That Build Business
December 3, 2015
MARY BETH GARBER
Katz Media Group
Radio is in the business of demonstrating how advertising works.
Until about 2 years ago, the Radio industry supplied its “proof” through case studies and unyielding persistence. As a broadcasting medium, that was really all it had. There was little to demonstrate in the way of proven sales or store visits. There was no system of counting the number of different IP addresses that logged onto clients’ websites as a result of exposure to Radio (although, arguably, digital accountability is the subject of more scrutiny today than Radio ever was). Except for exposure to potential consumers through ratings data, advertisers had very little at their disposal to track response.
Absent the “proof”, Katz Radio Group undertook dozens of studies designed to demonstrate that people who are exposed to radio ads buy more, think better of a company, and are generally more aware of a company than those not exposed.
In 2009, measurement innovation began to appear with “beacon” technology and the industry saw its first glimmer of hope around broadcasting and attribution. Companies like IMMI were able to prove that people who heard both TV and radio commercials for a movie accounted for twice as many ticket sales as those who heard only the TV spots. These companies were bought and sold by various measurement players and, over the last few years, their technological capabilities have been incorporated into the offerings of major services like Nielsen and Comscore.
Which brings us to 2013 when Nielsen Media Research brought together its assets at Catalina and its radio measurement service to explore the marriage of radio exposure and actual consumer spending. In that moment, ROAS – Return on Advertising Spend for Radio – was born. Today we can quantify exactly how much money Radio returns in incremental sales, how much more likely exposed Radio listeners are to shop and how much more they spend on their shopping occasions. It’s the wonderful world of Big Data, and it’s come to Radio. Accountability isn’t just for digital anymore.
At Katz Radio Group, we are actively working with clients to prove the benefit of their continued investment in Radio. With its unequalled reach (even by television), Radio sells products and services for clients – and not just to the clients you’re targeting, but also the ones you didn’t even know you had inspired to buy. Here is a recap of the ROAS studies done by Nielsen in the past year. Impressive results for advertisers seeking the all-important, “proof”.