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

Cox Media Group Names Bortnick VP of Local Revenue
Danny Bortnick
Danny Bortnick
Cox Media Group (CMG) has appointed Danny Bortnick as Vice President, Local Revenue and Client Growth for its radio division, a newly created leadership role focused on strengthening client partnerships and driving local revenue growth. He joins the company on July 13. Bortnick will partner with CMG More

Study: AM/FM Dominates Audio Among Tesla Drivers
Cumulus Media | Westwood One
Cumulus Media | Westwood One
New research from Cumulus Media | Westwood One's Audio Active Group finds AM/FM radio remains the dominant ad-supported audio platform among Tesla drivers, reinforcing radio's value for automakers seeking to retain loyal customers and attract drivers from competing brands. In this week's blog, Pierre More

Isaac Carree Joins WALR for Inspirational Shows
Isaac Carree
Isaac Carree
Gospel artist and media personality Isaac Carree is joining the lineup at WALR (KISS 104.1) Atlanta, where he will host two new inspirational programs beginning weekdays and Sundays. Carree will host "Morning Inspiration" weekdays from 5-6am and "Sunday Morning Inspiration" Sundays from 8am-noon. Both More
Advertisement

Coleman Insights to Study Public Radio Underwriting
Coleman Insights
Coleman Insights
Coleman Insights, in collaboration with Greater Public, will launch a new qualitative research project examining the evolving landscape of public radio underwriting during next week's Public Media Growth Conference in Chicago. The study, entitled "The State of Public Radio More

StreamGuys Restores Live Radio at Bats Games
StreamGuys
StreamGuys
StreamGuys has deployed its Ultra-Low Latency Streaming (ULLS) technology for the Louisville Bats, restoring a longtime baseball tradition by allowing fans at Louisville Slugger Field to hear the team's live radio broadcast in sync with the on-field action. The Louisville Bats, the Triple-A affiliate of More

Hoffmann Media Group to Acquire Audacy St. Louis Cluster
Audacy
Audacy
Audacy has reportedly agreed to sell its six-station St. Louis radio cluster to Hoffmann Media Group, marking the family-owned company's first entry into radio broadcasting and adding one of the nation's most recognizable news/talk brands, KMOX-AM & FM (1120/104.1), to its expanding media portfolio. The 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