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

Urban One Names Yonni Rude Dallas Operations Manager
Yonni Rude
Yonni Rude
Urban One Dallas has named Yonni Rude Operations Manager, overseeing programming for the company's three Dallas-Fort Worth radio brands: KBFB (97.9 The Beat), KRNB (Smooth 105.7) and KKDA (K104). Rude moves to Dallas after spending the past three years as Program Director for Urban One's Houston stations More

Cedar Basin Media to Acquire Six Iowa Signals
Civic Media
Civic Media
Cedar Basin Media, a new unit of Civic Media, has reached an agreement to acquire six radio signals in Cedar Rapids and Waterloo, IA, from NRG Media. An application seeking approval of the transaction will be filed with the FCC. The deal includes Cedar Rapids stations KFMW-FM More

WMMB Host Bill Mick Retires After 25-Plus Years
Bill Mick
Bill Mick
Longtime Space Coast radio personality Bill Mick is retiring from iHeartMedia's WMMB (92.7 WMMB), concluding more than 25 years on the air in Melbourne, FL. His final edition of "Bill Mick LIVE" airs Friday, September 18. Mick began his Space Coast radio career in 1998 and took over mornings at WMEL in More
Advertisement

NABLF Names 2027 Broadcast Leadership Training Class
NAB Leadership Foundation (NABLF)
NAB Leadership Foundation (NABLF)
The NAB Leadership Foundation (NABLF) has announced the 2027 class of its Broadcast Leadership Training (BLT) program, selecting 15 radio and television professionals for the industry leadership development initiative. For more than 25 years, BLT has prepared nearly 450 senior More

FCC Issues WSDS Notice Over EAS, Power Violations
Federal Communications Commission (FCC)
Federal Communications Commission (FCC)
The FCC's Enforcement Bureau has issued a Notice of Violation to Vazquez Broadcasting Corporation, licensee of WSDS-AM in Salem Township-Ypsilanti, MI, citing multiple violations involving Emergency Alert System monitoring, operating power and the station's directional antenna system. The notice, More

Second Circuit Stays Cumulus-Nielsen Enforcement Order
Nielsen and Cumulus Media
Nielsen and Cumulus Media
The U.S. Court of Appeals for the Second Circuit has granted Nielsen a stay pending appeal of a federal judge's order requiring the ratings company to offer its Nationwide radio ratings product to Cumulus Media on commercially reasonable terms or face sanctions of $50,000 per day. The September 16 ruling 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