Local radio advertising: The multiplier medium
- Exverus Staff
- Apr 2
- 3 min read
Digital streaming may dominate music and podcasts, but AM/FM radio is still king for news and sports. Learn how to build it into a high-performing, full-funnel media plan.
AM/FM Radio: We're all ears
When we talk about audio advertising, we usually mean music and podcasts. Those two are mostly streamed digitally these days.
But for news and sports, it's...still the radio?
Yes, believe it or not, recent Edison Research shows that just under 70% of all daily time spent listening to news is happening on AM/FM Radio, with sports close behind at 61%.
And Radio makes up 67% of all daily time spent with ad-supported audio in the US!
Meanwhile, Nielsen projects AM/FM Radio overtaking linear TV in ratings among ages 18-49 by a margin of 47% in 2025.
Finally, iHeartMedia reports that the #1 use of Amazon’s Alexa smart speaker is AM/FM Radio, with iHeart-owned stations being the most popular in the US!
Are radio ads still effective?
These audiences are worth investing ad dollars in -- if you want thoughtful, engaged consumers in your target group!
In December 2024, Digiday relayed data from Lumen Research showing:
"News consumers are 2.5 times more likely to pay attention to ads when consuming trusted news content than ads displayed across social media platforms. This heightened attention is directly linked to better recall and action."
Placing your brand in the context of a journalistic outlet listeners trust to provide accurate, high-quality information creates a positive brand perception that lasts.
Local radio advertising vs. Digital radio campaigns
Local radio advertising appears on radio stations within a specific geographic area to reach geo-targeted audiences. Benefits include:
Efficiency: Reach large audiences while avoiding waste.
Trust and brand safety: Radio stations adhere to strict FCC content guidelines.
Versatility: Audio spots communicate a variety of messages like sales, events, & brand storytelling
Loyalty: Local stations often have loyal listeners who tune in regularly and engage.
How to advertise on the radio
Of course, audio is just one piece of your advertising strategy. Here are a few best practices for integrating Local Radio advertising into a full-funnel media plan:
1. Clear, consistent creative
Radio spots are excellent sonic branding opportunities, but they're short. Focus on one simple, memorable message with a clear call-to-action (CTA).
2. The Multiplier Medium
Radio gets its nickname by converting existing demand (increasing purchase consideration by 18%) while creating future demand (increasing awareness by 50% and lifting sentiment 32%). Mix radio with sales-driving channels like search or retail, and watch the magic of the multiplier effect.
3. Get local & personalize
Conduct deep market research to understand the differences in media consumption habits and lifestyles for audience segments in different parts of the country.
Then, create tailored campaigns for each of your designated market areas (AI can help!) to resonate with listeners efficiently and influentially.
Local stations can also lend a grassroots approach to your media plan, offering added value in terms of local event sponsorships, ticket giveaways, onsite remote activations with local talent and more.
4. Tie radio performance to multiple business KPIs
Reach is good, but website traffic is a much stronger metric (a vanity URL can more directly attribute radio ads to web traffic).
Brand lift or awareness studies measure radio's impact on audience perceptions.
And quarterly or yearly brand revenue growth can be attributed to radio by offering radio-specific promo codes or URLs.
How much do local radio ads cost?
The pros at Ad Results Media report that, in 2025, a 60-second spot is sold by the cost per 1,000 impressions (CPM) or cost per rating point (CPP), averaging between $5 and $750.
The final cost depends upon several factors, including:
size of the target audience
listener demographics
time of day it runs
ad length
and more. A good media planning team will help you decide how much of your total advertising budget you should devote to radio for the highest possible return on investment (ROI).
If you've been underinvesting in radio, don't worry: Your competitors probably are, too!
Tell your brand's story across the airwaves, and reach millions of receptive listeners in enjoyable environments.
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