Stan Katz

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In a world first analysis of cross-agency data, new research from the UK Radio Advertising Bureau (RAB) reveals that brands using radio for their advertising get eight times the return on investment (ROI).

Data was collected from the world’s leading econometric specialists representing all of the major global media groups.

The study reveals that using radio can boost overall campaign ROI. Currently radio carries 6% of all advertising budgets, but if budgets were reallocated a 20% share of total – with no increase in in overall expenditure – the total ROI would rise by over 8%. For the top 100 radio advertisers, this is equivalent to 1.4 billion Pounds

The data also reveals an important finding about best practice in radio planning – campaigns which maximise weekly reach up to and beyond 40% (rather than optimising on frequency), deliver significantly stronger radio ROI. This suggests that coverage is the new touchstone for optimising radio effectiveness.

Simon Redicam, Managing Director of the RAB commented: “When Martin Sorrell calls econometrics the ‘Holy Grail’ of advertising, you can be sure agencies place high importance on it. With data sourced from all the world’s major agency groups the RAB analysis provides the most detailed and robust perspective on radio ROI in the world. We wouldn’t be surprised if the game-changing findings prompt Finance Directors to ask their marketing teams ‘Are we allocating at least 20% of our media budget to radio?’”                          

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