Radio advertising may be the hardest-working medium available for local businesses. It delivers impressive ROAS (return on ad spend) and is the leading mass media for reach! While you know all about the power of radio spots, advertisers often have the wrong picture.
Their knowledge gap on radio’s effectiveness leads to them reducing their spend on it or cutting from their budget. Be ready to open their minds with facts, so they truly understand the impact of these ads on their business.
How Radio Advertising Generates a $10 ROAS
How do we know radio delivers a $10 ROAS? Nielsen Buyer Insights data supports this conclusion.
The average is actually $10.59, as the data breaks it down by industry. Some highlights include:
- Home improvement: $12.00
- Grocery: $23.00
- Beer: $4.17
- Mass retail: $16.37
- Auto aftermarket: $21.00
These conclusions are the result of matching the PPM (Portable People Meter) AM/FM radio exposure with retail purchases made using credit and debit cards, as well as insights from grocery shopper cards.
These returns are impressive, and the Nielsen Media Mix Modeling declares that radio is consistently a top-tier medium for ROI.
Long-Term and Short-Term Gains for Radio Ads
Radio advertising achieves in both long-term and short-term benefits, according to an advertising study. Audio ranks number two in short-term (1-13 weeks) and number three in long-term (1 week to 2 years).
The short-term return is $3.12, and only print outranks it at $3.46. In the long term, the value is $6.29, following print ($8.04) and linear TV ($7.51). What’s also important to note is that radio ads are often less expensive than print or TV.
Radio Advertising Is Also a Great “Partner” for Digital
Another way to frame radio spots and their value is by considering how they support other tactics when both are part of a comprehensive campaign. For example:
- AM/FM radio provides a 14% positive lift in website traffic. (LeadsRx)
- When radio is part of the media plan, the return on marketing investment increases by 23%. (IPA Databank)
Radio and digital together offer advertisers a way to achieve reach and target specific audiences. They create a strong partnership, and local media sellers can provide both.
Radio Still Engages Listeners, Enables Connections
Another misconception by advertisers is the often-heard yet inaccurate, “No one listens to the radio.”
Industry data keeps telling us this isn’t true at all. The latest updates on these stats show that radio still dominates ad-supported listening time across all demographics. If it didn’t have listeners, then how could it deliver such ROI?
That’s a good point to make in this conversation. Plus, radio has community roots and well-loved personalities. These connections don’t happen in any other medium. They can’t replicate that in any other channel.
What’s Your Radio Advertising ROI Story?
We’d love to hear about a campaign that delivered a strong return for a customer. The stories behind the numbers are what change minds!
If you have a story to tell, we’d love to hear it. You can respond by filling out this short form. We’ll compile stories for a future post to share with this industry.
