Radio Isn’t Dead: Why Radio Ads Still Have Value in Australia

car radio

The Internet boom that began in the early 90s changed the way advertising works today. When it became clear that the Internet is the one place where industries can reach their target audiences regardless of geographic boundaries and financial limitations, advertisers began to move away from the traditional advertising mediums — TV, radio, and newspapers — and focused instead on Internet marketing.

There is no argument that Internet marketing is essential today. Internet Live Stats pegs the number of Internet users in Australia at over 20 million or 85.1 per cent of the population. Hootsuite’s Digital 2020 Australia report adds that Internet penetration in the country rose to 88 per cent by January 2020.

It would be a mistake, however, to take these statistics as a sign not to do any traditional marketing at all.

Traditional Marketing: An Underrated But Still Useful Tool

Online marketers like to run the narrative that traditional marketing is no longer cost-efficient. That might be true in other places, but not in Australia.

Traditional marketing mediums still have a large audience in the country, especially radio. Edison Research, a leading source of high-quality survey data about radio consumption around the world, have data to prove this. The research institute’s most recent publication of its annual study, The Infinite Dial® Australia reported the following:

  • Eighty-five per cent of Australians aged 12 and above listened to AM/FM/DAB+ content and podcasts for at least 15 minutes in the last month.
  • Eighty per cent of the same age range consumed AM/FM/DAB+ content via OTA (over-the-air) broadcast in the last week.
  • Twelve per cent of the same age range consumed AM/FM/DAB+ content online in the last week.
  • Radio is the most preferred audio source for drivers in the country. Sixty-five percent of the same age range listened to AM/FM/DAB+ while in the car. In comparison, only 11 per cent listened to owned music and 19 per cent play Internet-only audio.

These stats tell us that many still listen to the radio even as they consume Internet-only content. The argument that consumers are no longer as accessible via traditional mediums is, then, inaccurate. There is still value in advertising via radio, and a wide audience reach is just one of its benefits.

audio mixer

The Advantage Radio Advertising Offers

Here are a few more points to consider as to why radio advertising is worth the investment:

  • Radio advertising is less saturated with many brands now focusing on Internet marketing.
  • Radio advertising isn’t necessarily more expensive than online advertising. Radio ads can cost between AUD 2,000 to AUD 10,000 per week, depending on whether the radio station is regional or plays to audiences in the capital city. Search engine ads, however, cost an average of USD 40 or around AUD 51 per click. The cost of online advertising can easily accumulate and match if not exceed the costs for radio advertising.
  • Advertising on Facebook could cost more than expected. A recent study on the cost of Facebook Advertising revealed that Australia has the most expensive ads on the platform. The averge cost per thousand (CPM) in the country is nearly four times higher than the world average.

Radio ads can boost a brand’s bottom line just as well as ads on Google and social media. They continue to have a wide reach in Australia, too, with consumers tuning in to AM/FM/DAB+ even when they’re online. Radio advertising is definitely still worth considering today.

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