It may surprise you to read that Radio has become one of the most cost-effective mass media channels in advertising today, driving up demand for Radio ad inventory. As a result, in Q2 of 2023, and heading into Q3, top Radio networks reported weekly ad inventory sellouts regularly in the top 20 markets. It’s not just big brand advertisers looking for an inexpensive way to secure mass media exposure, but direct response advertisers are getting in on the action as well. This revelation might run contrary to the opinions of some highly regarded DR brands and agencies, so let me address some common beliefs about Radio, some of which are true most not.
First is the belief that Radio, by nature is difficult to measure because of the difficulty associated with attribution modeling. I hate to admit it but that is a mostly true statement. Most listeners are engaged in other activities, like driving, so response to an ad can take place many hours, or even days, later rendering current attribution methodologies useless. But that measurement difficulty has opened the door to an opportunity.
Because it’s difficult to measure true lift of a Radio commercial across all response channels, especially the web, and because of competition with other media channels that are much more measurable, Radio ad rates have dropped significantly. As a result, you can reach the same market penetration on Radio at a fraction of the cost of other channels. In fact, you can secure great schedules during prime dayparts at rates low enough that even the most conservative attribution metric estimates show a positive ROI.
Another common belief is that Radio listenership, like newspaper, has dropped significantly. In fact, the opposite is true, Radio is still a very active, viable channel in terms of reach. According to the Neilsen Total Audience Report (March 2021) Radio ranks 2nd in terms of weekly reach to adult audiences 18+. Radio is also a great brand ambassador. Not only can you reach a large percentage of your target audience cost effectively, but Radio also lends credibility to your brand as radio listeners tend to trust what they hear on Radio more than some other media channels. Credibility is a key component to conversion. The more credible the company and offer, the easier it is to generate leads and convert those leads to sales. https://target-response.com/services/#terrestrialradio