As digital marketing evolves and new advertising opportunities emerge to support businesses in the modern world, radio advertising seems to be obsolete.
However, recent statistics from the radio advertising landscape suggest that radio campaigns are as valuable as ever.
According to Grandview Research, the global “traditional” radio advertising market was valued at US$25.02 billion in 2021 and is expected to grow at a CAGR of 1.9 percent through 2028.
While radio advertising is slower to evolve than other marketing methods like social media ads and augmented reality campaigns, it still produces significant results.
This is especially true in the United States, where 92 percent of Americans listen to radio shows regularly. As a result, companies are expected to spend a whopping $30.6 billion on radio campaigns by 2024.
So, which companies are making heavy use of radio advertising right now?
Major companies investing in radio advertising
Most companies today don’t provide transparent insight into their exact advertising strategy or spending budget, so it’s difficult to know with certainty which brands are among the most well-known radio advertisers in the US.
However, we can derive some insights from press releases and marketing reports.
Here are some of the biggest companies investing in radio advertising right now.
P&G (Procter & Gamble)
Large multinational consumer goods company P&G has long held a firm belief in the value of radio advertising.
According to a report by Media Monitors, the company was the number one parent advertiser in the US in 2021, giving more than nine million spots to radio.
The company spends more on radio than TV advertising.
In 2022, P&G increased its radio advertising budget by 43 percent, spending approximately $235 million on radio campaigns alone.
This decision to increase spending on radio advertising came as the company sought to cut costs and improve its brand reputation.
As a matter of fact
After dominating the airwaves for AM/FM broadcasts in 2021, Indeed made waves as one of America’s largest radio advertisers in 2022.
The online recruitment service broadcast around 1.67 million spots on the radio in the first six months of the year.
Indeed is one of many recruitment agencies that take advantage of radio campaigns. Media Monitors’ report found that ZipRecruiter also aired more than 1.25 million spots from January to February 2021.
Progressive
Insurance companies in America are capitalizing on radio’s influence on brand credibility and growth.
Progressive ranked the second largest radio advertiser in the United States for 2021 with more than 1.26 million spots in the first quarter.
Progressive is one of five insurance companies mentioned in the Media Monitor report investing in radio advertising.
Other well-known names include Geico, Bank of America, Liberty Mutual, Allstate, and State Farm.
On the top
Mobile app Upside, which works to help users save on gas and grocery shopping, has been another big donor to the radio landscape in recent years.
Since launching in 2016, the brand has slowly increased its spend on radio advertising.
In the first six months of 2022, Upside ran almost the same number of radio spots as in all of 2021 (around 1.14 million spots).
babble
In 2022, Babbel became one of the largest radio advertisers in the US. The language learning app has already invested in radio campaigns, with around 931,325 broadcasts in 2021.
However, in 2022, the company invested in more than 2.8 million spots on radio stations.
Babbel is one of many online businesses that have recently taken advantage of radio campaigns, along with the likes of Indeed and ZipRecruiter.
T Mobile
While there is limited information on how many radio spots T-Mobile bought in 2021 and 2022, the company’s radio campaign spend has undoubtedly increased in recent years.
In 2021, the company spent around $88 million on radio advertising.
It was ranked as one of America’s Best Radio Advertisers for 2021, along with well-known companies like Bank of America and DraftKings.
home depot
Home Depot is another well-known company with a phenomenal airwave presence.
Although the company is beginning to explore new forms of advertising, it remains heavily focused on the radio landscape, with nearly 600,000 ads served in the first six months of 2022.
The company appears to be the most prominent radio advertiser in the home improvement space.
Rival company Lowes also spends a tidy sum on radio campaigns. However, its ranking as one of the top radio advertisers has slipped in recent years.
MC Donalds
Perhaps unsurprisingly, leading fast-food brand McDonald’s also has a fantastic radio advertising strategy.
The company has been one of the leading providers of radio advertising for years. In 2021, McDonald’s aired more than 1.3 million radio spots across America.
The fast food brand, like many other organizations, has begun to focus more on other forms of advertising in 2022.
However, you’ll likely still come across plenty of Mcdonald’s ads when listening to your favorite shows in the US.
Other major radio advertisers in the US
In addition to the major companies mentioned above, several well-known and respected brands have also dabbled in radio advertising in recent years.
Parent companies like Bank of America, Berkshire Hathaway, and Walmart have all had a heavy presence on the ether from 2020 to 2023.
Other companies you may have heard recently advertised on the radio are:
- Auto Zone: Auto parts retailer Autozone aired nearly 700,000 radio ads in the first six months of 2022.
- DuckDuckGo: Online privacy service and browser company DuckDuckGo acquired around 600,251 radio slots in the first six months of 2022.
- Macy’s: Well-known retailer Macy’s also ran around 571,206 radio ads as of early 2022, making it one of the top 20 radio advertisers in the US.
Which industries spend the most on radio advertising?
Although the available data on radio advertising spending and success is somewhat limited, a handful of reports offer insights into the evolving landscape.
Studies by Statista and Grandview Research, for example, show that radio advertising is particularly popular in certain industries.
Perhaps unsurprisingly, retail is the most consistent industry to leverage marketing over the airwaves.
In 2021, retail space spent about $247 million on radio advertising, about $2 million more than the second top segment – communications.
The media and entertainment sector is expected to witness the fastest growth rate of any industry investing in radio campaigns between 2022 and 2028, at a CAGR of around 3.4 percent.
Studies suggest that countless streaming and entertainment companies are using radio as a new way to reach their audiences outside of the cluttered digital marketing space.
Other top industries benefiting from radio advertising today include:
- Various services and amusements
- Government, politics and organizations
- insurance and real estate brands
- financial services companies and banks
- restaurants and catering establishments
- pharmaceuticals and healthcare providers
- Car Dealers and Services
Why are companies still investing in radio advertising?
As the advertising landscape becomes more diverse and new campaign opportunities emerge, it’s easy to assume that radio advertising would decline.
However, statistics consistently show that the demand for radio advertising is still significant and, in some areas, is even increasing.
For example, Procter & Gamble has doubled its investments in radio in recent years and is increasingly frustrated with narrow digital advertising campaigns and a cluttered online landscape.
While it may not be the latest form of advertising available, radio ultimately provides access to:
- A trustworthy medium: Although trust in digital marketing is growing, around 8 in 10 customers still say they trust traditional campaigns more. The invasive nature of online advertising strategies can make it harder to connect with audiences on an emotional level. Yet radio continues to capture the hearts and minds of listeners everywhere.
- Loyal Audience: Radio listeners are often extremely loyal to their stations. When companies consistently advertise on the right channel, they align with their customers and show common values and interests. This makes it easier to cultivate an affinity with a suitable audience base.
- Brand Recall: Most consumers won’t remember the last banner ad or YouTube ad they saw, but radio ads can be very memorable. This is especially true if they contain interesting statements and memorable jingles. One study found that ad recall increases to around 82 percent for radio advertisers.
Furthermore, while radio is not new, it is still a timeless and robust solution for advertising. Radio stations and channels evolve over time, constantly capturing the attention of new listeners and generations of consumers.
For businesses looking to take their marketing strategy to the next level, radio advertising could be the perfect way to increase their chances of loyalty, generate new revenue and improve brand reputation.
