Radio Advertising: Is it Still Effective?

Radio advertising is still an effective marketing tool. It has the power to reach a wide audience and connect with them on a personal level.

Radio advertising is still a powerful marketing tool that can reach people in the most direct way possible. It also has the ability to connect with people on a personal level and make them feel like they are not just numbers in an ad campaign.

With all of the market hype around podcasts and streaming music services like Spotify, Apple Music, and Pandora, it’s easy to overlook the strength and efficacy of AM/FM radio. However, these beliefs differ vastly from the facts about AM/FM radio consumption, ad penetration, and effectiveness.

AM/FM radio remains a powerhouse for consumers and marketers alike, according to Edison Research’s “How America Listens to Audio” research, for the following reasons:

• AM/FM radio leads the total Share of Ear, accounting for 40% of time spent by persons 18 and up. In comparison, all other types of streaming audio average 6% or less.

• AM/FM radio accounts for 76% of all ad-supported audio time spent each day.

• AM/FM radio has a 19X bigger audience share than ad-supported Spotify and a 13X larger audience share than ad-supported Pandora.

Marketing Professor Mark Ritson tells us, “There is mounting evidence that marketers are making media decisions based on their own behavior or that of digitally obsessive marketing media, rather than genuine audience data… The first marketing law states that you are not the market.” You are a well-paid, urban, professional media executive. Everything you believe and do is based on a highly skewed n of one.”

Nielsen and Westwood made another significant observation. According to one source, “it is fairly unusual for companies to claim that AM/FM radio does not do well in media mix modelling studies.” Because AM/FM radio accounts for such a small portion of many national media investments, the media mix model has trouble producing a consistent and trustworthy read. Modelling media mix is a self-fulfilling prophecy. It bodes well for the plan’s greatest media investments. The tiny pieces of the media plan saw “performance bounce” in terms of sales volume and return on marketing investment indicators.”

Why Radio Advertising Works

AM/FM advertising is an essential medium for marketers to employ for a variety of reasons, the most important of which are efficiency, unduplicated reach, and high ROI.

Cost of Radio Advertising

Radio advertising has been around since the 1920s when radio stations started interrupting programming with advertisements. This can be expensive, especially for smaller businesses. The cost of radio advertising varies depending on various factors, including market size, demographics and competition.

• Radio advertising typically costs between $200 and $5,000. The size of the viewership and the frequency with which it is transmitted significantly influence advertising expenses.

• As a general rule, the more listeners a radio station has, the more customers your ad may reach, increasing your radio advertising expenditures.

• AM/FM radio advertising is far less expensive than other broadcast-type channels.

High ROI with Radio Advertising

Radio has been around for more than a century. This form of advertising is versatile, effective and very affordable. It provides a variety of options, including targeted ads, web banners and jingles that are easy to create with a click-and-drag interface. With radio advertising, you can reach your target audience on a budget.

Wrapping it Up – Is Radio Advertising Effective? AM/FM radio is the centerpiece of audio for all the reasons stated above. AM/FM radio accounts for 40% of all audio time spent and 76% of ad-supported audio. It is an important component of your entire media mix that continues to provide great real-world effects.