Nielsen Study Shows Radio Offers Highest ROI in Media Mix

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As brands reevaluate media budgets in the face of economic challenges and the resulting unpredictability of consumer behavior, Audacy is sharing Nielsen data that shows how traditional radio outpaces nearly every other channel in media efficiency.

Nielsen Commspoint’s Channel Plot measures major media channels on a matrix of trial effectiveness vs. cost-per-thousand. With a 35% trial rate and a relatively low CPM, radio emerges as the clear leader in the upper-left quadrant – high effectiveness at low cost. Podcasts are similarly strong performers. Streaming radio also scores above average on both axes.

In contrast, high-CPM channels like connected TV, online video, and TikTok sit further right on the chart, signaling diminished efficiency despite larger reach.

Media Channel Effieciency
(Audacy/Nielsen)

Audacy SVP of Research & Insights Ray Borelli uses this to set the stakes of stepping away from audio with a specific case study. One of the company’s regional QSR clients experienced steady customer traffic while maintaining a consistent radio presence. When the brand pulled its ads in September 2023, the decline was swift and measurable.

According to Placer.ai data, foot traffic dropped by 11.2% within two weeks of the brand going silent on radio. Declines continued for five straight weeks, with year-over-year visits falling as much as 7.1% by early October. When the brand resumed its audio advertising campaign, customer traffic recovered in tandem.

Borelli writes, “It’s a perfect reminder of audio’s real-world influence. Audio advertising doesn’t just drive awareness – it drives action.”

The message: in a media environment where digital CPMs are climbing and TV’s reach is shrinking, audio offers the rare combination of scale, affordability, and effectiveness. “What our clients see time and time again is that when marketers shift even a small portion of TV budgets, for example, over to Audio, the results are powerful,” Borelli adds. “Often driving 20% stronger reach for the same budget, just allocated a little differently.”

With consumer attention more fragmented than ever and ROI under the microscope, Audacy encourages brands to treat visibility as an opportunity, not an expense.

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