Background information
This report, done by Radiocentre, focuses on how re-allocating media budget to radio advertising helps brands punch-through The Performance Plateau. It contains compelling evidence of radio’s multiplier effect on results for performance marketers and aims to quantify the extent to which radio advertising can boost web traffic for online businesses, both short and/or longer-term.
The performance plateau concept was developed by Dr Grace Kite, CEO of Magic Numbers, and Tom Roach, VP brand strategy at digital agency Jellyfish, to describe the stage in a brand’s marketing journey where pureplay performance marketing efficiencies and sales growth start to stagnate.
Increasingly endemic in marketing these days, it’s a challenge that affects big-name companies as much as SMEs and scale-ups. Brands arrive at the point where the success of their traditional mix of search, social and online display begins to level off and long-term growth is stifled.
Findings
Key findings of this report include:
- Current attribution methods underestimate radio advertising’s true performance effect by 92%:
Econometric modelling reveals how it takes 19 hours for the full effects of each radio spot to be realised.
• Only 8% of a radio spot’s full effect is delivered in the first 20 minutes immediately following transmission.
- When its full impact is accurately captured, radio is proven to make a highly effective contribution to performance-led media campaigns.
On average, across the campaigns measured in this study:
Radio advertising boosts daily web sessions by 9%.
• Radio uplifts web sessions twice as cost-efficiently as other ‘demand-generation’ media combined.
- Radio campaigns that deliver above-average performance efficiencies benefit from higher weekly reach & feature distinctive audio brand assets (used consistently across media/over time).
- Radio advertising’s indirect response effect augments results from pureplay digital response channels:
Boosting Organic Search volumes.
• Increasing Paid Search impressions with improved conversion to referrals.
• Uplifting response to Paid Social ads.
- Using more radio improves Performance Marketing efficiencies.
Increasing radio’s share of spend (by reallocating existing budgets from other media) enhances overall campaign performance at no extra cost.
• The case studies in this report reveal how radio advertising delivers improved campaign effects even when allocated 50%+ share of total media budget.
- Radio additionally generates longer-term benefits for performance brands. Beyond delivering a cost-efficient short-term boost to performance metrics, radio advertising also produces positive brand effects (for no additional cost) – which can help generate demand in the longer-term.
The summary above has been published on the Radiocentre website.
Read the full report here