Study Shows That Every $1 Spent on Radio Advertising Returns $12 In Purchase Activity

Radio network Westwood One wanted to get a sense of the return its advertisers were getting on their investments—it promised as much last fall, when it established ROI guarantees—so it partnered with Nielsen Catalina Solutions to determine how a product in the consumer-packaged-goods realm performed and found that radio delivered $12 in sales for every $1 spent on advertising. 

“Westwood One has been very vocal that AM/FM radio delivers an impressive return on investment for brand marketers,” said Suzanne Grimes, evp of marketing at Cumulus Media and president at Westwood One. “Today, we back that statement. These findings show that a personal-care brand can use radio to realize impressive sales lift and a powerful return on ad spend.”

NCS, a joint venture between Nielsen and Catalina Marketing, calibrates a purchase data set from over 90 million unique households with retail sales data. It then connects Nielsen Radio Ratings data with the shopper data to understand how listeners were exposed and what, if any, action was taken.

Read the entire article in Adweek