Ok. So don't just take our word for it. We have been making the case for several years that after 95 years if testing, Portland radio has proven to be a powerful marketing tool for Maine small businesses. We have published testimonials from Maine small business owners like realtor Cathy Manchester who doubled her sales in just one year when she started advertising on radio. We have printed studies from major research companies that clearly demonstrate that radio adverting delivers a greater return-on-investment than any other medium. Now comes two more pieces of evidence that shows radio's dominance in the pantheon of advertising supported media.
Exhibit 1: The venerable business publication Forbes published an article this week about the dominance of traditional AM/FM radio. In the article, writer Doug Schoen writes, "You wouldn’t know it from all the media coverage focused on streaming video and streaming music, but 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."
In the Forbes article Schoen connects radio's dominating reach with advertising success. Among other evidence, he points to a study by Ipsos, a global marketing firm. The study shows how different media contributed to the success of Amazon's recent "Prime Day" sale. According to Schoen, "The results may surprise you as much as they surprised me: Of those exposed to radio ads, 52% made a purchase. That compares with 48% of people who saw ads online and 39% who saw TV ads."
After considering all the data, Schoen arrives at this conclusion: "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."
Exhibit 2: 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.
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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