In Defence of Radio

In a world that is constantly pushing business to be looking for more and more efficiencies, a potential sleeping tiger for Small -to-Medium-Enterprises (SMEs) is lurking in the form of radio advertising. Using radio advertising as a marketing tool not only utilizes one of the most effective advertising options, but with a little bit of thought, can also make a positive impact on employee commitment and pride in the organisation.

SMEs are faced with multiple avenues to advertise, including print, web-based, television, and radio. Each has their own strengths and preferred context. However, advertising can also be very expense and the conundrum for SMEs is balancing cost and audience reach. While TV advertising is considered by many to be the gold standard, it is also often too expensive for many SMEs, especially those in the social services sector.

This is where radio advertising can play an important role. Rather than just being an audio approach, radio can conjure powerful imagery in the mind to capture attention and enhance retention of the message[1]. This creation of mental pictures by listeners visualizing what they hear is a major reason why radio often outperforms in better helping an audience remember what is heard[2]. In addition, radio has a persistent high reach and retains much of the audience during ad breaks, rather than losing them to “channel hopping”[3].

A 2019 study in Finland[4] looked specifically at SMEs and radio advertising and found a number of very useful insights. Importantly, SMEs that invested in developing specific brand music for their advertisements were most effective in building brand awareness. Radio advertisements, while being comparatively easy to create, are very cost-effective yet high in impact in increasing awareness of company name and brand. Succerssful radio advertisements will typically avoid price-competition, instead focussing on highlighting the values of the company. The other key ingredients from this study noted that a good radio advertisement has good creativity, and where possible uses a live read rather than a pre-recorded message. When done well, radio advertising has a good return on investment, is cost-effective, and has good audience reach. The use of repetition is important, as noted by a different study that concluded typically between 4 and 17 repetitions are optimal, with more in the early stages and fewer once it is established[5].

But where radio advertising can add additional value for the business is with employees. Thinking of your employees as internal customers, and remembering there is value in ensuring your marketing approach also speaks to them can bring much value to the organisation[6]. Research found that there can be a positive impact on front-line customer-oriented employees because they can then understand the role they have played in helping to create positive outcomes for the organisation, which then enhances their commitment to the organisation[7]. That is, advertising can have the effect of providing “meaning both for consumers and for organizations and their members at one and the same time”[8].

In particular, research has found that “employees interpret, evaluate, and react to communications of and about their organization.”[9] They are also influenced by their organisations advertising. Where such advertising features employees it is even more impactful because the employees feel more involved and that their contributions are more valued. The caveat is that the organisational values espoused in the advertisements must align with what the employees actually experience, otherwise there is a negative impact. Customer focus is enhanced when employees take pride in organisational ads and when employees are portrayed accurately[10]. Where there is congruity or fit between the employees and the organisations values, employee retention and productivity increase[11]. Numerous studies confirm that organisational pride fosters customer-oriented behaviour[12].

A carefully planned and executed radio advertising program can be the secret weapon SMEs are looking for. Not only is it a cost-effective and proven tool to reach audiences, but when involving employees in the process, the positive impact on their pride and commitment to the organisation will result in productivity gains and higher employee engagement. Everyone wins.

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[1] Michelon, A., Bellman, S., Faulkner, M., Cohen, J., & Bruwer, J. (2020). A New Benchmark for Mechanical Avoidance of Radio Advertising: Why Radio Advertising is a Sound Investment. Journal of Advertising Research. December.

[2] Russo, V., Valesi, R., Gallo, A., Laureanti, R., & Zito, Margherita. (2020). “The Theatre of the Mind”: The Effect of Radio Exposure on TV Advertising. Social Sciences. 15 July.

[3] Michelon et al, Ibid.

[4] Pitkanen, J. (2019). The Effectiveness of Radio Marketing in Branding – Perceptions of SMEs. Master’s Thesis. Jyväskylä University of Applied Sciences

[5] Pedreno-Santos, A. & Garcia-Madariaga, J. (2021). Analysis of effective recall in radio advertising. Journal of Communication Management. 26(1).

[6] Gunnesson, E. (1987). Using Internal Marketing to Create a New Culture: The Case of Ericsson Quality.  Journal of Business and Industrial Marketing. 2(3).

[7] Schultz, S., Martin, T. & Meyer, H. (2017). Factors Influencing Organization Commitment: Internal Marketing Orientation, External Marketing Orientation, and Subjective Well-being. Journal of Management Development. 36(10).

[8] Du Gay, P. (2000). Markets and Meanings: Re-imagining Organizational Life. In M. Schultz & M. Hatch (Eds.). The expressive organization: Linking identity, reputation, and the corporate brand (p. 72). Oxford University Press.

[9] Celsi, M. & Gilly, M. (2010). Employees as Internal Audience: How Advertising Affects Employees’ Customer Focus. Journal of the Academy of Marketing Science. 38. (p. 520)

[10] Ibid

[11] Matanda, M. & Ndubisi, N. (2013). Internal Marketing, Internal Branding, and Organisational Outcomes: The Moderating Role of Perceived Goal Congruence. Journal of Marketing Management. 29(9-10).

[12] As an example, see Kraemer, T., Weiger, W., Gouthier, M. & Hammerschmidt, M. (2020) Toward a Theory of Spirals: The Dynamic Relationship Between Organizational Pride and Customer-oriented Behavior. Journal of the Academy of Marketing Science. (February).