RAB Study Shows Radio Advertising Boosts Sales

The Radio Advertising Bureau will today publish research enabling brand owners to calculate for the first time the percentage uplift in sales that they can expect from their radio campaigns.

According to the FT‘s Creative Business, the findings of a study between commercial radio, customer relationship consultancy Dunnhumby and Tesco, shows that radio advertising generates a 2.2% uplift in sales for every 100 radio ratings bought.

This assertion is based on analysis of the sales performance and radio advertising activity of brands sold in test and control regions in the Midlands through Tesco stores.

Of the 17 brands included in the study, sales increases during radio advertising activity ranged from 31% to 0%. This was then weighted to take the scale of radio advertising activity into account, as well as other potential factors such as in-store promotions.

The result is a 2.2% average sales uplift, plus a further suggestion that radio ads can lessen the negative impact on a brand’s sales from a competitive in-store price promotion and enhance the positive impact of the brand’s own in-store promotions.

The RAB’s director of advertiser consultancy, Mark Barber, told the FT’s Creative Business: “We feel there is real value in providing an indicator of average sales increases per 100 ratings – something not even commercial TV has yet achieved in published data.”

The full findings of the study, which surveyed brands such as Kellog, Nescafé and Múller, are due to be presented at a special RAB seminar later today.

Last month, Justin Sampson, managing director of the RAB, called on advertisers to consider the potential for a single, joint audience measurement system for radio, TV and other media (see RAB Calls For Single Audience Measurement System).

RAB: 020 7306 2500 www.rab.co.uk

Recent Radio Stories from NewsLine Capital FM Network Appoints New Senior Marketing Director Disney To Launch Children’s Radio Network In UK Government Announces Review Of Digital Radio

Subscribers can access ten years of NewsLine articles by clicking the Search button to the left