MAM
Radio outscores TV in providing ROI for US advertisers: Study
MUMBAI: The Radio Ad Effectiveness Lab (Rael) in the US has put out the results of a study which show that radio campaigns show 49 per cent better return on investment (ROI) for advertisers than TV campaigns.
This “real world” study was conducted by Millward Brown and Information Resources (IRI), and it examined four pairs of radio and television campaigns in a range of product categories over a six month period ending in early 2005. The study was conducted in four small markets. The product categories included Grocery Food, Grocery Non-Food, and two very distinct Over-The-Counter Drug products.
Radio moves products. Across four different advertisers, incremental radio advertising consistently and significantly increased product sales and delivered meaningful profit for each dollar of advertising. Radio demonstrated in this study that it can function as a primary medium for advertising.
Radio ads increase sales even when national television is present. Radio was just as potent in the presence of 50–100 TRPs of national TV as it was by itself. In fact, the test results actually suggested slightly more impact for radio when combined with television than when used alone. Radio’s effects can be measured—when radio is used at sufficient weight. Radio is prepared to be held accountable for its advertising effectiveness.
But effectiveness measurement requires that advertising be present at sufficient weight for statistics to accurately capture that result. Most importantly radio’s ability to deliver strong ROI for advertisers has been proven in a real-world test at last.
Rael states that it can only guess how much better that value might be if the creative quality of radio advertising received as much attention and investment as ads in other media. All the television campaigns in this test had received favorable advance testing; none of the radio ads were pretested. The $1 million study, funded by radio companies with input from advertisers and ad agencies.
In half of the test households, TV commercials for the test products were removed and replaced by public service announcements. Half of the households had no radio commercials for the products being tested.
To measure the effectiveness of the campaigns, Millward Brown examined scanned grocery purchase data and conducted pre- and post-survey telephone surveys.
The study found that radio advertising lifted sales of the four products by an average of 4.1 per cent, while TV commercials increased sales by 7.5 per cent Radio’s 4.1 per cent retail lift occurred with or without a corresponding TV campaign. Used in conjunction with television, radio produced a 4.1 per cent lift above and beyond TV’s 7.5 per cent spike.
According to Rael research consultant Jim Peacock, the average radio spot costs 80 per cent less than the typical TV commercial. Once the costs of the campaigns were factored in, Rael concluded that return on radio advertising dollars is 49 per cent better than with TV.
Brands
YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
