Insights: Radio Generates Triple The Sales Lift of TV

CUMULUS MEDIA | Westwood One has released a historic new study that examines the sales lift of a retailer’s entire TV and AM/FM radio campaign. Every single TV and AM/FM radio ad run by the retailer was examined. While Nielsen has conducted dozens of sales lift studies for AM/FM radio campaigns, this is only the third study ever presented on the effect that adding radio to a TV ad buy has on ROI. 

Nielsen’s analysis examined the campaign that ran from April 30, 2018 through May 27, 2018, comparing those who were exposed and unexposed to determine ad effectiveness.

• Most consumers were reached by both the TV and the AM/FM radio campaign: During the one-month measurement period, of those exposed to the campaign, 57% of were reached both by the TV and AM/FM radio campaign. 23% only saw the TV ads and 20% only heard the AM/FM radio ads.
• The majority of those only reached by the AM/FM campaign were light TV viewers: Nielsen reported that AM/FM generated a +24% increase in incremental reach to the TV media plan. The majority of those only reached by the AM/FM radio campaign were light TV viewers.
• Total campaign sales increase was driven by customer growth: Nielsen found the combined effect of the TV and AM/FM radio campaign was a strong increase in the customer base (+5.2%) and a modest increase in spend per buying household (+1.0%). In total, the campaign generated a +6.2% increase in sales.
• AM/FM radio sales lift is triple that of TV: Examining the sales increase among the three media exposure segments revealed the AM/FM radio-only segment (consumers only reached by the AM/FM radio campaign), had 3X the sales lift of the consumers reached by the TV ads.
• Those only exposed to the AM/FM radio ads represented 20% of campaign reach yet generated 42% of the total sales lift: One point of AM/FM radio reach generated two points of incremental sales.
• AM/FM radio has double the return on advertising spend as TV: For every dollar invested in AM/FM radio, there was $28.82 of incremental sales generated. This is twice the return on ad spend of TV ($13.51).