ARBITRON WHITE PAPER The Impact of Combining Local Radio and TV on Advertising A Collaboration between Arbitron Inc., Entravision Communications and Franco Research The Impact of Combining Local Radio and TV on Advertising 2 Contents Background ...................................................................................................................................... 3 Problem Statements.......................................................................................................................... 3 Methodology .................................................................................................................................... 3 Current Options................................................................................................................................ 4 PPM Cross-Platform Study Objectives............................................................................................ 4 Findings............................................................................................................................................ 4 EVC TV Dominates Access and Primetime, EVC Radio Dominates Daytime........................... 5 EVC Radio and TV Follow Users Throughout Their Day .......................................................... 6 Radio and TV Both Deliver Significant Reach............................................................................ 7 When Adding Radio to TV, Reach Increases Dramatically by Daypart...................................... 8 Frequency Differs Dramatically by Time of Day and Medium................................................... 9 Reach Can Be Increased by Using Both Radio and TV............................................................. 10 EVC Radio Plus TV Reaches 56% of the Entire Market........................................................... 11 McDonald’s Radio Plus TV Schedule Increases Reach, Frequency and GRPs ........................ 12 Characteristics of TV/Radio Users............................................................................................. 13 Conclusions.................................................................................................................................... 14 Next Steps ...................................................................................................................................... 14 Limitations and Considerations ..................................................................................................... 14 About Arbitron............................................................................................................................... 15 PPM ratings are based on audience estimates and are the opinion of Arbitron and should not be relied on for precise accuracy or precise representativeness of a demographic or radio market. © 2011 Arbitron Inc. The Impact of Combining Local Radio and TV on Advertising 3 Background Arbitron partnered with Entravision Communications (EVC) in the Denver DMA/MSA to conduct a pilot test to explore the impact of jointly selling advertising on its local TV and radio stations. EVC is the largest owner of Univision and Telefutura affiliates in the U.S. and owns and operates both TV and radio outlets in the Denver market. Its Denver properties are: • Univision, Channel 50 • Telefutura, Channel 14 • KXPK-FM • KJMN-FM • KMXA-AM Arbitron used its single-source Portable People Meter™ (PPM™) panel of 1,274-installed persons, aged 6+ in the market. Of the panelists, 294 were Hispanic, aged 6+. For the first time, Entravision received credit in these reports for the viewing that took place away from the home TV set. Problem Statements 1. Although advertisers have expressed the need for cross-platform measurement, there is currently no single-source measurement. As a result, advertisers cannot quantify the combined impact of TV and radio on their advertising campaign delivery. 2. Advertisers cannot evaluate the best TV and radio or daypart mixes to reach target audiences. Methodology • The study is bas ed on the Denver Metro geography. • Pilot ran from July 1, 2010 to September 15, 2010. The findings in this report are based on the Arbitron September survey period of August 19, 2010 to September 15, 2010. • Entravision TV and radio properties in Denver were encoded for the PPM system. • Conducted using the same PPM panelists who were In-Tab for the Arbitron-syndicated PPM survey. • TV universe was limited to the Entravision stations; thus, there were no share estimates for TV. • Population estimates used for language weighting were provided by Geoscape. • All TV and radio estimates were live plus same day. © 2011 Arbitron Inc. The Impact of Combining Local Radio and TV on Advertising 4 Current Options Currently, advertisers and agencies must rely on fused data sets to model advertiser effectiveness in a cross-platform environment across both TV and radio. Models do not contain true cross-media duplication and cannot give an advertiser the ability to leverage its investment effectively and evaluate its return on investment. PPM Cross-Platform Study Objectives The objective of the Entravision and Arbitron pilot was to answer two key questions: 1. What is the combined impact of Entravision TV and radio on advertising campaign delivery? 2. What is the payoff for advertisers who use both Entravision media in their media mix versus one or the other? Findings • The usage patterns of TV and radio complement each other, with radio delivering high daytime ratings and TV delivering at night. Seventy to eighty percent of the combined TV/radio audience from 6AM- 4PM can be found on radio and 80% of the audience from primetime to midnight is found on TV. • Radio and TV are both reach mediums, with radio’s highest reach in afternoon drive (38%) and television reaching 45% of all Hispanic persons 18-49 weekly in primetime. • Adding radio to TV delivers near-primetime levels throughout the day • Each media type reaches a heavy user that is a distinct consumer segment that the other cannot effectively deliver • Campaigns can emphasize reach or frequency in a TV and radio buy, depending on the combination of dayparts used. Not all dayparts on TV and radio share the same percentage of audience. © 2011 Arbitron Inc. The Impact of Combining Local Radio and TV on Advertising 5 EVC TV Dominates Access and Primetime, EVC Radio Dominates Daytime Hispanic A18-49 AQH Ratings TV Stations: KCED/UNV and KTFD/TF Radio stations: KJMN/Jose-FM and KXPK/LA Tricolor-FM 12.0 10.0 UNV-TV TF-TV 8.0 Jose-FM 6.0 La Tricolor- FM 4.0 2.0 0.0 6-7am 7-8am 8-9am 1-2pm 2-3pm 3-4pm 4-5pm 5-6pm 6-7pm 7-8pm 8-9pm 9-10am 12-1pm 9-10pm 10-11am 10-11am 11-12pm 10-11pm 11-12 am 11-12 Source: Arbitron PPM Cross-Platform Custom Report, August 19, 2010 - September 15, 2010, Hispanic Adults 18-49, Mon-Sun 6AM-6AM This is the first time that both TV and radio audiences have been captured by a single electronic panel. Reflected are patterns throughout the day that are logical and consistent with expectations. It is also clear that among these properties, the usage of TV and radio complement each other. • Telefutura has the strongest Spanish-viewing levels during the day. • Univision leads in primetime. • Jose is the top Spanish station in midday. • Tricolor leads in morning drive. • The combined radio levels from the two radio stations are two to three times the Univision TV daytime levels. © 2011 Arbitron Inc. The Impact of Combining Local Radio and TV on Advertising 6 EVC Radio and TV Follow Users Throughout Their Day Radio vs. TV Share of EVC Hispanic A18-49 Impressions 100% 90% EVC Radio EVC TV 80% 70% 60% 50% 40% 30% 20% 10% 0% 6-7am 7-8am 8-9am 1-2pm 2-3pm 3-4pm 4-5pm 5-6pm 6-7pm 7-8pm 8-9pm 9-10am 12-1pm 9-10pm 10-11am 10-11am 11-12pm 10-11pm 11-12 am 11-12 Source: Arbitron PPM Cross-Platform Custom Report, August 19, 2010 - September 15, 2010, Hispanic Adults 18-49, Mon-Sun 6AM-6AM This is another look at the complementary relationship between the Entravision-owned TV and radio stations for advertisers. • 70 to 80% of the audience can be found on radio from 6AM-4PM • 80% of the audience is found on TV from primetime to midnight. A radio/TV campaign offers the opportunity to reach an audience when the other medium’s usage is lower. © 2011 Arbitron Inc. The Impact of Combining Local Radio and TV on Advertising 7 Radio and TV Both Deliver Significant Reach EVC Cumes by Daypart Percent of Hispanic A18-49 50,800 16.7 EVC Television Morning Drive 96,500 31.6 EVC Radio 90,000 29.5 Daytime/Midday 109,000 35.7 62,500 20.5 Afternoon Drive/EF 114,400 37.5 136,100 44.6 Evening/Prime 87,500 28.7 72,800 23.9 Weekend 100,500 33.0 TV: Morning M-F 6a-10a, Daytime M-F 10a-5p, Early Fringe M-F 5p-6p, Prime Time M-F 6p-10p, Weekend PM Sa-Su 1p-7p Radio: Morning M-F 6a-10a, Midday M-F 10a-3p, PM Drive M-F 3p-7p, Evening M-F 7p-12m, Weekend Sa-Su 10a-7p. Source: Arbitron PPM Cross-Platform Custom Report, August 19, 2010 - September 15, 2010, Hispanic Adults 6+, Mon-Sun 6AM-6AM There is a long-held belief that radio is the frequency medium and TV is the reach medium. Instead, this study revealed that the high rating found on radio is coming not just from loyal audiences, but by an average quarter-hour, driven by sizeable cumulative audiences (or simply, a large number of individual people). In summary, each medium is capable of strong reach, and a TV-plus-radio campaign attains reach levels that may have been discounted in the past. © 2011 Arbitron Inc. The Impact of Combining Local Radio