Home Login RADIO ONLINE RSS Facebook

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.

Latest Radio Stories

RAB, Borrell to Preview 2027 Digital Ad Outlook
Gordon Borrell
Gordon Borrell
RAB and Borrell Associates will examine what's driving digital revenue growth for radio stations and preview the 2027 advertising outlook in a live presentation Wednesday, November 18, at noon CT/1pm ET. The session, "Digital Progress Report for 2026 - What to Expect in 2027," is complimentary for RAB More

Bob Moore, Executive Who Shaped KLSX, Dies
Bob Moore
Bob Moore
Bob Moore, the Los Angeles radio executive who helped turn KLSX from Classic Rock into one of the country's top-billing FM Talk stations, died Tuesday, November 10, at Cedars-Sinai Medical Center in Los Angeles. A native of Oshkosh, WI, Moore oversaw KHTZ, KLSX and KRLA during his tenure with Greater More

SiriusXM Names William Twomey Chief Accounting Officer
SiriusXM
SiriusXM
Sirius XM Holdings has named William Twomey Senior Vice President and Chief Accounting Officer, effective December 1. The company disclosed the appointment in a Form 8-K dated November 13. Twomey will serve as SiriusXM's principal accounting officer. Twomey, 51, has served as More

Audacy Names Zach Gelb Brand Manager of 104.3 WQAM
Zach Gelb
Zach Gelb
Audacy has named Zach Gelb Brand Manager of Sports 104.3 WQAM in Miami, following the first anniversary of the station's FM launch. Gelb will oversee content strategy, talent, operations and branding, including flagship coverage of the Florida Panthers, Miami Heat, Miami Marlins and University of Miami More

iHeartMedia Denies Plans to Sell Podcast Business
iHeartMedia
iHeartMedia
iHeartMedia says it has no plans to sell its podcast business after Bloomberg reported that the company was exploring a sale of part or all of the operation to raise cash and bolster its share price. Bloomberg, citing people familiar with the matter, said iHeartMedia had held preliminary talks with More

Saga Q3 Revenue Falls 5.4% as Net Loss Widens
Saga Communications
Saga Communications
Saga Communications reported third-quarter net revenue of $26.7 million, down 5.4% from $28.2 million a year earlier. The company's net loss widened to $7.1 million from $532,000, primarily because of a $9.2 million noncash impairment charge on its FCC licenses. Saga attributed More

Return to Menu

Advertisement

Advertisement

Advertisement