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Shocking News Flash – Radio Works for Advertisers!

May 8, 2014

We always knew it was true. Now comes news that Nielsen has used its capability to match actual exposure to radio ads with actual consumer purchase information to prove it. Every dollar spent on radio gives an average of more than $6 of incremental sales1. Not only does radio work for advertisers, it provides “an ROI double that of even the best results from many recent studies of digital and TV media2.” The sales lift reported in the Nielsen Catalina Solutions study varied from a low of $1.38 per radio ad dollar for one soft drink to a high of $23.21 for an unnamed retailer. The results were presented in March at the Advertising Research Foundation’s Re:Think 2014 conference in New York. The study combined radio audience measurement data from Nielsen Audio with shopper card data from Catalina. Radio’s relatively low pricing compared to other media, combined with the deep personal connections that listeners have with their radio stations and personalities, make it an ideal tool to meet the advertisers’ goal of moving products off the shelf. Even though we live in a new world with new media consumption habits, in order for a campaign to be successful the old rules still apply:

  1. Make the right offer with the right message to the right people
  2. Keep the message simple
    • Sell the benefits
    • Show the value
    • Clear call-to-action
  3. The campaign needs the appropriate reach and frequency
  4. Allow enough time for the campaign to work

The importance of being exposed to an ad nearest to the time of purchase cannot be overstated. This is the advertiser’s final chance to impact the purchase decision. In the Edison Research/Nielsen Audio 2013 Infinite Dial Study3, people were asked what media they saw or heard in the 30 minutes before they arrived at the store. 49% said they listened to AM/FM radio. The 2nd highest response was 21% that saw a billboard. Our industry needs to spread the word. RADIO WORKS! -Marc Greenspan, Partner Sources: (1) Nielsen Catalina Solutions (http://www.nielsen.com/us/en/newswire/2014/for-advertisers-radio-is-worth-listening-to.html) (2) Advertising Age (http://adage.com/article/media/surprise-radio-beats-return-investment/292305) (3) Infinite Dial 2013 (http://www.edisonresearch.com/wp-content/uploads/2013/04/Edison_Research_Arbitron_Infinite_Dial_2013.pdf)