Is radio advertising part of your marketing strategy?
According to recent stats on ad spend and audience behaviour, radio advertising is enjoying a golden period.
Digital audio ad spending increased by over 50% last year alone, IAB reported making 2022 the best-ever year for radio advertising spend. With the return of travel and transport after the pandemic, these sectors began to spend considerably again on radio advertisements. Another reason for this increase is the spike in interest in podcasts throughout the pandemic and continuing through 2022. It’s no surprise that these listening habits are expected to grow in 2023, fuelling the growth of radio advertising.
According to a study by Nielsen, the entertainment industry is leading the way with the highest spend on radio advertising at nearly £138.6 million, with finance (£106.2 million) and the motor sector (£98.6 million) following behind. Radiocentre reported that companies such as Sky, who led the way for audio spend at £19.6m in 2022 helped set records of £740m in revenue in the ad sector. Global ad agency Dentsu believes that automakers will spend 6.2% more on radio marketing in 2023.
Steve Dunlop and Paul Kelly of A Million Ads recently predicted the significance of audio in 2023 in an article by The Drum, highlighting how audio may find itself rivalling visual advertising. Companies that have a large focus on podcasting such as Spotify have made efforts to collaborate with names such as Michelle Obama and will likely continue to grow these partnerships in the future. Ad platforms have the ability to target podcast audiences, who tend to be loyal and engaged, based on their listening data, making advertising a highly effective option in many verticals. Therefore, it is suggested that the listening habits of audiences are adapting and (metaphorically) tuning into the radio could be reconsidered by consumers.
Audio advertising can benefit marketers because of its ability to be personalised, catering to the needs of consumers. Results from radio advertising can be measurably considerably and companies can collect valuable data about listeners.
Radio is also successful at building trust with consumers, as many deem it reliable and can boost online brand browsing by 52% according to Radiocentre, with most responses occurring immediately after the broadcast. Advertisers are reaching for cost-effective routes to market their products, and radio can be cheaper to implement compared to methods such as visual or TV advertising. Overall, audio advertising offers a unique way for advertisers to engage with consumers in a way that is both personal and non-intrusive, making it an attractive option for many brands.
Radio advertisers need to be aware of the rise in ad automation in recent years which will be implemented through technologies such as AI, machine learning and programmatic advertising. Automation has been found to be successful for platforms such as iHeartRadio as they managed to reap real-time analytics and valuable insights into performance and customer demographics. AI compliments radio well as it has the ability to analyse customer behaviour and ad performance as well as optimise messaging and display creative components in near real-time. Programmatic advertising uses algorithms to target specific audiences based on their interests and demographics and then proceeds to automatically place these ads on various platforms.
In 2023, radio will flourish and certainly should be considered among top-tier ad space, adapting to emergent technologies in order to be more automated and personalised to the consumer. If you’re not considering using radio advertising in your marketing mix, you could be missing out.
Pippa Gilroy is a Digital Marketing MSc student, content creator and social media enthusiast with a passion for writing about the latest industry trends.
Instagram: @pippagilroy / TikTok: @gilroypippa / Twitter: @pippagilroy