💥How Advertising Works And Why AM/FM Radio And Digital Should Be Your Base Buy

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While local advertisers have a lot of different marketing options, a new analysis from Nielsen reveals that the most effective media plan consists of a base buy of AM/FM radio and digital solutions.

Here are the key takeaways from a review of respected marketing effectiveness insights and Nielsen’s new study:

• Marketing has two equally important jobs: converting existing demand and creating future demand.

• Since reach is the foundation of marketing effectiveness, adding media platforms grows reach and sales effect.

• Adding AM/FM radio to a TV + digital buy significantly grows reach.

• The addition of digital to an existing AM/FM radio campaign increases reach.

• The addition of AM/FM radio to an existing digital-only campaign causes reach to surge.

• Versus other media plans, an AM/FM radio base plan with digital extensions drives the greatest market reach.

How advertising works

Along with his writing partner Peter Field, Les Binet has been called a “godfather of marketing effectiveness.” Field is a world-renowned marketing consultant and Binet is the Global Head of Advertising Effectiveness at adamandeveDDB London. Here is their simple explanation of how advertising works: 

How does advertising work? Jon Lombardo, former Global Head of Research at LinkedIn’s B2B Institute, reports, “One of the primary things people misunderstand is how advertising works. People think they just put an ad in front of you and you immediately buy. That’s not how it works. Generally, you don’t generate any sale from an ad, what you do is generate a memory and then at some point later they consult their memory.”

The 95/5 rule: Only 5% of consumers are in the market at any time

The prestigious Ehrenberg Bass Institute of Marketing Science reports a very small amount of people are in the market for a product or service at any time. Whether it’s a home repair, an automotive purchase, health care need, or furniture, most people are not in the market.

Advertising needs to form around two key strategies. First, convert existing demand by reaching the five percent who are in the market. Usually that takes the form of a sales event.

Second, create future demand. Often this is called brand building. It focuses on the 95% of consumers who are not in the market, not thinking about the category, and not interested in a sales event.

The two jobs of advertising: Converting existing demand (sales events) and creating future demand (brand building)

Converting existing demand and creating future demand require different creative/copy approaches and different media strategies.

James Hurman is a globally recognized expert on brand building and marketing effectiveness, having spent much of his career researching, publishing, practicing, and teaching marketing effectiveness. Hurman has published the Kindle book, Future Demand: Why Building Your Brand Among Tomorrow’s Customers is the Key to Start-Up Success. You can order your copy here.

Hurman and the World Advertising Research Center have also partnered on a major study, Rethinking Brand for the Rise of Digital Commerce. WARC is the major global organization that devotes itself to the study of marketing effectiveness.

Converting existing demand is advertising to that small group of consumers who are ready to buy and capturing as large a share as possible of them for a product.

Hurman explains that creating future demand is advertising to that much larger group of consumers who are not in the market and are not ready to buy now but will be in the future. The goal is making them feel familiar with and positively towards your business in order to get them to gravitate toward you when they enter the category. [Read more ]

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