A study from across the Atlantic has more good news about the power and value of radio and other audio platforms. While television continues to dominate the share of ad spend, the potency of audio advertising offers better short-term and comparable long-term ROI.
“Profit Ability 2: the New Business Case for Advertising,” a study commissioned by Thinkbox and including brand data from Ebiquity, EssenceMediacom, Gain Theory, Mindshare, and Wavemaker UK, provides fresh insights into the profitability of advertising, post-COVID.
Accounting for 6.2% of total advertising investments, radio and streaming yield 6.9% share of full payback, indicating audio’s effectiveness in generating solid returns over time.
Delving into the financial specifics, the ROI metrics speak volumes about the efficiency of audio as an advertising medium. The full payback ROI for audio stands at £4.98, meaning for every pound spent, advertisers see nearly five pounds in return over the analyzed period. This figure places audio ahead of Broadcast Video On Demand and several digital formats, including online display and video, paid social, and generic pay-per-click ads
When considering short-term gains, audio boasts an ROI of £2.47, far outpacing all television and digital competitors.
When it comes to sustained payback, which measures the long-term impact and brand building, audio contributes 6% to the profit volume. This highlights its role in maintaining consumer engagement over the long haul. With an 8.2% share in short-term payback, audio advertising demonstrates a remarkable ability to drive immediate consumer action.
The immediate impact of audio is further reflected in its 4.9% share of immediate payback. This is significant, considering the rapid response it can invoke from the audience.
As the advertising world continues to adapt to digital shifts and the changing habits of consumers, audio’s prominence is likely to augment, offering a complementary approach to both digital and traditional visual media. It strikes a balance between immediate returns and sustained brand impact, delivering a respectable ROI that competes well with other forms of media.
A little sleight of hand here, lol. Not at all sure if a study in England is relevant to U.S. And we believe that radio in England does not play 12,14, or more commercial units in a row like many U.S. stations.
So the comparison is apples to oranges.