Radio as an advertising medium is now being reevaluated. This shift comes as digital music services like Spotify and iTunes Radio, along with podcasting, have entered the audio advertising market. Campaign Asia-Pacific reports that marketers are also beginning to reassess radio.
Until now, campaigns on TV and digital have captured consumer attention with their high creativity and rich imagination. Radio, however, requires significantly less time and cost than TV or digital. This trend has intensified in recent years, particularly with the rise of digital focus.
However, radio is by no means a dying medium. According to Nielsen, radio advertising spending in Asia during the first half of 2013 saw only a slight decrease of 1.1% compared to the same period the previous year. Its share of total advertising spending remained steady at 4.3%. While online advertising and outdoor advertising showed strong growth rates of 43% and 7.8% year-on-year, respectively, their shares stood at 9.2% and 1.9%. This shows radio still maintains a significant presence. Radio's reach in Asia surpasses the internet, making it the second major medium after television.
Recently, the proliferation of digital music services has fueled a renewed appreciation for radio. Among these, Spotify, a music streaming service enabling targeting based on age, gender, and location with flexible ad formats, represents a key business model for radio. It launched in Hong Kong, Singapore, and Malaysia last April and is expected to collaborate with local radio stations. This will allow listeners to tag music from radio programs streamed on Spotify and create playlists. According to Spotify, radio remains critically important for bringing new discoveries to users.
Meanwhile, radio can leverage opportunities created by social media, such as playing songs that have gone viral online. A prime example is the massive hit "Dumb Ways To Die" by Melbourne Metro Trains last year. Chloe Neo, Co-Managing Partner at OMD Singapore, referenced this radio "renaissance," noting, "Radio should be part of a well-thought-out media portfolio."
