We all know that advertisers are looking for ROI, "Return On Investment," when they choose a media mix, but they should also consider the marketing mix and its ability to achieve Real Observable impact.
Historically, the value of return is measured in dollars and cents only, which can be misleading. Today, most consumers are not brand-loyal. The real challenge in advertising today is authentically changing perceptions and owning a share of mind. Jack Trout, World renowned marketing strategist and author of several classic marketing books explains in an interview,
"What’s happening in the real world is the commoditization of things. In category after category analytics are becoming commoditized. The question is: How do you differentiate yourself? You need powerful differentiating ideas. Commoditization numbers are not doing an effective job of communicating. They are not telling the story of their brand. You’ve got to get on Radio to tell your story.
Products all look the same, but they don’t have to sound alike."
A one-time purchase is not a real return on investment.
The 'quick-fix' is only an illusion of profitability. The "transactional approach" strategy commoditizes the product. The irony is that 80 percent of your business comes from repeat customers. In other words, building solid relationships is a long-term fruitful way of doing business now, and in the future. This "relational approach" reaps the largest rewards if your advertising strategy supports this business practice. Read the differences between the two approaches here.
Radio Proves its Value When Measured with Traditional ROI
While measuring the success of a campaign, media should take into account perceptual changes due to clear strategic positioning, the truth is, many still just look at the bottom-line.
That is why Arbiton set out to measure Radio's fiscal impact in a marketing mix. In a recent article from Radio Ink Magazine, Carol Hanley wrote about how the new PPM system is collecting positive data on how Radio is directly impacting ROI.
"Arbitron, along with partners Dial-Global and Premiere, undertook an extensive study to determine how Radio data can be enhanced to improve the modeling process. We spoke with modelers, advertisers, and agencies to identify best practices and how to design new model-ready data. We then worked with three leading modelers who compared the results using these new data with what they had used previously. The results were very encouraging.
Their research reveals that Radio hits home on both financial and perceptual ROI.
- Radio listeners remember the way commercials make them feel.
- Radio listeners seek out brands pre-shopping due to hearing them on the Radio.
- Radio Listeners are loyal to brands for additional purchases.