Radio Advertising Findings
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Transcript of Radio Advertising Findings
Radio AdvertisingResearch findings, schedule proposals, comments
Compiled by:Kelly Grant
Communications CoordinatorAugust 1, 2008
Introduction Since 2005, State Central Credit Union has been advertising regularly with WXSS (KISS‐FM) with additional advertising running on WMYX (the “Mix”). While these two radio stations have provided the credit union with many new members and additional new accounts, the number of accounts generated from these radio stations has decreased over the last few months. It has been deemed necessary to explore other radio station options and find a station that will help the credit union attract new members and increase checking accounts yet will allow the credit union to stay within ad budget constraints. This document’s purpose is to provide radio station information, propose possible advertising solutions and help facilitate discussion towards a definitive conclusion.
Assumptions The following assumptions were made as part of the research process:
1. State Central Credit Union wants to continue attracting a younger member. The demographic of 18‐34 was determined to be the desired age group State Central wants to attract.
2. State Central Credit Union wants to continue promoting the Fresh Start Checking account to a radio audience.
3. Whichever radio station is selected will be asked to develop a radio ad spot for State Central Credit Union.
4. State Central Credit Union wants to begin advertising with a new station as soon as it is feasibly possible, pending station schedule availability and development of a quality ad.
5. State Central wishes to spend up to $6,000 per month on radio advertising.
Overview Contained in this document will be a listing of the proposed radio stations, including format descriptions, listener demographics, Arbitron ratings and pros/cons of each. This document will conclude with four proposals, one from each station, outlining the number of ads per daypart, added value components and costs.
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Radio Station Options The Metro Milwaukee radio station landscape has changed considerably since State Central Credit Union began radio advertising in 2005. Many stations during this time have changed formats or have ceased operating altogether, creating a more homogeneous selection of stations for the Milwaukee listener. While many of these stations seem to cater to an older listener (35‐54), five stations appear to be appealing to the 18‐34 demographic to some degree. One of these, of course, is WXSS (KISS‐FM), familiar to State Central Credit Union. The other four are outlined below: WKKV‐FM (V100): V100 is Milwaukee’s urban contemporary radio station focusing on current R&B and hip hop music. Sample artists include: Rihanna, Usher, Kanye West, and Beyonce. Demographics of V100 Listeners Gender: 54% female, 46% male Age: 38% are 18‐24; 35% are 25‐34; 16% are 35‐44 Race/Ethnicity: 65% African‐American; 21% white/other; 14% Hispanic Household Income: 24% make less than $25,000 21% make $25,000‐$35,000 20% make $35,000‐$50,000 23% make $50,000‐$75,000 13% make over $75,000 WLUM‐FM (102.1): 102.1 is the home of alternative rock playing songs from the 90s to today. Sample artists include: Green Day, The White Stripes, Pearl Jam and The Killers. Demographics of 102.1 Listeners Gender: 35% female, 65% male Age: 45% are 18‐24; 31% are 25‐34; 17% are 35‐44 Race/Ethnicity: Information not available Household Income: 2% make less than $25,000 8% make $25,000‐$35,000 24% make $35,000‐$50,000 23% make $50,000‐$75,000 43% make over $75,000
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WMIL‐FM(FM106.1): Country is king at FM106.1! The station focuses on country hits from the 90s to today. Sample artists include: Toby Keith, Carrie Underwood, Keith Urban, Tim McGraw and Shania Twain. Demographics of FM106.1 Listeners Gender: 64% female, 36% male Age: 14% are 18‐24; 16% are 25‐34; 20% are 35‐44 Race/Ethnicity: Information not available Household Income: 7% make less than $25,000 7% make $25,000‐$35,000 18% make $35,000‐$50,000 28% make $50,000‐$75,000 40% make more than $75,000 WKTI‐FM (94.5 WKTI): WKTI’s format focuses on adult contemporary with emphasis given to hits of the 80s, 90s and today. Sample artists include: Kelly Clarkson, Gwen Stefani, Daughtry, and Nickelback. Demographics of WKTI Listeners Gender: 61% female, 39% male Age: 11% are 18‐24; 23% are 25‐34; and 34% are 35‐44 Race/Ethnicity: Information not available Household Income: 4% make less than $25,000 5% make $25,000‐$35,000 12% make $35,000‐$50,000 28% make $50,000‐$75,000 51% make more than $75,000
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Arbitron Rankings Arbitron is a media and marketing research firm serving various sectors of the media as well as advertisers and advertising agencies. Arbitron measures radio audiences across the United States by surveying retail, media and product patterns. Every quarter, Arbitron publishes rankings for several major radio markets, including Milwaukee. The spring Arbitron rankings were made available at the end of July. The following lists the top 10 stations in the metro Milwaukee area based on audience data gathered from April 3 to June 25. This information is based on the share of available listeners 12 and older, Monday through Sunday, 6 a.m. to midnight. The number is the share, or percentage of available listeners. The stations in boldface are stations being considered for possible future advertising. Rank Station Format 2008 Share 2007 Share 1 WTMJ‐AM (620) News/talk 10.9% 9.4% 2 WXSS‐FM (103.7) Top 40 6.9% 5.7% 3 WISN‐AM(1130) News/talk 6.1% 4.5% 4 WMIL‐FM (106.1) Country 6.0% 8.1% 5 WHQG‐FM (102.9) Rock 5.8% 5.2% 6 WKKV‐FM (100.7) Urban 5.5% 6.6% 7 WKLH‐FM (96.5) Classic hits 5.5% 4.1% 8 WJMR‐FM Urban adult
contemporary 4.1% 4.0%
9 WRIT‐FM (95.7) 70s and 80s 3.8% 5.7% 10 WLUM‐FM (102.1) Alternative 3.6% 3.0%
SOURCE: Arbitron Co. as published by the Milwaukee Journal/Sentinel July 24, 2008 While the above rankings are informative, they are taking into account a massive audience where a majority of audience members are not within State Central’s target age group and/or may not be in need of the products and services State Central offers. The following information provides a detailed breakdown of rankings strictly based on listeners ages 18‐34 and separated by daypart. KISS‐FM has been included in these rankings to show differences between this and the other radio stations being considered. Please note that all of the stations included in the original Arbitron report of the top 10 radio stations are not listed here; only V100, 102.1, FM106.1 and WKTI and their applicable rankings are listed.
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M‐F 6A‐10A M‐F 10A‐3P M‐F 3P‐7P M‐F 7P‐12M 2. KISS‐FM 1. 102.1 1. KISS‐FM 1. V100 3. V100 2. KISS‐FM 2. 102.1 2. KISS‐FM 4. 102.1 3. V100 3. V100 3. 102.1 7. FM106.1 4. WKTI 5. FM106.1 8. FM106.1 11. WKTI 8. FM106.1 7. WKTI 10. WKTI SA 10A‐3P SA 3P‐7P SU 10A‐3P SU 3P‐7P 1. KISS‐FM 1. V100 1. FM106.1 1. KISS‐FM 2. V100 2. KISS‐FM 2. KISS‐FM 2. FM106.1 3. 102.1 3. FM106.1 3. V100 3. V100 6. FM106.1 6. 102.1 4. 102.1 4. 102.1 M‐F 6A‐12M M‐SU 6A‐6P 1. KISS‐FM 1. KISS‐FM 2. 102.1 2 V100 3. V100 3. 102.1 7. FM106.1 6. FM106.1 8. WKTI 9. WKTI SOURCE: Arbitron Spring 2008 radio stations for metro Milwaukee
Radio Station Pros and Cons The following information presents pros and cons each station offers and should be considered in the decision‐making process: WKKV‐FM (V100.1) Selection Reasoning: V100 has been a very strong station with young African‐ Americans. The average age range for a V100 listener is 18‐34. V100 consist‐ ently ranks among the top 10 radio stations as published by Arbitron from quarter to quarter. Pros: V100 reaches a very large 18‐34 audience, second only to KISS‐FM in the Number of audience members reached. Also, in a Scarborough report based On a survey conducted between February 2007 and January 2008, V100 listeners ages 18‐34 were ranked third in the number of those listeners who used a credit union. V100 ranked especially high among women 18‐34 taking anywhere from first to third place in daypart breakdowns. More and more women are responsible for making household decisions, including what
financial institutions are patronized, a fact that should be considered seriously. Finally, State Central’s Brown Deer office could see an increase in account activity due to V100 advertising, as the office seems to attract more
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of the metro Milwaukee African‐American population than any other office. Cons: While products like State Central’s Fresh Start Checking may resonate With V100 listeners, they may not have the income levels to support the pro‐ duct or be eligible for any other products, reducing opportunities for cross‐
selling. Reduced income levels may result in reduced exposure to technology as well. In addition, many V100 listeners could be KISS‐FM listeners and “flip‐
flop” stations during times State Central’s ad is receiving airplay. However, if V100 listeners heard the original KISS‐FM Fresh Start Checking ad, the airtime on V100 could further emphasize the product with this audience. WLUM‐FM (102.1) Selection Reasoning: Like KISS‐FM and V100, 102.1 has a very strong core audience make up of listeners 18‐34. Over 81% of 102.1’s listeners are 18‐34. The station’s listener base is growing with the station making the Arbitron top 10 for the spring quarter in 2008. Pros: 102.1’s audience is very loyal, rarely “flip‐flopping” between stations. The audience is very devoted to the musical genre and the station’s efforts. Audience members are very well‐educated, active and tech‐savvy. 102.1’s audience was ranked second in the number of those members who belonged to a credit union, based on a Scarborough survey report (survey period February 2007 to January 2008). Because of their affinity for technology, 102.1s audience members would be familiar with computers, Online Banking services, debit card usage and Internet/digital/mobile advertising. Higher income levels generated by this audience may present fruitful cross‐selling opportunities. Cons: While a loyal audience, 102.1s overall audience is very small compared to V100, KISS‐FM and others. Radio spots may reach fewer people resulting in a longer period needed for the advertising to impact account opening figures. Also, 102.1s audience is comprised of mostly men who may take longer to act on State Central’s advertising; it’s questionable whether men will act as quickly as women when it comes to choosing a financial institution. WMIL‐FM (FM106.1) Selection Reasoning: Country music is showing some growth nationwide among the 18‐34 age group and has tremendous musical and pop culture cross‐over appeal. Country music has also traditionally been seen as the music of the “working man or woman,” a group that State Central has also catered to historically. Pros: FM106.1 is the behemoth of country music stations in the metro Mil‐ Waukee area and because of this, generates a very large audience. The
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Station has ranked within the top 10 very consistently from quarter to quarter. Also, FM106.1 listeners are very loyal listeners, rarely switching radio stations.
They are strongly middle‐class financially and fiscally conservative. FM106.1 ranks well among women, who are showing more and more decision‐making authority and influence within households. FM106.1 listeners ranked fourth in audience members who were members of a credit union (Scarborough survey report February 2007 to January 2008). Cons: Of the four stations considered, FM106.1 has the fewest number of audience members 18‐34. A larger percentage of their audience is made up people ages 45‐54. State Central’s Fresh Start advertising may miss the mark with many audience members simply because they don’t need a product such as this one or because their banking habits are already firmly established. WKTI‐FM (94.5 WKTI) Selection Reasoning: WKTI has been going through “retooling” process over the last year, trying to position itself as another radio option to a younger audience. With the demise of the Reitman and Mueller morning show, WKTI has brought on board a younger morning team to specifically target the 18‐ 34 age demographic. The station has been incorporating more music previously only heard on KISS‐FM resulting an “edgier” format. Pros: WKTI traditionally ranks well among women, resulting in a great opportunity to reach this highly influential consumer group. WKTI especially does well during the “at work” hours from 10 a.m. to 3 p.m. Listeners are
very affluent with over 50 percent of listener households making $75,000 or more per year. Cons: Despite the “retooling” efforts, WKTI is still not generating the high 18‐34 age demographic ratings. Over 50 percent of listeners are between 35‐54. Also, WKTI was ranked tenth in a Scarborough survey report of radio listeners who belonged to a credit union. Because of the age demo‐ graphic and the Scarborough report ranking, State Central’s advertising, particularly Fresh Start Checking, may be heard by listeners who don’t need the product or whose habits are firmly entrenched.
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Radio Station Advertising Campaign Proposals The following information outlines four proposals by V100.1, 102.1, FM 106.1 and WKTI. Proposals may be modified if some aspects of the proposal fit State Central’s needs but others do not. _________________________________________________________________ V100.1 (4 week period, ad creation included) On air time (30 second spots):
M‐SU 6A‐7P 25x/week M‐SU 7P‐12M 10x/week M‐SU 6A‐6P 10x/week Total 45x/week 4‐week total 180/4 weeks Streaming audio ads (30 second spots): M‐F 6A‐7P 10x/week 4‐week total 40x/4 weeks Total cost: $3,600.00/4 weeks
_________________________________________________________________ 102.1 (4 week period, ad creation included) On air time (30 second spots): M‐F 6A‐7P 8x/week M‐F 6A‐12M 9x/week Sa‐Su 8A‐12M 7x/week M‐Su 6A‐6A 10x/week Total 34x/week 4‐week total 136x/4 weeks Sponsorships (10 and 15 second spots): FM 102.1 Music News one time per month Kramp & Adler Morning Show one time per month Total cost: $6,000/4 weeks
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FM 106.1 (4 week period, ad creation included) On air time (30 second spots): M‐F 6A‐10A 4x/week M‐F 10A‐3P 3x/week M‐F 3P‐7P 4x/week M‐F 7P‐12M 3x/week Su 6A‐12M 4x/week Total 18x/week 4‐wk total 72x/4 weeks Sponsorships: M‐F 6A‐6P 3x/week Billboard sponsorships 4‐wk total 12x/4 weeks Streaming audio ads (30 second spots): M‐F 6A‐7P 18x/week 4‐wk total 72x/week Total cost: $6,756/4 weeks ______________________________________________________________________ WKTI (4 week period, ad creation included) On air time (30 second spots): M‐F 7A‐9P 7x/week M‐F 4P‐6P 7x/week M‐F 6A‐12M 10x/week Su 10A‐7P 5x/week M‐Su 12M‐12M 15x/week Total 44x/week 4‐wk total 176x/4 weeks Sponsorships (10 second spots): M‐F 6A‐10A 10x/week Morning traffic report 4‐wk total 40x/4 weeks Total cost: $5,820/4 weeks
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Conclusion The preceding information has outlined market research and costs associated with advertising with v100, 102.1, FM106.1 and WKTI. Many considerations and options must be considered to ensure a successful partnership with State Central Credit Union. This information is meant to provide a basis for discussion to determine the best radio station to meet the credit union’s goals. For questions about any of the content, please contact Kelly Grant at extension 144.