05 Mar TOP 4 RADIO ADVERTISING TRENDS OF 2018
Radio advertising trends use history and predictions to gauge what will most likely happen in the coming year. In this case, it is a mix of understanding who listens to radio, and especially, in what form.
Radio is no longer simple. There are now many layers to it, most importantly the difference between traditional and new, digital radio. There continues to be a struggle between wanting free radio with advertisements and ad-free radio with a price. At the moment, there is still a market for both types.
Here are the top four radio advertising trends of 2018 which describe both change and familiarity.
1. Traditional Radio still has listeners
Traditional radio is still an important medium. Just because it has existed for so long does not mean that it has lost its purpose. In fact, traditional radio still plays an important part of people’s lives. Because people still listen to radio, it should be a part of any advertiser’s strategy.
One of the radio advertising trends of 2018 is that traditional radio will continue to serve a purpose. The fact is that people listen to traditional radio more than digital radio. In fact, radio reaches 93% of people each day versus 15% for Pandora and 5% for Spotify.
And while you might think that it is just older people who listen to the radio, you would be wrong. Actually, 67% of Millennials (those born between 1983 and 2000) are reached through radio versus 3% for Pandora and 2% for Spotify. The bottom line is that there is still merit to advertise through traditional radio.
2. Diverse Advertisers
Another radio advertising trend of 2018 will be that companies that advertise through radio will be diverse in nature. Currently, the companies who spend the most on radio are GEICO, McDonald’s, Home Depot, JC Penney. These companies represent insurance, fast food, home improvement, and fashion. All very diverse needs.
Along with major corporations that spend on radio advertising, local stores, are also finding value in this medium. Local stores are advertising on local radio, and realize that their target audience is those that already live in town. The point is that anyone can find success through radio advertising.
An important radio advertising trend for 2018 is the continued investment in radio from new companies. It is not just companies that have seen success through radio that are continuing in this endeavor. Rather, new companies are continually finding opportunities to invest in radio.
3. Personalized Content
While traditional radio advertising continues to have its place, there is no denying that digital radio is making its big breakthrough. Services like Pandora and Spotify have the unique ability to create personalized content for listeners. And along with personalized content comes personalized advertising.
When a user listens to music through Pandora or Spotify, tracking of their listening preferences happens. These companies will then provide suggested songs or artists that match previous choices. The listening experience becomes reciprocal. The same also happens with advertising.
And important radio advertising trend for 2018 is personal advertising. This means that a specific group has ads made just for them. Targeted advertising means that companies can select who will most likely buy their product. It is efficient, both in regards to money and time.
Digital radio users who listen to newer music are often younger. Those that listen to children’s music, are most likely children or parents. Advertising for clothes or technology is played for young adults. Advertising for children’s toys or activities is played for parents. The cycle between advertising and demographics is complete.
4. Subscription Radio will be more Expensive
There’s a good chance that if you want to advertise with subscription radio, especially powerhouses like Sirius XM or iHeart Media, it will be more expensive. This is because subscription radios are now paying more in royalty fees to musicians.
Sirius XM had a revenue of 5 billion dollars in 2016 so it is hoped that this will cover the increase in royalty fees. However, giant companies have a history of passing new costs on to other people and keeping as much profit to themselves as possible. It’s only fair that musicians receive the royalty money that is due them, but where that money will come from remains to be seen. Expect a radio advertising trend for 2018 be a way to offset this increase.