Radio ranks second only to social media in advertising return on investment, according to Nielsen research, despite marketers placing the medium last among 10 channels when asked about perceived effectiveness.
The findings highlight a striking disconnect between how advertisers view radio and how the medium actually performs, suggesting its advertising value may be underestimated.
iHeartMedia highlights the findings, citing Nielsen’s Global Compass benchmarks and its study, “Everyone. Everywhere. See Audio Differently.”
Nielsen’s benchmarks place radio ahead of eight other media channels in weighted advertising ROI. Radio generated $2 for every dollar invested, compared with $2.22 for social media, the only channel to outperform it.
The results also underscore radio’s continued audience reach, including among younger consumers, challenging the perception that traditional broadcast media primarily serves older demographics.
Radio’s measured returns also exceeded those of television, display advertising, search and connected TV. Podcasts delivered $1.49 in weighted ROI, performing comparably to television and display.
The findings come as advertisers increasingly favor digital platforms, partly because of their perceived effectiveness and the availability of attribution and measurement tools. However, the research suggests that ease of measurement does not necessarily translate into stronger advertising performance.
Radio’s audience reach also extends beyond older demographics, challenging assumptions that younger consumers have largely abandoned traditional broadcast media.
Nielsen data shows radio reaches 87% of adults 18-34 each month. The medium also reaches 92% of Black adults and 93% of Hispanic adults.
Radio’s reach exceeds that of several other major media platforms, including connected TV devices, which reach 90% of U.S. adults, smartphones at 87%, and live and time-shifted television at 85%.
The broader audio market also represents a substantial advertising opportunity. Americans spend nearly four hours a day listening to audio, with radio and podcasts accounting for 82% of all ad-supported audio listening time. Ad-supported streaming music services account for 16%.
Listening also takes place throughout the day and across multiple environments. Nielsen reports that 65% of adult radio listening occurs outside the home, increasing to 73% during weekday drive times. In vehicles, more than 80% of ad-supported audio listening time goes to AM/FM radio.
The research also highlights the importance of measuring audiences across multiple audio platforms rather than relying exclusively on device-based data.
Nielsen’s measurement system includes Portable People Meters in the 48 largest U.S. markets and diary-based measurement in more than 200 additional markets and outlying counties. The approach tracks listeners rather than simply identifying the devices being used.
That distinction is particularly relevant to connected-car measurement, which can identify what a vehicle’s audio system is tuned to but may not establish who is listening, how many people are in the vehicle or their demographic characteristics.
Nielsen’s research also illustrates how radio and podcasts can complement one another in reaching audiences. In one analysis, radio alone reached 88% of adults 18-34, while adding podcasts increased coverage to 94%.
The findings don’t suggest that advertisers should replace digital media with radio. Instead, the research points to an opportunity to incorporate high-reach, high-return audio platforms into broader advertising strategies rather than shifting investment away from them.
For marketers, the results underscore the importance of evaluating media channels based on actual audience behavior and measured performance rather than perceptions about their effectiveness.