Radio advertisers have known it for almost 92 years, but a new study confirms it. Research giant Nielsen Catalina found, on average, radio commercials produce a $6.00 sales lift for every $1.00 invested. According to Ad Age magazine, these findings indicate that advertisers can expect higher returns-on investment from radio than TV, digital, or social media. Small businesses who advertise on Portland, Maine area radio stations have found this to be true also.
Cathy Manchester, a Maine base real-estate agent, expanded her sales by 100% after investing in radio advertising for one year. Cathy says, "It's a rarity when calls [generated from radio ads] don't turn into business immediately." Michael Storey who owns a Portland area landscaping company said, "We experienced a 45% growth in one year once we went on the radio." Michael Major of Cunningham Security concurs. He says, "When we are not on the radio our phones don't ring."
Massive Return On Investment
The ROI study from Nielsen Catalina Solutions combined data from Nielsen's newly acquired radio-audience measurement business with shopper-card data from Catalina to link consumers' media usage directly to their buying decisions. Radha Subramanyam, a media executive with deep credentials in television, digital and radio said, ""I have never seen such consistent delivery against advertising metrics and this kind of massive return on investment."
Of particular importance to Maine small business is how well retail advertising performed in the study. Retail brands found the highest return on investment from radio advertising with results ranging from 11.1% ROI to 23.2% ROI. According to Ad Age, these results are "eye-popping."
"Part of the high ROI relates to radio's relatively low pricing." said Ms. Subramanyam. Combine affordability with radio's ability to reach 93.1% of all consumers in the Portland area, and the ROI formula becomes obvious to any Maine small business including Mathews Brothers a window manufacturer in Belfast, Maine. According to Bob Maynes, the company's director of marketing, ""We were the oldest company in the country that no one ever heard of." But in just six weeks, radio solved that problem."
Radio Advertising Returns $7.70 for Every $1.00 Invested
The Nielsen Catalina study of radio ROI reflect the findings of another study conducted in 2013 by major international media buying companies including Mindshare, Mediavest, Mediacom, and Havas. Their study revealed that radio advertising returned $7.70 for every $1.00 spent. This was a higher return than those of newspaper, billboards, and online.
Here are 9 more things every Maine small business should know about radio advertising:
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