Radio Results Blog

Maine Small Business Owners Listen Up: Radio Produces 17 Times ROI

Posted by Larry Julius on Sun, Oct 04, 2015 @ 10:08 AM

Portland Radio Maine Small Business Return On Investment RetailerA recent article by Doug Schoen in Forbes begins, "You wouldn’t know it from all the media coverage focused on streaming video and streaming music, but recent Nielsen data shows radio actually has the most reach among American media consumers. 93% of adults listen to the radio each week as compared to 87% who watch TV, a substantive difference."  A Maine small business owner who is considering marketing her goods or services on Portland radio may, understandably, want to know if the medium's superior reach translates to sales.

According to a study just released by Nielsen revealed that when retailers spend $1 on radio advertising, they enjoyed $17 in incremental sales.  The study compared quarterly sales results for 4 retailers who invested in radio advertising with the same quarter or the previous year when radio was not used.

Radio Advertising Increased Store Sales By 10%

Overall, the retailers using radio saw a 10% increase in overall sales. The study credits radio advertising not only with increasing the total number of customers who buy by 3%, it also showed that each of these customers increased their spending by 6%,

These findings by Nielsen support other recent studies that demonstrate the remarkable return-on-investment Maine small business owners can expect from advertising on Portland Radio. A study earlier this year 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.

Another study by Nielsen compared sales results of a telecommunications company that advertised on radio to 4 similar companies who did not.  The radio advertiser's commercial schedule was married with Nielsen Catalina consumer purchasing data that pulls together the credit and debit card transactions of more than 125 million adults. “The results showed that radio delivered $14 dollars in incremental sales for each dollar invested in advertising,” Nielsen reports.

Radio Advertising Provides Meaningful Spending Lift

According to Inside Radio, an industry newsletter, Nielsen says there was also a “meaningful lift” in how much consumers who heard the radio spots spent. Those who heard the commercials spent an average of $8 more per month than consumers who weren’t exposed. The impact was twice as big among millennials, who spent an average of $16 more after hearing the radio ads.

The findings of these studies have led Schoen to conclude his Forbes article by saying, "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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