Home Login RADIO ONLINE RSS Facebook
Advertisement

Study: Broad Ad Reach Key to Driving Brand Growth


Cumulus Media |  Westwood One
Cumulus Media | Westwood One

New marketing research suggests advertisers looking for long-term growth should focus on reaching a broad audience rather than concentrating heavily on consumers who are already in the market to buy. The findings are highlighted in a new Cumulus Media | Westwood One Audio Active Group analysis from Pierre Bouvard, drawing on marketing effectiveness research and a new book from James Hurman, along with a new study from Les Binet and Will Davis.

At the center of the research is the "95/5 rule," which holds that only about 5% of consumers are in the market for a particular product or service at any given time, while the remaining 95% represent potential future customers.

According to the analysis, advertisers have two primary jobs: converting existing demand among consumers currently in the market and creating future demand by building their brands among those who are not yet ready to buy.

The research suggests marketers devote about 40% of their efforts to reaching in-market consumers and 60% to building future demand. While tightly targeted advertising can help convert existing demand, reaching the much larger group of future buyers requires broader media exposure.

That approach favors what the report calls "big media," including AM/FM radio, television and out-of-home advertising.

Research cited by Bouvard indicates campaigns targeting new buyers or the entire market are two to three times more effective than campaigns focused primarily on existing customers. Over longer periods, companies employing broad-reach strategies were also significantly more likely to report substantial profit growth.

The analysis also challenges marketers' perceptions about the importance of targeting. A survey of 300 advertising decision makers found marketers and agencies estimated targeting was responsible for 22% of sales impact. Consumer purchase measurement firm Circana puts the actual contribution at 11%.

Another advantage cited for mass-reach media is memorability. Research from Amplified Intelligence's Karen Nelson-Field found more than 85% of online ads fail to reach the 2.5-second "attention-memory threshold," the point at which active attention begins making a meaningful difference in how long a brand remains in memory.

The research also found advertising in AM/FM radio, television and outdoor media can generate stronger perceptions of brand quality, popularity and trust than digital advertising. When measures including quality, financial strength, confidence, popularity, success and trust were combined, big-media advertising scored 40%, compared with 29% for digital media.

Bouvard argues this is particularly important because much of advertising's role occurs well before a consumer is ready to make a purchase. Research cited in the analysis found 84% of purchases are effectively decided before shopping begins, making long-term brand awareness critical.

The findings also challenge the traditional concern about advertising "waste" - reaching consumers who are not currently in the market. Instead, the analysis argues that reaching those consumers is necessary for future growth because brands need to be known before they are needed.

Read the full Audio Active Group blog here.

Advertisement

Latest Radio Stories

Katz Study Shows Radio's Impact on Digital Engagement
Katz Radio Group
Katz Radio Group
A new Katz Radio Group insights report highlights radio's ability to drive measurable online consumer activity, with a summer 2026 advertising campaign generating more than 16,000 radio-attributed website sessions and hundreds of modeled purchases. The study, titled "From the More

FCC Affirms $60,000 in Fines for Pirate Radio Operations
Federal Communications Commission (FCC)
Federal Communications Commission (FCC)
The Federal Communications Commission (FCC) has issued three forfeiture orders totaling $60,000 against individuals operating unauthorized radio stations in New York and Massachusetts. The orders, released October 22, impose $20,000 penalties in each case for violations of the Communications Act's provisions More

Veteran Radio Executive Matt Hanlon Dies
Matt Hanlon
Matt Hanlon
Veteran radio executive Matt Hanlon, whose career included senior leadership positions at Citadel Broadcasting, Entercom, Townsquare Media and Saga Communications, died Tuesday, October 20, after suffering a heart attack. Hanlon spent decades in radio management, sales and operations, overseeing major More
Advertisement

WHAS Host Meiners Named 2026 Louisvillian of the Year
Terry Meiners
Terry Meiners
iHeartMedia Louisville and the American Advertising Federation (AAF) Louisville have announced that longtime NewsRadio 840 WHAS personality Terry Meiners has been named the 2026 Louisvillian of the Year, recognizing his contributions to broadcasting, community service and charitable organizations. More

iHeart Leads Triton's September U.S. Podcast Rankings
Triton Digital
Triton Digital
Triton Digital has released its September 2026 U.S. Podcast Ranker, with iHeart Audience Network maintaining its lead among podcast sales networks while posting an increase in average weekly downloads. According to the report, iHeart Audience Network ranked first with 67.3 More

Bonneville Announces Salt Lake City On-Air Changes
Jon Smith
Jon Smith
Bonneville International is making several programming changes across its Salt Lake City cluster, including a new afternoon assignment for Jon Smith (pictured) at KSL NewsRadio and upcoming changes at KSFI (FM100.3). According to an internal announcement from Sue Kelley, Director of Programming for KRSP 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