New Brain Research Demonstrates High Effectiveness Of Radio Advertising

New Brain Research Demonstrates High Effectiveness Of Radio Advertising

Radio Delivers Strongest Metrics Most Correlated To Consumer Choice and Advertising Effectiveness In Parallel Comparison to TV

Results for Eight Specific Campaigns Across Spectrum of Advertising Categories Now Available

New York, NY – September 30, 2014 – iHeartMedia, a leading global media and entertainment company with the largest reach of any radio or television outlet in America, today announced remarkable results from a study conducted in partnership with leading neuromarketing firm Neuro-Insight. Neuro-Insight uses its patented brain imaging technology, Steady-State Topography (SST), to measure how the brain responds to communications, including a broad spectrum of content and advertising. Here, Neuro-Insight’s research clearly showed radio outperforming television – and radio advertisements in particular outperformed television advertisements for the same brands—showing much higher performance in Neuro-Insight’s Memory Encoding metric, an indicator repeatedly and strongly associated with consumer choice and purchase behavior.

Neuro-Insight tested eight advertising campaigns with parallel radio and television versions across the automotive, financial services, insurance, consumer packaged goods, quick-service restaurants, entertainment, retail and telco categories. In seven of the eight test cases, radio ads returned much higher results than TV in Memory Encoding at key branding moments.  For advertisers, Memory Encoding at branding is the key to a successful ad campaign – and unless Memory Encoding is high at this critical point, the ad will not function successfully. This has been peer-reviewed and published in various other research studies.

Radio was also more effective than TV in converting content engagement into Memory Encoding during advertising breaks – indicating better content-ad interaction and stronger impact on consumer choice and behavior for radio ads as compared to the tested television ads.

“These findings from Neuro-Insight represent significant scientific evidence that radio’s ability to engage consumers -- and influence them to purchase – can far outperform other media,” said Dr. Radha Subramanyam, Executive Vice President of Insights for iHeartMedia.  “If advertisers want their messages to truly register with consumers – and drive their purchasing behavior -- they need to make radio a significant part of their media budgets.”

Neuro-Insight’s Memory Encoding metric is both scientifically and commercially validated to correlate with advertising effectiveness, consumer choice, and in-market behavior.  In this study, the higher Memory Encoding figures seen for radio indicate that radio advertising in its current form is both well-designed and more likely to impact consumer and market outcomes than TV advertising.
 
"The data in this study clearly show that iHeartMedia's radio offerings excellently harness the unique power of their medium,” said Pranav Yadav, CEO of Neuro-Insight US Inc.  “It also shows that radio should always remain a part of your marketing mix.”

About iHeartMedia, Inc.

iHeartMedia (NASDAQ: IHRT) is the number one audio company in the United States, reaching nine out of 10 Americans every month. It consists of three business groups.

With its quarter of a billion monthly listeners, the iHeartMedia Multiplatform Group has a greater reach than any other media company in the U.S. Its leadership position in audio extends across multiple platforms, including more than 860 live broadcast stations in over 160 markets nationwide; its National Sales organization; and the company’s live and virtual events business. It also includes Premiere Networks, the industry’s largest Networks business, with its Total Traffic and Weather Network (TTWN); and BIN: Black Information Network, the first and only 24/7 national and local all news audio service for the Black community. iHeartMedia also leads the audio industry in analytics, targeting and attribution for its marketing partners with its SmartAudio suite of data targeting and attribution products using data from its massive consumer base.

The iHeartMedia Digital Audio Group includes the company’s fast-growing podcasting business -- iHeartMedia is the number one podcast publisher in downloads, unique listeners, revenue and earnings -- as well as its industry-leading iHeartRadio digital service, available across more than 500 platforms and 2,000 devices; the company’s digital sites, newsletters, digital services and programs; its digital advertising technology companies; and its audio industry-leading social media footprint.

The company’s Audio & Media Services reportable segment includes Katz Media Group, the nation’s largest media representation company, and RCS, the world's leading provider of broadcast and webcast software.

Visit iHeartMedia.com for more company information.