A new study from France proves once again that radio is a means of increasing effectiveness. The results of the study show that radio is a competitive environment that provides a high return on investment, optimizes the effectiveness of other channels in the media mix (online and offline) and is key to reaching B2B audiences and clients with high potential. In addition, the radio generates traffic to clients' online channels and is an effective channel for promotional communication campaigns and brand promotion campaigns.
The Bureau de la Radio (the French Radio Trade Association) commissioned Ekimetrics, a global consulting company (specializing in data processing and measuring the effectiveness of marketing channels) to conduct a study on the effectiveness of radio. The study focuses on four sectors: automotive, telecommunications, consumer packaged goods (CPG) and retail. The econometric model used in the study is MMM ("Marketing Mix Modeling") - integrating all marketing levers and external factors (seasonality, competition, etc.) that affect sales. Thanks to a wide range of historical data and a wide variety of different situations, statistical modeling allows Ekimetrics to break down the impact of 30 factors simultaneously and isolate and measure how each channel contributes to productivity.
The study identified five key strengths of radio:
1) Radio is a competitive means of return on investment: an average of 1 euro invested in radio generates 7.70 euros in turnover
The short-term return on investment in the four sectors is 5.30 euros. The overall impact at the end of the study shows that the return on investment from radio advertising increases long-term revenue by an average of 7.70 euros per 1 euro invested, within the four sectors included in the study. The results are even more impressive for retail, where 1 euro invested in radio generates an average of 15.40 euros in revenue.
2) Radio optimizes the effectiveness of other media, online and offline
The combination of radio with other media increases the impact of the overall campaign. Radio works as an amplifier, especially in combination with television, providing up to 13% greater campaign efficiency (in the case of retail). In online media, radio works in synergy with demand, adding 9% to the effectiveness of the campaign (in the case of telecommunications).
3) Radio is a key channel for reaching B2B audiences and clients with high potential
In 70% of cases, radio is in the top 3 most effective media for B2B communication. The return on investment of radio is also more effective than the average return on investment in media plans to reach high-potential clients.
4) Radio generates efficient traffic and online sales
In the case of retail, radio is 40% more efficient than other offline channels that generate online sales. And investing in radio is 10% cheaper than the average media investment.
5) Radio is effective for promotional offers as well as branding campaigns
Radio generates + 40% higher return on investment of promotional messages compared to non-promotional campaigns.
Source: egta, 2022