Mike Williamson, head of AV planning, gives us his thoughts on RAB research Radio: The ROI Multiplier - which shows how radio can unlock millions in untapped revenue for advertisers.

This morning RAB research Radio: The ROI Multiplier was presented to the media industry.
All the major media agencies contributed case studies to the new econometrics study, resulting in 517 advertising campaigns, 2,000 individual campaigns & 22,748 data points being analysed through a meta-regression model.  Revenue ROI was measured, not Profit ROI.
Headlines from the RAB research Radio: The ROI Multiplier
On average radio advertising returns L7.70 for every L1 invested.
  • This varies by sector with retail performing best, returning L18.90 for every L1 invested.
  • Radio delivers the highest ROI by media for the following categories: Automotive, Finance, Leisure & Entertainment, Retail & Travel.
  • For FMCG brands, the average ROI was lower than expected for radio, but the best performing FMCG case study delivered L24.00 ROI, higher than any other media.
Radio ROI improves with higher weekly reach.
  • It sounds fairly obvious but radio has traditionally been seen as “a frequency medium”.
  • 40% weekly radio reach results in 3% sales uplifts per L100K spend.
  • This is backed up by three of Carat’s biggest radio clients (British Gas, Go Compare & Asda) who buy around 40% weekly reach.
  • To achieve 40% weekly reach, the investment is only L75K (net) a week (depending on the timelength and target audience).
Average campaign ROI is higher when radio share increases.
  • When radio share is above 20%, the average ROI is L8.20.
  • This share of spend does seem high but successful (profitable) clients like British Gas invest at around this level.

The optimal level of radio investment is 20% of a total media plan, at which point overall campaign ROI is 8.5% higher.


The RAB research Radio: The ROI Multiplier suggests that to maximise ROI, advertisers should consider:

  • Increasing share of spend on radio to around 20%, subject to media mix.
  • Maximising radio weekly audience coverage (rather than optimising frequency).
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