In the landscape of media options, radio has been a longtime player. It’s a traditional format, but that’s not a bad thing. What radio has is trust, credibility and a tie to the community. Yet, local radio advertising doesn’t command what it should in media buys.
The good news is that it’s really easy to make the case for radio as an effective ad channel. The industry puts out a lot of data that demonstrates the value and ROI. Let’s talk about it.
Radio Dominates Ad-Supported Listening
The Share of Ear report offers an accurate picture of who listens to the radio. It’s also a good resource for correcting erroneous beliefs of some advertisers. They tend to think other types of audio have larger audiences.
That’s simply not true. The Q1 2025 Share of Ear Report revealed these facts:
- 66% of ad-supported audio listening is via broadcast radio for people 18 and older.
- In the car, that percentage increased to 90%.
With AM/FM radio dominating, there’s very little of the pie left. In fact, ad-supported streaming audio (Spotify, Pandora) and satellite radio only account for 15%. That’s a small sliver, yet agencies and advertisers overestimate this audience (while underestimating radio).
As a local radio advertising expert, you likely have to correct these assertions a lot. Why? Several factors contribute to this. Many businesses automatically think that these streaming services are dominating the audio space simply because they’re newer. Newer doesn’t mean better.
If you’re not using these reports when talking to new (or existing) advertisers, start now. Edison Research and Nielsen release these quarterly. They provide great insights about U.S. consumer audio listening behaviors. It’s accurate, fresh data that can immediately transform a mindset.
The ROI of Local Radio Advertising
Let’s build on the first point of listenership and talk about ROI. What’s the return on radio advertising? Some advertisers who are putting more dollars into digital may think this can’t be measured or calculated.
Radio ads don’t come with a set of metrics like digital ones, but they’re still quantifiable. There have been many studies about the sales effect of these ads. These reports have looked at things like brand awareness, market share growth, pricing power, profits, return on ad spend and more.
The power of consistent radio advertising isn’t short-lived either. It can create and convert interest. The consumer’s action may not be immediate, but the radio spot comes back into their mind when they are ready to buy.
Some key things from the compilation of studies that solidify radio advertising’s value include:
- There’s a $10 return on advertising spend, on average. It’s even greater than that for some categories like home improvement, telecom and grocery. (Nielsen)
- Radio consistently places as a top-tier medium for ROI (Nielsen).
- Audio ranks number two in short-term ROI and number three in long-term (Ebiquity/Gain Theory).
- Brands can see up to a 14% increase in website traffic from AM/FM radio ads (LeadsRx).
- Radio spots can boost market share by 28% (IPA Databank).
- Companies using radio advertising see a 23% greater return on marketing spend (IPA Databank).
There’s no shortage of data points about how radio lifts a media buy and campaign. So, why do naysayers persist?
Radio Advertising Perceptions and Shifting Them
Radio has been part of the human experience for over 100 years. It’s been a cornerstone in advertising, from brand awareness to promotions. It’s unique in that it’s audio only, which means people consume it differently than video. This is actually a good thing. It outperforms video in attention and recall.
There’s also the reputation radio has as being part of the community. Stations are actively engaged in neighborhoods and involved in social programs.
With such a list of accolades, why isn’t radio at the top of every company’s marketing list? It’s a perception problem, but one that you have the power to change. These facts and studies should be a topic of conversation at your station. Put them on your website, share them on social media and have personalities discuss them.
Help create the buzz around the value of radio advertising. Yes, you’ll still want to recommend digital to complement radio so you get more of their ad budget, but you can place radio in the center with other tactics that amplify those messages.
You have the power to change perception, and we’ll keep sharing how with new data, strategies and more.
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