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Arbitron Forms Consortium to Demo Impact of Radio Ads on Sales

Arbitron, Dial-Global, Premiere Radio Networks, and Westwood One are partnering in an initiative they hope will improve how radio is incorporated into Marketing Mix Models that are widely used by advertisers to evaluate how product sales are influenced by advertising via different combinations of media.

The consortium will fund the initiative and work with the leading marketing mix companies to update their models with more granular and timely radio data.

The initiative is designed to help radio claim a larger share of marketing spend, according to Arbitron. The groups involved say the project will ensure that best practices and available data are employed when determining the value of radio to an advertiser’s potential investment, allowing advertisers to understand the link between radio and product sales.

“Premiere fully supports this long-awaited effort to improve the metrics and tools for understanding, planning and executing audio campaigns,” said Charlie Rahilly, president of the newly created National Advertising Platforms group of 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.”

The consortium companies have retained Sequent Partners to guide and coordinate their effort. Sequent Partners is a brand and media metrics consultancy.

Clear Channel’s new National Advertising Platforms group brings together national rep firm Katz Media Group with the radio networks of Premiere Radio Networks, and will cover sales for national spot and network radio for Clear Channel Radio as well as for CCR Digital National Sales, CCR Creative Services Group and CCR Advertiser Development divisions, in addition to Premiere Radio Network Ad Sales.

Overall radio revenue is expected to return to positive growth by 2011, according to ZenithOptimedia. Online radio revenue will grow 12% this year, to $441 million, and by 20%, to $530 million, in 2010, says SNL Kagan.