RAB: Stations Need To Address Brands’ Misperceptions About Radio.

How is it that broadcast radio accounts for 68% of consumer time spent with audio in a typical hour, according to Edison Research’s “Share of Ear,” but just 4.6% of ad spend, per WARC? Or that, while Nielsen Audio RADAR data shows AM/FM radio reaching 80% of Americans in a typical week, media agencies and advertisers surveyed by Advertiser Perceptions thought that number was only 46%?

Radio Advertising Bureau, in conjunction with the Association of National Advertisers, aims to correct these industry assumptions in a report in RAB’s “Matter of Fact” blog.

“The most prevalent misbelief about radio is that no one listens anymore,” RAB Senior VP Business Development Tammy Greenberg says. “While radio is the clear audio industry leader, misperceptions about the medium are pervasive among the marketing and advertising community, and that is preventing brands not currently using radio from experiencing the results it can provide to their bottom line.”

Even results of RAB’s ongoing Audio Pulse Poll show that while 99% of ANA’s client-side marketer members say reach is “important” or “very important” to their brand media strategies, only 31% are aware that broadcast radio is the medium with the greatest reach. Additionally, as the blog notes, Dentsu’s Attention Economy Study found that AM/FM radio is eight times more cost-effective than TV, and 11 times more cost-efficient than Dentsu’s all-media “attention cost per thousand” benchmark.

Citing Nielsen research, reports from WARC, and RAB’s own case studies, Greenberg points out that radio “delivers the attributes that brands need most: high levels of reach, attention, targetability, and full-funnel impact. Radio delivers even greater impact when part of a total audio plan, [and] is an amplifier of other media and can drive significant ROI.”

Addressing the long-standing perception that visual advertising is always more effective than audio-only, Greenberg says, “Audio best practices stress the importance of branding and conveying the benefit of the product. This framework lays out how to make the brand physically identifiable and appealing to consumers.”

Then there’s radio’s newfound ability to use visuals to enhance audio messaging in cars. Greenberg notes the fruits of the partnership between audio advertising technology company Quu and GeoBroadcast Solutions, by which “advertisers can target in-dash visuals to a specific location based on where the vehicle is driving.” Referencing a report from Westwood One, she notes that “two-thirds of heavy AM/FM radio listeners say they are likely to take advantage of sales and deals on the radio display, and case studies for brands that are using Quu technology show positive results in awareness, engagement, and purchase intent.”

Also strengthening radio’s case is Nielsen’s shift from a five- to a three-minute listening qualifier in its 48 electronically measured markets. “This is a positive shift for radio,” Greenberg says. “The benefits and opportunities that this measurement change brings to marketers will strengthen radio’s performance in media mix models and attribution measurement through its increased data granularity. The change opens insight-driven targeting opportunities across dayparts and genres, which will help marketers further engage desired, highly attentive audiences at the right place and time.”