The Golden Age of Radio? Commercial Radio Surges in 2024

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4 Jun

In Q1 2024, overall radio listening grew to 49.9m per week, and commercial radio reached its highest-ever audience of 39.7m per week, posting its largest-ever lead over the BBC, with 8.3m more listeners.

The commercial audience has never been bigger, with 75% of all commercial stations showing growth QonQ, demonstrating a consistent movement within the media landscape rather than a statistical fluke.

Overall, radio showed a further shift towards digital consumption; 73% of all listening is now via digital formats, 28% online, and 17% via smart speakers, a growth of 19% YonY.

In contrast, AM and FM radio listening has dropped to their lowest level, at just 27%. Indeed, they've now fallen behind online radio, which accounts for 27.8%. Meanwhile, DAB Digital Radio continues to provide the bulk of consumption, at 42.6%.

Why the growth and record audiences for the commercial sector?

Put simply, it has developed a vast array of clearly defined brands offering an enormous range of content to consumers whilst attracting some of the biggest names in UK radio. Since moving from BBC Radio 2 to Greatest Hits Radio in April last year, Ken Bruce has grown his show by 76%. YonY, the BBC Radio 2 morning show, has shed 1.5 listeners. They are heading commercial radio's way.

These are amazing days for radio in the UK, particularly commercial radio. The range of stations, formats, styles, and talent provides a fantastic, free package for listeners. This really is THE Golden Age for UK radio.

The evolving landscape of audio advertising

In today's technology-driven world, how listeners tune in and engage with audio content is becoming increasingly complex. Moreover, the shift to remote working has heightened the need for personal connection, leading listeners to embrace new formats alongside established radio and allowing brands new and diverse ways to increase reach.

Commercial radio is reaching record audiences and has its largest-ever advantage over the BBC. 2023 saw 179.6 billion audio streams in the UK - up 12.8% YOY, and podcasts now reach 19% of the UK every week. Importantly for brands, these platforms offer distinct opportunities - commercial radio provides broad reach and fame, streaming services enable targeted engagement, and podcasts offer intimate messaging to niche audiences. Understanding these unique advantages can help brands tailor their advertising strategies to each platform.

With the rise in audio consumption, we’re also seeing an increase in technology developments, which enhance the power of audio as a marketing tool.

The growth of interaction

In 2024, audio will be firmly placed at the centre of the home, with voice-activated speakers now present in the vast majority of UK households. The most common uses are listening to music through a streaming service (60%) and listening to live radio (58%), while 15% of all radio consumption is now via a smart speaker. The simplicity of switching between radio stations, streaming platforms, and podcasts with a voice command is transforming listening habits. Brands can now interact more intimately with consumers through voice-responsive ads, creating memorable brand experiences through dialogue.

And the meeting of technology and live audio is reshaping traditional commercial models. By providing users with a more immersive form of interaction via actionable and evocative ads, brands can build connections simply by using the power of voice. This innovative approach allows CTAs to be initiated from the spoken word, from delivering coupon codes and product brochures to interactive games and brand experiences. The potential for creating memorable brand experiences through voice-responsive ads is a game-changer.

The growth of smart speaker radio listening share

Where traditional audio ads are one-way communication, the fantastic benefit of smart speakers is that they create an actual conversation between the listener and the brand. The moment a consumer says the brand name out loud (‘Alexa, open Domino’s Pizza’), it has a powerful, instant effect on the brain’s brand recall. Using voice is a simple, quick reaction; it’s all about ease of response. Plus, with smart speaker technology becoming more commonplace in cars, listeners can now hear an ad and say, ‘Alexa, add to my shopping cart’ while on the move.

Audio ads have evolved, so the days of shouting louder than your competitors are fading. It’s now about cleverly reaching your audience with contextually relevant content at the right time, on the right device!

The growth of mobile gaming audio ads

Meanwhile, mobile gaming is emerging as a fertile ground for audio advertising, which has always played a key role in gaming (Super Mario theme, anyone?). Still, from a commercial point of view, it has remained on the fringes of being an accessible format.

This is changing, however. 59% of mobile gamers prefer audio ads over video because audio offers a less intrusive yet effective way to engage players, seamlessly blending ads into gaming experiences that create feel-good moments throughout the day - getting the correct answer on a quiz, achieving a new top score, or competing with colleagues. The opportunities to be part of these moments have never been easier, and the stats speak for themselves - 59% of mobile gamers agree that audio ads provide a better user experience than video ads.

Given its massive scale, this receptive audience gives advertisers incremental reach beyond what they can achieve through channels like streaming music and podcasts. Recent research finds that ads on social media don’t effectively reach 21% of mobile gamers. Additionally, gaming reaches a broad audience across multiple demographics; for instance, 55% of mobile gamers are female.

2024 will see an increased focus on crafting audio ads that blend seamlessly with gameplay, enhancing rather than disrupting the gaming experience. Overall, as audio ads transcend their roots in radio, music, and podcasts, there's thrilling potential for greater growth and innovation.

The growth of audio for brand advertising

Much audio advertising typically falls into the direct response camp, but more companies now recognise the benefits of audio for brand advertising. Research by WARC demonstrates that few advertisers use sound as a brand asset despite its impressive track record of creating brand attention, instant recognition, memorability, and consistency across a wider media strategy.

An example of this is the investment platform AJ Bell, using Anita Ward’s disco classic Ring My Bell across all platforms (TV, radio, online). In a fairly dry, impersonal, and competitive sector, with thousands of investment apps in the market, cut-through and name recall are everything. These ads epitomise every component of a successful audio brand. Audiences sing the brand now rather than describing it. If we hear the tune, we can recognise the brand - you could say it ‘rings a bell’ in our mind - creating a good feeling about investments. What AJ Bell has done is refreshing, and we’re sure it will echo the success of brands such as Compare the Market (now synonymous with their meerkat campaign).

Another example of the power of audio branding is through a recent campaign called ‘The Wayback’ to promote The Wayback App - providing support for people with dementia. The premise of the offering is to recreate positive moments from the past via Virtual Reality films to help trigger memories and spark conversations. One such conversation in a recent radio campaign was centred on singalong jingles. This groundbreaking approach shows that while dementia sufferers struggle to remember who their loved ones are, a simple piece of sound or music can instantly jog a memory. Audio branding works on a deep, emotional level that stands the test of time.

For advertisers, the power of audio in conveying brand messages and engaging with consumers is stronger than ever. As we look ahead in 2024 and beyond, new consumption habits and technologies are creating more and more options for brands. Being eight times more effective than your competitors has never been more important!

For more information on the landscape, and the many ways to plan and buy audio advertising, see our downloadable guide on the The Power of Audio.

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