Mid-Missouri Marketing Resource Blog

Your Top Radio Advertising ROI Questions Answered by Real People Doing Real Advertising

Posted by Zimmer Radio & Marketing Group on August 8, 2016 at 9:00 AM

Radio Advertising ROI QuestionsThere’s an old saying about marketing: “Half of your marketing budget will go to waste. The trick is knowing which half.” However, that was in the old days where marketers lacked the technology and digital tools to measure the success of any marketing effort, whether it be TV, radio advertising, print or digital. Today, businesses are more focused than ever on getting the most out of their marketing efforts, and making sure every channel contributes positively to the bottom line.

Measuring marketing return on investment (ROI) is particularly crucial for small businesses, because as we all know, you simply can’t afford to spend money on something that doesn’t work. That’s why setting up SMART (specific, measurable, attainable, realistic, time-bound) marketing goals is such an effective way to put metrics behind your efforts. Key Performance Indicators (KPIs) like new lead generation and revenue lift are making their way into the ROI conversation, and business owners couldn’t be happier to know whether or not their hard earned dollars are getting put to good use.

But each channel has its own unique set of ROI measurement challenges, and radio is no different. With that being said, radio can be extremely effective in getting bang for your marketing buck. You just have to know the ins and outs of what to measure. That’s why we went to the experts at Zimmer Radio to discuss why it’s important to measure the ROI of your radio advertising, and some of the best ways to do so.

Christine Overfelt - Sales Manager - 5 years in radio

What would you say is the biggest challenge when tracking radio advertising ROI?

“Having specific goals set. I would say most businesses I work with sometimes do not even have specific, measurable goals in place to base the tracking on. They don’t want to go by their sales or revenue increasing but instead want to ask people if they heard it on the radio.”

What tips can you provide to business owners looking for more info on how to track their radio ROI?

“Set Measurable Goals and develop a tracking sheet to track throughout the year (Gross Sales, New Customers, Specific Product or Service Goals, Etc.)”

What sort of response can I expect and how long do I typically need to run my ad to see results?

“0-6 Months = Build Up, 6-12 Months = Response, 12+ Months = Start to see some results, if you don’t want to buy in for at least 3 years I would save your money (if you’re trying to build a brand).”

What are the most important metrics to monitor when tracking radio ROI?

“Your creative. Making sure your creative matches your goals and objectives (ex. Goal is to grow Fire Disasters so make sure you are talking about how you can help customers with fire disasters)

Goals on a monthly basis would be the other metric. How you are pacing and if we need to revamp our message based on what is going on and how we are pacing each month is so key.”

If someone was skeptical about using radio as part of their marketing what would you say to them?

“I would give the client examples of others growth/return on investment they have seen since being on radio. We have a lot of clients who grow more than 10%-20% per year when they do it the right way.”

Create a tracking sheet to track our goals and go through this to show them how we would measure/track.

Invite them in for a Brand Marketing Workshop if they have not had one to develop their message and strategy that we will use to grow. Have them call one of my current clients as a testimonial always helps too.”

Aric Bremer - Sales Manager - 20 years in radio

What would you say is the biggest challenge when tracking radio advertising ROI?

“The Biggest obstacle when tracking ROI is that you aren’t “asking how they heard about it”…it’s knowing you have a partnership and if sales numbers are being met…(patient visits, sales are up, new appts are up) then you are having success in your campaign.  But don’t track “Tell me how you heard about us”…”

What tips can you provide to business owners looking for more info on how to track their radio ROI?

“Have measurable campaign goals…(Gross sales, new patient visits, overall patient visits, new clients, etc…)”

What sort of response can I expect and how long do I typically need to run my ad to see results?

“Starting a successful campaign takes time and I believe the first three months are like planting your farm/garden…results don’t happen overnight…however…months 3 to 6 you should start to see some growth in sales and response of people noticing your campaign…month 6 to 12 is when things generally take off…”

What are the most important metrics to monitor when tracking radio ROI?

“Gross sales/new customers/percentage of increased sales over the previous year during the same months…”

If someone was skeptical about using radio as part of their marketing what would you say to them?

‘We have a proven track record of growing businesses anywhere from 4 to 25% per year by using a return on investment system…”

Carrie Lorenz - Director of Sales - 10 years in radio

What would you say is the biggest challenge when tracking radio advertising ROI?

“I think the biggest challenge is tracking any media in general. When talking to most advertisers their number one frustration with marketing is knowing what works and what doesn't. They aren't sure how to track at all. Their go-to method is always asking “how did you hear about us?” without really understanding how media works together.”

What tips can you provide to business owners looking for more info on how to track their radio ROI?

“Before you start any marketing plan have your goals in mind on what you want to accomplish (and by when), and what your budget for marketing will be. Communicating your goals and expectations with your media partner is so important because this will help us determine the best type of marketing plan for you.“

What sort of response can I expect and how long do I typically need to run my ad to see results?

“I think it depends on what your goals and expectations are. If you're running a campaign in a short time period with high frequency and a really great offer, you should see results immediately. This kind of advertising is great for seeing increases in a short amount of time but doesn't do much to help build long-term loyal customers (if it's the only thing you do).”

“On the other hand, if you are running a long-term branding campaign where your goal is to build brand awareness and name recognition, you will need to give it a minimum of 6-12 months before you notice any real change. With this type of campaign it's a matter of telling people "why" and waiting for "when." The goal is to get them to think of you first (and like you the most) when the time comes they need your product or service.

What are the most important metrics to monitor when tracking radio ROI?

“Sales are the most obvious answer. But you could also measure things like website visits, number of new customers, sales of a particular product/service, etc. I think what's key is making sure you set goals in the beginning of what you will measure success on and you be sure your (creative) campaign is all about those goals. “

If someone was skeptical about using radio as part of their marketing what would you say to them?

“They're crazy!

Seriously, I have seen so many businesses grow by numbers they never thought possible by just using radio. However, I wouldn't give radio all the credit. I think what makes Zimmer Radio & Marketing Group so special is the passion we have for wanting to see our clients hit their goals and achieve  their dreams. When you're measuring your marketing ROI a big part of that success comes from having a team fully behind you every step of the way, and that's what you have when you work with Zimmer.”

Measuring radio advertising ROI isn’t just about paying for spots and waiting to see how much your sales increase. The experts at Zimmer Radio & Marketing Group confirm the need to be data-driven, set intelligent benchmarks, and to take an integrated approach to determine how radio is positively impacting your web presence.

Nobody likes to throw money at ads, radio, or otherwise, without knowing exactly what value they’re getting out of it. But if you have a great product or service, people deserve to know about it, and investing resources in radio advertising is one of the best ways to get the word out. By putting some of these ROI measurement tips from the Zimmer experts into practice, you’ll be able know exactly how much radio campaigns are contributing to your overall business goals.

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Topics: ROI

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