Shifting search and social budget into audio increases profit
Radiocentre has revealed new research demonstrating that brands could increase campaign profit without increasing overall campaign spend, by reallocating a portion of media budgets from search and social into audio.
Sound Profits, encompassing new analysis from WPP Media, models what happens to campaign profits when existing Generic PPC and Paid Social budgets are redistributed into audio, revealing that even small shifts can deliver significant gains for brands.
For Generic PPC, this means moving 10% of the budget into audio increases full-term profit ROI by 8%, while moving 20% increases it by 16%. For Paid Social, moving 10% of the budget into audio increases full-term profit ROI by 11%, while moving 20% increases it by 21%.
The brands included in the research had an average annual media budget of £12.7 million. The analysis found that moving 15% of Generic PPC spending into audio could generate an extra £1 million in full-term profit. Moving 20% of Paid Social spending into audio could also generate an extra £1 million in full-term profit.
Radiocentre also worked with research agency Differentology to survey 6,000 UK adults. The survey found that people can be cautious about clicking on online ads because they may not completely trust or recognise the brand. This research showed how audio can help consumers overcome this confidence barrier by building familiarity, trust, and credibility.
This priming effect means consumers can feel more confident to click on social ads or paid-for links in search results, with audio acting as a catalyst that helps those channels work harder.
Sound Profits builds on Radiocentre’s High Gain Audio research, which demonstrates the strong returns audio can deliver, including a potential 9.1% increase in total campaign ROI when audio is allocated 25% of budget. That research also highlights audio’s superior impact on profit compared to pureplay digital channels, including search and social.
Radiocentre’s Head of Insight, Donna Burns, says:
“While the case for audio’s contribution to ROI is well established, a key question remains: where should the investment come from to deliver the greatest incremental impact? With search and social commanding 70% of UK ad spend, testing the effects of shifting a portion of those budgets into audio provided a compelling opportunity.
The findings from Sound Profits show that better results don’t necessarily require bigger budgets. By reallocating a small share of search and social spend to audio, brands can unlock significant profit growth at no extra cost.”
Full findings from this new Radiocentre research will be revealed in November via a webinar. Register your interest here.
About Radiocentre
Radiocentre is the industry body for commercial radio in the UK. We work on behalf of more than 50 stakeholders who represent over 90 per cent of commercial radio in terms of listening and revenue. Our remit also encompasses all kinds of broadcaster-owned and operated audio, including podcasts and on-demand streaming services provided by commercial radio. Our mission is to get industry influencers and decision-makers to See Radio Differently.
This is a press release which we link to from Podnews, our daily newsletter about podcasting and on-demand. We may make small edits for editorial reasons.