Nielsen: Don't Abandon High-ROI Channels Like Radio

RADIO ONLINE | Wednesday, June 18, 2025 | 4:08pm CT

Nielsen

As marketers brace for tighter budgets in 2025, a new insights report from Nielsen urges advertisers to look past media myths and make data-driven decisions that prioritize actual return on investment -- especially when it comes to traditional platforms like radio.

According to Maximizing Your Marketing Effectiveness With Data-Driven Decision Making, Nielsen highlights a growing gap between marketer perception and channel performance. While 54% of global marketers plan to reduce ad spend next year, many are shifting budgets toward performance-oriented digital channels -- like connected TV, social media, influencers, and search -- at the expense of traditional media such as radio. Nielsen cautions this could be a costly mistake.

"Marketers are increasingly misled by ease of attribution and low CPMs," the report notes. "But those factors don't necessarily indicate higher ROI."

In fact, Nielsen's Global Compass data reveals that radio -- often ranked lowest in perceived effectiveness -- delivers some of the highest returns globally, just behind social media. Similarly, podcasts perform on par with TV and digital display, yet remain underutilized due to outdated assumptions.

The findings challenge the trend of substituting traditional media with digital alternatives, emphasizing the importance of "scaling into digital, not substituting away from proven channels."

The report also underscores the value of aligning media strategy with audience behavior. In the U.S., for example, radio reaches 27.4 million Black listeners weekly -- on par with connected TV -- and this demographic is twice as likely to try products promoted on local radio. Such insights highlight missed opportunities when media buying decisions are driven by perception rather than data.

Nielsen further emphasizes that brand awareness and performance marketing must work in tandem. Despite 50% of marketers listing revenue growth as their top priority, only 45% say they prioritize brand awareness. Yet research shows a brand loses 2% of future revenue for every quarter it ceases advertising.

"Without balance, advertisers risk eroding long-term brand value," the report states. "The smartest media mix doesn't pit channels against each other -- it integrates them."

Nielsen's call to action: marketers must use data to bridge the gap between perception and performance. By evaluating ROI benchmarks, audience insights, and campaign objectives holistically, advertisers can ensure smarter, more efficient ad spending in a constrained economic environment.

"Radio and audio aren't relics -- they're results-driven platforms," Nielsen concludes. "Don't write them off; measure them right."