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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Network Ads Reach Over 181 Million Every Week

3-18-14

That's according to the March Nielsen RADAR report released yesterday. Nielsen measures 46 radio networks and concludes that more than 181 million Americans age 12 or older, about 68 percent of the population, heard a network radio commercial during an average week. Commercials aired on the 46 measured radio networks also reached 71.2 percent of persons aged 18-49 (95.8 million listeners) and 71.9 percent of persons aged 25-54 (90.0 million listeners), according to Nielsen.

The networks in the Nielsen RADAR report are operated by AdLarge Media, American Urban Radio Networks, Crystal Media Networks, Cumulus Media Networks, Premiere Networks, United Stations Radio Networks andWestwoodOne. The sample size for the RADAR March 2014 Report is 396,031 persons aged 12 and older.  The RADAR March 2014 Report includes data from all 48 Nielsen PPM? markets. The survey
period for RADAR 120 covers Jan. 3, 2013 to Dec. 4, 2013.

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How To Hold Your Rate Every Time

11-30-2012

Here?s a riddle. What topic generates a lot of buzz, is of interest to all of us, is obviously important, and yet has never been figured out? Easy: holding rate. A quick search online will turn up endless discussions about holding rate, going back years. You could spend all day reading them. And most of them focus on why holding rate is important, rather than on helping you figure out how to successfully do it.

You already know it?s important. You know your organization would benefit greatly from a sales approach that is fundamentally focused on delivering a specific ROI for clients rather than being centered largely on rate. So this article will tell you exactly how: I am going to give you five specific ways you can hold rate.

SPEND MORE TIME ON THE SOLUTION

Perhaps the reason rate comes up so often with our clients and prospects is because we bring it up. A good proposal will focus on the solution and the opportunities for return on investment. If your client conversations are heavily focused on cost per unit or on specific rates, you are setting yourself up for the rate discussion and negotiation to come. Take a look at the last 20 proposals you presented. How many of them focused on rate?

HAVE THE RATE DISCUSSION BEFORE YOU PRESENT THE PROPOSAL

I?m a big believer in the concept of the ?no surprise? proposal. For you to deliver a great ?no surprise? proposal, the client or prospect needs to have already agreed to every aspect of the proposal before it?s ever presented. By discussing and agreeing on the rate up front, you will avoid the negotiations that often occur at or after the delivery. A rate on its own is just begging to be negotiated by a savvy buyer. But a rate attached to a great idea, one that has been been agreed upon in advance, is already set.

STOP SELLING LIKE YOU?RE A COMMODITY

So many sales calls end up with the salesperson going on and on about why their product is better, bigger, faster and smarter than the others. The proposals that go out all seem the same, hawking a product that looks a lot like all the others and blasting the potential buyer with all the reasons they should buy. From the client perspective, we all represent commodities. Like gold. Gold is gold, right?

It?s all good, but if one company is willing to sell it to you for a better price than another, you?ll likely choose to buy from them. There?s an easy fix for this: Stop selling like you represent a commodity and start selling your ideas on how your product can get results. When you focus on the how rather than the why, your rate will no longer be under that glaring spotlight.

LEARN TO SAY NO

Easier said than done, I know. But you can do it. The fact is, we have trained our buyers to believe they can successfully negotiate with us ? so why wouldn?t they do it? Until we start saying no, they will continue to try. Right now you?re thinking that if you start saying no, you?ll fail to make your budgets and to win the loyalty of your clients, both of which are critical to your success. Here?s the key: Walking away from an unacceptable rate goes hand-in-hand with increasing quality pending business.

It?s hard to say no when you have only one deal out there and you need that deal to make your budget. It becomes much easier to say no when you have room for only one more deal and you have five clients or prospects that are all interested in results rather than low rates.

GIVE YOURSELF A LITTLE CREDIT

You?re selling more than just units and inventory. In today?s environment, you are selling your expertise. You?re selling your ideas, advice, foresight and guidance. A professional sales rep sells solutions to significant challenges.

And gets results. Climb above the riffraff and make both price and rate a non-issue by presenting yourself as a professional. Partner with your clients, focus on the results, and build a library of success stories that represent your work well.

Matt Sunshine is EVP of the Center for Sales Strategy. E-mail: mattsunshine@csscenter.com

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(SALES) How To Hold Rate Every Time

11-30-2012

Here?s a riddle. What topic generates a lot of buzz, is of interest to all of us, is obviously important, and yet has never been figured out? Easy: holding rate. A quick search online will turn up endless discussions about holding rate, going back years. You could spend all day reading them. And most of them focus on why holding rate is important, rather than on helping you figure out how to successfully do it.

You already know it?s important. You know your organization would benefit greatly from a sales approach that is fundamentally focused on delivering a specific ROI for clients rather than being centered largely on rate. So this article will tell you exactly how: I am going to give you five specific ways you can hold rate.

SPEND MORE TIME ON THE SOLUTION

Perhaps the reason rate comes up so often with our clients and prospects is because we bring it up. A good proposal will focus on the solution and the opportunities for return on investment. If your client conversations are heavily focused on cost per unit or on specific rates, you are setting yourself up for the rate discussion and negotiation to come. Take a look at the last 20 proposals you presented. How many of them focused on rate?

HAVE THE RATE DISCUSSION BEFORE YOU PRESENT THE PROPOSAL

I?m a big believer in the concept of the ?no surprise? proposal. For you to deliver a great ?no surprise? proposal, the client or prospect needs to have already agreed to every aspect of the proposal before it?s ever presented. By discussing and agreeing on the rate up front, you will avoid the negotiations that often occur at or after the delivery. A rate on its own is just begging to be negotiated by a savvy buyer. But a rate attached to a great idea, one that has been been agreed upon in advance, is already set.

STOP SELLING LIKE YOU?RE A COMMODITY

So many sales calls end up with the salesperson going on and on about why their product is better, bigger, faster and smarter than the others. The proposals that go out all seem the same, hawking a product that looks a lot like all the others and blasting the potential buyer with all the reasons they should buy. From the client perspective, we all represent commodities. Like gold. Gold is gold, right?

It?s all good, but if one company is willing to sell it to you for a better price than another, you?ll likely choose to buy from them. There?s an easy fix for this: Stop selling like you represent a commodity and start selling your ideas on how your product can get results. When you focus on the how rather than the why, your rate will no longer be under that glaring spotlight.

LEARN TO SAY NO

Easier said than done, I know. But you can do it. The fact is, we have trained our buyers to believe they can successfully negotiate with us ? so why wouldn?t they do it? Until we start saying no, they will continue to try. Right now you?re thinking that if you start saying no, you?ll fail to make your budgets and to win the loyalty of your clients, both of which are critical to your success. Here?s the key: Walking away from an unacceptable rate goes hand-in-hand with increasing quality pending business.

It?s hard to say no when you have only one deal out there and you need that deal to make your budget. It becomes much easier to say no when you have room for only one more deal and you have five clients or prospects that are all interested in results rather than low rates.

GIVE YOURSELF A LITTLE CREDIT

You?re selling more than just units and inventory. In today?s environment, you are selling your expertise. You?re selling your ideas, advice, foresight and guidance. A professional sales rep sells solutions to significant challenges.

And gets results. Climb above the riffraff and make both price and rate a non-issue by presenting yourself as a professional. Partner with your clients, focus on the results, and build a library of success stories that represent your work well.

Matt Sunshine is EVP of the Center for Sales Strategy. E-mail: mattsunshine@csscenter.com

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(SALES) Ask For Referrals On Every Call

5-22-2012

We work way too hard in media sales: making 20 prospect calls a day to secure just four appointments -- a typical, industry-wide 20 percent closing ratio. That's a tough way to make a living. To make your life a little easier -- and more profitable -- here is a solid technique to help you increase your business by 15 percent over the next 90 days. It's designed to help you ask for referrals on every call you make, and it will change the way you sell and double your closing rate.

The Referral Foundation

The best prospects are the clients with whom you already have relationships. Second best are those referred to you by a prospect who has said, "No." Third best are those referred to you by another trusted professional or friend.

A satisfied client can give you three of four good, qualified leads -- if you just ask. When you make a closing presentation and somebody declines, do you really think they want to tell you that? In some cases, there are conditions that they cannot fulfill in your closing presentation. Just remember: If they were not interested, they probably would not have had you make your presentation. This is a great time to ask for a referral, since most people would like to help if you ask. Third-party referrals are strong, since, in most cases, they come from people who can attest to your credibility and business savvy even though they might not have personally used your company before. They might be a community leader or have another strong community affiliation. Ask them for referrals, and then use those referrals.

Three Steps To 15 Percent

Most sales reps don't ask for referrals because, according to them, they forget. Some don't ask because they have never been taught to do it. Some don't ask because they don't feel right asking a client, as they also would have to ask the dreaded question, "Is it working?" Unfortunately, many sales reps don't believe in their own product's effectiveness.

The following three-step process won't help you improve your memory skills, and if you don't believe in your own product, nothing can help you. Thus, we'll deal with the never-been-taught element.

Step #1: Describe a typical viewer/reader/listener. Start with, "Would you do me a big favor"? (Most customers will say, "Yes"). Next, say, "Typically, our listeners are [for example] between the ages of 35 and 54, female, household income $50K, and they have some college?.

Step#2: Have them imagine faces. If you ask clients, "Is there anybody you know who might be interested in?," they will have to think of everyone they ever met. Instead, have them visualize specific people they know. I worked with a rep, Jeanette Radar, and she is textbook when asking for referrals. She would ask them: "Who is your financial planner?" "Who works on your car?" "Do you trust him or her?" "Do you think they would be the right type of client to serve our listeners, as you are?" In other words, as Radar says, "Each of your clients gets their kids' teeth cleaned, each has a financial planner, and each knows other business owners in categories related to their own business."

Step #3: State a success story and wait for the response. Ask: "Who do you know who might like to hear about what we did at Sunrise Ford, where we helped move an incremental 20 cars over the past weekend?" Now, wait for the answer. The longer they ponder, the better the chances that they will think of someone.

Over the past 12 years in seminars, I've challenged more than 50,000 sales reps to ask for referrals as outlined above, and I have received numerous emails form reps who say their business went up by more than 15 percent. Hopefully, you'll try to prove me right, instead of wrong, and build your business like never before -- working smarter, not harder.

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

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Why Businesses Should Advertise Every Day

12-1-2011

During a recent keynote address to business owners, I posed a question that has been asked many times over the years. Which is more important in advertising, the frequency or the message? The majority of hands were raised for the message. Surprisingly, quite a few of those hands represented radio stations whose main feature is frequency.

As an example of message vs. frequency, I told the story of Ajax, the lost wonder dog, who was fetched for a cool thousand-dollar reward. Ajax was found because of both the strong message and the frequency. For advertising to be successful, it must have both.

Listed below are the three top reasons a business should be advertising day in and day out, 365 days a year.

People Move
Here are some interesting facts from a study conducted by the United States Department of Commerce: The U.S. Census Bureau reports that 11.6 percent of Americans changed residences between 2010 and 2011. Of those who moved, seven in 10 relocated within the same county, nearly two in 10 moved from a different county within the same state, and approximately one in 10 moved from a different state. So in an area of 150,000 people, expect that 18,000 of those people will have recently moved, and many of them are new to the areas.

What happens to their shopping habits? They change, of course. These new residents are looking for a business they can trust. They are also searching for the same quality and customer service they found in their previous location. A business owner can no longer say, "I've been in business at this location for 48 years, and everybody knows about me." Yes, some will remember the business. But the establishment has not advertised recently, there is an even better chance many people won't know about it. The point is, there will always be new people in the area who need to know about local businesses.

People Forget
When it comes to advertising, what people encountered a month ago, a week ago, or even yesterday is mostly forgotten. At a recent advertising seminar, I asked 300 business owners who advertise regularly what advertisements they remembered from the previous day. Just 3 percent could remember one advertisement from the day before, and only 1 percent could remember more than one.

According to Advertising Age, the average consumer encounters between 254 and 5,000 messages per day. The magazine points out, "The ability of the average consumer to even remember advertising for 24 hours is at the lowest level in the history of our business." And that was written in 2007, at the beginning of the Internet shift.

Who stands a better chance of being remembered? Is it the business that advertises once a day? Or the business that advertises with frequency, day in and day out? ROS (run of site) on a strong local website will make a difference also. The best remembered business is the business that is consistently present and has a great message.

People Don't Make Decisions Overnight
I live in Houston, Texas. Population 5 million. How many people woke up in Houston today and decided to buy a Harley-Davidson motorcycle? Just decided to go to their nearest Harley-Davidson dealer and write a $20,000 check for a new Harley? Answer: Zero.

What did they do? They thought about it. It takes those potential buyers about nine months to go from first thinking about buying a Harley to actually going inside a store and seriously considering purchasing one. Where was the Harley dealership over those nine months? I am not talking about advertising a special event or July 4th promotion. I am talking about being there all the time, in front of the consumer.

A 2003 LPG survey, updated for 2011, found that there are four stages to the buying cycle. When it comes to products and services, with the exception of groceries, consumers take a long time to make a purchasing decision. Hit-and-miss advertising means your ads will hit and miss. Being present all the time means the advertiser will be in the consumer's mind when it comes time to make an important buying decision.
When I first lost Ajax, I posted 350 signs -- 8.5 inches by 11 inches, with his picture and the word REWARD (though no amount was given). I put a flyer on every signpost and telephone pole that I could find within a two-mile radius. When I failed to get results, I took a different approach. I added $1,000 for Ajax's reward, changed the sign to black letters on a yellow background, and doubled the size of the sign. It took all of 45 minutes to get Ajax back -- after five days of no results the smaller signs with the unspecified reward.

I needed both a compelling message and frequency of signage in order to get Ajax returned. The same rules hold true for your advertising. Be there with a good message, and be there all the time!

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

(12/1/2011 1:22:51 AM)
Good stuff, Sean! (You're welcome to sit in with my band - anytime.)

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Are You Performing Every Day?

by Ron Robinson

As ?Dear John? letters go, perhaps my most recent was about as comforting and welcome as hearing a psyche-destroying, hard-time sentence being boomed from the Bench. ?You?re goin? away, Billy - and for a very long time. Doesn?t matter that the man needed killin?.? Nevertheless, it is that very letter that needs to be read to every Radio-person who cracks open a mic or who scribbles the drivel. More importantly, it is a representation of a manifesto that every manager involved in radio must learn, appreciate and apply. Failure to do so will, eventually, leave them with nothing else to screw around with except the livestock. (And, we know how jealous they can get.)

Generous and clever readers will already have noticed the suggested remedies for the maladies of which I accuse the Local, Drive-Guy of being a carrier are also implicit in the complaints. I submit the following for consideration: The only advantageous avenue left open to terra-Radio is the one which leads to the acquisition, supporting and/or training of human beings who either are or who can become superior Communicators.

I capitalize ?Communicators? because, in my suspicious and cynical world, ?Communicator? is another step above and beyond Performer, of which a few still remain or occasionally show up. Performers can be identified as the ones with the bull?s-eye targets on their backs. There are Announcers. These represent the bulk of what?s left of so-called ?On-Air Talent?. If they can read a prompt and live on their own recycled body-fluids, they can get along. Then, there are the Talkers. These are the folks who occasionally cross the double, yellow line or speed past the ?No Jock-Talk Allowed? sign and, after being cruelly disciplined, are forced back into the Announcer-lanes.

Performers are the rare breed indeed, and a few have even managed to stick around. They are, however, only tolerated because of their influence and capacities to hold an audience and resented even so because they have this tendency to demand large rounds of fresh cash-dollars to maintain the situation. These are the witty, clever, warm-when-it-counts, cryptic-when-it?s-effective, modest-when-it?s-appropriate and schtick-available professionals who have always been somebody?s benchmark when Radio is considered as a career-choice.

?Communicator?. Well, I have been campaigning for the learning, addition and applications of a number of the skills necessary for developing Communicators since L. Ron Hubbard was still on the ground floor of that Fabulous, New, Franchising Opportunity That Will Splinter Off While Still Maintaining And Growing Massive Residual And Passive Income! But, I digress.

The application of a Communicator?s skills would, I suggest, elevate the delivery of every category ? The Announcer, The Talker and The Performer. These skills would enhance the creativity, productivity and influence of the Writer-Corps, as well. When stations crash, even a casual observer of Radio would be able to ascertain that management was unable to a.) identify the problems and b.) were also ill-prepared to address and rectify them.

Meanwhile, there seems to be a lot of that recently and consistently going around and around the Radio flight patterns, so to speak. This is the scenario as the captains and co-pilots of Radio scream out for guidance through the ice and snow, particularly in the frigid northern states and beyond. It won?t be long before they, too, run out of cold weather, Jet-B fuel and drop from the sky like those abject, unaware starlings that fell and were also forgotten.

Ronald T. Robinson has been involved in Canadian Radio since the '60s as a performer, writer and coach and has trained and certified as a personal counsellor. Ron makes the assertion that the most important communicative aspects of broadcasting, as they relate to Talent and Creative, have yet to be addressed.

(10/4/2011 12:44:00 AM)
This is phenomenal. I read a lot of good stuff on here, and this might be the best piece I've ever read. I'd like to think this idea of a Communicator was in the back of my head, and this puts it out there explicitly. Good stuff, man. This has become part of my performing mantra!

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WARNING! Pandora Says We Have Real Ratings in Every Market.

Pandora wants everyone to know (Pssst - advertisers) that the company is creeping into the local markets gaining listeners. This morning Pandora released listening numbers in collaboration with Edison Research for the month of July. Pandora Founder and Chief Strategy Officer Tim Westergren says ?Radio is radio. Pandora is simply a smart buy for local advertisers as well as national ones.  In fact, some advertising agencies are designating Pandora with the call letters ?WPAN.?  Listeners are increasingly turning to Pandorapersonalized radio to listen to music at home, at work, in the car and all points in between. It's a great platform for advertisers to connect directly with their audience throughout the day.?

Edison Research President Larry Rosin said ?We analyzed and converted Pandora?s data into AQH (average quarter hour), which is the standard metric for radio advertising buying.   We believe this data demonstrates the significance and scope of Pandora?s audience at the local level, especially among 18-34 and 18-49 year olds.? Edison Research examined how many listeners tuned into Pandora, how long each person listened and then converted that data into Average Quarter Hour metrics using industry-accepted methodology. In order to qualify as a listener, a person had to listen for at least five minutes within a quarterhour period. Also, for this analysis, Edison did not include Pandora One subscribers who are not served any ads.

July Ratings
Monday-Sunday, 6.00 a.m. ? midnight
An average quarter hour (AQH) rating of 1.0 means an average of one percent of a target population is listening to Pandora for at least five minutes or more during any 15 minute window between 6.00 a.m. and midnight.

New York
Adults 18 ? 34 = .7 AQH rating
Adults 18 ? 49 = .5 AQH rating

Los Angeles
Adults 18 ? 34 = .9 AQH rating
Adults 18 ? 49 = .6 AQH rating

Chicago
Adults 18 ? 34 = .7 AQH rating
Adults 18 ? 49 = .5 AQH rating

San Francisco
Adults 18 ? 34 = .9 AQH rating
Adults 18 ? 49 = .6 AQH rating

Dallas ? Ft. Worth
Adults 18 ? 34 = .8 AQH rating
Adults 18 ? 49 = .5 AQH rating
Houston
Adults 18 ? 34 = .8 AQH rating
Adults 18 ? 49 = .5 AQH rating

Atlanta
Adults 18 ? 34 = .7 AQH rating
Adults 18 ? 49 = .5 AQH rating

Philadelphia
Adults 18 ? 34 = .7 AQH rating
Adults 18 ? 49 = .5 AQH rating

Washington, DC
Adults 18 ? 34 = .9 AQH rating
Adults 18 ? 49 = .6 AQH rating

Boston
Adults 18 ? 34 = .8 AQH rating
Adults 18 ? 49 = .5 AQH rating

(7/29/2011 9:21:15 AM)
Michigan Broadcaster....just to make sure your ignorance is not gone unchecked.....The last time I checked I found the difference between share and ratings fairly straightforward....any rating implies an average of "x" percent of a target population is listening to a specific station for at least five minutes or more during any 15 minute window between 6.00 a.m. and midnight. Try the wheat toast with your eggs and GO BUCKEYES!
(7/29/2011 8:14:26 AM)
Share = % of listening vs people using the medium. Rating is % of people listening vs the entire target group whether using the medium at that time or not. In this case, looks like "rating" to me.
(7/28/2011 6:03:49 PM)
I think Pandora is confusing AQH RATING with AQH SHARE. Big difference. I also think there will be a lot of egg on a lot of faces shortly.

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