Do you know Nigel Travis? Probably not. But if you live in Maine, you probably heard his commercials on Portland radio this morning. And no matter where you are in New England, you are probably no more than a mile from one of his stores. Nigel Travis's first job was as disc jockey when he was 18. He is now the CEO of Dunkin' Brands, parent company of Dunkin' Donuts. You don't jump from spinning stacks-of-wax to making $4.2 million dollars a year overseeing the world's #2 coffee chain unless you are a smart guy. A very smart guy.
Dunkin' Donuts is on Portland Radio 52 weeks a year. And smart guys like Nigel Travis don't invest grand sums of money in radio advertising unless they are convinced there is a large return on investment. Have you seen the lines at the drive-thru? Clearly, Dunkin' runs on radio. Mr. Travis's ongoing confidence in radio is validated by a recent study.
In 2014, research giant Nielsen 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. To learn more about this study, read the article: Radio Ads: Highest ROI for Maine Small Business.
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Have you ever heard of the Government Employees Insurance Company? You probably know it better as GEICO. And GEICO is owned by another very smart guy, Warren Buffet, the second richest person in America. Buffet's ability to invest shrewdly has earned him the nickname, "The Oracle of Omaha." Buffett is so convinced that investing in radio advertising is effective that he buys more commercials that anyone else. In a recent blog post, radio consultant Fred Jacobs said, "Last week, GEICO was radio’s top advertiser according to Media Monitors, airing more than 44,000 commercials. In the second position was AutoZone with 28,000 radio ads." Many of those GEICO ads were broadcast on Portland Radio.
The list of smart money people who invest in radio advertising is long and luminous. It includes Gregory Wasson, Chief Executive Officer of Walgreen's (the 8th largest radio advertiser last week); Craig Menear, CEO of Home Depot (the 7th largest radio advertisers last week; and William Rhodes, CEO of AutoZone.
Many Maine small business owners have followed the trail of smart money into Portland Radio. I would like to introduce you to 17 of them: