If you listened to Portland Radio over the past few weeks, then you surely heard commercials for insurance. According to accounting firm, Miller, Kaplan, Arse & C., LLP, spending on radio advertising by insurance companies is up 22%. This includes advertising by large national companies like Geico and Progressive. It also includes Maine small business owners such as Dan Muskat, a Nationwide Insurance agent in Westbrook; Falmouth based United Insurance; and Norton Insurance of Cumberland Foreside among others. In an industry that abhors risk, why do insurance companies trust radio to expand their businesses? Because it works...reliably.
A recent study by research giant Nielsen demonstrates how radio was instrumental in helping American Family Insurance, a Fortune 500 company, improve key marketing metrics including consumer awareness, favorability, intent to purchase, and intent. There is every reason to believe this same branding success is achievable by any type or size of Maine small business.
According to Nielsen, the company worked with the Katz Radio Group to measure the brand impact of a radio campaign on insurance decision makers (ages 25-64). The analysis included insurance decision-makers who tuned in to one or more stations airing American Family Insurance commercials and compared their engagement with the company to that of decision-makers who did not listen to those stations. The findings were astounding.
Radio Increased Likelihood of Insurance Quote Requests by 25%
The Nielsen study found that insurance decision-makers who heard the campaign were 25% more likely to request a quote from American Family Insurance than those who didn’t hear it. And brand-switchers who were exposed to the campaign were nearly twice as likely to request a quote, highlighting radio’s ability to influence the insurance company’s best prospects. Additionally, those who heard the radio campaign were 44% more likely to recommend the American Family Insurance brand than those who did not hear it.
Additionally, according to Nielsen, radio delivered incremental value for American Family Insurance by elevating awareness of all other American Family Insurance advertising, too. For example, those exposed to the radio campaign were four times more likely to recall the brand’s online campaign compared to the control group.
Radio Can Deliver a 14:1 Return On Investment
The Nielsen study supports other recent research that demonstrates ability to return up to $14 in sales for every $1 invested. According to the trade magazine Ad Age, these findings indicate that advertisers can expect higher returns-on investment from radio than TV, digital, or social media.
The bottom line: It's a good policy for Maine small business to invest in Portland radio. It's a great medium to insure success of any marketing or advertising campaign.
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