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Is radio advertising still relevant in the age of AI?

Publish Date
February 12, 2025
Author
All Marketer

Radio is the light of the listener.

    The word radio comes from the Latin word radiō, meaning "to shine" or "to spread". It doesn't just refer to radio waves, but symbolizes its role as a medium for conveying information and emotion. Like a light that illuminates a dark space, radio spreads warmth and messages to its listeners.

    Radio technology as we know it today dates back to 1901, when Canadian engineer Reginald Fessenden (1866-1932) developed the world's first radio transmitting voice over the airwaves. On November 2, 1920, the world's first commercial radio station, KDKA, opened in Pittsburgh, Pennsylvania, USA, and its first program was the counting of votes for the 1920 U.S. presidential election, which was held on opening day. In South Korea, Kyungsung Broadcasting Station launched its first radio broadcast on February 16, 1927. The first FM broadcast took place on June 26, 1965, with the opening of Seoul FM station. Radio broadcasting in South Korea is almost 100 years old. Although it has been greatly diminished by television, the Internet, and smartphones, radio broadcasting still plays a necessary role in specialized fields such as emergency broadcasting and traffic broadcasting during large-scale disasters. With the end of terrestrial analog broadcasting on December 31, 2012, radio became the only remaining analog medium. However, it is safe to say that current radio broadcasts are analog (AM, FM) only in the airwaves, but almost entirely digital in the production and transmission process. With DSP receivers now commonplace, it is safe to assume that receivers are also digitalized.

    Radio is the origin of internet broadcasting because it is a medium that is mostly live, which makes it easy for listeners to get real-time information such as traffic information and news, and listeners feel connected to the DJ through text messaging. Radio broadcasts still have a large audience because they are multi-platform, utilizing both airwaves and the internet. Radio is recognized as the most comfortable and emotional medium for listeners [Figure 1]. Radio broadcasting has a strong following even in today's highly developed audiovisual media, and it has the advantage of being the best broadcast medium for the visually impaired.

[Figure 1. Listener perception of the radio medium].

   Despite the digital age, radio is still one of the most popular forms of media. In 2024, 521 TP3T South Koreans listened to the radio at least once a month, according to TGI data from Korea Research [Figure 2]. Despite the rise of various alternative media such as smartphones, streaming services, and podcasts, radio has maintained a steady listening rate, and is particularly influential in certain environments. In this article, we'll discuss why radio is still the go-to media for people, and highlight the advantages and effectiveness of radio advertising over digital advertising.

[Figure 2. TGI 2024 Radio Utilization].

About radio ads

    Radio maintains a fixed audience based on the nature of the programming, and listeners are repeat listeners. According to the TGI survey, radio listeners spend an average of 5.2 days a week listening to radio, which directly affects the effectiveness of radio advertising. "Radio is a medium that not only forms mental images and creates an auditory imprint, but also makes people feel that they are not alone, giving them a psychological bond of connection and immersion and a sense of happiness," said Professor Lee Hee-bok of Sangji University at the 2024 Autumn Korean Association of Advertising and Public Relations. Academics and radio stations are calling for the early introduction of live radio indirect advertising through the amendment of the Enforcement Decree of the Broadcasting Act to grow the radio advertising market, which is steadily declining, and for radio to be the first to be allowed to relax regulations on prohibited items.

   Advertising is not only a means of creating a consumer's desire to purchase products and services, but it is also a process by which brands communicate with consumers and build trust. The ultimate goal of advertising is to make consumers aware of products, services, and brands, which in turn drives sales. To do this, advertisers utilize a variety of media channels, each with a strategy that is specific to its own characteristics. In this context, it would be shortsighted to dismiss radio advertising as "old media" and it is necessary to examine its effectiveness empirically.

AI Are radio ads still a valid channel of communication in this day and age?

In an era dominated by digital media, many question whether radio advertising can still function as an effective advertising medium. With the rise of AI and big data-driven, personalized digital advertising, some have argued that radio advertising is an outdated form of advertising and should be left out of modern marketing strategies. However, radio advertising is still an important marketing tool utilized by major brands and companies, and it has proven to be effective in building brand awareness, generating consumer goodwill, and driving purchase desires.

    While there is relatively little research on radio advertising compared to digital advertising, existing studies have shown the positive impact of radio advertising on brand awareness and consumer buying behavior. For example, studies have shown that audio-based ads trigger stronger emotional responses than visual ads, and there is empirical evidence that radio ads can contribute to increased consumer trust. It's also worth noting that studies have shown that listeners tend to pay more attention to radio ads in certain situations (e.g., while driving, while working). When you look at the theoretical and empirical evidence behind the effectiveness and persistence of radio advertising, it becomes clearer why radio remains so competitive. More than just audio content, radio ads play an important role in building relationships between brands and consumers. To prove this empirically, we need to examine a few key factors.

The empirical effectiveness and features of radio advertising

1. Increase brand awareness and favorability

    Theoretically, the "Mere Exposure Effect" describes the phenomenon that consumers develop a preference for brands they encounter repeatedly. Radio ads can capitalize on this effect to increase brand awareness. According to MRS data, radio listeners tend to spend an average of 5.2 days per week listening to radio. An empirical study by Hankook Research found that brands with frequent exposure to radio ads significantly increased consumer awareness, favorability, and purchase intention/experience. Radio ads have the effect of increasing brand awareness through repeated listening. The nature of the audio medium allows you to deliver your message without requiring consumers to look directly at a screen, allowing them to interact with your brand during their daily activities. Ads that utilize specific sound effects or familiar voices are more likely to stick in the listener's memory and increase brand favorability.

[Figure 3. Radio Ad Impact1,2]

2. increase purchase conversion rates

    The end goal of advertising is to lead to the purchase of a product. Theoretically, the AIDA model (Attention, Interest, Desire, Action) describes the stages in which an ad drives consumer behavior, and radio ads are effective at capturing listeners' attention and driving action. Empirically, a study by the Radio Advertising Bureau (RAB) in the U.S. found that a group of consumers who heard a radio ad converted more than 101 TP3T more than those who heard the same product without an ad. In Korea, several case studies have shown that listeners of targeted advertising channels have a significantly higher purchase experience than listeners of non-targeted channels [Figure 3]. The end goal of advertising is to lead to product purchases. Research shows that for certain product categories (e.g., automotive, fast food, household products), radio ads have a positive impact on driving direct purchase behavior. This is confirmed by data analyzing how listeners recognize a brand or product immediately after hearing an ad and make a purchase decision offline or online.

3. allows you to target specific audiences

    The concept of "Media Audience Segmentation" explains that certain media can be effective in targeting specific groups of consumers. Korea Research's Metro Radio Study (MRS) shows that the listener profile of the same radio program tends to be comprised of consumers in specific age groups, occupations, and lifestyles. According to the RAJAR report in the UK, more than 601 TP3T of radio listeners regularly tune in to the same station at a specific time of day, allowing advertisers to effectively target specific audiences. Radio has the strength of being able to reach targeted audiences in specific areas, at specific times of day, and with specific programs. For example, rush hour radio programs are great for targeting office workers, while airing specific music genres can help you reach listeners interested in that genre. This is an important factor that can have a similar effect to personalization strategies in digital advertising.

4. Drive credibility and emotional response

    Psychologically, the "Familiar Voice Effect" explains that listeners tend to place more trust in familiar voices. Radio ads can capitalize on this effect to create a trusting relationship between brands and consumers. Empirical studies have shown that consumer trust and brand affinity increases when radio hosts read ads themselves. According to a study by RAB, an ad's effectiveness increased by more than 301 TP3T when it was read by a trusted DJ. Radio ads tend to be perceived as more trustworthy than other mediums. Listeners tend to naturally accept radio ads as part of the program. With 15.61 TP3T of listeners intentionally avoiding radio ads, radio listeners are less resistant to ads than other mediums. This helps to ensure that your brand message has a strong sense of credibility with consumers. In addition, the lack of visuals in audio-based ads allows listeners to more actively project their own experiences and emotions, which plays an important role in triggering emotional responses from consumers.

AIRadio is still an important advertising medium in this day and age

    With more than 120 years of history, radio is not just a relic of the past, but a viable advertising medium in the digital age. In the AI era, even with new technologies and changes in the media landscape, people will still tune in to the radio in certain situations, such as while driving, commuting, or working, which will continue to provide opportunities for advertisers. And with consumers increasingly avoiding digital ads, radio ads can be an effective alternative because they are less intrusive and deliver messages in a natural way. The nature of the radio medium requires advertisements to be aural rather than visual, which is where catchy jingles come into play. Radio commercials by Seoul Cyber University, Oronamin C, and others are still being talked about today.

    Radio advertising is considered one of the most effective media, especially when marketing dollars are tight. It can achieve high reach at a relatively low cost, and its high frequency makes it a natural fit for consumers. It can also be effective in terms of brand awareness and targeting specific listeners, which is important for businesses to get the most bang for their buck within a limited budget.

    While digital advertising has evolved to become more selective and targeted, radio advertising continues to be a medium that delivers effective messages to consumers with a high degree of focus and credibility. In particular, the ability of audio ads to influence consumer purchasing behavior through emotional connections is something to keep in mind when planning your advertising strategy.

    Radio advertising is not just a relic of the past, but a valid tool in modern marketing strategies. Businesses should utilize a variety of media channels in the age of AI and consider that radio advertising can still be an effective advertising tool in certain environments and audiences. Digital advertising is not a one-size-fits-all solution, and strategically utilizing the characteristics of each medium will be key to marketing.

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