The history of radio advertising and the state of audio today

The history of radio advertising

Let’s take a closer look at radio advertising history and how audio ads have advanced over the years, from the very first radio commercial to the present day.

The first radio advertisement

The first radio ad aired on August 22, 1922, in the USA. The New York City radio station, WEAF, sold its first radio commercial (although at the time it was referred to as “toll broadcasting”) slot to a real estate company called the Queensboro Corporation. The ad was 15 minutes long and promoted apartments in Jackson Heights, Queens.

The evolution of radio advertising types

In the early days of radio, ads were scripted by companies and read out live by the hosts. Compared with today’s style, these ads sounded stiff and institutionalized. Nowadays, there are many different audio advertising styles you might hear on the radio.

Live reads

Live reads are still utilized in radio advertising today, but more often on podcasts than on live radio. Podcasters usually have a strong connection with their fans and followers, and having an ad read aloud by a trustworthy and reliable voice typically generates much higher recall and engagement levels.

Jingles

Jingles aren’t unique to the history of radio advertising—they’re just as common to hear in TV commercials and online video ads. However, there’s a strong connection between music and memory, making jingles especially effective on audio channels where listeners already expect to hear music. Jingles—when done well—are highly memorable and—when done very well—achieve timeless status. Many of us can still remember the ones we heard as kids, and associate them with a brand the moment we hear them. Intel’s simple yet effective five-note “bong” sound, for example, or Kellogg’s Rice Krispies’ “Snap, Crackle, and Pop!”, and Campbell's Spaghetti-O's “Uh-oh! Spaghetti-O's!”.

Sponsorships

Sponsorships help to boost a brand’s profile by linking the company name with a segment on the radio. Think weather reports, news updates, or rush hour traffic slots—they’re frequently “brought to you by” someone, and chances are you’ll remember who. Sponsorships aren’t limited to radio—TV shows, charity events, live music concerts and even sponsored playlists on Spotify have become popular over the years.

Personified Ads

Personality sells, so having a familiar voice paint a brand’s story can be very engaging. Essentially, personified ads convert by having a character build brand value, rather than just telling the audience what the brand is about or directing them to buy. Some great examples include the two M&M’s candy characters, and Cheetoh’s Chester the Cheetah.

Testimonials

Testimonials can prove effective in gaining trust and enhancing credibility. Potential customers like to know other people have already had positive brand experiences and gained value from the products or services on offer. Including one or two in your ad can make a huge difference to your chances of getting a listener to take action.

The state of audio advertising today

As we know, the history of radio advertising began with businesses realizing that ads on the airwaves could reach their target markets on their preferred communication channel. But since the advent of on-demand streaming, radio in its traditional sense is no longer the powerhouse it once was. Marketers have had to learn how to find their target audience and adapt the way they advertise to meet audiences where they listen.

Podcasts are the new radio

The podcasts vs radio debate is always sure to gather ample support on both sides. Podcasts, you could argue, are the modern-day equivalent of a radio talk show—and this is where many savvy marketers are focusing their efforts. Podcast advertising offers a uniquely effective environment to help convert listeners into customers, because:

• Listeners can tune in whenever they want, rather than having to wait to listen at a stipulated time – giving them more control over how they consume content.
• Over a quarter (26%) of Americans aged 12 years or over are estimated to listen to podcasts at least once per week.¹
• Podcasts provide +19% brand breakthrough compared to all other media², and—according to other research—72% of listeners who have listened to a podcast for four or more years have made a purchase from a sponsored ad.³

Spotify’s Streaming Ad Insertion (SAI) offers proprietary podcast ad technology for Spotify Podcast Ads. The mainstream shift to streaming opened up a gap for planning, reporting, and measurement tools that gather data on impressions, frequency, reach, completion rate, and more. By comparison, traditional radio advertising offers advertisers very little in the way of information they can use to measure success.

On-the-go is the new normal

Audio streaming gives listeners the ability to listen to whatever they want, whenever they want, rather than simply tuning into the radio and listening to whatever happens to be playing. What’s more, modern-day consumers listen to a lot of audio—961 hours and 10 minutes of music per year on average, in fact.⁴ That's around 1,577 three-minute songs every month, providing advertisers with plenty of opportunities to increase exposure by running ads between them.

Thanks to advanced audience targeting capabilities and continued technological innovation, Spotify Ad Studio presents a potentially much more effective option for audio advertisers than outdated radio ads. With Ad Studio, you can benefit from:

• Selective Targeting – Target listeners by age, location, gender, language, interests, streaming preferences, fan bases, device type, and more.
• High-Frequency Impressions – Hit the “sweet spot” for ad frequency by reaching people at the right time, in the right context (while driving, exercising, showering, etc.).
• Short Creation Cycles – Spotify ads can be brought to life in a matter of minutes. All you need is a 15-30 second audio clip and an image with a CTA.
• Cost-Efficiency – You can launch Spotify ad campaigns for as little as $250 and see the ROI right away by tracking your campaign's impact with built-in reporting tools and audience insights.

Reach your audience with Spotify

One thing is clear: audio content is still evolving, and the history of radio advertising has more than a few chapters to go. But, the future lies in optimizing ads towards audience preferences using the latest technologies, and tapping into streaming habits and preferences. Whether you’re running audio ads, video ads, or podcast ads on Spotify, we have the tools to help you develop powerful ad strategies.