Originally posted 8/8/2016 - Updated 12/15/2022
In marketing, there's an old saying: "Half your marketing budget will go to waste - the trick is knowing which half.”
Those were the days when marketers lacked the technology and ability to measure the success of any marketing effort, whether it be advertised on television, radio, in print, or digital. Today, businesses are more focused than ever on getting the most out of their marketing and ensuring that every channel contributes positively to their bottom line.
Marketing return on investment (ROI) is of particular importance to small businesses because, as we all know, there is no point in investing in something that does not 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) such as lead generation and revenue lift are making their way into the ROI discussion, and business owners are delighted to know that their hard-earned dollars are being used wisely.
Every channel presents its own ROI measurement challenges, and radio is no exception. With that being said, radio can be highly effective in getting a bang for your marketing buck. All you need to know is what to measure in the first place. That’s why we turned to the experts at Zimmer Radio to discuss why it’s so crucial to measure the ROI of your radio advertising. The experts also suggested some effective methods to do so.
Aric Bremer, Sales Manager - 25 years in radio
1. 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'…”
2. 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…)”
3. 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 or garden…results don’t happen overnight. However, in 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.”
4. What are the most important metrics to monitor when tracking radio ROI?
“Gross sales, new customers, and percentage of increased sales over the previous year during the same months.”
5. 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 Berkbuegler, Director of Sales - 10 years in radio
1. 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 it at all. Their go-to method is always asking 'how did you hear about us?' without really understanding how media works together.”
2. 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.“
3. 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."
4. 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, the number of new customers, sales of a particular product or service, etc. I think what's key is making sure you set goals at the beginning of what you will measure success on and you be sure your (creative) campaign is all about those goals."
5. 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 Communications 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.”
When it comes to measuring radio advertising ROI, it isn't just about paying for spots and watching how much sales increase. The experts at Zimmer Communication confirm the importance of having data-driven strategies, setting intelligent benchmarks, and taking an integrated approach to better understand how radio can positively impact your web presence.
Nobody likes to waste money on ads, radio, or other forms of media without knowing exactly what they're getting in return. It's important to know about new products or services, and radio advertising is a great way to do this. When you put these ROI measurement tips from the Zimmer experts into practice, you'll be able to see how much radio campaigns contribute to your overall business goals.
