radiko Transforms into a "Marketing Tool" Through Data

Radio, traditionally known as mass media, is undergoing a transformation. At the center of this change is the "radiko" app (hereafter referred to as Radiko), which allows users to listen to radio via smartphones, PCs, and smart speakers.

Currently, Radiko's experimental advertising product, "Radiko Audio Ad" ( see previous article ), enables the "differentiated delivery" of audio ads to specific target users. This allows for flexible approaches previously unattainable with mass advertising. However, the key to unlocking the value of Radiko Audio Ad lies in vast amounts of "data."

In this column, Daisuke Nagata from Dentsu Inc. Data & Technology Center explores the significant potential of radio from the perspective of " People Driven Marketing "—Dentsu Inc.'s framework that integrates marketing approaches centered on "people."

<Table of Contents>
▼Radio Dots Emerges to Visualize Radio's Effectiveness from a "People-Centric" Perspective
▼Three Key Features of Radiko Log: "Comprehensive Coverage," "Individual Listening," and "DMP Utilization"
▼What are the strengths of "Radiko Audio Ads," the marketing tool for the new era?

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Radio Dots Emerges to Visualize Radio's Effectiveness from a "Person-Centric" Perspective

In November 2018, we released "Radio Dots" (beta version), a tool for linking Radiko's listening log data (hereafter, Radiko Log) with Dentsu Inc.'s "STADIA".

STADIA is Dentsu Inc.'s proprietary marketing platform that enables digital ad delivery and effectiveness verification based on consumer behavioral data, primarily centered on TV viewing log data.

STADIA estimates and analyzes user exposure to offline media, such as TV viewing logs and OOH contact data, along with their attainment of various KPIs, linking this to ad delivery. Starting in 2018, Radio Dots was added, enabling the estimation and analysis of exposure to radio programs and radio ads within STADIA. Furthermore, it can be linked with Dentsu Inc.'s People Driven DMP (described later) for data integration and ad delivery.

Traditional radio made it difficult to identify individuals who encountered programs or ads. However, with Radio Log, it becomes possible to understand, based on actual actions, "how many people listened to the ads or programs" and "how many people took action as a result of listening." Going forward, it is expected that the value of advertising can be communicated to clients in a more convincing manner.

Let's now examine the three key features of RadioLog data.

"Comprehensive Coverage," "Individual Listening," "DMP Utilization": The Three Key Features of Radio Log

From my perspective as someone who has conducted proposals and data analysis using People Driven DMP, RadioLog has three major features.

■Feature 1: Log "Comprehensiveness"

As of March 2019, 93 commercial radio stations (*) are affiliated with Radiko, with approximately 7 million users (MAU: Monthly Active Users).

*There are 101 commercial radio stations (100 companies) nationwide.

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The significance of this comprehensiveness and data scale is that "data bias is minimal." In other words, it sufficiently achieves "representativeness" (i.e., whether the data accurately represents the entire population without bias).

While ensuring representativeness is often a challenge in analyzing actual log data, this issue can be considered resolved for Radio Log.

■Feature 2: The Media Characteristic of "Individual Listening"

Radio (Radiko) has the characteristic of "individuals personally engaging with content and advertisements." This media characteristic allows for appropriate verification of the value of advertisements and content.

While this may seem obvious, determining individual media exposure can sometimes be difficult when verifying ad effectiveness. For example, with television, content and ads are often shared and viewed by multiple people within a household.

■Feature 3: Enhancing Advertising Value Through DMP Utilization

Radiko collects data in a non-personally identifiable format and uses it for effective ad delivery in accordance with its privacy policy. One initiative to enhance this effectiveness is the use of a Data Management Platform (DMP).

The benefit of using a DMP is the ability to deliver appropriate ads based on user attributes. For advertisers, this means "improved marketing effectiveness," while for users, it reduces exposure to irrelevant ads.

Dentsu Inc. has developed "People Driven DMP," which holds audience data for 750 million unique browsers. By using People Driven DMP data as the foundation for delivering Radiko Audio Ads, higher advertising effectiveness is expected.

What are the strengths of "Radiko Audio Ads," the marketing tool for the new era?

These three characteristics of Radiko Log are crucial for both the delivery of "Radiko Audio Ads" and the analysis of their advertising effectiveness.

Even if you analyze user behavior and understand efficient targeting or precise user moments, the effect will be minimal unless you can quickly translate that into actionable, verifiable strategies. Radiko Audio Ads solves this challenge.

With Radiko Audio Ad, you can deliver different radio commercials to each set target. Furthermore, by utilizing Radio Dots, you can analyze "what ads are effective for which targets" based on delivery results and then feed that back into Radiko Audio Ad delivery, enabling a continuous PDCA cycle.

Radiko Audio Ad revolutionizes terrestrial radio advertising. It delivers different radio commercials to distinct listener segments and enables ad effectiveness verification through Radio Dots.

Traditional radio commercials inevitably fell short in reach compared to media like television. But is reach the only measure of radio's inherent value as a medium?

Radio's unique characteristics as a medium primarily include the following:

• Core fans... Precis ely because it's niche, it has passionate fans, and listener engagement is high.
• Multitasking medium... Can be listened to while commuting, working, or doing other activities
• Multidirectionality: Beyond the personality-listener relationship, active communication with others via social media

These media characteristics are crucial elements when considering marketing.

For example, focusing on its "media for multitasking" nature, broadcasting radio commercials when listeners are likely out and about significantly increases the potential to drive store visits. This effect is often referred to as the recency effect in advertising.

Beyond the above, radio possesses several other unique media characteristics, yet conveying their true value has not always been sufficiently achieved. This holds true for both advertising and content.

Now, the time has come to change that situation. Radio, which now understands consumer insights and can deliver the right information to the right people at the right time, is evolving into a new marketing tool that maximizes its unique media characteristics.

Stay tuned for the future of Radio Dots and Radiko Audio Ads, which hold the key to this transformation.