telco case study

RADIO DRIVES ROI FOR WIRELESS

CARRIERS

• Profiling the wireless carrier customer

• The media habits of the wireless carrier customer

• Targeting: audio programming that resonates with the

core wireless carrier customer

• Case study: radio drives $14:$1 in ROI for wireless carriers

Agenda

How radio reaches wireless carrier customers

Average

U.S. adult

Wireless carrier

customers

Median age 48 46

Median yearly household income $53K $58K

Employed full-time/part-time 60% 64%

Attended college 58% 60%

1 or more children in home 36% 38%

Wireless carrier customers are younger, upscale, and more educated than the overall U.S. population

Source: Scarborough USA+ (Current 6 Months Only) 2016 Release 2 Total (Feb 2016-Nov 2016), Adults 18+. Wireless carriers customers defined as: (Wireless/cell phone carriers currently

use: MetroPCS OR Sprint OR Cricket OR AT&T OR Boost Mobile OR Verizon Wireless OR Virgin Mobile OR TracFone OR Straight Talk OR T-Mobile)

Wireless

carrier

customers

Heavy

radio

listeners

Heavy

digital

users

Heavy

broadcast

TV

viewers

Heavy

cable

viewers

Heavy

newspaper

readers

Median age 46 45 40 57 53 54

Median yearly household income $58K $59K $64K $46K $53K $57K

Employed full-time/part-time 64% 68% 70% 46% 51% 56%

Attended college 60% 59% 66% 54% 57% 62%

1 or more children in home 38% 42% 42% 26% 31% 30%

Wireless carrier customers profile: mirrors heavyradio listeners

Source: Scarborough USA+ (Current 6 Months Only) 2016 Release 2 Total (Feb 2016-Nov 2016), Adults 18+. Wireless carriers customers defined as: (Wireless/cell phone carriers

currently use: MetroPCS OR Sprint OR Cricket OR AT&T OR Boost Mobile OR Verizon Wireless OR Virgin Mobile OR TracFone OR Straight Talk OR T-Mobile). Heavy Users – 1st OR

2nd Quintiles by Media (Top 40% of users by time spent with media). Heavy Cable Users = 10+ Hours watched past 7 days (41.2% of pop.). Heavy Broadcast TV Viewers = 15+ Hours

watched past 7 days (40.3% of pop.)

90%82% 79%

70%

31%

Radio Internet Broadcast TV Cable Newspaper

Radio reaches more wireless carrier customers than the Internet and television

% of wireless carrier customers reached weekly by medium



92% 89%

75%67%

27%

Radio Internet Broadcast TV Cable Newspaper

Radio is the #1 reach medium among heavy texters

% of heavy texters reached weekly by medium

Source: Scarborough USA+ (Current 6 Months Only) 2016 Release 2 Total (Feb 2016-Nov 2016), Adults 18+. Heavy texter defined as Number of text messages sent 1st or 2nd Quintiles

110 109 108 107 107 107 106 106 106 105

Alternative Rhythmic

Contemporary Hits

Adult Hits Contemporary Hits Hot Adult

Contemporary

Active Rock Mexican Regional All Sports Classic Rock Adult

Contemporary

Many radio formats deliver wireless carrier customers

Index of wireless carrier customers to adults 18+ by format (U.S. average = 100)

How to read: When compared to the general U.S. population, wireless carrier customers are 10% more likely to listen to Alternative format radio stations.



Heavy texters connect with radio formats

140 139 139 138130 128

121 121 119 117

Rhythmic

Contemporary Hits

Alternative Pop Contemporary

Hits

Urban

Contemporary

Active Rock Hot Adult

Contemporary

Contemporary

Christian

Adult Hits Country Mexican Regional

Index of heavy texters to adults 18+ by format (U.S. average = 100)

How to read: When compared to the general U.S. population, heavy texters are 40% more likely to listen to Rhythmic Contemporary Hits format radio stations.

Source: Scarborough USA+ (Current 6 Months Only) 2016 Release 2 Total (Feb 2016-Nov 2016), Adults 18+. Heavy texter defined as Number of text messages sent 1st or 2nd Quintiles

Nielsen collaborated with Katz Media to conduct a sales lift study of a radio campaign by a top wireless carrier. This first ever study in the wireless carrier sector matched Portable People Meter panel listening data with customer purchase behavior from Nielsen Buyer Insights.

The results positioned radio as an ROI driver, with $14 of incremental sales for every $1 spent on radio.

Case Study:

Radio drives ROI

Methodology: connecting credit/debit card purchases directly

with Nielsen Portable People meters

Nielsen matched Portable

People Meter panel data with

credit/debit purchase behavior

Nielsen measured the

sales impact of the

two groups

Step 1

Unexposed Exposed

MATCHEDAUDIENCE EXPOSED

to the radio campaign

UNEXPOSEDto the radio campaign

Audience was broken into

groups based on Media

Monitors ad occurrence

Step 2 Step 3

Radio advertising resulted in a $209M increase in sales

Source: Nielsen Buyer Insights, P18+. Full Campaign (1/1/14-3/31/14)

$2.4billion

Baseline wireless

carrier customer

spend over

3 months

$2.6billion

Customer spend of

those exposed to

wireless carrier radio

ads over 3 months

+$209million

Increase in overall

customer spend

Wireless carrier return on investment:$14 of incremental sales per $1 spent on radio

Incremental Sales

÷

Radio Investment

=

Return oninvestment

$209M

÷

$15M

=

$14


Customers exposed more frequently to the radio campaign spent more


Additional monthly spend per wireless carrier customer exposed to radio ads

+$8

+$16

Total exposed

(1+ ads)

Heavily exposed

(10+ ads)

x2

Millennials: Radio drove twice the lift in monthly spending


+$8

+$16

Total exposed

(1+ ads)

Millennial exposed

(1+ ads)

Additional monthly spend per wireless carrier customer exposed to radio ads

x2

Radio delivers excellent ROI

Source: Nielsen 2014-2016.

Payback per $1 spent in radio

Candy

3x

Snacks

6x

Breakfast

Bar

2xBeer

4x

Auto

Aftermarket

21x

Telecom

14xMass

Merchandiser

16x

Home

Improvement

9xFast

Food

3x

Soft

Drink

2x

Department

Store

17x

Grocery

23x

Retail

11x

Radio drives ROI: a Nielsen wireless carrier case study

$14:1 return on advertising

spend


Frequency works

Consumers exposed

10 times to the

campaign spent

2x

Double the Millennial impact

14 return on

advertising spend

$

Radio drove a sales

lift in monthly spend

among Millennials

2xthe spend of adults

For every $1 spent on

radio, the brand saw

Key findings

• Heavy wireless carrier customers have a similar profile to heavy radio

listeners: younger, upscale, and more educated

• Radio reaches wireless carrier customers: AM/FM radio reaches more

wireless carrier customers than the Internet, television, and newspapers

• Reach wireless carrier customers with radio: a variety of formats and

programs offer rich concentrations of the wireless carriers customer

• Frequency increases sales: customers who frequently heard the wireless

carrier campaign spent more

• Radio delivers sales impact for wireless carriers: $14 return on investment for

every $1 invested in radio

All concepts property of Westwood One and may not be used without permission or agreed upon spending levels. Details pending partner and talent approval and subject to revision. © 2016-2017 Westwood One, Inc.

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telco case study

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