radio drives roi case study: department stores
TRANSCRIPT
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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