Radio advertising drives sales up by an average of 9% almost double the uplift typically generated by TV campaigns, according to new research utilising data from the Tesco Clubcard database.
By monitoring two years of EPoS data for 17 brands at Tesco stores in two clusters one in a test region using radio advertising and one control region the Radio Advertising Bureau (RAB) could isolate the impact of radio ads on sales.
Both store clusters were located in the same TV region, and received the same TV ads and instore promotional activity, making radio advertising the only significant variable between test and control regions. Launching the research at an RAB seminar in London, Tesco marketing director Tim Mason said Clubcard data provided Tesco with hard evidence of "what customers actually do in stores" rather than relying on "econometric modelling" or vague waffle about the impact of advertising on brand awareness.
The research also provided hard evidence that radio advertising minimised the impact of competitor promotions on sales, suggesting manufacturers might be wise to allocate more cash to radio campaigns scheduled to coincide with competitor activity, said RAB director of advertiser consultancy, Mark Barber.
"Manufacturers often time TV bursts to coincide with [their own] promotional activity. Perhaps the best results could be achieved by cutting some of that TV spend and allocating it to radio for periods when competitors advertise?"