In light of sharply eroding television audiences and rampant digital fraud, consumer packaged goods brands are rediscovering AM/FM radio as a media solution to reach new customers.

Byron Sharp, Director of the Ehrenberg-Bass Institute and one of the leading experts of marketing effectiveness, asserts that “the most effective campaigns talk to everyone in the market … In most cases, the target market is, in fact, all buyers of the category. Markets are much less segmented than most marketers believe, and successful niche brands (in the true sense of the word) are relatively rare.”

The best way to reach all buyers of a category is to advertise on mass reach media. According to Nielsen, America’s number one mass reach media is AM/FM radio.

AM/FM radio’s mass reach works for Consumer Packaged Goods (items purchased at grocery and drug stores)

A major food brand recently introduced a new breakfast product and used AM/FM radio for the launch. Westwood One retained MARU/Vision Critical to conduct a study of 500 respondents before and 500 respondents after the AM/FM radio campaign to measure brand effect and sales impact. Here’s what we found:

1. AM/FM radio is an ideal medium for the breakfast category as breakfast thinkers/planners are much more likely to be heavy radio users. “Breakfast thinkers/planners,” or the one-third of Americans who plan breakfast for the week and purchase ahead of time, are big users of AM/FM radio. Breakfast thinkers/planners are 48% more likely to be heavy radio listeners than the overall population of adults 25-49.

2. Awareness for the breakfast brand products grew +7% and +12%. As a result of the AM/FM radio campaign, product awareness increased. Heavy AM/FM radio listeners, in particular, were more likely to be aware of the breakfast brand’s products.

3. Purchase behavior increased +13% for the parent brand after exposure to the AM/FM radio campaign. After the AM/FM radio campaign period, +13% more consumers said they purchased products from the breakfast brand. Nearly one in three adults would be very likely to buy the breakfast brand’s products after hearing the AM/FM radio ad.

4. AM/FM radio grew product trial and brand awareness +26%. Post-AM/FM radio campaign, +26% more respondents said they were aware of the product category and actually tried it.

AM/FM radio drives powerful return on advertising spend for Consumer Packaged Goods

This breakfast brand study confirms findings from a series of return on advertising spend studies conducted by Nielsen Catalina. On average, one dollar of AM/FM radio advertising generates three dollars of incremental CPG sales.

Whether the goal is to drive purchase, tune-in, or store traffic, AM/FM radio has a track record of delivering a positive return for brands. AM/FM radio’s power as a medium that drives action is evident. It works for TV tune-in, retail, quick service restaurants, and, as evidenced further by this breakfast brand study, consumer packaged goods.

Key takeaways:

• AM/FM radio is an ideal medium for the breakfast category as breakfast thinkers/planners are much more likely to be heavy radio users.
• Awareness for the breakfast brand products grew +7% and +12%.
• Purchase behavior increased +13% for the parent brand after exposure to the AM/FM radio campaign.
• AM/FM radio grew product trial and brand awareness +26%.
• AM/FM radio drives powerful ROI for CPG.

Pierre Bouvard is Chief Insights Officer at CUMULUS MEDIA | Westwood One.

Contact the Insights team at CorpMarketing@westwoodone.com.