It seems to be a constantly recurring theme in the life of radio that the industry is under threat from some or other external factor. From TV (remember ‘Video Killed the Radio Star’), to personal audio devices, to the internet, to mobile convergence, there has always been some or other challenge to radio, yet radio has not only stared down all of the threats and survived, it is still flourishing.
Radio has not only absorbed the blows directed at it from each and every one of these threats, it has found ways to use the best elements of technological innovation to improve on its relationship with its most important customer – the listener.
This ‘Radio Debrief’ newsletter will delve into some of the key issues facing radio at this time. We will look at the state of the industry; what is happening within the arena of audience research, particularly in South Africa; international research and case studies of radio’s effectiveness; community radio; how radio combines with various new media forms to increase not only campaign effectiveness but also provides a wealth of measurability, and new technologies that ensure that you get what you booked and that you pay for what you got in terms of exposure.
How effective is radio advertising? Extremely effective, with a substantial return on investment (ROI), according to a recently published report by the RAB UK.
The report, which is the first-ever analysis of confidential cross-agency data revealed:
Brands using radio get their money back nearly eight times over on average and in many sectors, radio offers a far better ROI than any other media. On average radio advertisers get their money back 7.7 times over, although some categories show exceptional performance, notably automotive and retailer brands, as well as impulse products.
- Maximising weekly coverage rather than frequency delivers a significantly stronger ROI
- Brands which have the highest radio ROI use commercials that stand out, fit well with the brand and communicate information clearly.
- Using more radio boosts overall campaign ROI
- Brands which reallocate more of their ad budgets to radio see significantly higher returns in terms of overall campaign ROI.
- The study demonstrates that if budgets were reallocated to give radio a 20% share of total spend– with no increase in overall expenditure – the total campaign ROI raises by over 8%.
That’s food for a lot of thought.
We hope you enjoy the first of The Media Online’s new ‘Debrief’ series. Long live radio!
Guest editor / @lancerza
IMAGE: Radio Waves Painting by Marsha Heiken