Over the past couple years, Nielsen has conducted more than 20 studies to determine the return-on-investment business owners could expect from advertising on the radio. In every instance the ROI has been, in Ad Age Magazine’s words, “eye-popping”.
Dr. Nicholas Roy, owner and practitioner at Saco River Dentistry in Buxton, recently analyzed his return from advertising on Portland Radio. Pun intended, his ROI was jaw-dropping.
Earlier this year, Dr. Roy expanded his practice into a much larger facility. To fill the chairs, he turned to Portland radio.
"When people come to the dentist,” explained Dr. Roy, “they want to know who they are seeing. They want to feel the energy of the person. They have to trust that person. Radio is the only way to get that message across.”
The numbers affirm Dr. Roy’s claim.
According to Shawn Robitaille, Saco River Dentistry’s business manager, “Between mid-May and August we can attribute 137 new patients to our advertising on Portland radio. Based on these patients spending-to-date, our ROI has been 369%. Which is astounding to say the least.”
Certainly, not every Maine small business can expect these types of return from adverting on Portland radio. According to Nielsen, among all of the studies conducted, radio ads produce, on-average, a very impressive 6 time ROI. Ad Age says these findings indicate that advertisers can expect higher returns-on investment from advertising on radio than on TV, digital, or social media.
RADIO ADVERTISING ROI BY BRAND CATEGORY
The most recent ROI study, released earlier this year by Nielsen, is no exception. According to Westwood One, the company that commissioned this study, a radio campaign for a men's personal-care brand produced $11.96 in sales-lift for every $1.00 invested in radio advertising. Wow!
"To determine sales lift," says Pierre Bouvard of Westwood One, "Nielsen Catalina Solutions matches Portable People Meter panel data and shopper card data from NCS and Nielsen Homescan. This creates a household match of actual AM/FM radio listening and their purchase habits.
Mr. Bouvard also noted, radio advertising's overall effect on the brand's sales. "Households where men were exposed to the AM/FM radio campaign saw an 8% lift in sales for the parent brand. The growth in sales was driven by more spending per trip."
In addition to Dr. Roy, many other Maine small business owners have experienced a leap in sales when advertising on Portland radio.
Case in point. Scott Libby, owner of Royal River Heat Pumps in Freeport, credits his radio advertising campaign and its catchy jingle with doubling his sales in just one year. "When it comes to reach," says Mr. Libby, "radio is second to none."
Cathy Manchester, a real estate agent based in Gray, Maine, has had similar results utilizing radio as part of her company's marketing mix. "When we began advertising on the radio several years ago," says Ms. Manchester, "our business doubled! We went from selling 100 homes a year to approximately 200 homes each year! Radio advertising continues to provide a steady stream of well qualified customers for us!"
Jon Goodman, who is the front man of Time Pilots, a Maine based wedding band also experienced accelerated growth when he started advertising on radio. "It would be fair to say," says Mr. Goodman, "that our wedding business has tripled."
A few years ago, after reviewing similar data, media expert Doug Schoen told Forbes, "The implications of results like these are profound. It’s quite clear that we should all be paying more attention to radio, its reach and potential to help our businesses. It’s doing the job with expert efficiency."
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