 Growth in revenues and advertising market share is the objective of all radio sales operations, and the mission of the RAB is to make this a reality in the Netherlands. This week we look at the RAB's research-driven strategy, which was presented at egta’s Market Intelligence Meeting in January 2015.
Of the three research projects carried out in 2014, the Ad Index finding that radio listening is higher during commercial breaks offers the strongest argument to support radio advertising: whilst advertising is becoming increasingly avoidable on other electronic media, radio is truly the no-waste, no-zap channel!
Why this matters for egta members?
In today’s data-driven media landscape, with its myriad of new consumer touchpoints for marketers to choose between, robust measurement and convincing research are essential for winning the confidence of agencies and their clients. The pioneering work on RAM (Radio Audience Measurement) in the Netherlands will be of relevance to all markets that are looking for future solutions, and the insights on media usage offer a glimpse into changing patterns of behaviour in one of Europe’s most digitally advanced countries.
Background
In January 2014, the RAB set out to investigate the needs and attitudes of Dutch advertisers via a survey, and they discovered the following:
Advertisers want to know about the effectiveness of a radio campaign, the role of radio vs. other media in a multi-media campaign, and they are looking for more insights about creating great radio commercials.
And advertisers want the following from radio stations: to hear about their station-specific content-related actions, including inspiring radio stories, and new commercial possibilities and exchange platforms.
Furthermore, advertisers are looking to the RAB to deliver research and insights into listening patterns, effectiveness, the radio currency and innovations in digital radio.
Mediawatch analysis: radio really is the no-zap medium!
The Netherlands has been trialling Mediawatch measurement alongside the currency diary for a couple of years, and an analysis of the data confirmed that listeners do not tune out when the advertising comes on.
In fact, radio listening to minutes that contain radio commercials are 3% more listened to than radio minutes without commercials – i.e. an index of 103. This effect is believed to occur as radio advertising is placed around good listening times, such as the news.
What are the next steps?
Advertisers know about the effects of radio. They know it is a great medium, and they appreciate the studies done by the RAB and others. So why – as a cost efficient, high ROI, high reach medium – is radio still only 5% of the Dutch media pie?
The RAB plans to take the next step in its strategy to address this question with a deep-dive into the strategic decision-making at media agencies, using a qualitative study to understand the barriers to further investment. The buyers have all the knowledge, and all the arguments. So why do not they not act on it and spend more on radio?
egta will keep you updated on the outcomes of this new research, and whether the RAB has found the Holy Grail to unlock growth!
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