A recently released report by Research and Markets – the world’s largest market research store, showcased the current global radio advertising market analysis and forecast.
According to “Radio Advertising Global Market Report 2021: COVID-19 Impact and Recovery to 2030,” the global radio market is expected to reach a compound annual growth rate (CAGR) of 6.1%, from $17.41 billion in 2020 to $18.47 billion in 2021. As forecasted by 2025, the market is expected to reach $20.32 billion at a CAGR of 2.4%.
The growth is mainly due to companies rearranging their operations as they recover from the COVID-19 impact, including restrictive containment measures involving remote working, social distancing, and closure of commercial activities that caused operational challenges.
The radio advertising market covers radio advertisements and promotional activities for goods and services traded between businesses or sold to end consumers.
Companies spend about $900 to $8,000 a week for a 30 to 60 seconds radio ad schedule. During airing peak times, companies pay approximately $20 to reach 1,000 listeners and close to $10 or $15 during off-peak hours. Economical advertisement strategies desired by big and small companies are expected to drive the demand for the radio advertising market.
Therefore, radio still represents a powerful advertising medium because it is low-cost but effective. Thus, making radio one of the top marketing platforms that the majority of the advertisers prefer despite the rise of newer marketing means such as the internet and other digital media advertising.
Major industry players in the radio advertising market are Sirius XM Radio Inc., iHeartMedia Inc., The Radio Agency, Jacob Tyler, Sid Lee, Entercom Communications Corp., Cumulus Media Inc., Citizen Group, National Public Radio Inc., and Strategic Media Inc. They all play a vital role in the radio advertising market growth and reach.
In February 2019, iHeartMedia, an American mass media corporation, announced its acquisition for an undisclosed amount with Radiojar Information Technology SA, which provides online radio management and streaming solutions. With this acquisition, iHeartMedia plans to leverage online radio and streaming with the seamless elements of broadcast radio and transition listening experiences into any audio platforms, including music streaming and podcasts, to effectively and efficiently deliver even more high-quality audio experiences.
Nowadays, the increasing penetration of smartphones and internet facilities has led to a rise in the number of online radio audiences, which is also driving the growth of the global radio advertising market. During the next five years, the global radio advertising market is expected to exhibit moderate growth.
North America currently represents the largest market for radio advertising. Other major markets include the Asia Pacific, EMEA (Europe, Middle East & Africa), and Latin America.
Over the years, radio has become an influential and cost-effective advertisement route for big and small companies alike. The portability of radio makes it a good source of entertainment and news. Radio offers comprehensive demographic coverage as it appeals to varied audience segments via several radio programs and features. Moreover, many places worldwide continue to have high radio penetration as their primary source of information and leisure. As a result of all these, radio signifies an influential medium of advertising for various markets worldwide.
If you are a business owner or a business strategist that may have any stake or are planning to foray into the radio advertising industry in any manner, feel free to reach out to us here at Airtime Media for a free consultation. We can help you use the power of radio to run a cost-effective radio marketing campaign for your business.
If you are a radio station, Airtime Media can interject profit for your unsold ad inventory by providing you quality commercials in English and Spanish for your station to run.
Learn more about Guaranteed Cost-Per-Call National Radio, TV, and Digital Advertising that can drive more sales for your business. Get started with Airtime Media today! Call us at 888-373-8463.