Arbitron and a consortium of radio industry leaders agreed to collaborate on an initiative intended to improve the analytical methods used by advertisers to evaluate the tangible impact of radio advertising on product sales. Arbitron, together with Dial-Global, Premiere Radio Networks and Westwood One, plan to improve how radio is incorporated into Marketing Mix Models that are widely used by advertisers to evaluate how product sales are influenced by advertising on different combinations of media.
The group has agreed to fund the initiative and work with the leading marketing mix companies to update their models with more granular and timely radio data.
“This initiative is a major effort designed to help radio claim a larger share of marketing spend,” said Carol Hanley, SVP/Chief Sales Officer, Arbitron. “We are committed to joining forces with our customers to help ensure that marketers have demonstrable insights into the full power of radio.”
“This initiative demonstrates an important commitment to our entire industry, as these models have an impact on all of radio. This project will ensure the best practices and data available are employed when determining the value of our medium to an advertiser’s potential investment,” said David Landau, CEO/President, Dial Global.
“Premiere fully supports this long-awaited effort to improve the metrics and tools for understanding, planning and executing audio campaigns,” said Charlie Rahilly, the new President, National Advertising Platforms, Clear Channel Radio. “We’ve always known from our clients that the medium has worked. Through this initiative, we have a terrific opportunity to validate that statistically.”
“Updating the market mix models will allow advertisers to validate the link between radio and product sales,” said Paul Bronstein, VP/Research at Westwood One.
The companies have retained Sequent Partners to guide and coordinate their effort. Sequent Partners is a leading brand and media metrics consultancy with substantial media research experience and high credibility with the media, advertisers and the advertising community.