yes.

What can radio reps do to serve you and your clients better?
We have some great reps calling on our agency. The reps we really respect are good listeners, proactive, creative, and they value integrity. One thing we have always encouraged is for the reps to make sure they provide us with comprehensive recaps that we are confident we can forward directly to our clients. These recaps need to merchandise the effort the stations have put into these promotions. This would include photos, videos, detailed information on schedules, and promotional mentions. In a perfect world, all reps would provide us with a glowing recap of every promotion we execute. A good salesperson needs the support from their upper management. Ownership managers need to make sure they have strong leaders in their markets. Let them lead, and give their salespeople the tools they need to get out and sell.

What should they stop doing right away?
Stop the blame game. People need to take responsibility for their actions, and that goes for both sides of the desk. That?s where being proactive and creative is so important. I also think it is very important for everyone in the industry to be aware of their own brand, both offline and online. Determine what your brand message is, and then live and work by it.

Reach out to Carol Grothem at cgrothem@compasspoint-media.com
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Jelli Launches Advertising Platform Capability

9-17-2012

Social radio platform Jelli says it has launched advanced new advertising features in the Jelli Platform. The new platform allows radio stations to use Jelli as an ad serving network for terrestrial radio advertising. The company also signed new deals with Mapleton Communications and Opus Media Partners to deploy the Jelli Platform at over 50 stations.

Here's how the new platform works.
- The Jelli Platform enables stations to monetize unsold on-air inventory to supplement local selling efforts.
- To deploy the Jelli Platform, each station integrates a Jelli server at their station and connects it to the Internet.

Then the station allocates inventory to the Jelli Platform using their existing ad trafficking and scheduling software. Jelli takes it from there, serving radio ads on the air, and paying the station for those ads. 

The Jelli Platform is available immediately, with an ?Advertising Only? option to complement Jelli?s proven ?Programming? offerings. To learn more about Jelli?s programming or advertising solutions, contact sales@jelli.com.

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