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Every advertiser’s goal is to see their ROI on the plus side. With all of the advertising platforms available and increasing each day, choosing the right plan of action can seem overwhelming. While digital advertising is becoming more and more necessary in an advertiser’s marketing mix, traditional advertising is still key in capturing consumer attention. In a recent report, Nielsen proves that radio advertising provides the return that your business is seeking.
In this study, Nielsen compared the ad spend to the ROI of brands in four different industry categories: department stores, mass merchandisers, home improvement and quick service restaurants. What did they find? Every dollar spent in radio advertising could generate up to $17 from listeners exposed to the ads. Here’s what they found in researching ad spend in these four categories:
In third quarter 2014, four department store brands invested $21 million in radio advertising. What they got in return was $357 million of incremental revenue and a 10% increase in sales overall. In average, that’s a 17-to-1 return on ad spend.
Two mass merchandisers saw a 16-to-1 return on ad spend in fourth quarter 2014. With an investment of about $14 million in radio, these two mass merchandiser retailers combined generated more than $227 million in revenue.
Two home improvement store brands walked away with nearly $370 million of incremental revenue after investing about $38 million in radio advertising. This 10-to-1 return on investment reflects the power of customer exposure to radio campaigns.
From customers exposed to radio campaigns, three quick-service brands who spent more than $29 million in radio ad spend in third quarter 2014 generated over $87 million of incremental revenue and saw a 6% increase in the total number of buyers. In a 3-to-1 return on ad spend, radio once again presented its value.
The research combined data from Nielsen’s Portable People Meter (PPM) panel with Nielsen Buyer Insights credit and debit card data to measure sales driven by advertising.
For each category, radio exposure positively affected bottom-line sales and drove new, valuable shoppers. The power of radio is stronger than ever and it’s no surprise that radio ad spend correlates with a positive return. Planning your next Tampa Radio Advertising Campaign? We’ve created a checklist for you.
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