Radio Sales Are Alive And Well, With An ROI Story To Tell.

The latest entry to RAB’s “Radio Matters” blog shoots down the notion that broadcast radio listenership — and advertising revenues — are on the wane.

“Regardless of perception, the reality of how valuable radio is hasn’t diminished,” writes Marketron CRO Todd Kalman. Kalman says radio’s advertising value has become even greater due to its standing as the leading mass media for reach, and that the 3-Minute Qualifier shift is also paying dividends.

Citing data from Edison Research’s Share of Ear, Kalman notes that radio dominated ad-supported listening time in the first quarter of this year, with those 18 and older spending 66% of their time with radio. (In the car, that number surges to nearly 90%.) “Radio’s dominance remains unchanged,” Kalman writes, “but advertisers often inflate other ad-supported platforms like Spotify, Pandora and satellite radio. Combined, they only capture 15% of listening time.”

The 3-Minute Qualifier change to the Nielsen Portable People Meter (PPM), meanwhile, has resulted in increased audiences, with drive times and weekends showing the biggest gains for all listeners. For those 25 to 54, there was an increase across all dayparts.

“All this translates to higher ratings and more impressions, making radio advertising even more appealing,” Kalman writes. “It also makes the case for more frequent spots to ensure maximum reach for advertisers who can connect with audiences in every age group. While this data is based on rated markets, the results apply to all markets — diary and nonrated. It proves that radio listening is occurring more often than realized — creating a “halo” effect for the diary and nonrated markets.”

For those businesses not currently buying airtime, the combination of Share of Ear data and the PPM improvements bolsters the case for increased spot investment, the post says.

While it’s easy for some to discount radio’s power and effectiveness, research and analysis has been strengthening the overall case.

Citing Westwood One analysis, Kalman makes radio’s case for ROI, writing that when companies use radio they experience a 13% increase in greater mental availability, which is a measure of a brand’s propensity to be noticed and considered in buying decisions; 28% larger market share; a 17% boost in pricing power; 42% increased profits; and a 23% greater return on ad spend. And that doesn’t even include radio’s unique standing in terms of trust, human connection and its broader roles in the communities it serves.

“In short, don’t count radio out ever as being a strong and consistent way for businesses to reach local consumers,” Kalman writes. “The value of radio advertising hasn’t decreased at all, and you’ve got all the insights to make that argument every day.”