Home Login RADIO ONLINE RSS Facebook
Advertisement

Study: Broad Ad Reach Key to Driving Brand Growth


Cumulus Media |  Westwood One
Cumulus Media | Westwood One

New marketing research suggests advertisers looking for long-term growth should focus on reaching a broad audience rather than concentrating heavily on consumers who are already in the market to buy. The findings are highlighted in a new Cumulus Media | Westwood One Audio Active Group analysis from Pierre Bouvard, drawing on marketing effectiveness research and a new book from James Hurman, along with a new study from Les Binet and Will Davis.

At the center of the research is the "95/5 rule," which holds that only about 5% of consumers are in the market for a particular product or service at any given time, while the remaining 95% represent potential future customers.

According to the analysis, advertisers have two primary jobs: converting existing demand among consumers currently in the market and creating future demand by building their brands among those who are not yet ready to buy.

The research suggests marketers devote about 40% of their efforts to reaching in-market consumers and 60% to building future demand. While tightly targeted advertising can help convert existing demand, reaching the much larger group of future buyers requires broader media exposure.

That approach favors what the report calls "big media," including AM/FM radio, television and out-of-home advertising.

Research cited by Bouvard indicates campaigns targeting new buyers or the entire market are two to three times more effective than campaigns focused primarily on existing customers. Over longer periods, companies employing broad-reach strategies were also significantly more likely to report substantial profit growth.

The analysis also challenges marketers' perceptions about the importance of targeting. A survey of 300 advertising decision makers found marketers and agencies estimated targeting was responsible for 22% of sales impact. Consumer purchase measurement firm Circana puts the actual contribution at 11%.

Another advantage cited for mass-reach media is memorability. Research from Amplified Intelligence's Karen Nelson-Field found more than 85% of online ads fail to reach the 2.5-second "attention-memory threshold," the point at which active attention begins making a meaningful difference in how long a brand remains in memory.

The research also found advertising in AM/FM radio, television and outdoor media can generate stronger perceptions of brand quality, popularity and trust than digital advertising. When measures including quality, financial strength, confidence, popularity, success and trust were combined, big-media advertising scored 40%, compared with 29% for digital media.

Bouvard argues this is particularly important because much of advertising's role occurs well before a consumer is ready to make a purchase. Research cited in the analysis found 84% of purchases are effectively decided before shopping begins, making long-term brand awareness critical.

The findings also challenge the traditional concern about advertising "waste" - reaching consumers who are not currently in the market. Instead, the analysis argues that reaching those consumers is necessary for future growth because brands need to be known before they are needed.

Read the full Audio Active Group blog here.

Advertisement

Latest Radio Stories

Mary Louise Kelly Stepping Down as NPR Host
Mary Louise Kelly (photo credit: Mike Morgan, NPR)
Mary Louise Kelly (photo credit: Mike Morgan, NPR)
Mary Louise Kelly is stepping down as co-host of NPR's "All Things Considered" and host of the network's "Sources & Methods" podcast after more than eight years in the ATC anchor chair. The week of November 2 will be Kelly's final week as co-host of "All Things Considered," while she will sign off from More

Radio Ads Reach Consumers Ready to Act
Katz Radio
Katz Radio
Consumers influenced by radio advertising are more likely to be planning purchases and activities across several high-value categories than consumers influenced by advertising overall, according to a new analysis from Katz Radio Group. For its latest "Sound Answers" report, Katz More

Hubbard Launches 'Bull Classics' in Seattle
KPNW-FM-HD2 (Bull Classics)/Seattle
KPNW-FM-HD2 (Bull Classics)/Seattle
Hubbard | Media That Connects has launched "Bull Classics," a new Classic Country format airing on KKNW-AM (1150) and KPNW-FM-HD2 (98.9) in Seattle. The format features Country favorites from artists including George Strait, Alan Jackson, Reba McEntire, Garth Brooks, Brooks & Dunn, Shania Twain and Toby More
Advertisement

Compass Media Lands Pac-12 Championship Audio Rights
Compass Media Networks
Compass Media Networks
The Pac-12 Conference and Playfly Sports have entered into a multi-year partnership with Compass Media Networks for the exclusive national audio rights to the conference's football and men's and women's basketball championship events. Under the agreement, Compass Media Networks will produce, broadcast More

Connoisseur to Sell WQCM to Family Life Ministries
WQCM-FM/Hagerstown-Chambersburg
WQCM-FM/Hagerstown-Chambersburg
Connoisseur Media has reached an agreement to sell WQCM-FM, licensed to Greencastle, PA and serving the Hagerstown-Chambersburg market, to Family Life Ministries. The transaction is subject to FCC approval and is expected to close during the fourth quarter. Financial terms were not More

Seven Mountains to Reacquire WCDI for $300,000
Seven Mountains Media
Seven Mountains Media
Seven Mountains Media is reacquiring WCDI-FM (100.5) in Elizabethville, PA from Family Life Ministries for $300,000, according to FCC documents. The asset purchase agreement, dated September 25, identifies Family Life Ministries as the seller and Seven Mountains affiliate Southern Belle Media Family as the More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement