|Source 2015 Nielsen|
A recent Nielsen sales effect study examined radio’s return on ad spend in four retail categories—department stores, home improvement stores, mass merchandisers and quick-service restaurants. The research showed that, depending on the category, every dollar spent in radio advertising could generate up to $17 of revenue from listeners exposed to ads. Hispanic consumers led all categories measured in total spend and drove increased sales ranging from 9% to 49%.
The research combined data from Nielsen’s Portable People Meter (PPM) panel with Nielsen Buyer Insights credit and debit card data to measure sales driven by advertising. Study participants were separated into two groups and weighted to be identical on key characteristics including: age, gender, race, education, employment status, household size, children and buying history. The main difference between the test and controlled groups was radio exposure.
For each category, radio exposure positively affected bottom-line sales and drove new, valuable shoppers.