The Power of Radio Has Multiplied

The Power of Radio Has Multiplied

The Power of Radio: Radio investment has near eight-times ROI study shows. In what is being described as a global first, a major study has examined radio’s return on investment across a large number of advertising campaigns. The topline finding is the typical radio advertiser gets their money back 7.7-times over, with even better results in ad categories such as automotive and retail. Researchers say their findings strongly suggest marketers increase their radio budgets.

The study was done by the UK’s Radio Advertising Bureau along with major international ad buying shops including MindShare, MediaVest, Mediacom, and Havas Media Group, each of which supplied unbranded data to protect client confidentiality. In terms of ROI, radio did better than online, print or outdoor, with only TV performing about 1% better. But in some ad categories radio was tops, including automotive, leisure and entertainment, and travel. Radio’s top-scoring category in terms of ROI was retail with an 18.9-times return on investment. “Radio is famously able to speak to important retail audiences around shopping occasions and at other critical times during the day,” the study notes.

The study looked at 517 separate advertising campaigns and determined that while radio is often viewed as a frequency medium, its massive reach is a bigger ROI booster. The authors say it’s that “multiplier effect” that radio ad buys have on overall campaign effectiveness which is critical. Besides recommending marketers increase radio’s share of media budgets, the study concludes ad buying teams should look to maximize weekly – reach rather than frequency. The analysis shows that peak ROI comes when radio gets 20% of a media budget.

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