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

Pacific Media Group Names Grimes Radio Division President
Sherri Hamamura Grimes
Sherri Hamamura Grimes
Pacific Media Group has promoted Sherri Hamamura Grimes to President of its Radio Division, overseeing operations across all Hawaiian island markets. The appointment took effect October 26. She will also continue as General Manager of PMG's Maui Radio operations. Grimes will work directly with Market More

SummitMedia Names Brodie Knoxville Brand Manager
Matt ''Brodie'' Lesley
Matt ''Brodie'' Lesley
SummitMedia has named Matt "Brodie" Lesley Brand Manager of its four-station cluster in Knoxville. He will also host middays on Country WCYQ (100.3 The Wolf). Lesley most recently served as Program Director and afternoon host for WNOK in Columbia, SC, and WWXM in Myrtle Beach, SC, from 2019 to 2026. During More

IAB Guide Calls for Better Audio Data in Media Mix Models
Interactive Advertising Bureau (IAB)
Interactive Advertising Bureau (IAB)
The Interactive Advertising Bureau (IAB) has released a new guide arguing that incomplete campaign data can obscure audio advertising's effectiveness in media mix models, potentially influencing how advertisers allocate budgets. "Amplifying Audio's Impact in MMM: A Follow-up to More
Advertisement

iHeartRadio Launches Lite Mode for Simplified Listening
iHeartRadio
iHeartRadio
iHeartRadio has launched "Lite Mode," a feature that lets listeners switch between the app's full functionality and a simplified interface focused on their current listening and frequently used content. Available on iOS and Android, Lite Mode can be activated through a toggle at the top of the mobile More

Sun & Fun Media Taps Orbyt as Exclusive Canadian Partner
Orbyt Media
Orbyt Media
Sun & Fun Media has selected Orbyt Media as its exclusive affiliate sales and affiliate advertising sales representative in Canada. The agreement gives Canadian radio stations and broadcast groups access to vacation packages, cruises, major sporting event experiences and other More

AWM to Honor Hannah Storm With Gracies Icon Award
Hannah Storm
Hannah Storm
The Alliance for Women in Media (AWM) will honor ESPN's Hannah Storm with the Gracies Icon Award during the Gracies Leadership Awards on November 16 at Tribeca 360° in New York. The award recognizes a woman whose influence has helped shape media and expand opportunities for women in the industry. Storm More

Return to Menu

Advertisement

Advertisement

Advertisement