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