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RADIO ADDS REACH & RECEPTIVITY –
        A SMARTER MIX!




           February 2013




                                   1
Objectives


      • Commission MBI’s USA Touchpoints to work with seven actual brand
        2012 media plans in diverse categories
      • Demonstrate that reallocating to radio a portion of the budget from TV
        results in:
             • Higher Reach
             • Higher Frequency
             • Enhanced Receptivity*
      • Reallocate 5%, 10% and 15% of the TV budget to radio and assess the
        impact of the new media mix on campaign effectiveness




*MBI TouchPoints measures the social-emotional context of target audiences’ lives
to identify the moments of highest receptivity – something they identify as the Receptivity Potential Index
 2
Seven Actual Campaigns And
     Media Plans In The Study




    2 Financial Services

    2 Automotive OEMs

    2 Quick Service Restaurants

    1 Home Improvement




3
Challenge:
• Hold Dollars Constant

• Enhance Reach, Frequency And Receptivity



Results:
• Reallocating a portion of the budget to radio measurably
  increased both the reach and frequency of each campaign
  without compromising the delivery of the TV campaign




                                                             4
Radio Increases Campaign Reach
                                As Much As 24%, For The Same Money

                                             •      Percent Gains In Campaign Reach –
                                                      15% Reallocation of TV Dollars


                                                                                                              24%
                            Average
                             15.5%                                                                 18%
                                                        15%             15%             16%
                                         12%

                            8%




                          Auto 1
                                         QSR 1 Financial
                                                                     Home
                                                  Services 1                            QSR 2
                                                                  Improvement                   Financial
                                                                                                Services 2   Auto 2
Source: MBI TouchpointsTM; results in each case study based on the specific target audience
                                 for that particular client


      5
In Every Case, Reallocating Television Spend To Radio
             Increased Reach Significantly At No Incremental Spend

                                               •      Campaign Average Weekly Reach

                               Original TV Schedule              5% to Radio            10% to Radio     15% to Radio


                                                                                                                +8%
                                                                    +28%                          +15%
                                                    +24%                              +16%
                                     +18%
                      +15%                                                82%                          86%            86%
                                                          69%                             76% 74%            80%
                                           59%                   64%             65%
                             54%                   56%
                     47%           50%




                    Financial
                    Services 1 Financial
                               Services 2             Auto 2      Home
                                                               Improvement           QSR 2
                                                                                                 QSR 1
                                                                                                             Auto 1
Source: MBI TouchpointsTM; results in each case study based on the specific target audience
                                 for that particular client

      6
The Reallocations Had Negligible Impact On Overall TV Reach

                                               •      Weekly TV reach after reallocation
               Auto 1                                                   Auto 2                                                     QSR 2
                      WEEKLY REACH OF               LIVE TV                     WEEKLY REACH OF                                      WEEKLY REACH OF
LIVE TV SCHEDULES        TARGETS                    SCHEDULES                      TARGETS                    LIVE TV SCHEDULES         TARGETS
FULL SCHEDULE                  79.5%                FULL SCHEDULE                       55.8%                 FULL SCHEDULE                65.0%
5% CUT SCHEDULE                79.3%                5% CUT SCHEDULE                     55.3%                 5% CUT SHCEDULE              64.7%
10% CUT SCHEDULE               79.3%                10% CUT SCHEDULE                    55.2%                 10% CUT SCHEDULE             64.2%
15% CUT SHCEDULE               77.4%                15% CUT SHCEDULE                    53.2%                 15% CUT SHCEDULE             63.8%

                                                                    Financial                                                 Financial
               QSR 1                                                Services 2                                                Services 1
                      WEEKLY REACH OF                LIVE TV                    WEEKLY REACH OF                                       WEEKLY REACH OF
LIVE TV SCHEDULES        TARGETS                     SCHEDULES                     TARGETS                     LIVE TV SCHEDULES         TARGETS
FULL SCHEDULE                  74.4%                 FULL SCHEDULE                       50.1%                 FULL SCHEDULE                47.3%
5% CUT SCHEDULE                74.1%                 5% CUT SCHEDULE                     49.2%                 5% CUT SCHEDULE              45.6%
10% CUT SCHEDULE               74.0%                 10% CUT SCHEDULE                    47.8%                 10% CUT SCHEDULE             45.0%
15% CUT SHCEDULE               73.6%                 15% CUT SHCEDULE                    47.6%                 15% CUT SHCEDULE             43.3%

                                                    LIVE TV                     WEEKLY REACH OF
                                                    SCHEDULES                      TARGETS
                                                    FULL SCHEDULE                        64.1%
                           Home                     5% CUT SHCEDULE                      63.8%
                        Improvement                 10% CUT SCHEDULE                     63.5%
                                                    15% CUT SHCEDULE                     63.0%
          Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client
      7
And In Every Case, Average Frequency Increased Along With
                                Reach

                                                            •      Average Frequency

                                     Original         Reallocate 5%            Reallocate 10%         Reallocate 15%

                                                                                                                  +29%
                                                                                                    +62%                   8.0
                                                                                                           7.6
                                                                                        +5%
                                                                       +52%
                                       +64%            +43%
                      +39%                                                                                       6.2

                                                            4.3              4.4
                                            3.6                                      4.3      4.5   4.7
                             3.2
                     2.3                            3.0
                                    2.2                             2.9




                    Financial
                    Services 1        Auto 2         QSR 2           Home
                                                                  Improvement        Financial
                                                                                     Services 2      QSR 1
                                                                                                                  Auto 1
Source: MBI TouchpointsTM; results in each case study based on the specific target audience
                                 for that particular client

      8
In Every Case, Reallocating TV Spend
                           To Radio Increased Receptivity Significantly
                                      At No Incremental Cost
                            •     Increase In RPI* Weighted Dollars When 5%, 10%, 15%
                                            Of TV Spend Is Reallocated to Radio

                                Original TV Schedule          5% to Radio       10% to Radio          15% to Radio

                                                                                                                      +42%
                                                                                                      +64%
                                                                  +84%
                                                                                                      $14.0           $14.3
                                                                        $12.6      +47%


                                                                                       $10.6
                                                       +84%                                                   $10.1
                                                                                               $8.6
                                                                 $6.9           $7.2
                                            +20%
                                +74%                      $5.4
           $ in Millions




                             $0.7 $1.3 $1.8
                                            $2.2 $3.0


                            Financial
                                       Financial
                            Services 1
                                       Services 2       QSR 2      QSR 1
                                                                               Home
                           Source: MBI TouchpointsTM                        Improvement          Auto 1
                                                                                                               Auto 2
*MBI TouchPoints measures the social-emotional context of target audiences’ lives
to identify the moments of highest receptivity – something they identify as the Receptivity Potential Index
 9
Conclusions


     • Radio can significantly extend the reach of television plans … at no
       additional cost, with negligible change to original TV delivery goals
     • And since Radio use corresponds more directly to key times in
       consumers’ lives - when they may be open and responsive to marketing
       ideas or suggestions - marketers can use radio’s selectivity to increase
       receptivity to their messages



          These seven studies help prove that radio can be a game
           changer for the potential of a campaign to deliver more
                    effectively with no change in budget




10

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Radio Ads Reach Receptivity - A Smarter Mix 2013

  • 1. RADIO ADDS REACH & RECEPTIVITY – A SMARTER MIX! February 2013 1
  • 2. Objectives • Commission MBI’s USA Touchpoints to work with seven actual brand 2012 media plans in diverse categories • Demonstrate that reallocating to radio a portion of the budget from TV results in: • Higher Reach • Higher Frequency • Enhanced Receptivity* • Reallocate 5%, 10% and 15% of the TV budget to radio and assess the impact of the new media mix on campaign effectiveness *MBI TouchPoints measures the social-emotional context of target audiences’ lives to identify the moments of highest receptivity – something they identify as the Receptivity Potential Index 2
  • 3. Seven Actual Campaigns And Media Plans In The Study 2 Financial Services 2 Automotive OEMs 2 Quick Service Restaurants 1 Home Improvement 3
  • 4. Challenge: • Hold Dollars Constant • Enhance Reach, Frequency And Receptivity Results: • Reallocating a portion of the budget to radio measurably increased both the reach and frequency of each campaign without compromising the delivery of the TV campaign 4
  • 5. Radio Increases Campaign Reach As Much As 24%, For The Same Money • Percent Gains In Campaign Reach – 15% Reallocation of TV Dollars 24% Average 15.5% 18% 15% 15% 16% 12% 8% Auto 1 QSR 1 Financial Home Services 1 QSR 2 Improvement Financial Services 2 Auto 2 Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 5
  • 6. In Every Case, Reallocating Television Spend To Radio Increased Reach Significantly At No Incremental Spend • Campaign Average Weekly Reach Original TV Schedule 5% to Radio 10% to Radio 15% to Radio +8% +28% +15% +24% +16% +18% +15% 82% 86% 86% 69% 76% 74% 80% 59% 64% 65% 54% 56% 47% 50% Financial Services 1 Financial Services 2 Auto 2 Home Improvement QSR 2 QSR 1 Auto 1 Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 6
  • 7. The Reallocations Had Negligible Impact On Overall TV Reach • Weekly TV reach after reallocation Auto 1 Auto 2 QSR 2 WEEKLY REACH OF LIVE TV WEEKLY REACH OF WEEKLY REACH OF LIVE TV SCHEDULES TARGETS SCHEDULES TARGETS LIVE TV SCHEDULES TARGETS FULL SCHEDULE 79.5% FULL SCHEDULE 55.8% FULL SCHEDULE 65.0% 5% CUT SCHEDULE 79.3% 5% CUT SCHEDULE 55.3% 5% CUT SHCEDULE 64.7% 10% CUT SCHEDULE 79.3% 10% CUT SCHEDULE 55.2% 10% CUT SCHEDULE 64.2% 15% CUT SHCEDULE 77.4% 15% CUT SHCEDULE 53.2% 15% CUT SHCEDULE 63.8% Financial Financial QSR 1 Services 2 Services 1 WEEKLY REACH OF LIVE TV WEEKLY REACH OF WEEKLY REACH OF LIVE TV SCHEDULES TARGETS SCHEDULES TARGETS LIVE TV SCHEDULES TARGETS FULL SCHEDULE 74.4% FULL SCHEDULE 50.1% FULL SCHEDULE 47.3% 5% CUT SCHEDULE 74.1% 5% CUT SCHEDULE 49.2% 5% CUT SCHEDULE 45.6% 10% CUT SCHEDULE 74.0% 10% CUT SCHEDULE 47.8% 10% CUT SCHEDULE 45.0% 15% CUT SHCEDULE 73.6% 15% CUT SHCEDULE 47.6% 15% CUT SHCEDULE 43.3% LIVE TV WEEKLY REACH OF SCHEDULES TARGETS FULL SCHEDULE 64.1% Home 5% CUT SHCEDULE 63.8% Improvement 10% CUT SCHEDULE 63.5% 15% CUT SHCEDULE 63.0% Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 7
  • 8. And In Every Case, Average Frequency Increased Along With Reach • Average Frequency Original Reallocate 5% Reallocate 10% Reallocate 15% +29% +62% 8.0 7.6 +5% +52% +64% +43% +39% 6.2 4.3 4.4 3.6 4.3 4.5 4.7 3.2 2.3 3.0 2.2 2.9 Financial Services 1 Auto 2 QSR 2 Home Improvement Financial Services 2 QSR 1 Auto 1 Source: MBI TouchpointsTM; results in each case study based on the specific target audience for that particular client 8
  • 9. In Every Case, Reallocating TV Spend To Radio Increased Receptivity Significantly At No Incremental Cost • Increase In RPI* Weighted Dollars When 5%, 10%, 15% Of TV Spend Is Reallocated to Radio Original TV Schedule 5% to Radio 10% to Radio 15% to Radio +42% +64% +84% $14.0 $14.3 $12.6 +47% $10.6 +84% $10.1 $8.6 $6.9 $7.2 +20% +74% $5.4 $ in Millions $0.7 $1.3 $1.8 $2.2 $3.0 Financial Financial Services 1 Services 2 QSR 2 QSR 1 Home Source: MBI TouchpointsTM Improvement Auto 1 Auto 2 *MBI TouchPoints measures the social-emotional context of target audiences’ lives to identify the moments of highest receptivity – something they identify as the Receptivity Potential Index 9
  • 10. Conclusions • Radio can significantly extend the reach of television plans … at no additional cost, with negligible change to original TV delivery goals • And since Radio use corresponds more directly to key times in consumers’ lives - when they may be open and responsive to marketing ideas or suggestions - marketers can use radio’s selectivity to increase receptivity to their messages These seven studies help prove that radio can be a game changer for the potential of a campaign to deliver more effectively with no change in budget 10

Notes de l'éditeur

  1. Campaigns enjoy a significant lift in sales impact when adsare delivered to the target audience during moments when theyare most receptive to the message. According to a recent study, receptivity can provide a 25% lift in ad metrics directly correlated to sales results MBI TouchPoints measures the social-emotional context of targetaudiences’ lives to identify the moments of highest receptivity –the Receptivity Potential Index MBI TouchPoints measures the incremental impact on receptivityfrom specific media - including radio format -- providing a fact-based evaluation of radio’s ability to deliver incrementalreceptivity and sales impact