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The Business Case for AM/FM Radio Ads: Be Known Before Needed

A local advertiser recently asked for the “business case for AM/FM radio advertising.” Over the last ten years, a vast array of marketing science studies have documented how AM/FM radio advertising can build local businesses and national brands. This week’s Cumulus Media | Westwood One Audio Active Group® blog outlines the findings from these studies and explains how important it is for brands to be known before they’re needed.

Key findings

In one of the most significant studies ever conducted on the sales effect of AM/FM radio, Peter Field, one of the “godfathers of marketing effectiveness,” reveals major differences in business outcomes for marketers who utilize AM/FM radio versus those who don’t: +13% greater mental availability, the propensity of a brand to be noticed and thought of in buying situations; +28% larger market share; +17% increase in pricing power; +42% increased profits, with AM/FM radio’s impact on profit growing; +23% greater return on advertising spend

Across dozens of sales effect studies, Nielsen reports AM/FM radio advertising generates an outstanding $10 return on advertising spend

Nielsen Media Mix Modeling: “Radio consistently ranks as a top tier medium for ROI”

Ebiquity/Gain Theory: Of ten media, audio is number two in short-term ROI and number three in long-term ROI

LeadsRx 17-campaign analysis reveals a +14% average increase in website traffic due to AM/FM Radio advertising

Through the long-term use of radio, Steve’s Pest Control of Columbia, Missouri has expanded its business from one van to ninety vans

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