The latest Bellwether Survey makes pretty depressing reading for those in the advertising and media industries as the Guardian reports… “Business confidence among UK marketing execs has slumped to its lowest level in three years, as wary companies cut spending on TV, press and radio advertising in favour of price discounting and the internet.”
The top line findings from the report don’t sound great but dig a little deeper and there is a positive or two… 20% of companies increased their advertising budgets in the last three months of 2011, and, according to initial reports firms are looking to raise their 2012 budgets compared to last year.
As published in the Guardian, Nicola Mendelsohn, president of the IPA (who jointly produced the report), said… “It is encouraging that firms are still planning to increase their budgets in 2012,” said Mendelsohn. “Moreover the impact of key sporting events such as the London 2012 Games and the Euro football championships will likely lead to increased buoyancy in the marketplace with a corresponding boost in marketing expenditure.”
Where does this leave Radio?
The Radio Advertising Bureau (RAB) has carried out a number of research projects to look into how ‘Radio Ads Bite’ to marketing campaigns and this has provide us with some very positive findings:
- Taking 10% of a TV campaigns budget and placing it on Radio can increase overall ad awareness by 15% (The Awareness Multiplier, Millward Brown)
- Moving 50% of press ads onto the Radio can increase unaided brand recall threefold (RAEL – The benefits of synergy)
- Moving 50% of internet ads onto the Radio can increase unaided brand recall four-fold (RAEL – The benefits of synergy)
- When people are exposed to radio within the search process (i.e. listening online) Brand Name search increases by 350% (Word of Mouse, Uni of Lancaster)
- Taking 10% of a media budget and placing it on Radio can boost brand browsing online by 52% (The Online Multiplier, Other lines of enquiry / Dolly Wagon)
When times are tight Radio Advertising can make budgets work harder! As the above research from the RAB shows radio can deliver in terms of Direct Response, Awareness and Brand Positioning.
Closer to home, at RadioWorks, we have seen an upward surge in advertisers looking to use radio and digital audio. Tools, such as the unsold inventory reverse auction site – Bid4Spots, and the growth of digital audio opportunities including: Spotify, We7, UK RadioPlayer, and Absolute’s InStream, have been a real draw for advertisers more cautious with their budgets.
If you’d like to find out how Radio can work for you then please feel free contact me at RadioWorks on 0207 90 70 6 70.
All the best