What to Know About Radio Advertising’s Relevancy

From brand awareness campaigns on major radio stations during morning commutes to ads about events, the ad time you fill with engaging messages about your brand still matters.   

However, just like with any marketing channel, harnessing this power most effectively is the secret to creating campaigns that reach their objectives. So, who's listening, and what actions can you persuade them to take? How successful is radio advertising, really? 

Let’s examine those questions while exploring the popularity of radio advertising and how to get the most return on investment from every radio advertising dollar. 

Radio Advertising Popularity Right Now 

It's no surprise that radio ads reach large swaths of the population. What may surprise you is that "radio still commands the highest share of collective trust in advertising," according to Nielsen radio advertising statistics analyzed by Musical Pursuits.  

Over half of listeners in every age bracket trust radio, including traditional audio ads, sponsorships and product mentions from their favorite radio hosts, and other radio-based ads. Even better, the same article continues, "77% of listeners would try a brand or product endorsed by their favorite radio personality." 

That's tremendous branding and sales power for a channel many companies might overlook. While streaming radio advertising is gaining popularity, and many listeners might fill their day with podcasts, streaming videos, and digital media, that media consumption isn't having the suppressive effect on radio that anyone might have expected. Instead, audiences simply fill their day with more media instead of replacing the radio with entirely different options. 

Of course, radio works best for some industries more than others. Retail businesses, for example, spend the most on radio advertising, reaching over $246 million in 2021. Communications, miscellaneous services, and politics are the following most popular industries advertising on the radio. Your team can dive further to see the business breakdown of different radio stations to view their advertising composition and discover new stations to reach potentially interested audiences.  

How can you make the popularity of radio advertising work for you? 

First, it's important to find the channels that your target market is listening to. Niche streaming channels or talk shows are the perfect places for sales-based campaigns, where frequent, targeted messages can bring customers to your doors for a transaction. Radio stations with a broader appeal are better suited for brand awareness campaigns. You can introduce your brand and solutions to new listeners, keep your brand top-of-mind for general listeners, and increase the number of touchpoints for overall familiarity.  

Is Radio Advertising Worth It, and Why? 

Radio advertising offers different advantages to different companies, and your business must consider how it uniquely fits within your overall marketing strategies. For example, are you a small or new business that needs to focus on brand awareness campaigns? Or are you powering up your advertising campaigns for the holiday season and focusing on conversions above all else? These questions won't just determine what channels you use and how much you prioritize radio advertising. They'll also change the nature of the messages you broadcast.   

If you're building a marketing plan for 2023, you can consider whether radio advertising is worth it. Consider these five aspects as you decide your budget and objectives:  

• Affordability: Radio ads operate within a reasonably wide range regarding pricing, but most campaigns are affordable. Factors such as the time and length of the ad slot, the radio station's geographic area, and the estimated size of the listening audience all play a role in the final cost. Anticipate spending anywhere from $200 to $5,000. 
• Broad Audience Reach: The power of radio is in its overall appeal. Even Gen Z audiences, one of the youngest marketing groups and the one least likely to listen to the audience, have a 55% daily listening rate. 
• Brand Awareness: Due to broad audience reach, radio ads should be a keystone element in your marketing strategy. Use these ads to introduce your brand to new audiences and drum up interest in your services. 
• Customer Traffic: Tracking radio advertising effectiveness is challenging, especially if you're gauging the impact on in-person traffic. But today's attribution tools can measure the effect, primarily if you use location-based marketing tools to launch ads in streaming media. 
• The ROI of Radio: While rates differ based on your campaign specifics, most advertisers can expect a 7.7x ROI for their radio advertising spend! 

Start Your Next Radio Ad Campaign with Strategic Support from Mid-West Family 

Radio advertising campaigns are versatile tools. By planning your campaigns intentionally and knowing the outcomes you want to see from your efforts, you can see greater brand awareness and reach. This is excellent news for small and growing businesses, especially in retail markets. At Mid-West Family, we help businesses like yours develop high-performance marketing strategies encompassing radio and digital advertising. Contact us today to get started.