Radiocentre has unveiled new research at its Tuning In conference today (23 September) showing that both radio and digital audio deliver higher profit return on investment than the all-media average.
The study, called High Gain Audio and conducted by WPP Media, reveals that advertisers see stronger returns when audio is included in campaigns.
Digital audio delivers a long-term profit return of £5.20 for every £1 spent, while broadcast radio delivers £5. Both are well above the all-media average of £4.11.
Short-term profit ROI also shows a clear lead for audio, with digital audio returning £2.70 and broadcast radio £2.30 for every £1 invested, compared to the all-media average of £1.87.
The findings also support digital audio’s pricing premium relative to radio, showing the value of combining platforms.
The research highlights that reallocating budgets to increase audio’s share could amplify campaign ROI by 8% compared with the same spend excluding audio. Radiocentre says this proves audio is underinvested and should be a larger part of marketing plans.
Mark Barber, Radiocentre’s Planning Director, said: “High Gain Audio’s key takeaway is clear: multiplatform audio advertising is underinvested, with both broadcast radio and digital audio individually exceeding the all-media profit ROI average.
“These findings build on previous Radiocentre research to strengthen the case for advertisers to be more ambitious with their multiplatform audio budget allocation.
“That’s why, based on the outputs from this analysis, and acknowledging that each individual media campaign will have its unique set of dynamics to accommodate, we’re advocating that, to benefit more fully from its amplification effect on overall campaign ROI, advertisers consider setting a new horizon where 20% of total media spend is allocated to audio”.
High Gain Audio builds on Thinkbox’s Profit Ability 2 study, using additional analysis by WPP Media based on live campaign data.
More detail on the findings can be found at radiocentre.org.
