Radio Ad campaigns deliver a better return on investment than television campaigns, according to a new US study.

The study, by Millward Brown and Information Resources Inc, examined four pairs of radio and television campaigns in a range of product categories over a six-month period and the findings established that Radio’s ROI was 49% higher than television’s.

Radio Advertising Bureau CEO Gary Fries says” “This study addresses the core issue of advertising – Return On Investment. Radio’s ROI Advantage substantiates our previous theories that Radio can and does deliver significant ROI for advertisers.”

The study found that

· Radio moves product

· Radio ads increase sales even when national TV is present

· Radio’s effect can be measured – when used at sufficient weight

· Radio delivers strong ROI

The sales lift from incremental radio in this study averaged 4.1%.

The study concludes that, at roughly similar weights when summed across all advertisers, incremental radio delivered more than half the short-term sales effect of national network television buys. Radio’s effect on sales was at least as large, if not larger, when television was already in use at a level of 50-100 TRPs.

For the four advertisers in the study, incremental radio delivered 49% better Return on Investment than the corresponding national television campaigns, using the best available comparative cost estimates, with a profit per ad dollar of 149, compared with tv’s 100.

For the full study results, click below.