AM/FM Radio’s Three Gifts To Advertisers: Growth, Trust, and ROI


    In an advertising landscape where every percentage point in market share and brand trust can hold millions, radio remains an elite performer. From enhancing mental availability to augmenting pricing power, a new study underscores AM/FM’s potent return on investment.

    Marketing effectiveness expert Peter Field has released a new study in the UK, titled The Long and the Short of It – 10 Years On: Radio’s Enduring Role in Effectiveness. Cumulus Media Chief Insights Officer Pierre Bouvard unpacks the study’s exploration of the impactful role of AM/FM radio in enhancing market share, sales, and return on investment.

    Right out of the gate, Field reveals that radio advertising increases mental availability by 13%, suggesting that brands are more likely to be considered during purchasing decisions if they utilize AM/FM radio. Additionally, when AM/FM radio is part of the media plan, brand trust sees a substantial increase of 58%, correlating to significant profit growth.

    Field’s research indicates that brands utilizing AM/FM radio command a 28% larger market share and experience a 17% improvement in pricing power, which is a major driver of profitability. The report also demonstrates that OTA radio enhances short-term sales effects by 13%, further highlighting radio’s efficiency in reaching target consumers who are ready to make a purchase.

    AM/FM radio holds the title as the most widespread mass media platform in the US, offering remarkably cost-effective Cost Per Thousand rates, especially over television. Media Dynamics notes that CPM rates for Network TV Primetime have surged by 19% to $36.10. This rate is seven times higher than that of network radio CPMs.

    In terms of share of voice – a measure of advertising presence relative to the market – Field’s analysis suggests that traditional radio’s influence is four times more efficient compared to those not using radio advertising. This efficiency translates to a 42% increase in profits and a 23% higher return on marketing investment for brands that incorporate AM/FM into their advertising efforts.


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