Radio’s share of ad campaigns should be at least 20% for maximum ROI

Mark Barber, Planning Director at the UK’s Radio Advertising Bureau, told CRA Conference delegates last week that the return on investment for radio advertising is about seven to one.
In a talk titled Radio: the ROI multiplier, Barber detailed research that shows that radio’s ROI is a very close second to tv ROI in the UK and significantly ahead of print, on-line and outdoor, reports Kim Becherand for radioinfo.
Radio ROI was first in the retail, automotive, finance, travel sectors, however in FMCG it was poor.
Radio planning and creative execution has a “significant impact” on the client’s return on investment according to Barber.
“Weekly reach trumps weekly frequency and has a vital impact on ROI for radio ad spend… Stand out, brand fit and clarity is best practise for radio creativity.
“How budgets are allocated between mediums, as part of a whole media spend, does effect the ROI of radio across campaigns. Merely moving budgets between mediums (to radio) can increase ROI up to 22%.”
The RAB’s message to UK advertisers is “to ROI, maximise weekly radio coverage and to optimise overall campaign ROI, increase radio’s share of investment to 20% of the campaign.”



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