A morning radio show that brightens even the most mundane commute.
A streaming music channel you could listen to for days – without a single skip.
A DJ who seems to know your taste in music better than your best friend.
Radio is a huge part of our everyday lives. And now that it’s available digitally, our favorite songs and talk shows follow us from home to work and everywhere in between. But despite radio’s nearly constant presence in our lives, some brands question its relevancy in today’s tech-obsessed marketplace. Is radio really a worthwhile platform for marketers? Are radio advertisements still an effective means of reaching an audience – or have listeners tuned out?
Studies show that radio is, undoubtedly, still relevant. Since radio broadcasts’ advent in the early 1920s, they have shaped American life. Radios became bulky fixtures of nearly every living room and remained a source of news and entertainment through the decades.
While skeptics still exist, many brands clearly recognize the value of radio advertising. In fact, $17.49 billion were poured into radio advertising in 2015, up from $16.48 billion in 2012. And projections show ad spend reaching $18.69 billion by 2020!
These 3 reasons prove that radio is still a great way to, quite literally, make your message heard:
1. Unrivaled Reach
Research shows that radio reaches more people each week than any other platform, touching 93% of American adults compared to TV’s 89%. That puts radio’s audience at about 243 million people, with more than 2/3 of these AM/FM listeners tuning in while they’re away from home – namely when they’re driving to and from work. Some argue that despite radio’s wide reach, a lack of targeting makes it hard for brands to zero in on their audience. While it’s true that the frighteningly accurate microtargeting available on digital platforms doesn’t apply to radio, it’s unfair to say that each radio ad is a total shot in the dark. Many radio stations draw a certain audience, whether it’s millennials jamming to songs on the top 40 charts or their parents listening to a classic rock – and often, this level of targeting is sufficient.
2. Cost Efficiency
What radio lacks in targetability, it makes up for in cost efficiency. Research shows a distinct correlation between radio advertising and revenue earned by brick-and-mortar retailers. For instance, one study found that every dollar funneled into ads generated a return of $6, on average, from listeners in the four weeks after they heard them. The study’s participants, even those with smaller budgets, saw an impressive return on investment through their radio campaigns. This is great news for smaller brands with modest budgets that want to maximize each ad dollar spent.
3. Listener Loyalty
Many of us have a favorite radio show whose cast accompanies us on the way to work each morning, bantering hilariously and causing us to forget, however briefly, that it’s Monday. If you’re nodding in agreement, you’re not alone! 87% of tuned-in time is spent listening to just three stations, with 58% devoted to only one. Not to mention, 58% of listeners claim their favorite DJs, hosts or shows as their motivation for tuning in, only slightly less than hearing their favorite songs (64%). Listeners begin to trust the folks they listen to regularly, which makes personal endorsements and ads voiced by local DJs incredibly effective.
If you’re considering adding radio to your current marketing strategy, we’d love to help you get started! The Motivated Marketing team has plenty of experience producing radio ads that get big results – without a price tag to match. We’ve also got an in-house team dedicated to handling the entire media buying process, from start to finish. To learn what we can do for your brand, contact us today!