New Insights from Peter Field and Real-World Success Stories
A local advertiser recently asked, “What’s the business case for AM/FM radio advertising?” Over the past decade, a wealth of marketing research has made the answer clear: radio remains a powerful tool for building local businesses and national brands.
The Case for AM/FM Radio: Key Findings from Peter Field
Peter Field, known as the “godfather of marketing effectiveness,” recently conducted one of the most extensive studies ever on the impact of AM/FM radio on business outcomes. His research, analyzing over 1,200 case studies from the Institute of Practitioners in Advertising (IPA), found that brands using AM/FM radio advertising enjoy:
✅ +13% Greater Mental Availability: Brands using AM/FM radio are 13% more likely to be noticed and considered during purchasing decisions.
✅ +28% Higher Market Share: Brands with radio in their media mix achieve a 28% larger market share.
✅ +17% Increased Pricing Power: Radio helps brands maintain pricing power, a major driver of long-term profitability.
✅ +42% Profit Growth: AM/FM radio’s impact on profit continues to grow over time.
✅ +23% Higher ROI: Marketers who include AM/FM radio in their plans experience a 23% greater return on advertising spend.
Nielsen: AM/FM Radio Generates Outstanding ROI
Nielsen’s analysis of dozens of AM/FM radio sales effect studies shows that, on average, radio advertising generates a $10.59 return for every dollar spent. Nielsen’s Media Mix Modeling consistently ranks AM/FM radio as a top-tier medium for ROI.
Ebiquity and Gain Theory: Audio Delivers Strong Short- and Long-Term ROI
A major study by Ebiquity and Gain Theory found that among 10 media channels:
🎧 Audio ranks #2 in short-term ROI (within 1-13 weeks)
🎧 Audio ranks #3 in long-term ROI (up to 2 years)
LeadsRx: +14% Increase in Website Traffic Thanks to AM/FM
Over five years, LeadsRx conducted 17 campaign attribution studies across various industries. The results? AM/FM radio delivered a 14% average lift in website traffic for brands that used it.
Real-World Proof: How Steve’s Pest Control Built a Regional Powerhouse with AM/FM Radio
If you’re looking for a real-world example of radio’s power, look no further than Steve’s Pest Control in Columbia, Missouri. Steve Hotsenpiller started with one truck and a small radio budget. Over 30 years, he devoted 8.5% of revenue to AM/FM ads, gradually expanding across multiple stations.
✅ 34% Unaided Brand Awareness: Far surpassing competitors
✅ 40% Ad Recall: Two and a half times higher than the nearest rival
✅ 2.5x Greater Purchase Intent: Building trust and customer preference
Today, Steve’s Pest Control operates with over 90 trucks and dominates its market, proving that consistent radio advertising can drive brand dominance.
Final Takeaway: Be Known Before You’re Needed
The lesson? Advertising isn’t just about short-term conversions. AM/FM radio builds future demand by making brands easier to remember and choose. As Warren Buffett says, “If you’ve got the power to raise prices without losing business, you’ve got a good business.” And AM/FM radio gives brands that power.
If you’re ready to boost mental availability, grow your market share, and increase ROI, AM/FM radio is your best bet.
See Source Article: The Business Case for AM/FM Radio Advertising: Be Known Before You’re Needed | Westwood One