Contrary to what some media pundits may think, radio as a medium continues to thrive. In fact, people are consuming more terrestrial and digital radio than ever before. This rising consumption enriches the marketing opportunity that radio provides companies, as radio remains one of the most cost-effective ways to generate reach and frequency. Consider: 

• Eighty percent of consumers reported they listened to as much or more radio in 2020 as the year before, largely driven by a rise of in-home smart speaker usage. 
• Forty-six percent of consumers note that radio helps them know where to shop locally. 
• Radio is most often consumed away from home, which often results in listeners hearing an ad before a potential purchase opportunity. 
• Real-time radio is the most consumed source among young listeners. 

Radio, both traditional and digital, provides small and midsize firms with opportunities to grow and expand their businesses by reaching more consumers, building brand awareness, and driving people to purchase. 

Traditional radio 

Traditional radio still accounts for 39 percent of audio consumption, more than double that of streaming platforms. Moreover, around 90 percent of Americans 12 or older listened to traditional radio at least once a week — a percentage that has remained roughly the same over the past decade. In 2020, that figure was 92 percent. Radio also has a diverse demographic reach, with listeners split roughly equally between women and men, with 93 percent of teenagers listening each month. It also can help reach marketers reach Black and Hispanic consumers, as a whopping 98 percent of each group (35.1 million Black consumers and 45.6 million Hispanic consumers) listens to radio each month. 

Using local radio stations, marketers can target consumers effectively with personalized creative designed to reach local listeners throughout the day.  

Digital + Radio 

Radio listeners often overlap with the national audience for podcasts. Indeed, some of the most popular podcasts stem from radio programs. This format and on-demand radio — where listeners can download audio clips of radio programming (among other forms of audio content) — are also on the rise. An estimated 100 million people listened to podcasts in 2020 — a figure projected to increase to 125 million in 2022. Firms spent approximately $800 million on podcast advertising, including advertising on podcasts developed by radio stations or from radio station programming. And podcast ad spending is projected to grow to $1.7 billion by 2024. 

On-demand radio and podcasts have the added benefit of real-time analytics, allowing producers to obtain granular data about their audience and its listeners' habits. Further, the digital format allows listeners to share content independently, expanding a radio station's reach. One recent NPR story that went viral enjoyed more than 7 million listens across all of its platforms. The shareability and virality of a radio station's digital platforms allow traditional radio channels to maintain and even grow their reach. For example, NPR saw radio listeners dip by 22 percent in 2020, while: 

• Traffic to its website increase by 94 percent 
• On-demand and smart speaker streams rose 29 percent. 
• Thirty-nine percent more listeners tuned in to the station's live streams. 
• App usage increased by 22 percent 
• Its YouTube channel saw a 90 percent increase. 

As podcasts and on-demand radio grow in popularity, it's important to understand how to make the best programmatic ad buys, so your business can be sponsored across a radio brand's platforms and maximize your reach. 

Radio influencers 

Some marketers are taking full advantage of these trends and another emerging opportunity: radio influencer marketing. When you air radio ads, your brand benefits from its association with the radio personalities on whose shows your ads run. Because people listen to radio consistently, they place great trust in the personalities they listen to. Five in 10 listeners follow a DJ online, and four in 10 have met a DJ they follow personally. In fact, recent Nielsen research indicated that 37 percent of listeners named their favorite DJ as the component of radio they appreciated the most.  

Some radio personalities, often aided by podcasts and appearances in other media, have become larger-than-life figures, capable of adding a significant boost to sponsoring brands. Indeed, eight in 10 listeners would consider trying a brand their favorite DJ recommended. 

While radio provides tremendous opportunities for marketers, the growth of new formats, such as on-demand radio, has led to a more fragmented ad market. Further, emerging trends like the rise of radio influencers mean that radio ad buying is no longer as simple as writing a check to one of a limited set of AM or FM stations. Small and midsize businesses can benefit from working with an experienced media partner who can help them identify the right ad opportunities, develop the right creative, and secure the right ad slots to grow and scale their business.