New Data on Radio’s Return on Ad Spend

Source: Katz Radio Group®

ROAS ROUNDUP: INCLUDING NEW STUDY FROM CUMULUS MEDIA | WESTWOOD ONE AUDIO ACTIVE GROUP

One of the most powerful ways to illustrate the effectiveness of radio advertising is through Nielsen's ROAS sales lift studies. These studies combine PPM audio data and credit card transactions to tie actual ad exposure to subsequent consumer action. Nielsen has conducted numerous ROAS studies over the years, for a variety of categories covering auto aftermarket, CPGs, telecom, and QSRs, among others. And now, Cumulus Media | Westwood One Audio Active Group adds another study to the mix, the first published ROAS analysis since the onset of the COVID pandemic.

RADIO BOOSTS BUYERS AND SALES FOR NATIONAL DEPARTMENT STORE CHAIN

Westwood One partnered with Nielsen to examine the sales lift and ROAS for a national department store chain, looking at the entire AM/FM campaign - inclusive of every AM/FM radio ad run by the retailer. The study found that even after a year of COVID impact, radio still delivered positive returns for brands. The radio campaign led to a +10% lift in total spend, driven by a +17% lift in buyer penetration and a +15% greater share of category for the advertiser. As a result, Nielsen found that for every $1 spent on radio, the department store received $13 in incremental sales.

RADIO DELIVERS $12:$1 RETURN ON AD SPEND ACROSS CATEGORIES

Nielsen's collection of published ROAS studies incorporates a variety of categories with varying average transaction sizes, and therefore a wide range of ROAS amounts. Larger transactions drive greater return on ad spend than smaller ticket items. All of the studies conducted by Nielsen, including this latest one from Westwood One, prove that campaigns with radio in the mix have measurable impact on growing the consumer base, sales and spend per visit – generating, to date, an average return of $12 for every $1 of ad spend.