Radio is often the underdog when it comes to advertising campaigns. Many underestimate its effectiveness, which means radio advertising frequently doesn’t get its fair share of the budget. Studies keep proving this point, but a new one highlights how powerful the tactic can be.
Let’s review the findings to see why and how radio in the mix improves performance.
Radio Advertising Doubles a Campaign’s Effectiveness
A new study from Commercial Radio & Audio concluded that investing just 11% of the budget in radio spots can double the efficacy of a campaign. The research project’s objective was to measure the true impact of radio advertising and its bearing on performance.
The study analyzed advertising council data, specifically the extra share of voice (ESOV) metric. It measures the degree to which a brand’s share of voice exceeds its share of the market. So, how does radio impact ESOV?
Overall, positive ESOV results when radio is part of the tactic mix. Findings included:
- Brand impact was 13% higher with radio.
- Campaigns with radio had positive effects on brands, which led to better results for the business.
- When radio was present, brands also gained in mental availability, a marketing concept related to how likely a consumer is to think of a company when making purchasing decisions.
Why Is ESOV So Valuable to Businesses?
When ESOV is high, there are downstream impacts. Brand awareness increases, which may then contribute to higher loyalty. When awareness and loyalty rise, companies often see revenue gains as well.
With the spotlight on ESOV, the study gives us a deeper understanding of radio’s specific impacts. Earning these improvements demonstrates that radio is an excellent channel for customer acquisition.
There’s often a misconception that radio is only good for awareness advertising, but the reality is that radio works throughout the sales funnel.
Positive ESOV using radio advertising outperformed campaigns without it in:
- Strengthening or defending pricing
- New customer acquisition
- Customer retention
- Brand profit growth
The analysis of the data also showed that campaigns with radio spots improved product knowledge and created a distinctive image or set of associations.
Why does radio have this kind of impact and influence? Based on all the data our industry has, the most powerful things about radio are its local feel and trusted personalities. We also experience audio differently from visuals. Because of this, people often have better recall of things they heard than things they saw.
Radio Advertising in the Full Picture of a Campaign
Like so many others in the industry, the study recognized that media consumption is fragmented. Consumers have more choices than ever and engage with different types all day, from listening to the radio in the car to watching streaming programming to scrolling through social media sites.
Taking the approach of discussing the wide array of media with customers is crucial to building the best campaign for them. The mix you create depends on their industry, audience, budget and many other factors. Asking questions about their expectations for advertising should also be part of the conversation.
We cover the topic of digital plus radio advertising because it’s the combination that will allow broadcast radio to thrive. The belief that these two things are linked resulted in our literally connecting these two pieces.
Our digital advertising platform, Marketron NXT, integrates with our traffic products. Sellers can propose, order, report and invoice from one ecosystem. As earnings calls and industry research continue to demonstrate, revenue growth is dependent on selling all types of local media advertising. We’ve made it easier than ever.
Explore NXT here.
Get an overview of our radio traffic solutions.
