A vintage car radio with silver dials and button sand a red needle with white numbers, suggesting the viability of radio advertising.
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Is Radio Advertising a Viable Medium for Brands Today?

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Radio is still one of the most powerful mediums in the United States.

The Gist

  • Radio relevance. Traditional radio continues to be an effective medium for advertising, reaching 82% of U.S. adults weekly.
  • Segmentation success. Radio advertising allows for specific targeting and segmentation, making it a versatile tool for brands.
  • Streaming surge. With the rise of streaming and podcasts, new opportunities for targeted and niche advertising are expanding.

While online advertising and marketing mediums have considerably evolved, traditional radio remains a relevant and effective advertising medium for businesses today. A July 2023 Statista report revealed that radio is still one of the most powerful mediums in the United States, with 82% of adults tuning in weekly. This reach extends to teenagers as well, as a 2019 Nielson report reported that 93% of teens in the United States listen to the radio each month. Radio complements mobile lifestyles, as radios are listened to in cars, at work, in the gym and more. 

Radio advertising is highly regarded for its affordability and flexibility, with the ability to narrowly target desired demographics through thoughtful scheduling and placement. Let's take a look at the medium of radio for advertising and marketing, delving into its benefits, the types of radio advertisements that are available and how brands are using radio to reach new customers.

Radio Still Has Greater Reach Than Most Channels

Although the use of radio for advertising literally began in the 1920s, it really took off after President Roosevelt gave a speech on the radio to discuss the attack on Pearl Harbor. At that point, businesses began to understand how radio could be used as a tool for communicating with customers. It was a period that was called “the golden era of radio,” and families would gather around the radio to listen to their favorite radio shows.

family gather around radio
 

On Oct. 30, 1938, Orson Welles presented the infamous "War of the Worlds radio show," which was based on the book by H.G. Wells. Welles changed the story into a format that sounded like actual news bulletins describing a Martian invasion of New Jersey, and it was so realistic that it literally terrified thousands of Americans. The next day, newspapers around the country had headlines about the story and included reports of mass stampedes, suicides and angry listeners who suggested that Welles had created a panic on purpose.

war of the worlds
 

Welles’ broadcast was illustrative of the reach and impact that radio had on listeners. As radio moved into the 1940s, it established itself as a viable medium for advertising. Since then, radio advertising has become ubiquitous, and several distinct types of advertising have become available. 

As Brad Kelly, managing director of the consumer research company Nielsen Audio, stated in a 2019 article on Audio Today, "The fact of the matter is, as consumers, our eyeballs are maxed out. There are virtually no open spaces left to bolt a video screen, or paste yet another logo." This is where audio content steps in, enabling consumers to effortlessly listen to music, podcasts, docuseries and advertising. Similar to broadcast TV, 18 minutes worth of advertisements are played for every hour of radio broadcasting. 

Related Article: Our Audio World: Can Your Customers Hear What You're Saying?

Radio Is Already Segmented

Segmentation refers to the process of dividing a large audience into smaller groups of customers with similar needs, values, characteristics or locations, and is often based on demographic data (age, gender, etc.), or behavioral data (browsing history, clicks and purchase history).

Logan Nguyen, co-founder, CMO at NCHC, a health and wellness magazine, told CMSWire that because of broadcasting limitations and distance, radio advertising is limited to specific regions. "Many believed radio advertising wouldn’t have a future in today’s digitally advanced world, however, it continues to prosper, offering businesses the opportunity to connect with potential customers." 

Nguyen explained that the main advantage of radio advertising is that it’s already segmented. "Market segmentation is important in modern marketing, and radio advertising already has the work laid out for you," said Nguyen. “The audience is already segmented, and all you have to do is create a convincing ad.”

Another advantage of radio is that it enables a brand to be more visible and participatory within its community. Steven Light, EVP of ecommerce and digital solutions for Avenue B, an online beauty corner store, told CMSWire that even though the media environment has changed to a digital landscape, radio continues to have advantages. "It has the ability to reach a wide range of consumers, connect with the local community and effectively communicate messages through audio narratives.” Additionally, Light said that radio advertising can work alongside campaigns, providing an approach that boosts brand visibility and engagement.

Related Article: A How-to Guide for Local Marketing

The Types of Radio Advertising

Radio advertising has continued to change and evolve over the years, and there are now many distinct types of radio advertising used today, including: 

Spots: Traditional 30- or 60-second prerecorded spots that promote a brand, product or service through a brief, well-expressed message. These are the most common radio ad format.

  • Sponsorships – Brands sponsor specific programming blocks or full shows. The sponsor is mentioned and endorsed within the sponsored content.
  • Branded content – Creating entertaining or informative radio segments that integrate the brand organically but don't overtly sound like a traditional ad.
  • Live reads – On-air personalities read ads live during radio shows to make the message seem more natural and off-the-cuff. 
  • Remotes – Broadcasting live from sponsored events or locations to generate excitement.
  • Traffic reports – Branded traffic updates relevant to commuters that mention the sponsor.
  • Call-in contests/giveaways – Getting listeners engaged by having them call in to win prizes or receive discounts.
  • Long-form programs – 30-to-60 minute blocks of content created and branded by the advertiser that entertain and inform.
  • Music licensing – Sponsoring specific songs or music blocks on music stations.
  • Jingles – The easiest to recall of all radio ad formats, these earworms get in a person’s head and are hard to dismiss. Think of “Nationwide is on your side,” or Chili’s “I got your baby back, baby back, baby back,” for example.

The key is using different formats that feel organic and match the listener base while allowing sponsors to creatively integrate their messaging. Combining prerecorded spots with real-time formats is often the most effective. 

As with other types of audio mediums, advertisements on the radio often include voiceovers, sound effects, and music, which helps to create an emotional connection with customers. “Radio's ability to paint a picture in your audience’s mind makes it an effective marketing channel,” said Nguyen. “Radio ads engage your audience’s imagination through voiceovers and sound effects, evoking powerful emotions and creating deeper, memorable effects on your audience’s mind.”

Streaming Radio and Podcasts Are Still Aspects of Radio

The popularity of streaming radio and podcasts has gotten the attention of advertisers, who have recognized that much like traditional radio, these channels are already niche, serving a very narrow, segmented audience. This makes them a natural choice for advertising and marketing if that segment crosses over into a brand’s own audience. 

Streaming radio and podcasts provide unique opportunities for brand advertising due to high listener engagement and the ability to target these niche audiences. Unlike passive forms of media consumption like television, streaming audio listeners are actively choosing content and are less likely to tune out ads. Streaming also allows for very specific audience targeting based on music genre or podcast topic, enabling brands to directly reach their desired demographics. For example, an outdoor apparel company could advertise on country or rock stations which tend to attract rural listeners who might be customers. 

Learning Opportunities

Podcast ads additionally let brands associate themselves with the host's personality and content. Given that the intimate podcast host-listener dynamic is very similar to that of influencers, podcast ads often feel like trusted recommendations. While measuring streaming audio ad effectiveness can be challenging, the ads are well-suited to storytelling that builds brand affinity. With the surge in music streaming and podcast listening, the audience reach potential is vast. Though still a fraction of radio budgets, advertiser investment in streaming audio is rapidly increasing.

Spotify is a good example of a podcast service that endorses and provides podcast advertising opportunities for brands. The streaming media service has tutorials and guides for the creation of podcast advertisements, making it easier for those brands who wish to try out this advertising format.

Final Thoughts on Radio as an Advertising Medium

Despite the rise of digital media, radio remains a viable advertising medium for brands in 2023. With its vast weekly audience, ability to micro-target specific demographics, creative ad formats, and niche streaming and podcast options, radio offers unmatched engagement and value. Radio advertising enables brands to craft memorable audio stories that resonate emotionally with the right listeners and delivers unparalleled reach for connecting with target consumers.

About the Author
Scott Clark

Scott Clark is a seasoned journalist based in Columbus, Ohio, who has made a name for himself covering the ever-evolving landscape of customer experience, marketing and technology. He has over 20 years of experience covering Information Technology and 27 years as a web developer. His coverage ranges across customer experience, AI, social media marketing, voice of customer, diversity & inclusion and more. Scott is a strong advocate for customer experience and corporate responsibility, bringing together statistics, facts, and insights from leading thought leaders to provide informative and thought-provoking articles. Connect with Scott Clark:

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