Wednesday, April 8, 2015

Radio delivered $14 dollars in incremental sales for each dollar invested in advertising.

Advertisers have long believed in the power of radio advertising, but many struggle to draw direct correlations between their investment and campaign performance metrics. The days where advertisers can get by without justifying their investments are dwindling, which is why it’s never been more important for them to have direct insight into whether their efforts are paying off.

The good news is that advertisers can assess whether their radio ad campaigns affect consumer purchase behavior, as illustrated by the results of a recent case study that looked at the return on ad spend (ROAS) of a top five telecommunications (telco) company. For the analysis, Nielsen worked with the Katz Radio Group to examine the telco company’s share of the adult (18+) customer base in two ways: with and without exposure to the radio ad campaign.

To assess return on advertising investment, the study linked Nielsen Portable People Meter (PPM) data for first-quarter 2014 campaign exposures on the specific stations used during the campaign with consumer purchases using credit and debit card transaction data from more than 125 million Americans 18+ who had heard the ads. The results showed that radio delivered $14 dollars in incremental sales for each dollar invested in advertising.

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