03/14/2024
New Study: AM/FM Radio Advertising Generates Significant Sales And Profit Growth Reports Peter Field, Godfather Of Marketing Effectiveness
Peter Field’s latest blockbuster study released in the U.K. is called The Long and the Short of It – 10 Years On: Radio’s Enduring Role in Effectiveness. This consequential new study lays out hard evidence for how AM/FM radio drives significant lifts in market share, pricing power, sales, profits, and ROI.
Peter Field, along with his writing partner Les Binet, have been dubbed the “godfathers of marketing effectiveness” due to the major marketing studies and books that the duo has published over the last 15 years and their impact on the industry.
Binet and Field have written the most famous and useful books on marketing effectiveness.
Their most popular publication was 2013’s The Long and the Short of It. It revealed two different marketing strategies: converting existing demand/sales activation and creating future demand/brand building.
Converting existing demand is very short term. Creating future demand is long term. Binet and Field reveal that the combined use of the two strategies is the secret to growing advertiser sales and profits.
Here are Peter Field’s just released key findings on AM/FM radio’s effectiveness:
AM/FM radio boosts mental availability (the propensity of a brand to be noticed and thought of in buying situations) by +13%
In their book 66 Ways To Screw It Up: How Not to Plan, Les Binet and Sarah Carter explain:
“The single most important factor driving brand preference is ‘mental availability’: how well known a brand is, and how easily it comes to mind. Brands with low mental availability tend to struggle, rejected in favour of more familiar rivals. Or not considered in the first place. Brands with high mental availability don’t have to push so hard to sell, so tend to have higher market shares and better margins.”
Field’s research found that marketers that used AM/FM radio had +13% greater mental availability than brands that did not use AM/FM radio.
Media plans with AM/FM radio have +28% greater market share than brands that do not use AM/FM radio
From 2000 to 2022, brands using AM/FM radio had a +28% greater market share (32%) compared to brands not using AM/FM radio (25%).
Advertisers using AM/FM radio have +42% greater profit than brands that do not use AM/FM radio
24% of advertisers who do not use radio reported very large profit growth. 42% of marketers who advertising on AM/FM Radio reported very large profit increases. Those that use radio are 42% more likely to report large profit increases!
Brands using AM/FM radio experience +23% greater return on marketing spend
Compared to brands who don’t use AM/FM radio, AM/FM radio advertisers experience +23% greater return on advertising spend (ROI).
This new study makes a decisive business case for AM/FM radio advertising.
Key takeaways:
In one of the most significant studies ever conducted on the sales effect of AM/FM radio, Peter Field, one of the “godfathers of marketing effectiveness,” reveals major differences in business outcomes for marketers who utilize AM/FM radio versus those who don’t:
+13% greater mental availability, the propensity of a brand to be noticed and thought of in buying situations
+28% larger market share
+42% increased profits, with AM/FM radio’s impact on profit growing
+23% greater return on advertising spend
