The medium that defied the doom mongers

It was 45 years ago, in September 1979, that radio was declared dead by the media. UK musician Trevor Horn’s song Video Killed the Radio Star became a worldwide hit, and marked the dawn of the MTV era. Horn was no prophet, though – music videos on MTV are now a thing of the past, and radio outlasted every digital trend it came up against.

The stats back it up, too: radio continues to outperform its digital competitors to this day. Around two-thirds of Austrians listen to the radio every day. While newspaper readerships and TV audiences have fallen significantly over recent years, radio listenerships have remained relatively stable. Revenue from radio advertising, too, has also held steady, with Statista even predicting a rise over the coming years.

Also covered by the statistics, the emergence of podcasts and music streaming services has barely impacted on radio’s supremacy. While these new media formats may have chipped away a little at radio’s gatekeeper position for musicians looking for a breakthrough (as they no longer have to rely on “airplay” alone), they definitely haven’t been able to replace it.

So why is it that radio continues to enjoy such popularity? What does it offer that online services can’t? And what potential does it offer businesses?

What makes radio so special

 

1. personal and local
Listeners don’t just tune in to listen to music or catch the news – they also want to experience the uniquely personal touch that familiar radio hosts provide. Especially in local radio, these voices often come from the listener’s own community. And that creates particularly strong parasocial relationships. Presenters become part of the listener’s personal world, and start to feel like old friends who provide a sense of familiarity and stability throughout the day. It’s all about that human connection.

2. live experience
Unlike the majority of podcasts, radio offers audiences a live experience. Presenters talk to their listeners in real time – also interacting with them during features such as call-in shows. People appreciate the unedited, live nature of radio, which is deeply rooted in the moment and offers an immediacy that other media formats just can’t compete with.

The only modern media that really comes close is Twitch, where streams capture the same sense of immediacy and degree of interactivity. But legal restrictions mean that they include very little music and also lack useful services like traffic updates. When it comes to providing a constant companion that’s happening in the here and now, radio takes some beating.

3. simplicity and adaptability
Speaking of an ever-present companion: as such radio is more easily accessible than many other media formats, especially in cars, which are primed for it thanks to built-in receivers. The importance of the daily commute shouldn’t be underestimated, given that a large majority of commuters prefer radio over Spotify and similar services while driving. By way of illustration: listener numbers in many countries dropped during the Covid-19 lockdowns when many people stopped making their daily commute.

Radio is also highly adaptable, and always manages to fit the specific situation – whether it’s cast in the role of a provider of background noise at work or out on a shopping trip, as a conversation starter, or as the star of the show on a road trip. It only ever demands the amount of attention that the listener wants to give it.

And for media producers, radio is also much easier to deal with than video content.

The potential of corporate radio

1. Easy way to reach employees – and strengthen corporate culture
In larger companies in particular, or businesses with employees spread across multiple locations, it can be a real challenge to maintain a shared corporate culture and cultivate a genuine sense of belonging. And employees with only limited access to traditional internal communication channels (such as intranet, apps or newsletters) or are frequently on the road (like truck and van drivers) can be difficult to reach. All of which results in information gaps, cultural differences, and internal silos between departments, locations, or professional groups.

And this is where a company-wide radio service can help: by reaching employees across all locations and situations equally, it ensures that information reaches everyone. Radio can also foster shared culture and internal cohesion. The medium communicates key messages and branding effectively, while interactive elements or contributions from colleagues working across the organisation help create a sense of community, and bring out the human side of other departments and locations. Senior management, too, can use it to show off their best side. In short, corporate radio offers significant advantages for the entire corporate culture.

2.  Better shopping experience for customers and strengthening customer loyalty
Only businesses that manage all of the different in-store customer touchpoints can be said to be truly engaging in 360-degree communication with potential buyers. The sense of hearing has a crucial part to play in this – and there are scientific studies to prove it. Rather than just informing customers about promotions or products, it’s also about creating a positive atmosphere inside the store.

Studies show that playing the right music can significantly enhance the shopping experience. Customers in stores that have radio playing in the background consistently report an elevated sense of wellbeing and increased purchase intent. Slower, quieter music encourages people to stay longer, while faster music prompts customers to pick up the pace, which can be useful at self-service checkouts. Music can also strengthen customer loyalty when it aligns correctly with the brand’s identity, while familiar radio voices can help to enhance all of the positive effects outlined above.

3. Improving the working environment and boosting employee motivation

Staff working at the store also appreciate being able to listen to the radio throughout the day.
Several scientific studies show that the majority of employees prefer musical accompaniment to silence, and report feeling less bored as well as a general increase in motivation and performance levels. These advantages can also be experienced through MAXFIVE’s tailored corporate radio services – MAXFIVE Hear.

A glimpse of the future

Artificial intelligence (AI) may be on everyone’s lips right now, but as things currently stand it isn’t about to replace their beloved radio presenters any time soon, as this would completely undermine the personal, spontaneous touch that listeners value so highly in human hosts. But what AI can do is provide assistance behind the scenes – by helping to create playlists or offering content suggestions for presenters to weigh up and tailor to the audience.

So there’s no need to worry about radio’s future – quite the opposite, in fact. Even after all these years, its merits remain the same as ever. Although it no longer has the monopoly that it once did, radio’s fundamental strengths are so great that there will always be a place for it – and significant demand, too. Radio is a timeless idea.