Mark Barber, planning director at the RAB introduced the study, saying: “Over 20 years of RAB research gives a clear indication of radio’s multiplier effect within the media mix. But to date this claim had been based mainly on intermediary measures; unsupported by definitive ROI evidence. That’s why we commissioned this study”
The research was carried out with the purpose of finding:
- What return on investment does radio deliver for advertisers, how does this compare to other media and how does it vary by sector?
- What characterises the campaigns with the best ROI levels in terms of laydown and creative approach
- How do different levels of radio spend affect the ROI for radio, and for the overall campaign ROI?
The key findings of the study are as follows
- Brands using radio get their money back nearly eight times over on average and in many sectors, radio offers the best ROI of any media
- For radio campaign planners, maximising weekly coverage rather than frequency delivers significantly stronger ROI
- The brands which have the highest radio ROI use commercials which stand out, fit well with the brand and communicate information clearly
- Using more radio boosts overall campaign ROI: if existing budgets are reallocated from other media to give radio 20 per cent share of spend, overall campaign ROI increases by eight per cent
- For the Top 100 radio advertisers, this is equivalent to recouping over £1.4 billion in untapped return on their advertising investment
MEC opinion
This study isn’t discrediting the use of other mediums, it is showcasing the power that radio can have in boosting the effectiveness of a campaign. The main points to take out of the study for advertisers to boost ROI are:
- Increasing share of spend on radio to around 20 per cent (subject to media mix)
- Maximising radio weekly audience coverage as opposed to optimising frequency
- Communicating information clearly and making sure the adverts fit in with the brand image
To read more about the study including how the study was done and an in depth analysis of the research visit www.rab.co.uk/roi-multiplier