Report: Measuring Effectiveness of Radio Advertising

RADIO ONLINE | Friday, October 9, 2020 | 5:15pm CT

Connected Car

According to a report by Brad Adgate in Forbes, infotainment systems and GPS on connected cars are helping to prove radio ads can sell product. He writes that similar to other traditional media, radio is using data from new technologies to prove to marketers the medium is effective in selling product and a primary reason for the popularity of in-car radio listening for many advertisers has been their proximity to "point of purchase." The challenge has been measuring the impact of a radio ad campaign on sales.

A recent pilot study from GM's connected cars and Taco Bell highlight the impact in-car radio advertising has on visiting fast food outlets. The pilot study used data from both companies to get a better understanding on the impact car radio ads have with restaurant traffic. GM's connected cars were able to measure location data via GPS and in-car radio listening data while Taco Bell provided GM with their radio ad logs for the analysis.

During the study, Taco Bell used three different types of radio spots. The typical 30-second radio spot, an air personality sponsorship and Taco Bell promotions for news/weather and traffic reports. Among the findings from the pilot study were:

• The typical 30-second radio ad was the most effective in driving restaurant visits.

• Voiced (personality sponsorships) and NWT (News/Weather/Traffic) ad units generate synergies when combined.

• The combination of the 30-second standard ads with voiced personality enhanced campaign frequency

• Middays recorded the highest driving activity.

Suzanne Grimes, EVP Corporate Marketing at Cumulus Media and President of Westwood One, told Forbe, "These findings are so encouraging. We have entered the golden age of radio attribution. We can prove radio's ability to drive sales effect with Nielsen Buyer Insights, site and search traffic lift via LeadsRx multi-touch attribution and now, retail visits from GM's connected car platform."

To read the the entire article, click here.