In one of our blog posts, we discussed Profit Ability 2: The New Business Case for Advertising study and debated ROI, especially in audio campaigns. Today, we are talking about a different topic.

Understanding where to invest your budget for maximum return is crucial in advertising. A recent study, Profit Ability 2: The New Business Case for Advertising, sheds light on the remarkable impact of audio advertising on ROI. Conducted by measurement firms Gain Theory and Ebiquity, along with media agencies EssenceMediacom, Mindshare, and Wavemaker UK, this study offers valuable insights into the effectiveness of various advertising channels.


The 24%-18%-58% Rule: A Game-Changer in Advertising

One of the groundbreaking revelations of the Profit Ability 2 study is the 24%-18%-58% rule, which highlights the distribution of advertising impact over time. Contrary to common belief, nearly 60% of advertising profit effect occurs betw

een fourteen weeks and two years. This finding challenges the notion that advertising impact is immediate, emphasising the importance of long-term strategies in advertising.


Audio: A Major ROI Driver

Audio emerges as a significant ROI driver among the diverse advertising channels. According to the study, a dollar invested in audio – encompassing AM/FM radio, podcasts, or streaming – yields impressive returns. Within one to thirteen weeks, a dollar invested in audio generates $3.12 profit, surpassing many other media platforms. Over two years, this investment in audio translates to a total profit of $6.29, showcasing the enduring impact of audio advertising.



Audio’s Remarkable Performance

The study further highlights audio’s exceptional performance in the advertising landscape. Ranking second in short-term return on investment and third in overall ROI among ten media channels, audio outperforms digital platforms in profitability. Even with a modest 1% share of the media budget, audio generates 1.12% of profits, punching above its weight and delivering substantial returns for advertisers.


Looking Beyond Short-Term Gains

While short-term results are essential, the Profit Ability 2 study emphasises the significance of long-term strategies in advertising. Creating future demand through brand-building initiatives is crucial in sustained sales and profit growth. By balancing short-term tactics with long-term brand-building efforts, advertisers can maximise their advertising effectiveness and drive lasting success.


Conclusion: Leveraging the Potential of Audio Advertising

In summary, the insights from Profit Ability 2 underscore the pivotal role of audio advertising in driving ROI and long-term business success. As advertisers navigate an increasingly complex media landscape, understanding the dynamics of advertising impact over time is essential. By harnessing the power of audio advertising, brands can

Source: Westwoodone Blog