RADIO RETURNS $17 R.O.I FOR DEPARTMENT STORES

It’s exactly the kind of data radio needs to keep churning out and delivering to skeptical advertisers. This was brand new data released Wednesday by Nielsen’s Carol Edwards. She said this was an independent Nielsen study, which looked at four major campaigns, done by four major department store brands. The results of that study showed that radio delivered $17 in sales for every $1 in advertising spent. The study also showed exposure to a radio campaign drove a 10% increase in overall sales, 3% increase in the total number of buyers, and a 6% increase in dollars spent per buyer.

Edwards said the study was done across 48 PPM markets. “We looked at how people were exposed to the campaign on radio, versus normal spend for those brands in the marketplace, and we compared the spending. We were able to calculate return on ad spend by looking at the incremental lift that people exposed to the campaign on radio had in spending versus the investment that was made in radio. That’s where we came up with the $17 return for every dollar spent.”

The campaign included a 70,000-person PPM panel, according to Edwards. “Of those 70,000 people, we’ve been able to, via a name and address, match credit card expenditure data to about 40,000 of them. So, we have that expenditure data. We are able to look at spending for people who weren’t exposed to a campaign versus expenditure for people who were. That’s a major data set that Nielsen has access to.”

 Taken from Radio Ink Magazine.
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