Agencies offer advice for radio’s future

Radio continues to boost ROI

Annette Malave, RAB

Radio drives sales. That was the definitive message of the “Radio and ROI” session at Radio Show on Wednesday. In the case of four department store brands, radio delivered a $17 increase in sales for every dollar spent in advertising.

Presenting the latest category addition to the current existing list of Nielsen return-on-ad spend studies, Carol Edwards, Senior Vice President, Nielsen Media Analytics, presented the findings based on an aggregate of four department store brands. These were based on the results of a panel of 4,000 consumers ages 18+ who were exposed to radio ads versus those who were not.

In this analysis, Radio brought in more shoppers, and each of those shoppers spent more each time they shopped. Specifically:
  • Department Stores experienced a $17 uptick for every $1 spent
  • 3% increase in total number of buyers
  • 6% increase in dollars spent per buy
Immediately following the presentation, Pierre Bouvard, CMO, Cumulus/Westwood One, and Stacey Schulman, EVP, Strategy & Analytics, Katz Media Group, each expressed the importance of these results, noting that Retail is a category that impacts markets of all sizes.

“This is the kind of evidence markets big and small need,” stated Bouvard. “It’s important for salespeople to present this information to their clients.”

When it comes to the challenges that clients have in understanding how each medium impacts their sales, these studies continue to provide that data.

“Advertisers today want to know that every dollar is working,” added Schulman. “There has to be data, proof points and accountability.”