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, iHeart Reach Deal on Payola Safeguards
Federal Communications Commission
Federal Communications Commission
The FCC has reached a consent decree with iHeartMedia resolving an investigation into the company's compliance with federal payola rules, establishing new reporting, training and disclosure requirements aimed at protecting artists from improper pressure tied to radio airplay and live event appearances. More

Nielsen: Radio Continues to Lead Weekly Reach
Katz Radio Group
Katz Radio Group
Radio continues to deliver the broadest weekly audience of any measured media platform, reaching 87% of U.S. adults each week despite growing media fragmentation, according to Katz Radio Group's latest Sound Answers report highlighting Nielsen Audience Insights data for the first More

Seattle Sports Renews WSU Broadcast Partnership
KIRO-AM/Seattle
KIRO-AM/Seattle
Washington State University Athletics has entered into a new multi-year partnership with Bonneville Seattle Media Group, restoring 710 KIRO-AM (Seattle Sports) as the Seattle flagship station for Cougar Football and Men's Basketball broadcasts. The agreement expands Washington State's reach throughout More
Advertisement

New Generation Radio Launches Virtual Jingles
Virtual Jingles
Virtual Jingles
New Generation Radio has introduced Virtual Jingles, a new custom jingle and station imaging service designed to provide radio outlets with fresh, customizable branding tailored to today's music formats. Developed under the VirtualJock.com umbrella, the service delivers custom-produced More

Connoisseur Media Sells 94.5 FM Signal to K-Love
KBAY-FM/San Francisco
KBAY-FM/San Francisco
Connoisseur Media has agreed to sell the 94.5 FM signal licensed to Gilroy, CA, currently known as KBAY-FM, to K-Love Inc. for $2 million. The transaction, which is subject to FCC approval, is expected to close in early fall. Despite the sale, Connoisseur will retain the KBAY-FM call letters, More

Don Boyd Expands Cumulus Regional Leadership
Don Boyd
Don Boyd
Cumulus Media has promoted Don Boyd to Regional Vice President, expanding his leadership responsibilities to include the company's radio operations in Baton Rouge, Lafayette and New Orleans, Louisiana, as well as Columbus-Starkville, MS. Boyd will continue overseeing Cumulus in Mobile, AL while adding 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