This AdAge Article is about how radio is helping Procter & Gamble, who invented soap operas, find audiences linear TV no longer reaches at fraction of CTV cost.
P&G upped spending on the radio 43% last year to $235 million, according to Vivvix (formerly Kantar Media), led by a big jump in local radio. This came as the company, under margin pressure from rising costs and trying to minimize price hikes, cut measured spending overall by more than 10% to $2.2 billion.
Chairman and CEO Jon Moeller last year told P&G brand marketers to focus on how many people they reach and how often, rather than how much they spend.
In times of media inflation (which Cortex Media estimated at 7%-8% last year), radio appears to be working as the Hamburger Helper budget-stretcher of unduplicated reach for P&G.
The cost-per-thousand (CPMs) to reach those audiences via connected TV is steep, often as high as $35 to $65. YouTube video CPMs range from $20 to $25, and linear TV is in the $10 to $15 range. But radio can be bought in the $5-$6 CPM range.
The article included research from ABX Advertising Benchmark Index. "Research from ABX, which tests ads across multiple media with consumers, indicates radio ads generally aren’t as effective as TV, but the difference isn’t huge. Since January 2020, ABX found radio ads indexed at 103 vs. 115 for TV on effectiveness (based on such things as purchase consideration), or about 89% as effective as TV." Read the Full Article HERE.
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