Pierre Bouvard: Radio Advertising Shines On Amazon Prime Day
July 29, 2015 at 4:03 AM (PT)
CUMULUS/WESTWOOD ONE Chief Marketing Officer PIERRE BOUVARD has taken to his blog and posed the question, "What if brand advertising was based on 'cost per result' rather than 'cost per thousand'?"
YESTERDAY (NET NEWS 7/28), ALL ACCESS reported that recent NIELSEN data confirmed what radio's movers and shakers already knew -- radio has the most reach among American media consumers, as 93% of adults listen to the radio each week as compared to 87% who watch TV. Radio's effective reach was illustrated when AMAZON held its first global sale event, AMAZON Prime Day. CUMULUS/WESTWOOD ONE commissioned an IPSOS study to determine how effective radio, TV and online advertising were at driving purchases. Of those exposed to radio ads, 52% made a purchase. That compares with 48% of people who saw ads online and 39% who saw TV ads.
BOUVARD notes, "The marketing effort behind the recent JULY 15th AMAZON Prime Day Sales event provides some interesting data on how media can efficiently build awareness in a target demo. AMAZON bought online, radio and television ads to promote the event. According to an IPSOS study, the engine of AMAZON Prime Day campaign were 18-34-year-olds. Nearly half of those who purchased on the JULY 15th sale event were 18-34. IPSOS indicates 45% of those with AMAZON Prime accounts are 18-34. IPSOS reported that radio advertising was the most effective at converting awareness into Prime Day purchases when compared to TV and online. Of those exposed to radio ads, 52% made a purchase versus TV (39%) and online (48%)."
His conclusion? "for its $6 million on network cable and broadcast television, AMAZON Prime Day earned a 34% TV ad recall among 18-34s, according to the IPSOS survey. For its $1.4 million spent on the radio spot campaign, AMAZON Prime Day earned a 14% radio ad recall among 18-34s. For AMAZON Prime Day, radio's cost per 18-34 awareness point ($100,000) was far more efficient than television's ($177,000), wrapping up, "Despite AMAZON's TV ads running on young-skewing TV networks, radio's ad awareness was far more concentrated among 18-34s versus television's (40% versus 27%). Radio's 'cost per awareness' was nearly twice as efficient as television. Given that radio was the most effective at converting awareness into purchases, imagine how much more impressive the campaign results would have been if AMAZON had purchased a more aggressive national radio campaign?"