In this week’s egtabite we spotlight a new study from France proving that radio is a performance booster. Results of the study show that radio is a competitive medium that delivers high ROI, optimises the efficiency of other media (online and offline), is a key for reaching B2B audiences and high-potential customers, generates drive to web, and is efficient for promotional communications and branding campaigns. This study was presented at egta radio MIM.
The Bureau de la Radio (the French radio trade association) commissioned Ekimetrics, a global consultancy company (specialising in data science and measuring the performance of marketing channels) to conduct a study on the effectiveness of radio.
The study focused on four sectors: automotive, telecommunications, consumer packaged goods (CPG) and retail. The econometric model used in the study was the MMM (‘Marketing Mix Modelling’) - integrating all the marketing levers and external factors (seasonality, competition, etc.) that have an impact on sales. Thanks to a wide range of historical data and a broad variety of different situations, statistic modelling allows Ekimetrics to break down the impact of 30 factors simultaneously and to isolate and measure the way every channel contributes to performance.
The study identified the five key strengths of radio:
1) Radio is a competitive ROI medium: on average, 1€ invested in radio generates €7.70 in turnover
The short-term ROI across the four sectors was €5.30. Looking at the total impact, the radio ROI and contribution were amplified in the long term with on average €7.70 of revenue generated per €1 invested in radio, within the four sectors included in the study. The results were even more impressive for retail where €1 invested in the radio generated on average €15.40 in revenue. Furthermore, the study showed that 90% of radio campaigns could benefit from investment increases without any risk of saturation.
2) Radio optimises the efficiency of other media, online and offline
When looking at the media synergies of combining radio with other media, radio works as a booster especially in combination with TV delivering up to 13% more in campaign efficiency (in the case of retail). In online media, radio worked in synergy with search adding 9% to campaign efficiency in the case of telecommunications.
3) Radio is a key medium for reaching B2B audiences and high-potential customers
In 70% of cases radio was in the top 3 most effective media for B2B audiences. Radio ROI was also more effective than the average ROI of media plans in reaching high-value customers.
4) Radio generates effective drive to web (web traffic and online sales)
In the case of retail, radio was 40% more effective than other offline channels generating online sales and investments in radio were 10% more profitable than average media investments.
5) Radio is efficient for promotional offers as well as for recurring branding campaigns
Radio generated +40% ROI on promotional messages vs non-promotional ones.