• by September 6, 2001

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 plans to 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.”

According to the announcement, a cross-section of the Radio industry will be represented on the Board of Directors with Gary Fries, President and CEO of RAB, and Owen Charlebois, President of Arbitron U.S. Media Services, serving as Co-Chairs.

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.

"Advertisers are increasingly focused on accountability and maximizing their return on investment," said Arbitron’s 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.”

According to RAB’s 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.