When it comes to advertising spending, getting the most bang for your buck is the end goal. With so many media options to choose from, how can advertisers make the best informed decision to achieve the best ROI? Well, how about thinking radio.
Radio advertising reaches more than 241 million Americans per week. In fact a recent study by Neilsen set out to prove that radio is even the best medium for ROI.
In the study, radio’s return on ad spending across four separate retail categories was monitored. Neilson’s four retail categories were department stores, home improvement stores, mass merchandisers, and quick service restaurants.
Research showed every one dollar spent on radio advertising could potentially generate up to $17 in revenue. For those in the retail category that had a 17-1 return, radio exposure delivered over a double digit increase in their overall sales, helping them bring in more shoppers, and increased the time that shoppers spent in store.
In another instance, car repair company, Midas, found an increase in ROI when they switched a bulk of their budget from TV to network radio. One of the biggest success factors for this national brand was that using radio allowed them to “copy split” – which means they were able to provide different stations with different creative materials depending on the geography that they are in. Midas’s Senior Manager of Marketing and Planning, Lisa Wellington said, “Immediately following the major move to radio, customer traffic was up nearly 20%, and car count continues to increase.” And continued on to add “Midas franchisees have experienced double-digit increases in customer visits since we moved dollars from TV to radio.”
Also, with its incredible penetration of 93%, radio has been found to frequently be the final medium consumers interact with before actually making purchases. A research study by the Radio Advertising Bureau showed that “radio captures more than 35% of the total time consumers spend with a medium during prime shopping hours” which is more than any other medium.
With such promising numbers, choosing to create a campaign based around radio is a no brainer. So the next time you start a campaign, think radio - and let the influential voice of radio move the needle to ROI success.