radio drives roi case study: department stores

RADIO DRIVES ROI:DEPARTMENT STORES

CASE STUDY

Nielsen conducted a sales lift

study of radio campaigns of four

department stores. This study

matched Portable People Meter

panel listening data with

consumer purchase behavior

from Nielsen Buyer Insights.

The results positioned radio as a

strong ROI driver, with an

incredible $17 of incremental

sales at the retail stores for every

$1 spent on radio.

Radio drives ROI

EXPOSEDto the radio campaign

UNEXPOSEDto the radio campaign

Nielsen matched Portable People Meter panel data with

credit/debit purchase behavior

Nielsen measured the sales impact focusing on purchase behavior between two groups

Audience was broken into exposed and unexposed groups

Step 1

+10%

Unexposed Exposed

MATCHEDAUDIENCE

Step 2 Step 3

Source: Nielsen, P18+. Q3 2014.

How Nielsen measures radio sales effect Methodology

Radio advertising drove a 10% sales lift for department stores

3%increase in the total number of buyers

6%increase in the spend

per consumer

Source: Nielsen, P18+. Q3 2014.

Exposure to the radio campaign

resulted in more people in the stores and a higher spend per consumer

Department store return on investment:$17 of incremental sales per $1 spent on radio

Incremental Sales

÷

Radio Investment

=

Return oninvestment

$357M

÷

$21M

=

$17

Source: Nielsen, P18+. Q3 2014.

Radio: media with muscle

Source: Nielsen 2014-2016.

Payback per $1 spent in radio

Candy

3x

Snacks

6x

Breakfast

Bar

2xBeer

4x

Auto

Aftermarket

21x

Telecom

14x Mass

Merchandiser

16xHome

Improvement

9xFastFood

3x

Soft

Drink

2x

Department

Store

17x

Grocery

23x

Retail

11x

Key findings

• Radio delivers sales impact for department stores: $357

million of incremental sales representing $17 of sales lift per

$1 dollar spent.

• Increase in shoppers and spend per visit: radio drove a

strong surge of customers into the department stores with

more spend per visit.

• Radio works for all sorts of advertisers: Nielsen ROI studies

show an average of $10 of sales for every dollar of radio

advertising across a large variety of categories.

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