Investing just 11% of an advertising campaign budget in radio will double its effectiveness, according to an Australian study revealed at Heard 2024, an audio showcase hosted by Commercial Radio & Audio in Sydney on Feb. 15.
The study analyzed the Advertising Council of Australia’s Effectiveness Database to discover how changes in the allocation of radio advertising budgets impacted the success of a campaign in terms of commercial outcomes for clients. The ACA Effectiveness Database includes all Effie Award entries since 2018, recognized as the pinnacle of Australian advertising excellence.
Professor Mark Ritson revealed the study findings to an audience of around 500 people at the industry event in Sydney, where radio and advertising representatives shared their insights on the power of audio. Ritson, considered one of the world’s leading marketing educators, collaborated with CRA on the study to better understand how much investing in radio can influence an ad campaign’s effectiveness.
“Radio has been underrated in maximizing the overall impact of your marketing,” Ritson said. “Marketers should consider radio as an integral part of the channel mix. It doesn’t need to be the hero or the lead media, but it does drive a disproportionately large impact for a relatively modest investment of just 11%. It’s the ultimate sidekick,” he said.
At the event, Ciaran Davis, chairman of CRA and CEO and managing director of ARN Media, said, “Radio and audio deliver the best bang for your advertising buck. That is why we’ve seen our industry remain steady despite the challenging conditions over the past 12 months. If advertisers aren’t thinking about investing in radio, then they’re missing a significant opportunity to drive ROI for their business.”