Nielsen Study Demonstrates Radio's ROI in Retail

RADIO ONLINE | Wednesday, October 14, 2015 | 10:55pm CT

A recent Nielsen sales effect study found that with a $17 to $1 return on ad spending, radio is a great value proposition for any advertiser and validating the platform as an integral component to any media campaign. The study examined radio's return on ad spend in four retail categories: Department Stores, Home Improvement stores, Mass Merchandisers and Quick Service Restaurants. Depending on the category, radio exposure led to increased sales, foot traffic and dollars spent per shopper.

Key takeaways from the study:

• Nielsen's research revealed that radio exposure led to significant return on advertising investment for each category. Department Stores saw the highest return of $17 to $1 and experienced a 10% increase in sales. Mass Merchandisers saw a $16 to $1 return. Home Improvement stores experienced a $10 to $1 return while the return for Quick Service Restaurants was $3 to $1.
• Hispanic consumers led all categories measured in total spend and drove increased sales ranging from 9% to 49%.
• When brands invest in radio advertisement, they experience higher consumer engagement as illustrated by the study results.

While not surprising, the results of the study make a compelling case for why radio should continue to play a critical role in any marketing campaign.

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