NEW YORK, NEW YORK — Advertising campaigns may be producing slightly better return-on-investment calculations while generating less total profit, according to an analysis promoted by Westwood One’s Audio Active Group.

The analysis, published September 14 by Cumulus Media Chief Insights Officer Pierre Bouvard, cites research from marketing-effectiveness specialist Les Binet. It says median media return on investment, or ROI, increased 4% when 2022–2024 was compared with 2018–2020. Over the same period, the incremental profit attributed to advertising fell 11% in inflation-adjusted terms.

EFFICIENCY IS NOT THE SAME AS GROWTH

ROI measures the return produced for each dollar spent. A campaign can become more efficient while producing less total profit if its overall budget, reach and sales contribution shrink.

Bouvard’s argument is that marketers have overemphasized short-term efficiency and narrowly targeted transactions while reducing the broad advertising investment needed to build awareness and future demand.

The cited comparison says marketers surveyed believed ROI contributed more to profit growth than budget size. The underlying analysis reached the opposite conclusion, attributing most variation in profit to the amount invested.

WHAT THIS MEANS FOR RADIO SELLERS

Local radio sales departments are increasingly asked to tie campaigns to immediate website visits, calls, store traffic and purchases. Those outcomes matter, but they do not capture every effect of repeated exposure, familiar personalities, community presence and long-term brand recognition.

The useful lesson is not that ROI should be ignored. It is that campaign efficiency, total profit, reach and brand growth answer different questions and should be evaluated together.

THE CLAIM STILL NEEDS AN INDEPENDENT TEST

Westwood One is an interested seller of audio advertising, so its interpretation should not be treated as independent proof that radio is the correct choice for every advertiser. Researchers should disclose the underlying categories, campaign sizes, time periods and methodology.

For local businesses, the practical test is whether a campaign produces profitable customer growth over time—not simply the most attractive short-term ratio on a dashboard.

Sources: Westwood One Audio Active Group and Radio Ink.