SBR 28: HOW TO IMPROVE YOUR ADVERTISING ROI
Hello you marketing maverick, welcome to SBR28. It's been a loooong time since our last blog (we've been busy with some new clients) I hope you'll forgive us.
This month’s newsletter is on how to improve advertising RoI.
We’ve known for some time that there’s a multiplicative effect of using multiple comms channels – and we know that TV is *always* the go to channel if you can afford it (and the production cost of the assets).
…and remember when the folks over at Radiocentre & Ebiquity showed how us marketers had been underestimating the power of radio?
Despite our love affair with all things digital, it turns out we'd been underestimating one of the oldest players in the game: radio. That's right, radio. Flying under the radar, delivering results that make other media sit up and take notice.
**The numbers that sing**
Econometric analysis in that research from Radiocentre showed that radio brings in a whopping £1.61 in profit ROI for every pound spent, placing it second only to TV in effectiveness across several product categories like retail, finance, travel, and automotive. Not too shabby, right?
And we know that, if you can afford it, then TV has a positive effect on other media, as shown in this data from Thinkbox (yes, I know they have a vested interest!).
**And now we have a clue about how to allocate the budget**
In some recent research by Professor Mark Ritson in association with Commercial Radio & Audio, where they analysed the Advertising Council of Australia’s Effectiveness database, he adds some guidance on the amount of spend you should place into Radio. He suggests investing 11% of your budget in radio could double the effectiveness of your campaign, and that this is due to improved brand awareness and distinctive brand asset performance.
This isn't just about adding radio to the mix; it's about strategically integrating it to amplify your campaign's reach and impact. It’s something we found when we added radio to our media mix at Weetabix. Coincidentally our radio spend was in line with Professor Ritson’s recommendation, and we saw significant uplifts in awareness and RoI. Admittedly, the introduction of radio wasn’t the only change to our media strategy, but that suite of changes saw RoI improve by 30%.
**Tuning into success**
So, let's not overlook the power of radio. It may not be as “modern” as other media channels, but it delivers commercial return.
And that never goes out of fashion, right?