Radio Delivers Huge Return on Advertising Spend
| RADIO ONLINE | Sunday, January 15, 2017 |
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A new Nielsen study, commissioned by Westwood One, reveals the return radio delivers for a major auto aftermarket retailer. The retailer generated $21 of incremental sales for every $1 spent on radio, according to the results published on the Westwood One blog. Nielsen examined the three-month national radio campaign, which ran from March to June, 2016. The firm evaluated the impact of the entire radio campaign, not just ads airing on Cumulus or Westwood One-affiliated stations.
Key findings of the Nielsen study include:
AM/FM radio delivered a huge return on advertising spend (ROAS). The auto aftermarket retailer generated $21 of incremental sales for every one dollar spent in radio. AM/FM radio brought in buyers, delivering a 64% increase in new customers and a 48% increase in all buyers. Frequency works: those exposed to the radio campaign the most (seven or more times) represented nearly half of the total sales increase. The AM/FM radio campaign resulted in a higher share of spending in the auto aftermarket category. Among consumers who heard the campaign, the auto aftermarket retailer saw a 71% increase in the share of dollars spent in the auto aftermarket category, compared to those not exposed to the campaign. Advertising works. When no advertising is heard at all, key sales metrics fall short. Compared to consumers who were exposed to the radio campaign, those who were unexposed to the radio campaign saw a steep drop in sales due to lower store visits and spend per visit. Overall, the unexposed group saw a 50% drop in total spend at the retailer compared to those who were exposed.
Read more about the study in the full blog post at http://bit.ly/2j5HnN1
