New Study Shows Measured ROI In Radio Commercials

Tim Castelli

Marketing Evolution and Clear Channel Media and Entertainment today released a study demonstrating the effectiveness of radio in building brand awareness and delivering against client goals when included as a significant part of their media campaigns.

The study measured the ROI on a new menu awareness marketing campaign for Romano’s Macaroni Grill, which ran across national cable television networks and four targeted Clear Channel radio markets – Tampa, Fla.; Cleveland, Ohio; Denver, Colo.; and Dallas, Texas – from September 16, 2013 through October 13, 2013 targeting adults 25 – 54 years of age.

The study showed that radio ads are extremely successful in 'sonic branding' efforts and drove an actual increase in Top of Mind Awareness for Macaroni Grill — and that TV and radio work well together when consumers are exposed to both. In addition, Marketing Evolution’s research showed that combining TV and radio marketing would yield higher Top of Mind Awareness scores with no additional investment.

“This study is crucial in showing the power that radio has to connect with consumers,” said Tim Castelli, President of National Sales, Marketing and Partnerships for Clear Channel Media and Entertainment. “This research proves that audio advertising is very effective, especially when combined with TV ads, in having a significant influence on diners’ decisions on where to eat.”

Key insights and findings from the study include:

• For Macaroni Grill, modeling demonstrates that more impact was achieved with a 77 percent TV and 23 percent radio campaign-spend mix.
• Radio is effective in communicating the “Great Taste” message for Macaroni Grill.
• The campaign significantly increased Top of Mind Awareness (+8 points) for Romano’s Macaroni Grill in the radio test markets.
• Combining radio with TV had a stronger impact on Top of Mind Awareness  per exposure  than just TV alone.
• The Marketing Evolution model shows that the 60-second radio spots were as cost effective as the 15-second TV ads and conveys longer, more custom engaging messages that drive consumer action.
• The campaign areas that included radio impacted all stages of the purchase funnel, from brand awareness and affinity, to actual sales