NEW YORK – No, it’s not a new royal-themed French radio station, Radio’s ROI Advantage is a U.S. study that says spending on radio advertising is better than spending on television.
Radio’s ROI Advantage, the third major study from the Radio Ad Effectiveness Lab (RAEL), says that radio campaigns show significantly better Return On Investment (ROI) for advertisers than national television campaigns.
The findings were released this morning at a press conference in New York City and said that Radio’s ROI was 49% higher than television’s.
Conducted by Millward Brown and Information Resources Inc. (IRI), the study examined four pairs of American radio and television campaigns in a range of product categories over a six-month period.
The study’s findings verified:
* Radio moves product
* Radio ads increase sales even when national TV is present
* Radio’s effect can be measured – when used at sufficient weight
The product categories included grocery food, grocery non-food, and two very distinct over-the-counter drug products. Conducted in four IRI BehaviorScan markets, four controlled test cells were created: one with no television or incremental radio; one with incremental radio only; one with national television only; and one with both national television and incremental radio.
“This study addresses the core issue of advertising – return on investment,” said Gary Fries, president and CEO of the Radio Advertising Bureau (RAB) and co-chairman of RAEL. “Radio’s ROI Advantage substantiates our previous theories that radio can and does deliver significant ROI for advertisers.”
For more on this, go to www.RadioAdLab.org.
