It is the unwritten formula that brands will reach their audiences when they hang out where their audiences hang out.
As audiences are slowly shifting to OTT platforms, especially post-pandemic, it amplifies the popularity of CTV and OTT advertising. Though it has a plethora of benefits, the catch with CTV advertising is its expense.
At this point in time, P&G has made a cost-effective move by taking radio advertising into its own hands. Though radio advertising is nothing new, P&G has revamped its strategy with audio advertising and quantified the results. It reiterates that marketers have yet to unlock the full potential of radio advertising.
In fact, the recent statistics from Radiocentre show commercial radio had a record year for revenue in the UK with 2.8% growth in 2022.
Although radio audiences are not growing, they are far more stable. More than anything else, it is primarily free to consume for audiences, unlike OTT platforms or linear TV.
Especially for FMCG brands, where the target market base is wide, including radio in the marketing mix can definitely be an effective option. It increases brand salience over TV advertising and influences the purchasing decisions of audiences.
More importantly, the competition for marketers is relatively less in radio. And marketers are able to gain audience attention at a lower cost than on other platforms. According to P&G data, it costs less than half the price of linear TV and less than a fifth of the price of targeted CTV to reach people.
It is apparent that radio's relative strength is not losing audiences to streaming competition at the same rate that television is losing cable and satellite subscribers. Most marketers are unaware of this and not ready to invest in radio ads. However, P&G’s data emphasizes the hidden fact.
In a nutshell, radio advertising is still an efficient pathway for marketers to reach their target audiences and amp up their sales. If it has yet to be incorporated into your marketing strategy, now is the time. The sooner, the better.