New Study Touts Effectiveness Of Radio Advertising
November 13, 2013 at 3:56 AM (PT)
A study done by the U.K.’s RADIO ADVERTISING BUREAU, along with major international ad buying shops including MINDSHARE, MEDIAVEST, MEDIACOM and HAVAS MEDIA GROUP has good news for business spending money on the radio.
The study evaluated "radio advertising effectiveness in detail in terms of revenue return on investment (ROI) across a broad dataset." The results are based on an analysis conducted by HOLMES & COOK of confidential ROI data supplied by nine econometrics agencies representing all major media agency groups, covering over 2,000 individual media campaigns across 517 separate advertising campaigns. The campaigns covered ten major sectors, and used a variety of multi- media combinations. All data were supplied direct by the agencies, and unbranded to preserve client confidentiality.
The big takeaway for your sales department? On average radio advertisers get their money back 7.7 times over, although some categories show exceptional performance, notably automotive and retailer brands, as well as impulse products. This makes radio the medium with the second-highest return on investment (TV is first), out-performing press, outdoor and online.
When the creative analysis from RADIOGAUGE studies is included, the study found that the radio campaigns most likely to out-perform the average are those which "have standout, present their message clearly and are seen to fit well with the brand. In terms of media planning, it is coverage rather than frequency which boosts radio ROI -- there is a strong statistical link between these."
Currently radio carries 6% of all advertising budgets, but this study found that if budgets were reallocated to give radio a 20% share of total spend -- with no increase in overall expenditure -- the total campaign ROI raises by over 8%.