Warc Blog

Advertisers underspend on radio

10 October 2013
LONDON: One fifth of all advertising expenditure should be allocated to radio rather than the 6% that currently goes there, according to the UK's Radio Advertising Bureau.

The marketing body for radio based this claim on a new research study which examined 2,000 individual media campaigns across 517 separate brand campaigns.

Simon Redican, RAB managing director, said the key thing about the study was that the econometric data was taken directly from media agencies and consequently the analysis provided "the most detailed and robust perspective on radio ROI in the world".

"When Martin Sorrell calls econometrics 'The Holy Grail' of advertising, you can be sure agencies place high importance on it," he added, in remarks reported by The Drum.

The research established that radio advertising generated a 7.7 return on investment, which put it second only to TV and ahead of press, outdoor and online.

Redcan hoped that such findings would encourage advertisers to look again at platforms with a "more proven" ROI than newer digital ones. He also planned to target brand finance directors with this message, Marketing Week reported.

"There's a real business message in the data, and that is that in order to get the best ROI, advertisers should be spending 20 per cent [of campaign budgets] on radio," he declared.

Past research has shown that radio advertising can be at least as effective as television in generating emotional engagement and increasing sales. And one study found that radio's ROI was 49% better than television's.

As regards categories, the RAB research indicated that automotive and retail brands were the best performers along with adverts for impulse buys.

Warc's extensive database of advertising case studies also includes examples of radio effectiveness in several different categories.

Data sourced from Marketing Week, The Drum; additional content by Warc staff

 
Envelope
EMAIL UPDATES

Sign up to Warc News – free daily bulletins on brand and market strategy, digital media and innovation


 

News content feedPrint