Radio is Dead, Right? Well…
With the plethora of options that people have to access different types of content from virtually anywhere they want, at any time they want, and with whatever device they prefer, it seems that nobody is paying attention to the radio industry anymore.
For much of its life, though, radio was the dominating media source that provided information and entertainment to the masses.
The Current State of the Radio Industry
Today, though, it seems to be overshadowed by other media sources, but don’t let that impression fool you; radio is actually a robust industry that is capable of reaching highly segmented audiences.
While it did experience a market drop several years ago, in 2014, it has steadily risen ever since that time. This growth is anticipated to continue through at least 2024.
Source: AnythingResearch Radio Broadcasting Report
The industry’s compound average growth rate is just under 2%, and the US represents the largest market for radio in the world. In addition to traditional airwave radio options, innovative new approaches to the medium are emerging and gaining traction among both users and advertisers.
Satellite options and streaming services such as Pandora, Spotify, Jelli, Doubleclick, and Apple Music are growing in popularity.
Radio and Advertising
Interestingly, despite the industry growth and thorough audience segmentation that radio offers, advertising spending is projected to decrease by half between 2012 and 2022, from 10% of ad budgets to 5. As of 2018, it was at 6%.
Source: Megna Advertising Forecasts and Televisory’s Research
This means that the persisting impression that radio is a dying industry is, in fact, causing many advertisers to overlook what could be a potentially robust element in their media strategy. The fact is that radio use is growing, and it offers several distinct advantages over other media.
Captive audience: Many individuals listen to the radio while they are doing another, often mundane or repetitive, task - such as during their commute or at the gym. This means they are usually very focused on the message itself. This already-captive audience provides the perfect opportunity to deliver effective messaging.
Personalization: Radio audiences are highly segmented (geographically and demographically), letting you select your radio advertising outlets with a precision that frequently can’t be matched on other media sources. This enhances the level of emotion, and immediacy advertisers can tap into.
High ROI: Radio has an unusually high ROI. While a Nielsen study found that the average ROI for most marketing efforts hovers around 9%, radio advertising returns $12 for every dollar spent, putting its ROI at 1,200%. It’s very effective with minimal investment.
While it seems likely that the perception of radio as a dying industry may persist, that doesn’t mean you shouldn’t use it to your advantage. Rather than ditching your radio strategy, it’s worth exploring the option of expanding these efforts.
With the benefits that radio advertising can provide, it should absolutely be a core component in any modern and comprehensive media strategy.