RAB & Arbitron Create Radio Advertising Effectiveness Lab.

The Radio Advertising Bureau (RAB) and Arbitron Inc. have agreed to establish The Radio Ad Effectiveness Lab (RAEL) to research the effectiveness of Radio advertising. Supported with funding provided from Radio industry companies, RAEL will work with advertisers, agencies and Radio broadcasters in an effort to further the industry’s understanding of how Radio advertising works and to measure its effectiveness.

A cross-section of the Radio industry will be represented on the Board of Directors with Gary Fries, President and Chief Executive Officer of RAB, and Owen Charlebois, President of Arbitron U.S. Media Services, serving as Co-Chairs. The complete lists of the anticipated Board of Directors and companies who are funding RAEL follow at the end of this release.

“Advertisers are increasingly focused on accountability and maximizing their return on investment,” said Mr. Charlebois. “Periodically, advertisers and their agencies have raised questions about the overall effectiveness of all forms of advertising, including Radio, and there is little current research on the effectiveness of Radio as an advertising medium. The plans for this industry-first Radio Ad Effectiveness Lab represents an important step to address these concerns. This is a major industry commitment to a long term, sustained research program to help understand Radio’s effectiveness, and Arbitron is pleased to be a part of this groundbreaking initiative,” Mr. Charlebois noted.

“The Radio Ad Effectiveness Lab will be a place for constant learning and experimentation of what works and what doesn’t work,” said Mr. Fries. “The Lab’s objectives also include establishing and showcasing the effectiveness of Radio advertising; increasing advertiser and agency confidence in Radio as an advertising medium; and helping broadcasters to protect their current Radio dollars as well as grow new revenue.”

The Lab will engage the services of a consultant to undertake a literature review, inventory Radio ad effectiveness research worldwide, and establish a schedule of studies to be shared with the Radio industry. Findings from the first study will be presented at RAB2002, the Radio Sales, Management & Leadership Conference, at the Walt Disney World Resort in Orlando, Florida, February 7 to 10, 2002.

Plans also call for the formation of a Research Committee that will include agency and advertising representatives along with members of the Radio community. Agency and advertiser nominees will be solicited with the assistance of industry organizations. Board and committee nominations will be made at the first Board meeting on September 11 in New York.