Radio Results Blog

For Maine Small Business Owners The News Keeps Getting Better

Posted by Larry Julius on Sun, Oct 18, 2015 @ 02:15 PM

For Maine small business owners who depend on Portland radio to advertise and market their goods and services, the news just keeps getting better.  Research studies continue to conclude that radio advertising eye-popping return-on-investment.  The most recent study from Nielsen released last week examined radio’s return on advertising spend in four retail categories. The four categories included department stores, home improvement stores, mass merchandisers and quick-service restaurants

"Our new sales effect study shows once again why radio is a critical element in any media campaign," says Carlos Edwards, Nielsen's Senior Vice President, Media Analytics. "It helps increase sales and delivers positive ROI, providing a powerful and reliable way for advertisers to connect with consumers and grow their brands."Maine small business owners Portland RadioNielsen’s research revealed that among retailers radio exposure led to significant return on advertising investment for each category. Department stores saw the highest return of $17.00 to $1.00 and experienced a 10% increase in sales. Mass merchandisers saw a $16.00 to $1.00 return. Home improvement stores experienced a $10.00 to $1.00 return while the return for quick-service restaurants was $3.00 to $1.00.

The research combined data from Nielsen’s Portable People Meter panel with Nielsen Buyer Insights credit and debit cards consumer data to measure sales driven by advertising. Study participants were separated into two groups and weighted to be identical on key characteristics including: age, gender, race, education, employment status, household size, children and buying history. The main difference between the test and controlled groups was radio exposure.

Data results by category: For each category, radio exposure positively affected bottom line sales and drove new, valuable shoppers.

  • Department stores: Four department store brands that implemented radio campaigns experienced a 10% increase in sales. In addition, the campaign led to a 3% increase in total number of buyers and a 6% increase in dollars spent per customer. Radio exposure delivered a $17.00 return for every $1.00 spent.
  • Home improvement: Two home improvement store brands that implemented radio campaigns saw a 4% increase in sales. The brands also saw an 8% increase in total number of buyers and a 2% increase in transactions. Radio exposure delivered a $10.00 return for every $1.00 spent.
  • Mass merchandisers: Two mass merchandiser retailers that executed radio campaigns experienced a 1% increase in overall sales. Retailers saw a 2% increase in total number of shoppers and 2% in dollar spent per transactions. Radio exposure delivered $16.00 return for every $1.00 spent.
  • Quick-service restaurants: Three quick service restaurant brands that implemented radio campaigns saw a 6% increase in sales. Quick service brands also experienced a 6% increase in consumers and a 1% increase in dollar spent per purchaser. Radio exposure delivered a $3.00 return for every $1.00 spent.

Maine Small Business Owner Doubles Sales By Advertising On Portland Radio

Even without these studies, Maine small business owners know the positive effective that Portland radio can have on their bottom lines. This includes Portland real estate agent Cathy Manchester of Keller-Williams. Prior to adding radio to her marketing mix, her team of agents was selling a respectable 100 homes per year.  But, she wanted to take her business to the next level. To achieve her goal she consulted with high-volume agents across the country who were selling 200-500 houses per year.  According to Cathy, "One of the things I found that was consistent with them is they were all using radio." As a result of her research, Cathy added radio as a primary component of her marketing. Over the course of her first year using radio, Cathy's sales have doubled.

Another Maine business owner who credits radio with the growth of his business is Michael Major. He and His wife Mary own Cunningham Security Systems, a small business that provides custom designed, high quality, monitored security systems to residential and business customers in the Portland, Maine area. Michael says, "Radio has been head-and-shoulders above the other two types of marketing we have done. That's why I continue to expand my radio advertising." Michael adds, "I know when I'm not running radio ads my phone doesn't ring."

Forbes: We Should All Be Paying More Attenion To Radio

Radio's ability to provide, as AdAge magazine calls it, eye-popping ROI has been noticed by even the sharpest minds in media.  A few weeks ago, Doug Schoen wrote in Forbes Magazine, "The implications of results like these are profound for the communications and advertising industries and as a marketing professional with over 35 years of experience, I found this data nothing short of fascinating. 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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