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.
