Want a Return on Your Investment?

If you own a small business, you don’t have the luxury of investing in an advertising plan in the hope that it will be effective. If you devote your resources to an advertising campaign, it has to work.

In our business, we’ve always known that providing results for our clients is essential to our own success. As an industry, we looked for ways to substantiate what we deliver. This led to a partnership with companies that measure our audiences in order to hold us accountable to our clients.

recently, radio went a step further in establishing accountability. Last fall Radio network Westwood One established ROI guarantees. They agreed to run campaigns for which the client would only pay if they received a measurable return. Westwood One, then, wanted to get a sense of the return its advertisers were getting on their investments. They 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.

The study found “heavy category buyers” were most responsive to the radio ads and that there was an 8 percent sales lift for the product. The research, which included people 18 and over, examined purchase habits after being exposed to radio versus no exposure.

“The most effective way to measure the sales driven by advertising is by connecting purchase data with media exposures to understand how advertising impacts sales at the register,” said Nielsen Catalina Solutions CEO Matt O’Grady.

Since these folks were willing to put their product to the test, and to correlate spending data with media exposure, Des Moines businesses can rely on one more set of data to feel confident in using radio. Get in touch with us, and put the proven power of radio to work for your business.