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Arbitron Works to Improve Radio’s ROI

Advertisers’ marketing mix models said to underestimate radio’s reach

Arbitron is working with several partners to get radio ads more credit from ad agencies and advertisers for actually selling products.

While radio data has appeared in the marketing mix models that advertisers use, researchers believe these models underestimate radio’s true reach, and that’s why radio has not gotten its fair share of ad dollars, said Arbitron SVP Marketing Bill Rose in a webinar this week.

Arbitron is working to make its radio data more “granular” in Portable People Meter markets. A modeler’s job is to predict sales. “They’re always looking for better data, but not at the expense of speed,” said Rose.

For two years, Arbitron has worked with Sequent Partners, with support from Premiere Networks and Dial Global, on a study of Radio’s ROI Marketing Mix Models.

Believing the results are encouraging, Arbitron is working with advertisers and ad agencies to make it easier for them to determine where spots are airing, by marrying PPM data with research from Media Monitors.

“If radio looks better in these models, ideally radio would get more” advertising dollars, said Rose.

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