RADIO DRIVES ROI:A HOME IMPROVEMENT

CASE STUDY

Nielsen conducted a sales lift

study of radio campaigns by two

home improvement brands. This

study matched Portable People

Meter panel listening data with

consumer purchase behavior

from Nielsen Buyer Insights.

The results positioned radio as a

strong ROI driver, with $9 of

incremental home improvement

sales for every $1 spent on radio.

Radio drives ROI

EXPOSEDto the radio campaign

UNEXPOSEDto the radio campaign

Nielsen matched Portable People Meter panel data with

credit/debit purchase behavior

Nielsen measured the sales impact focusing on purchase behavior between two groups

Audience was broken into exposed and unexposed groups

Step 1

+4%

Unexposed Exposed

MATCHEDAUDIENCE

Step 2 Step 3

Source: Nielsen, P18+. Q3 2014

How Nielsen measures radio sales effect Methodology

Radio advertising drove an 8% increase in total number of buyers

4%increase in home

improvement sales

2%increase in the

number of transactions

Source: Nielsen, P18+. Q4 2014.

Exposure to the radio campaign drove

more people to shop and shop more often

Home improvement return on investment:$9 of incremental sales per $1 spent on radio

Incremental Sales

÷

Radio Investment

=

Return oninvestment

$369M

÷

$39M

=

$9

Source: Nielsen, P18+. Q4 2014.

Radio delivers excellent ROI

Source: Nielsen 2014-2016.

Payback per $1 spent in radio

Candy

3x

Snacks

6x

Breakfast

Bar

2xBeer

4x

Auto

Aftermarket

21x

Telecom

14xMass

Merchandiser

16x

Home

Improvement

9xFast

Food

3x

Soft

Drink

2x

Department

Store

17x

Grocery

23x

Retail

11x

Key findings

• Radio delivers sales impact for the home improvement advertisers: $369 million of incremental sales representing $9 of sales lift per $1 dollar spent.

• Increase in shoppers and number of transactions: radio drove more people to shop and shop more often.

• Radio works for all sorts of advertisers: Nielsen studies show

excellent ROI across a large variety of categories.

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