Radio Results Blog

Three Ways To Measure Radio Advertising Effectiveness

Posted by Larry Julius on Sun, May 27, 2012 @ 08:12 AM

You have chosen a campaign objective.  You have chosen a target audience. You have created a radio commerical. Now you want to know has your investment paid off.  Here are three ways to measure radio advertising effectiveness.

1. Create a success-metric consistent with your marketing objective

A restaurant wants to increase the average customer check from $14.32 to $18.56.  It is determined that the best way to accomplish this is to promote the sale of desserts.  A radio campaign is designed that targets frequent restaurant users.  Then a mouthwatering commercial is created extolling the yumminess of the restaurant’s deserts.  Did it work?  Figuring this out requires two steps: measure radio advertising effectiveness

      • Compare the number of desserts served during the advertising period to a similar time period where no advertising occurred.
      • Compare the average customer check during the advertising period to a similar time period where no advertising occured. 

If both the number of desserts served and the average check increased, then one can conclude the advertising was effective.  

2. Benchmark  Against Your Industry  

A hardware store owner decides to advertise a specific brand of power tools because it provides a significant contribution to the store’s profit margin.  A great commercial is created and placed on a station that has a broad reach among do-it-yourselfers. During the promotion period, sales of the power tools at the store increases 12%. Is this good? If, during the same period, national sales for the power tools increased by only 2%, then it can be concluded that the advertising contributed 10% of the increase.  However, if industry sales were up 15% and the store’s sales were only up only 8%, it can be concluded that the advertising during the promotion period was not highly effective.  Benchmarking information is readily available in most industries from trade organizations, trade magazines, and trade suppliers.

3. Conduct  An Attitude Survey

A daycare operator is going to invest in a 9-month branding campaign on a radio station whose audience has a high-concentration of working moms. The marketing objective of the business is to get these women to believe that the daycare is the cleanest, most germ free environment available for kids to play and learn.  A compelling and engaging commercial is produced.  The owner wants to know if the message has a positive effect on the attitude of new clients.  Here is how he does it: 

  • For a 1 month period prior to the commercial running, the business owner surveys all new customers who are working moms and asks them several multiple choice questions including “Why did you choose this daycare”.  Among the possible choices is “because it is the cleanest, most germ free environment.”  The owner than calculates the percentage of customers who chose this response.  This percentage will serve as the basis for measuring advertising effectiveness.  In this case, let’s assume that during the pre-testing period 12% of the respondents chose “cleanest, most germ free environment”. 
  • Once the advertising begins, the owner continues asking the same survey questions providing the same multiple choice answers. At the end of each month, the owner calculates the percentage of customers who choose “because it is the cleanest, most germ free environment.”  Let’s assume that after the first month, 16% of new customers have chosen the target answer, then one can conclude that the ad campaign has positively affected the attitude of the target audience by 25%.  By continuing this survey for the duration of the advertising campaign, the owner can measure the affect of the campaign over time.

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Effective Radio Advertising

 

 

 

 

 

 

 

 

Tags: Radio Commercial, Effective Radio Advertising