Home Login RADIO ONLINE RSS Facebook
Advertisement

Study Reinforces AM/FM Radio's Impact on Brand Growth


Cumulus Media and Westwood One
Cumulus Media and Westwood One

In a comprehensive analysis led by marketing effectiveness expert Peter Field, new insights have emerged underscoring the substantial benefits of AM/FM radio advertising. This week's Cumulus Media | Westwood One Audio Active Group blog outlines the findings and explains how important it is for brands to be known before they're needed.

Field, often regarded as one of the "godfathers of marketing effectiveness," presented his findings in a recent study titled "The Long and the Short of It - 10 Years On: Radio's Enduring Role in Effectiveness." This study, which draws from over 1,200 case studies in the Institute of Practitioners in Advertising (IPA) databank, highlights radio's pivotal role in enhancing brand visibility and profitability.

The research reveals that brands incorporating AM/FM radio into their media strategies enjoy a 13% increase in mental availability, meaning these brands are more likely to come to mind during purchasing decisions. Additionally, these brands see a 28% higher market share compared to those that do not use radio advertising.

The analysis also points to a significant correlation between radio advertising and pricing power, a crucial driver of profitability. Brands leveraging radio advertising boast a 17% increase in pricing power, which in turn contributes to a 42% increase in profits. Over time, the profit uplift from radio advertising has shown a steady increase, particularly evident since 2016.

Nielsen's recent sales effect studies further validate radio's financial efficacy, reporting an impressive $10.59 return on advertising spend (ROAS) for AM/FM radio, based on a comprehensive analysis of retail and consumer goods sales. This figure notably surpasses returns from many other media, emphasizing radio's consistent ranking as a top-tier medium for ROI.

The implications of Field's research are clear: AM/FM radio remains a formidable tool for businesses aiming to maximize market presence and profitability, reinforcing its status as a cornerstone of effective media planning.

To read the complete blog post by Pierre Bouvard, Chief Insights Officer, Cumulus Media | Westwood One, here.

Advertisement

Latest Radio Stories

FCC's Anna Gomez Slams ABC's Kimmel Suspension
FCC Commissioner Anna M. Gomez
FCC Commissioner Anna M. Gomez
FCC Commissioner Anna M. Gomez condemned ABC's decision to suspend Jimmy Kimmel Live! and warned that political pressure on broadcasters threatens First Amendment protections, arguing the FCC "does not have the authority, the ability, or the constitutional right to police content or punish broadcasters for More

Skyview Networks Elevates Four on Leadership Team
Skyview Networks
Skyview Networks
Skyview Networks has announced a series of leadership promotions across business development, finance, technology and corporate affairs, part of an effort to align the company's executive team with its strategic priorities, according to an internal memo from President & CEO Steve More

Advantage Music Research Unveils ''Scorecard Plus''
Scorecard Music Test
Scorecard Music Test
Advantage Music Research has launched Scorecard Plus, a new music research option aimed at delivering affordable library testing with added strategic guidance from radio industry veteran Sean Ross. Scorecard Plus complements AMR's flagship Scorecard Music Test by More
Advertisement

SiriusXM Launches Taylor's Channel 13 Ahead of Album
Taylor's Channel 13
Taylor's Channel 13
SiriusXM will launch a limited-run channel devoted to Taylor Swift on Saturday, September 20, counting down to the October 3 release of her new studio album, "The Life of a Showgirl." The pop-up, titled "Taylor's Channel 13," will air 24/7 across North America and serve as a destination for music spanning More

CRS Opens Apps for Lisa McKay Women in Radio Scholarship
Country Radio Seminar (CRS)
Country Radio Seminar (CRS)
The Country Radio Broadcasters (CRB) and Country Radio Seminar (CRS) are now accepting applications for the Lisa McKay Women in Radio Scholarship, honoring the legacy of the influential programming leader and supporting the next generation of female talent. The scholarship is open to first-time CRS More

SiriusXM Sets 28 Hours of Live Ryder Cup Coverage
SiriusXM
SiriusXM
SiriusXM will carry live, hole-by-hole coverage of the 45th Ryder Cup from Bethpage Black in New York, September 26-28, on Ryder Cup Radio (channel 92). The broadcasts, co-produced with Westwood One Sports, will total 28 hours of on-course play-by-play available to subscribers in More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement