Radio advertising brings in nearly eight times the return on investment (ROI) for brands, according to a study by the Radio Advertising Bureau (RAB).
The research measured the effectiveness of radio advertising based on ROI for the first time and found that on average advertisers had a 7.7 return on investment, putting it ahead of press, outdoor and online and second behind TV, although radio currently only carries an average of six per cent of advertising budgets.
Automotive and retail brands were the best performers along with adverts for impulse buys.
Simon Redican, managing director of the RAB, said: “When Martin Sorrell calls econometrics ‘The Holy Grail’ of advertising, you can be sure agencies place high importance on it.
“With data sourced from all of the world’s major agency groups, the RAB analysis provides the most detailed and robust perspective on radio ROI in the world.”
The analysis was based on a study conducted by Homles & Cook which examined more than 2,000 individual media campaigns across 517 separate brand campaigns.