the canadian audio landscape 2018 update€¦ · source: nielsen 2016 a& 2017 canada year-end...

1 | Radio Connects | September 2018

THE CANADIAN AUDIO LANDSCAPE2018 UPDATE


WHAT YOU NEED TO KNOW.The following provides an overview of the audio landscape in Canada.

Key radio facts, figures, insights and its advertising impact on business and consumers are included. All information is sourced and noted and comes from syndicated and bespoke research.

The contained information in this document are some key best practices when it comes to planning and executing radio.

Like all documents of this nature, it is meant as a guideline and not a de-facto approach. Each business need is unique and the same approaches won’t work for all products or against all consumers, but there are some brilliant basics that apply to all plans and executions.

Also important to remember is not all markets are the same and there are unique differences between English and French Canada that should be observed.


Glossary of Terms

Audio StreamingAny audio transmitted online as a continuous flow; includes music streaming services, live streaming of AM/FM or other audio on demand.

Ad-supported music streaming A music streaming option offering users limited interactivity (typically a range of playlists with limited ability to skip songs) at no charge with advertising.

Pureplay music streaming Streaming of those music services available online only, such as Spotify, Apple Music subscription service, and cbcmusic.ca.

Ad-free subscriptions Paid subscriptions to pureplay music streaming services such as Spotify, Apple Music, Google Play Music that allow on demand access to a virtually unlimited choice of music with no advertising.

PodcastsPre-recorded digital audio programs, usually spoken word, that you can subscribe to in a feed and/or download to listen to later.

Definitions of the terminology used in this document.


Contents.

Audio Landscape – Truth in Audio.An update on the evolving audio landscape and the impact of streaming and music services.

AM/FM radio fundamentals and who’s listening.Year over year listening trends, daypart trends and demographic overviews.

Radio’s impact on business.Hearing ads on the radio makes people take action. Behaviours and ROI on the path to purchase.

Radio planning and activation essentials.Basic principles to follow when executing AM/FM radio buys.


Truth in AudioThe audio landscape is ever evolving, and AM/FM radio has been

evolving and adapting in pace. Currently there are a many

misconceptions about radio and its place in the audio landscape.

• Commercial radio is waning – It’s Not.

• Millennials don’t listen to radio – They Do.

• Spotify and similar platforms are the new radio – They’re Not.

• Radio doesn’t build business – It Does.

AM/FM Radio is the dominant audio platform.Radio is thriving in a diverse audio landscape and technology is making it even more accessible across platforms. It dominates in the home, in the car and at work.

18-34 year old’s are listening.Millennials do listen to radio, 4 x more than they listen to Spotify and the older they get, the more they listen to AM/FM radio. (Source: Radio on the Move, Wave 9)

Technology is changing how Canadians curate music.Personal music business model is changing from owning to renting. Platforms like Spotify, Google Music and others have changed the business model.

AM/FM Radio inspires action.Most Canadians recall taking action after hearing a brand, product or service advertised on AM/FM radio. 53% took action – either purchased it, told someone else about it or went on line for more information (Source .Radio on the Move interim summer 2018 report).


RADIO CONNECTS WITH CANADIANS.Radio connects Canadians with new music, local and global news and keeps them entertained and informed. Apps, smartphones and smart speakers empower listeners to take their favourite stations, personalities and podcasts with them. And audiences keep coming back for more.

Radio Today


On Air

A mass medium capable of easily delivering your

message to many people.

Targetable assuring the right people are

exposed to your message.

A trusted medium and always available especially during

times of crisis.

On Line

Digital capabilities offering interactive

opportunities.

Complements and enhances on air

campaign by reaching consumers using

multiple touch points.

Delivers content wherever and

whenever listeners want it.

On Target

An environment that delivers consumers

who are engaged and passionate about the

content.

Offering companionship and

information.

Exposure to the message when and

where consumers are ready to buy or shop.

It’s always on.

7

The original mobile platform.


It’s on target, on time and online.

Target selective reach Radio provides an efficient way to target specific audiences through format, daypart and listener trends.

Builds frequency Radio schedules can efficiently build frequency over time while maintaining reach.

Market selectivity Radio can deliver effectively at a local level and can minimize spill across trading areas.

Multiple platform availability due to apps, station streaming and station social sites Advances in technology allows radio to be truly mobile and on demand across platforms.

Remotes, sponsorships, added-value and promotional opportunities. Radio’s agility and flexibility allows for additional opportunities to extend the campaign beyond on air spots.

No significant seasonal drop-offTuning to radio is consistent across seasons and it’s content is always fresh and new. Listeners are loyal.

Ability to reach the light TV Viewer Studies have shown reach against the valuable light TV viewer can be delivered by radio.

Compliments digital buys Canadians take action online after hearing a radio ad. Action that is often mis-credited to digital.

IT REACHES CONSUMERS ON THE LAST MILE IN THE PATH TO PURCHASE


RADIO IS OUR COMPANIONRadio is a social experience that has evolved over time. A continuing relationship

between the listener and personalities,

something that doesn't happen with audio streams or music collections.


Radio, growth with stability.

Number of Canadian radio stations has increased over the years.

Total Commercial Stations

Opportunity for growth as HD stations come online.

Source: CRTC Report 2016


Canadian Radio, a $1.6 billion dollar industry.

Source: CRTC Monitoring Report 2017

Market Share - 2016

26%

14%

8%10%

7%

35%

Bell Canada (BCE) Rogers Corus Newcap Cogeco Other

Source: CRTC Report 2016

Combined, Bell and Rogers claim over 60% of total Canadian market.

Newcap recently sold to Montreal’s Stingray (formerly Galaxy).

Cogeco’s recent acquisition of RNC stations in Quebec gives them the dominant share in French language radio.


The audio landscape in Canada is changing rapidly.

12

2014 2015 2016 2017

Google Home Smart

SpeakersJune 2017

Google Play Music

launched: May 2014

Spotify launched: September

2014

Tidal Music launched: December

2014

Apple Music

launchedJune 2015

iHeartRadio app

launched: October

2016

Radioplayer app

launched: March 2017

Amazon Echo Smart

SpeakersDecember

2017

Amazon Prime Music

November 2017

13 | Radio Connects | September 2018 SOURCE: MTM SPRING 2017 / NIELSEN 2016 + 2017 CANADA YEAR END REPORTS ROTM 2017/2018 W9 * Audio Time = Radio Receiver + AM/FM Streaming + Satellite + Online Audio/Music

The audio universe is expanding with tracking of personal music.

1. Albums (Physical + Digital) Sold: 2016 -> 2017 = -18%

2. # of Streams: 2016 -> 2017 = +71%

3. #1 Reason listening to PurePlays = Listen to Any Song I want when I want

4. 50% of Daily Spotify Listens have Premium Subscription (No Ads)

5. Audio Time* Spent 18+ Canadians - Millions of Hours 2012 -> 2017 = +25%.

294

1663

283

32

151

Radio : Receiver +Streaming

Satellite OnlineAudio/Music

2012 2017

CANADIANS 18+ AUDIO HOURS (MM’s)BY PLATFORM:


Personal music business model is changing from owning to renting.

Source: Nielsen 2016 a& 2017 Canada Year-End Reports. On demand audio data from Apple Music, Google Play, Spotify, Tidal, and Slacker * Includes physical and digital albums, as well as TEA (Track Equivalent Albums) from single song sales

Spotify September 2014 Apple Music June 2015

Google Play May 2014 Amazon Prime November 2017

Physical Sales In DeclineBrick and mortar stores and physical album sales have been

in a steady decline.

‘Rented’ Audio LibrariesGrowth of digital platforms has changed how Canadians

manage their personal music libraries.

+

+


Canadians spend less time with streaming and SiriusXM than Americans.

SOURCE: Edison Share of Ear Canada 2017; U.S: Edison Research, “Share of Ear,” Q2-Q4 2017, Q1 2018

Sirius XM not as developed in Canada.

Americans stream music almost twice as much as Canadians. Data plans often impact usage outside of the home.

9%

4%

15%

7%

Streaming Sirius XM

Canada U.S.


Most of pureplay streaming reach is duplicated.

Close to 90% of pureplay music streamers still listen to AM/FM Radio daily.

87% 89% 90%

Daily pureplaystreamers

Weekly pureplaystreamers

Monthly pureplaystreamers

% who listen to AM/FM Radio on “a typical weekday”

SOURCE: Radio on the MoveQ.E1 Thinking of all the time you may listen at home, in the car, or at work, how much time in total do you spend listening to AM or FM

radio stations during a typical weekday?Base: Canadians, aged 18+; pureplay streamers in past 24 hours (n=457); pureplay streamers in past week (n=781); pureplay streamers

in past month (n=1,004)


Nearly tripled since before Christmas. Just one year after Google Home arrived in Canada, more than 1-in-10 Canadian adults own a smart speaker.

More players entering the field.Samsung will soon be joining Google, Amazon, and Apple. Microsoft rumored to be developing their own.

Audio branding increasingly a “thing.”The growth of smart speakers is opening new conversations at ad agencies around audio branding.

4%

11%

Nov/Dec 17 June 18

% of Canadian Adults whoOwn Smart Speakers

SOURCE: Radio on the MoveQ.F17 Which of the following would best describe your experience with the Amazon Echo and Google Home “smart” speakers?/ and Apple HomePod “smart” speakers (June 18)? Base: Canadians aged 18+ (n=2035)

Smart speaker adoption is growing rapidly


Google Home leads smart speakers in Canada.

HomePod to earliest adopters only. Apple’s HomePod launched in Canada in June when the survey was in field. Could have been acquired via the U.S.

SOURCE: Radio on the MoveQ.F17 Which of the following would best describe your experience with the Amazon Echo and Google Home “smart” speakers? [I already own an X] *brackets indicate Canadian release dateBase: Canadians aged 18+ (n=2035)

2%

3%

2%

2%

8%

Apple HomePod

Amazon Echo

Google Home

Jun 18

Nov/Dec 17

Different picture than the U.S. Google Home was first into the market in Canada and backed it up with a major marketing campaign, unlike the U.S. where Amazon launched first.

Amazon Echo flat. Little or no growth since its launch in Canada just before Christmas.


Smart speakers open new opportunities to listen to audio.

SOURCE: Radio on the MoveQ.F21. How would you say having a smart speaker at home has affected the amount of time you spend listening to each of the following?*non-listeners and those who did not report any changes not shownBase: Canadians aged 18+ who own a smart speaker (n=203)

41%

16% 14%

-3% -5%

Music AM/FM Podcasts

Listening Less Listening More

+40%

+13% +9%

Impact of Smart Speakers on Time Spent with Audio

(by % of owners)

Net increase in listening to music: +40% A total of 41% of early smart speaker owners say they are listening to more music since they got their smart speaker, with just 1% saying they were listening to less music.

Net increase in listening to AM/FM: +13% Smart speakers are the new “radios” for many early smart speaker owners.

Net increase in podcast listening: +9% Google Home in particular provides easy access to most recent episodes of favourite podcasts.


Spotify is the most listened to pureplay service.

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to [service]? Base: Canadians aged 18+ (n=2035)

Spotify – 1 in 5 Canadians listen. One in five Canadians listen to Spotify’s ad-supported and ad-free services weekly, up 3 points from 16% in November/December 2017. Daily listening is up 1%. Overall growth due to increases in ad-free subscriptions.

Google Play + YouTube Music. In May of this year, Google announced the launch of a new premium service, YouTube Music, and has confirmed that it will replace Google Play Music in 2019.

19%

14%

7%

10%

6%

3%

Spotify

Apple Music

Google Play Unlimited

Listen weekly

Listen dailyApple Music – growing faster than Spotify Apple Music, solely an ad-free paid subscription service, is showing more robust growth than Spotify, with weekly listening up 6 points from 8% in late 2017.


Who’s listening to Spotify and why.

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to: Spotify?Base: Canadians, aged 18+ (n=3470)

Early adopters most likely to subscribe to music platforms.18-34 year old’s are also the most likely to use ad-blocker technology.

16%

32%

16%

4%9%

20%

7%2%

All adults 18-34 35-54 55+

Listen to Spotify ( Ad Free + Ad Supported ) 1+ x/weekListen to Spotify ( Ad Free + Ad Supported) daily

On demand access the priority. 65% of Canadians who use pureplay services do it to have immediate access to songs.

Curated playlists less important. Only 1/3 of pureplay streamers name curated playlists – radio’s domain – as a main reason for listening.


Millennials listen to AM/FM radio 4 x more than Spotify.

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to: Spotify?Q.E1 Thinking of all the time you may listen at home, in the car, or at work, how much time in total do you spend listening to AM or FM radio stations during a typical

weekday?Base: Canadians, aged 18+ (n=3470)

Millennials tune to radio to stay connected.

88%83%

90% 91%

9%

20%

7%2%

All adults 18-34 35-54 55+

Listen to AM/FM on "a typical weekday"

Listen to Spotify daily

+4x


89%

When you buy ads on AM/FM, you get almost all of Spotify’s audience for free.

Ad-supported subs also tune AM/FM. In fact, an even higher % of ad-supported subs who listen to Spotify weekly reported listening to at least some AM/FM on a typical weekday (95%, compared to 89% of all Canadian adults).

% of all adults delivered exclusively by Spotify

0.4%

Listen to some AM/FM on a “typical weekday”

% of all Canadian adults

Ad-supported subs listening to Spotify weekly

8.3%Similar picture in 18-34 demo. A total of 92% of 18-34 year-olds with an ad-supported subscription who listen to Spotify weekly said they also listen to some AM/FM on a typical weekday. % of all 18-34s delivered exclusively by Spotify: just 1.2% (down from 1.8% in Nov/Dec ‘17).

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to [service]? Base: Canadians aged 18+ (n=2035)


57%

52%

51%

50%

49%

41%

36%

32%

26%

It's convenient

To get practical info (traffic/weather/ads)

To hear the latest news

To hear whats happening in general

It's free

For the local connection

To hear new music I wouldn't hearotherwise

For the personalities - the humanconnection

To put me in a good mood

Daily Spotify Users

61%

56%

55%

54%

49%

45%

36%

32%

25%

It's free

To get practical info(traffic/weather/ads)

To hear the latest news

It's convenient

To hear whats happening ingeneral

For the local connection

For the personalities - the humanconnection

To hear new music I wouldn't hearotherwise

To put me in a good mood

All Past Month Pureplay Streamers

Convenience, free content and to be connected are reasons why pureplay streamers listen to AM/FM.

24

SOURCE: Radio on the MoveQ.F16e. Given all the other ways you have to listen to music, which of the following reasons best describe why you still listen to AM or FM radio?Base: Canadians aged 18+ who listened to music streaming services in the past month, and also to AM/FM 30+min in typical weekday (n=737)


AM/FM radio fundamentals and who’s listeningAs the audio landscape expands and becomes more

measurable, AM/FM radio consistently delivers valuable

audiences across all regions and all demographics.


Listening by region/language.

89% OF CANADIANS 12+ LISTEN

EVERY WEEK TO AM/FM RADIO

Ad 1834: 80% weekly reach

Ad 1849: 85% weekly reach

Ad 2554: 89% weekly reach83%86%

85% 85%

87%

Total Quebec:

87%

French: 86%

English: 82%

87%85%

86%87%

Source: P12+ All M-Su 5a-1a by Province Numeris Diary Fall 2017)


Canadians choose to spend time with radio more than any other audio.

SHARE OF EAR® CANADA 2017

Source: Edison Research Share of Ear ® 2017 Canada | Avg. Daily Listening P13+ | AM/FM includes over the air streams | Owned Music includes CDs, digital music files etc. | Streaming Audio includes pureplays such as Spotify, Apple Music, Google Play etc.


Radio has solid time spent across multiple demos.

15.0

15.0

15.0

12.3

14.5

13.8

13.3

15.5

12.0 17

.0

15.5

15.3

15.0

12.8

22.8

21.6 24.0

14.5 18

.5

18.9

20.1 24

.4

15.7

25.1

24.0

22.5

22.6

20.6

25.7

26.7 24.7

36.2 29

.9

29.2

27.4 22

.6

37.4

24.6

22.2

27.9

27.0

24.2

2.6 2.5 2.5 0.9 1.3 1.9 2.6 2.7 1.32.7

2.82.5 2.2

2.3

18+ MALE FEMALE 18-44 25-54 HHI+$100,000

UNIVERSITYEDUCATED

MARRIED SINGLE Atlantic Quebec Ontario Prairie B.C.

Radio TV Internet Print ( D/C Newspaper + Magazines)

Source: RTS FALL 2017 18+ Avg. Total Time Spent by Medium


89% of 12+ Population

Radio Reaches 27.3 MILLION people Weekly.

50/50

M18+ 11.0 Hours Per WeekF18+ 10.5 Hours Per Week

.

Canadians 12+ spend 17

hours per week listening to

radio.

Daytime 35%

Canadians spend most time

listening during the day –

Mon-Sun 10am-3pm

17 Hrs/wk

Source: Numeris Diary FALL 2017 M-Su 5a-1a Total Canada


Canadians tune in everywhere.

In 2017, Canadians 12+ spent 451,959,000 hours with radio, reaching 27,261,900 people weekly. (Source: P12+ All M-Su 5a-1a Numeris Diary Fall 2017)

In 5 of Canada’s largest markets (T/M/V/C/E), Canadians 12+ spent 136,332,800 hours, reaching 13,122,500 Canadians weekly. (Source: P12+ M-Su 2a-2a Numeris PPM Data wks 1-13)


Canadian AM/FM radio dominates audio at WORK.

31

63%

13%

11%

6%

4%

2%

AM/FM Radio

Owned Music

StreamingAudio

Sirius XM

Podcasts

TV Mus. Ch.

Time spent

Source: Edison Share of Ear Canada 2017; U.S: Edison Research, “Share of Ear,” Q2-Q4 2017, Q1 2018.

CANADIAN AM/FM RADIOHAS 89% SHARE OF AD

SUPPORTED AUDIO AT WORK


Canadian AM/FM radio dominates audio in the CAR.

32

73%

12%

11%

2%

4%

AM/FM Radio

Owned Music

Sirius XM

Podcasts

Streamed

Time spent



SUPPORTED AUDIO IN THE CAR


Canadian AM/FM radio dominates audio at HOME.

33

14%

11%

10%

3%

3%

AM/FM Radio

Owned Music

Streamed

TV Music

Other

Podcast

Time spent



SUPPORTED AUDIO AT HOME

59%


What Canadians listen to.

T40 / Mainstream9%

Hot AC11%

News /Talk 24%

12+ Ad 25-54

T40 / Mainstream14%

Hot AC15%

News /Talk 16%

Ad 18-49Ad 18-49

T40 / Mainstream17%

Hot AC17%

News /Talk 14%

Ad 18-34

T40 / Mainstream14%

Hot AC21%

News /Talk 10%

Source: Numeris Diary Fall 2017 | Mo-Su 5a-1a | Total Canada all radio stations | Based on total hours


Behaviours change as life stages change.

2017 Millennials measured in 2013 are 21-37 yrs. OldThey listened to 30,422,219 hours of radio in one week. +28% increase from when they were 17-33.

2016 Millennials measured in 2013 are 20-36 yrs. OldThey listened to 29,231,919 hours of radio in one week.

2015 Millennials measured in 2013 are 19-35 yrs. oldThey listened to 27,827,395 hours of radio in one week.

2014 Millennials measured in 2013 are 18-34 yrs. OldThey listened to 25,925,086 hours of radio in one week.

As Millennials age, their time spent with radio increases.

20134 Millennials measured in 2013 are 17-33 yrs. OldThey listened to 23,840,853 hours of radio in one week

18‐34yrs. old – 25.9MM hrs/wk

Source: Numeris PPM data | Mo‐Su 2a‐2a | Total Meter Ctrl Total Radio | Avg. Weekly Total Hours | Calendar Years Jan‐Dec, |Demos as labeled.


Radio has consistent Reach.93

%

94%

93% 94%

94%

94%

94%

94%

94% 95%

95%

94%95

%

96%

95% 96

%

96%

96%

94% 95%

94%

94%

95%

94%

94%

95%

94% 95%

95%

95%

93%

94%

93% 94

%

95%

94%

A2+ A18+ A18-34 A18-49 A25-54 A 55+

Jan2017

Dec2017

June2017 Jan

2017Dec2017

June2017

Jan2017

Dec2017

June2017 Jan

2017Dec2017

June2017 Jan

2017Dec2017

June2017 Jan

2017Dec2017

June2017

Source: Numeris PPM Data | Mo-Su 2a-2a | Total Meter Ctrl | Total Radio | Avg. Wkly Reach % | Calendar year 2017 Jan-Dec | Demos as labelled

A MEDIUM FOR ALL SEASONS


BR

5A

-10A

71%

BR

5A

-10A

73%

BR

5A

-10A

66%

BR

5A

-10A

71%

BR

5A

-10A

74%

BR

5A

-10A

74%

DA

10A

-3P

83%

DA

10A

-3P

86%

DA

10A

-3P

80%

DA

10A

-3P

83%

DA

10A

-3P

85%

DA

10A

-3P

89%

DR

3P-

7P83

%

DR

3P-

7P84

%

DR

3P-

7P82

%

DR

3P-

7P84

%

DR

3P-

7P86

%

DR

3P-

7P83

%

EV 7

P-1A

66%

EV 7

P-1A

69%

EV 7

P-1A

69%

EV 7

P-1A

70%

EV 7

P-1A

71%

EV 7

P-1A

65%

A2+ A18+ A18-34 A18-49 A25-54 A 55+

Radio listening peaks during the Workday for A18+ and during Drive for A18-54.

Source: Numeris PPM Data | By Daypart M-Su | Total Meter Ctrl | Total Radio | Avg. Wkly Reach % | Calendar year 2017 Jan-Dec | Demos as labelled

READIO REACHES 86% OF AD25-54 EACH WEEK DURING 3-7PM


Radio’s impact on businessAs the audio landscape expands and becomes more

measurable, AM/FM radio consistently delivers valuable

audiences across all regions and all demographics.


After hearing a brand, product or service

advertised on AM/FM radio, more than half of

Canadian adults (53%) acted on one or more of

these things:

PURCHASED IT

TOLD SOMEONE ABOUT IT

WENT ON LINE FOR MORE INFO

AM/FM Radio inspires action.

SOURCE: Radio on the MoveQ.Ad1. Whether listening in the car or elsewhere, have you ever taken any of the following actions after hearing a brand, product or service advertised on AM/FM radio?Base: Canadians, aged 18+, (n=2035)


AM/FM Radio drives digital search.Though typically unattributed to radio, nearly 4-in-10 Canadian adults say

that hearing an ad on AM/FM radio led them to seek out more info online,

up 5-points from late 2017.

34% 39%

Nov/Dec 17 June 18

Ever gone online for more info

SOURCE: Radio on the MoveAd1. Whether listening in the car or elsewhere, have you ever taken any of the following actions after hearing a brand, product or service advertised on AM/FM radio? [Gone online to get more information]Base: Canadians, aged 18+, (Nov/Dec n=3470) / (June n=2035)


AM/FM Radio activates affluent consumers.

$100K+ HH more likely to take action. Nearly two-thirds of Canadian adults in these affluent households report having acted on an ad they heard on the radio,

Especially on the last mile in the path to purchase.Canadians in affluent households spend more time in their cars or trucks, making them much more likely than those in lower income households to have been influence by an ad they heard in the car.

43%57%

64%

HHI income <50k HHI income 50-100k HHI income 100k+

Source: The Canadian Podcast Listener—a Landscape Study / Summer 2017 & May 2018Ad1. Whether listening in the car or elsewhere, have you ever taken any of the following actions after hearing a brand, product or service advertised on AM/FM radio? Ad3. Has something you heard on the radio in the car ever affected a purchase you were about to make, or a store/location you were about to visit?Base: Canadians, aged 18+ (HHI <50K: n=731; HHI 50-100K: n=645; HHI 100K+: n=361)

Ever gone online for more info, purchased, or told someone about a product, service or brand after hearing an ad on radio

26%37% 41%

HHI income <50k HHI income 50-100k HHI income 100k+

Ever heard something on the radio in the car that affected a purchase you were about to make / store you were about to visit


One-in-seven Canadians say they went online in the past month to get more info about an ad they heard on radio.

Users of audio platforms index higher.Those Canadians who over index on their use of audio platforms respond more than average Canadians when there here a commercial on AM/FM radio.

SOURCE: Radio on the MoveQ.Ad2b. When was the most recent time you went online to get more information about a brand, product or service after hearing it advertised on AM/FM radio?Base: Canadians, aged 18+, (n=3470)

15% 17% 20% 18%

All Cdns 18+ AD18-34 HH Income$100K

University Ed.

% went online to seek more info on an ad heard on AM/FM radio – past

month

23%

26%27%

Sat. RadioUsers

PureplayStremers

Daily SpotifyUsers

Cdns 18+ = 15%


AM/FM Radio provides the soundtrack for the last mile in the Path to Purchase.

77%

76%

76%

75%

75%

75%

75%

74%

74%

74%

74%

71%

69%

Shopping at a mall or plaza

Grocery shopping

To the drug store / pharmacy

Hardware/home-improvement store

Stopping at a coffee shop

Picking up lottery tickets

Take your car/truck in for servicing

Fast food restaurant or drive-thru

To the bank

To a movie

A casual or fine dining restaurant

Stopping for beer, wine or liquor

Visiting a car dealershipSOURCE: Radio on the MoveC5d. And still thinking about the time you spent in a private vehicle in the past 24 hours, did you do any of these things while driving, or use your vehicle to get there?C5e. Were you listening to AM/FM radio in the car while doing or going to this?Base: Canadians, aged 18+, in private vehicle in past 24 hours who used vehicle for activity in past 24 hours; base varies depending on activity

Listened to AM/FM Radio while going to, or doing this – in the past 24 hrs:


Radio amplifies spend.

$12Return on

Advertising Spend

For every $1 spent on AM/FM Radio, the men’s personal care brand saw$1.23 on ROA spend amongmale AM/FM radio listeners. The parent brand saw $11.96 ROA spend among all households

Key Element Title Here

Parent brand saw +8%sales lift among male AM/FM Radio listening households

+0.8%

The parent brand saw a +0.8% increase in category share, which can translate into millions in revenue.

Men’s Personal Care Brand Study

+8%Sales Driver

CategoryShare

SOURCE: Nielsen Catalina Solutions, analysis of men’s personal care brand’s AM/FM Radio campaign 03/27/17-10/27/17 | 5,794 households, 4,549 analysis panelists | 1,029 total parent brand buyers


Radio advertising ads lift.

Generated a 32% increase in share.Increased sales generated by those exposed to radio ads improved market share by 3.4 points..

Nielsen Catalina Solutions looked at the impact of radio advertising on a snack product.Product studied usually gets 10.5% share of all sales in the category. When 9% of the consumers were exposed to radio campaign for the product, the snack product saw a 13.9% share of sales against those listeners.

Better with radio than without.Including the 91% of those not exposed to the product’s radio campaign, the weighted average of 0.3% increase in share points is higher than expected without advertising. Radio can have a greater impact in overall sales, particularly at the right GRP level.

SOURCE: Nielsen Radio Rediscovered 2017


$23

$21

$17

$15

$14

$9

$6

$4

$3

$3

$2

$2

Grocery

Autos & Aftercare

Department Stores

Retail/Mass Merchandisers

Telco

Home Improvement

Snacks

Beer

Candy

QSR

Soft Drinks

Breakfast Bars

AM/FM Radio has positive impact on product sales.

Radio pays back. Key adverting categories were measured over three years to evaluate ROI. In all categories studied, radio surpassed its initial investment when evaluated against sales.

SOURCE: Nielsen studies 2014-2016

$1 to $10 ratio.On average, for each $1 invested, radio advertising yields a $10 return on advertising spend (R.O.A.S.).


Radio planning and activation essentialsRadio stars in the theater of the mind, stimulates emotion-filled images within the listener’s own mind – voices, music, sound effects, recall of video images. No matter how small or large the advertiser, Radio allows creativity to brand and create a unique identity that consumers will remember. The more information known about a product or consumer, the more effective a radio campaign is.


MeasurementCentral area audience numbers in radio are used to generate station rating points for demographic targets. The definition of a central area generally corresponds to Statistics Canada Census Metropolitan Areas, Census Agglomeration, Cities, Counties, or Census Divisions or Regional Districts. Refers to a Numeris defined geographical area assigned to a station in a market.

Extended market audience numbers are used to generate total station impression deliveries for demographic targets. A Numeris defined geographic area comprised of a market and adjacent counties or census divisions, which is assigned to a broadcast market on the basis of majority audience delivery. Also known as Extended Market (EM)

Full Coverage Area The geographic area covered by a station’s signal, which may vary for different stations in a given market. May change from survey to survey. The defined geographical area comprised of a market and adjacent counties or census divisions, which are assigned to a broadcast market on the basis of majority audience. Cannot be expressed as %, (reach%, rating) because a geographic area is not specifically defined.

Numeris is the de-facto measurement for Television and Radio in Canada

Diary measurement.Radio listening in diary markets is measured through paper and online diary formats.• 92 markets surveyed in Fall• 28 markets surveyed in the Spring• Remaining markets, typically small or rural are purchased on

cost per occasion basis

Passive Measurement - Personal People Meters (PPM)Radio and TV share the same PPM panels that provides measurement across 52 weeks of listening.

Major markets are measured for 52 weeks continuouslyToronto, Montreal (English + French), Calgary, Edmonton and Vancouver are measured continuously through PPM technology.


Targeting key demographics.Identifying the consumer.Radio is a targeted reach and frequency medium and can be planned on a defined and targeted demographic or audience skew.Targeting beyond the currency demo.Although it is key to identify the buying demo as the ‘currency’ demo upon which costs and negotiations are based, station selection can be informed by a tighter demographic composition as Men 18-34 or Women 25-45, within the Ad 18-49 or Wm 25-54 currency demo.

Balancing the audience composition.It’s important to balance a buy against men and women, older and younger ends of the demo. This ensures the buy delivers against the key consumer profile. Improves overall audience composition of the buy. It’s Important to balance skew when buying against adults so that neither men nor women are overdelivered against.

Overly targeted buys have specific impact on the execution.A finite or narrowly targeted radio campaign can impact the buy through the use of fewer stations resulting in possible reach reduction with potentially higher frequency and a likely increase in CPR’s.

Psychographics, behaviours and factors like household income and purchase history are available within Numeris – Diary / PPM / RTS data to further identify key stations.


Understanding brand objectives, target behaviours and individual market dynamics is key

Planning essentials.

Planning effective GRP levels Must take into consideration the marketing insights (brand health, competitive landscape, SOV objectives, consumer target) which inform the individual market objectives.

Setting Reach Levels Reach: What % of the target market audience needs to be reached to achieve objectives, on a weekly and campaign level?Reach will build faster in PPM markets vs. diary markets.

Setting Frequency LevelsFrequency: How many times does the target market need to hear the message to take the required action, on a weekly and campaign level?Frequency will build faster in Diary markets vs. PPM markets

Planning factorsThere are key factors that need to be considered when planning radio weight levels.• What other media is planned in the market• Individual market dynamics, English vs. French audio

behaviours• PPM vs. Diary market• Target Demographics• Advertising category• Time of Year• Product purchase cycle


A radio buy is put together based on the planning brief and buy objectives.

Buying essentials.

Factors that are considered when adding stations:• Ranking• Format – consider niche stations which will offer unduplicated

reach• Station audience – does adding the station compliment the

other stations i.e.: older / younger, male/female. Does adding the station bring balance to the total audience target or skew?

• Cost – combo rates, deal rates and efficiencies when grouping vendor stations in a market for greater share of $’s can improve efficiencies

• Added value being offered beyond GRP’s (tags, announcer read liners, etc.)

Radio stations are typically selected based on:• Station ranking on planned target – how much reach

the station delivers• Format of the station• Station skew – does it deliver males or females?• Station core – does it deliver younger or older

audience?• Cost – is it part of a combo buy? What are the

implications to add or remove a station from the buy?• Duplication – are multiple stations delivering the same

listener and therefore impacting reach? • Time Spent listening (TSL) – does this station have a

dedicated listener, can’t be reached through other stations?

• Turn Over – how high is the turn over on this station, does it require more spots to reach listeners?

:

Building the buy:Radio buys are built one station at a time:• Ensure frequency targets are observed• Ensure number of spots per week based on station format is

adequate (i.e.: CHR format may require 60 spots per week vs. Country format that requires fewer 20 spots per week (more loyal listeners, less turnover/churn in audience)

• Ranking of station• Station reach

Criteria in the buy brief.Key pieces in establishing the buying guidelines• Demographic insights• Timing• Markets• Commercial Length• Estimated budget


Launch / Growth – e.g. new product

Weight Levels – Possible Scenarios.

Retail - typically sales driven, short term

Requires high impact and

immediate results

Radio Only: 300-450 GRPs/wkRadio and other media: 250-400 GRPs/wk

Radio Only: 250 – 400 GRPs/wkRadio and other media: 200-300 GRPs/wk

Mature / Sustaining

Radio Only: 200 - 250 GRPs/wkRadio and other media: 150-200 GRPs/wk

The general rule of thumb is a minimum of 150- 250 GRPS per week (50% R/ 3.0 F)28-35 occ/wk in non measured markets

High Impact and sustainability

Ongoing awareness, always on.

SUBJECT TO BRAND BUSINESS OBJECTIVES AND COMPETITIVE CLIMATE


GRP weight can vary by market.Some markets will require more stations to achieve reach levels, or conversely build reach quickly (ie.Montreal F) therefore requiring overall higher GRP levels. PPM markets vs. diary markets can have different reach objectives.

Things to keep in mind.Weight Levels.

GRP weight levels can vary by execution type. • Is it a launch?• Is it daypart specific?• Is it a spot buy vs. GRP buy?• Is it a DJ endorsement campaign?.

Frequency guidelines.Typically a minimum of 3 frequency per station for diary and 2.0 – 2.1 in PPM markets: Helps set the benchmark on when to add stations to a campaign. Note, in some markets this may not be achievable on all stations


Fast, Cheap or Good – Pick 2.

Lead times – following a critical path.

Major market top ranked stations can be sold out up to 2 months in advance.Longer lead times will result in better station inventory and better rates.Premium or top ranked stations may invoke minimum unit rates for high demand periods.Specific station requests and short lead times require communication between the client, planning and buying teams.Stations require at minimum 2 to 3 weeks for effective promotional ideation and development. To generate customized and targeted promotions, more lead time is needed.


Cost Implications.

Target Group Smaller the demo or more specific the target, the higher the cost.

Commercial length Not all lengths are costed the same. Commercial lengths outside of standard :30 second creative typically carry a premium. May vary by station.

Lead Times and Timing Closer to airtime and ‘tighter’ the avails, the higher the cost. High demand or strong retail periods can impact pricing – back to school, pre Christmas, long weekends in the summer are all high demand periods.

Specific station selection Higher ranked stations typically cost more, # 1 ranked on Ad1849, vs # 6 ranked on Ad1849. Some formats can cost more for a perceived higher value audience ie Higher % of HHI $100K+ etc.

Day part mix Radio is typically bought on a reach plan – Monday to Sunday all dayparts. When days or dayparts are excluded or used exclusively, costs will be impacted.

Tightened rotationsRestricting airings to specific times can impact costs, i.e. 7a-830a vs 5a-10a.

Radio remotes Like promotional events, radio remotes have hard costs outside of media costs. May require minimum media spend to have a remote.

The following will impact CPP’s and pricing models.


Stations will refuse creative if they believe it does not align with:• Their station brand or values.• Their station format or with the station’s ‘personality’.• Listeners’ sensibilities or is considered offensive to them.

Radio is self-regulated.Creative.

Stations are self-regulated and will determine creative acceptability. Radio stations follow Health Canada guidelines when it comes to regulated advertising products like: Tobacco, Cannabis, Vaping, Pharmaceutical and Children’s Advertising. Health Canada has not issued guidelines on marijuana and associated products’ advertising as of August 2018.

There are 3 creative lengths for radio• 30’s are the standard.• 60’s are rare.• :10s (could also be 5’s, 7’s 8’s or 15’s depending on

each station). • Short format typically used for promotional and

sponsorship reminders.• Effective when paired with 30 second brand sell.

WHEN TRAFFICKING RADIO TAGS AND/OR 30 SECOND SCRIPTS (FOR BRAND SELL) – LEAD TIME IS ESSENTIAL.

RADIO STATIONS REQUIRE TIME TO ENSURE THE TAG IS THE CORRECT LENGTH

STATION TALENT NEEDS TIME TO RECORD THE 30 SECOND SPOT AND BUILD IN TIME FOR CLIENT

APPROVALS


Creative wear out.

Source: Westwood One, Cumulus Radio Multi branded pool of media mix modeling data

Don’t worry about wear out.Good creative has a long expiration date.


Creative wear out.

Source: Westwood One, Cumulus Radio Multi branded pool of media mix modeling data

Superior creative delivers 3-4x more in ROI.

CREATIVE QUALITY IS THE PRIMARY DRIVER OF ”BREAK THROUGH,” ACCOUNTING FOR 75% OF VARIANCE IN BRAND/MESSAGE RECALL LEVELS


Cancellations and shifts.

2 weeks notice to cancel According to CAB rules, radio stations require at minimum 2 weeks notice to cancel a radio campaign. The stations have the right to refuse if there is no business reason to cancel. Being overbudget is not a reason.

Promotions may be non-cancellable When promotions are involved, radio stations require 4 weeks lead time or may negotiate a non-cancel clause up front.

Shift a buy with less than 2 weeks notice Ability to shift may be dependent upon station inventory and demand for the time period Any changes to flight dates can be subject to rate changes. Shifting and then cancelling is not good business practice.

Radio is a very flexible medium, however, there are rules of engagement.


It’s been a pleasure to share this information with you. For much more on how AM/FM radio connects with Canadians, please reach out.

Contact us

Radio Connects160 Bloor Street East

Suite 1005

Toronto

Phone: 416 787 7756

Caroline GianiasPresident [email protected] 622 4956

Lisa DillonDirector of Consumer and Media [email protected] 484 8695

Chantal LeblancDirect of Client Services Radio Connexions, [email protected] 501 1549

@radioconnects

Radio Connects

the canadian audio landscape 2018 update€¦ · source: nielsen 2016 a& 2017 canada year-end...

Documents