It is time we all stop talking about John Wanamaker. Who?
John Wanamaker was an 19th century department store owner in Philadelphia. He is known for inventing the price tag and the return policy. But, perhaps, his greatest legacy, is the well-worn quote: "Half the money I spend on advertising is wasted; the trouble is I don't know which half." These days, we might call that a meme.
For many years, especially during his lifetime, Mr. Wanamaker's observation had a grain of veracity. Today, however, Maine small business owners can understand what works and what doesn't. Especially, when it comes to adverting on Portland Radio.
Over the past few years, Nielsen, a company that tracks our media consumption well as buying habits, has done more than 20 studies to determine what type of return a business owner could expect for every $1.00 invested in radio advertising. In every, case, radio advertising's return-on-investment, was, according to Ad Age, "Eye-popping."
Spend $1.00 Get $12.00 Back
The most recent ROI study, released this month by Nielsen is no exception. According to Westwood One, the company that commissioned this latest 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."
This new Nielsen study not only affirms its 21 preceding studies, but it also confirms what many Maine small business owners already know: advertising on Portland radio works.
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."
Advertising On Portland Radio Delivers Qualified Customers
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."
Stacy Dodge, an owner of the Bill Dodge Auto Group with Maine locations in Westbrook, Saco, and Brunswick, also lets reality not perception guide her company's media and marketing decisions. "We have been using Portland radio as a primary marketing source for about 10 years now." said Ms. Dodge. "We have seen very measurable results and are able to target our audiences more effectively."
"We are also more effectively able to market specific brands to a specific audience which is sometimes harder, and more expensive, to do with other mediums, said Ms. Dodge. "Radio is a very cost effective way to get your message out to the people you want to hear it."
Radio Delvers Higher ROI Than Other Media
Not every radio campaign can deliver these types of results. On average, the studies Nielsen has conducted, produce a 6 time ROI. According to Ad Age magazine, these findings indicate that advertisers can expect higher returns-on investment from radio than TV, digital, or social media.
If radio advertising and sophisticated research had existed in Mr. Wanamaker's era, then he would have known which half of his advertising was working.
More Great Advice For Maine Small Business Owners
- What Maine Small Business Owners Can Learn From Warren Buffett
- Portland Radio Is Perfect Tool For Recruiting White-Collar Employees
- Maine Businesses Depend On Reach Of Portland Radio To Drive Sales
- The Most Remembered Business Brands Advertise On Portland Radio