Proof that Radio Advertising Drives Sales Share and ROI

1 paybackNielsen Research may have found the magic bullet to prove the return on investment (ROI) of radio advertising. Next week in New York Nielsen is going to do a show and tell at the Clear Channel Offices and Richard Bressler who is the CFO of Clear Channel CFO is saying “Nielsen proved beyond a shadow of a doubt that radio over-delivers.” In one example, Bressler said the return for every $1 spent was $6 in return. Since Bob Pittman arrived, Clear Channel has been all about generating more data about how radio works to help boost radio revenue with advertising agencies and big national clients.

A major study conducted by Nielsen Catalina Solutions (NCS) used cutting-edge measurement tools to link radio advertising to retail sales for the first time, proving the effectiveness of radio – or “audio,” as it’s often called today – for driving sales to brick and mortar stores.

The study, “From Airways to Aisles:  Measuring Sales Impact with Single Source,” found that for every dollar spent on advertising, there was a sales return of $6 on average for those exposed to the ads in the prior 28-day period.

NCS arrived at these findings through the use of single-source methodology and frequent shopper data, measuring the sales impact for the specific media buys of eight CPG and two retail brands, each of which had different combinations of radio networks. This study was sponsored by Nielsen as part of an ongoing initiative to expand insight into the effectiveness of radio advertising.  This work provides an early foundation for radio ad norms in the industry.

You can read more about this study and findings here thanks to the people at Nielsen Catalina Solutions.