Nielsen: A Radio Ad Bedrock Meets Existing And Future Demand


Marketing serves a dual role: to convert existing demand and to create future demand. Now a new analysis from Nielsen sheds light on how an integrated approach combining radio with digital solutions offers the most effective media plan for local advertisers.

Converting existing demand involves targeting the small segment of consumers who are actively looking to make a purchase. On the other hand, creating future demand, often referred to as brand building, involves engaging with the broader consumer base who are not currently considering a purchase. This approach fosters long-term connections through emotional and memorable marketing that keeps a brand top of mind when the consumer eventually decides to buy.

This aligns with the theory of marketing effectiveness experts Les Binet and Jon Lombardo, suggesting that 60% should be allocated towards creating future demand and 40% towards converting existing demand.

Nielsen’s study underscores the significant impact of adding AM/FM radio to digital and TV campaigns, noting that such an addition markedly increases the overall reach of the advertising efforts. This is critical in a media environment where TV viewership is declining and digital platforms alone cannot bridge the gap in market reach. Over the air radio steps in to fill this void effectively, reaching audiences that are less accessible through other channels.

The study elaborates on different scenarios where shifting parts of a media budget to include radio can lead to significant increases in reach. For instance, reallocating just 10% of a media plan from TV and digital to AM/FM can enhance market reach by 28% without increasing the overall budget. This demonstrates radio’s unique strength in augmenting the effectiveness of traditional and digital media strategies.

Nielsen’s analysis also highlights the superiority of traditional radio over other bases in cross-media plans. Plans that use radio as the foundational element achieve nearly double the market reach of those that start with TV. This finding is crucial for advertisers aiming to maximize their investments and underscores the continued relevance of radio in a digital age.

More details can be found in this week’s Cumulus Media/Westwood One Audio Active Blog.


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