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In the world of advertising, understanding who you are marketing to can be the difference between creating a hit ad for your client, and throwing a pile of cash out the window.

Radio One, one of the largest radio broadcasting companies in the U.S. (it owns and/or operates 53 radio stations located in 16 urban markets), recently hired research company Yankelovich to further understand its large black market. Radio One says they conducted the study “to better understand the rich diversity among Black Americans and to help Radio One better serve this large, diverse, often misunderstood group.”

“You can’t look at Black Americans as a monolithic group,” said Radio One president, Barry Mayo (see video below).

The study broke down black America into 11 segments: Black is Better, Black Onliners, Boomer Blacks, Broadcast Blacks, Connected Black Teens, Digital Networkers, Faith Fulfills, Family Struggles, New Middle Class, Sick and Stressed, and Stretched Black Straddlers.

Along with discovering that the majority (44%) of Black Americans prefer to be called “African Americans,” the study also found nearly a third of Black Onliners admit that if they see something they like, they have to have it - even if it costs more than they would like to spend; 8 out of 10 Broadcast Blacks prefer businesses that give back to the community; and that 54% of all blacks are “optimistic about the future of blacks.”

Even though Radio One commissioned the research because of its commitment “to demonstrating the power of the black community,” the applications are helpful to marketers too. 

Brogan & Partners has been using a technology developed by Claritas Research called PRIZM to do the same sort of segmentation used in the Black America Study for almost 15 years. PRIZM, or PRIZM NE as it is now called, breaks the population down into 66 distinct segments, including Black, as well as, Latino and Asian American populations.

The segments, like Young Digerati, Pools & Patios, and Park Bench Seniors, are then used to discover where best to place an ad for our clients, how to market to different segments, and figure out whom our clients should be targeting.

“We go way beyond using PRIZM for market research and for direct mail. We created a process to mine the 30,000+ variables for the various segments in order to do PRIZM-based media planning and buying. We can show the client exactly who their best segments are and exactly which network shows, cable programs, print media, billboards, and interactive vehicles reach them,” said Brogan Media Director, Misi McClelland.

“Hopefully, the Radio One study will give us another level of understanding of the African American audiences. I am eager to get my hands on it.”

Brogan’s media team discovered they could use the technology not only to turn broadcast into narrowcast but also to use the depth of research for public relations, political campaigns, promotional partnerships and more. 

For example, Brogan used PRIZM to discover how to best reach segments most likely to on to vacation in Michigan from Chicago, Cleveland, and Indianapolis for its successful Michigan.Org campaign. Brogan’s work helped increase traffic to the site dramatically; visits increased to 3.6 million from 2.6 in the previous year.

“I know a lot of other agencies own PRIZM technology, but really understanding how it works is the key to success,” said McClelland, whose team has spent significant hours in formal training, retraining, updating, and self-training.

“Let’s not even talk about the cost of the licenses we need to maintain,” grumbled agency CEO Marcie Brogan. “Although the competitive edge it gives us and the success and cost savings it gives our clients are well worth the time and dollars.”

Radio One’s full report can be read at http://www.blackamericastudy.com/

You can read more about Brogan & Partners’ Travel Michigan work here: http://www.brogan.com/results/tm_website.htm

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