Unlock the Secrets of Consumer Behavior and Boost Sales Now

After spending over four decades working in commercial radio, I have learned critical insights about the relationship between radio advertising and consumer behavior. Knowing the two types of consumers, the three types of advertising, and how they work together is vital to creating a successful marketing strategy for your business.   

The Two Types: Engaged vs. Disengaged Consumers

Commercial broadcasters don’t sell "airtime"; they sell connection— bringing together listeners and advertisers through compelling content and messaging. In order to offer that connection, radio owners and operators must understand consumer buying behavior. There are two types of consumers: Those actively “engaged” in the buying cycle—researching the brands, products, and services they want to buy, and those who are "disengaged"—without an identified need. 

The Magic of Radio for Engaged Consumers

Engaged consumers typically enter the buying cycle with the intent to purchase products or services within one to twenty-one days. Impulse buyers, who usually purchase within one to three days, are often motivated by emotions or discounted pricing instead of an actual need. So, how does radio better connect advertisers to consumers actively engaged in the buying cycle? Listeners tune in to their favorite radio stations, knowing they will hear commercials. This basic quid pro quo (this for that) arrangement is important for several reasons: When consumers accept commercial content in exchange for free "over the air" entertainment, they become a warm lead, meaning they are already partially warmed up to the idea of the product. Whether listening in their vehicle, home, or office, the media consumers are most often closest to just before buying is radio. This close access to consumers creates a sense of immediacy that is effective for impulse and savvy research buyers.

Research buyers hesitate to purchase anything impulsively. They are invested in researching multiple brands and models, often taking two or three weeks to decide. These consumers are more concerned with quality and value than price. How does radio better serve advertisers who want to reach this type of buyer? In addition to the magic of immediacy, radio delivers vibrant branding through well-written commercial ads and highly effective, local, on-air celebrity endorsements.

Transitioning from Disengaged to Engaged: A Real-life Scenario

On the opposite end of the purchasing spectrum are disengaged consumers, who are not actively seeking to purchase products or services. But, disengaged consumers can become engaged at any time, for nearly any reason. For example, Bob is having trouble with his on-demand water heater. It keeps tripping the breaker. One fateful morning, Bob takes a quick shower while running late for work. Suddenly, an ice-cold stream rudely interrupts the steady flow of relaxing warm water. Bob has had it. His water heater must be fixed. Bob has now switched from being a disengaged consumer to engaged.

As Bob starts researching new on-demand water heaters, an interesting thing happens. He’s pulling the names of local plumbing companies seemingly out of nowhere. Bob’s never done business with these companies; he’s been on the sidelines, disengaged until recently. So, what gives? In a February 2023 article, Edison Research shared that 73% of Americans listen to the radio in their vehicles, making it the number one audio source on American roads. This information makes it safe to assume Bob listens to the radio. And since plumbing and HVAC companies are some of the heaviest users of radio advertising, he’s heard a steady stream of messaging from local plumbing companies nearly every time he turns on his vehicle. Bob’s consumer behavior is not uncommon. In fact, our company utilizes radio attribution software that can show us spikes in web traffic within one hour of an advertiser's commercial playing on-air.

From Disengaged to Devoted

Disengaged is the most valuable of the two types of consumers. Earlier, we talked about impulse buyers and their chief motivation being price, with discounts and sales driving their urge to buy. Because of this, impulse buyers are more loyal to saving money than they are to brands or companies. Impulse buyers only shop with the same brand or company once or twice. But, when a disengaged consumer becomes an engaged research buyer, there are a few constants. Their purchasing power is typically more considerable; they usually buy higher-priced items with a lifespan of five years or more, they prioritize value over price, and tend to be more loyal to brands and companies. Research buyers aren’t afraid to spend money as long as they are sure of the value and quality of the product. They are also more likely to tell their peers about the brands and products they trust. If you can attract these buyers, the value of unearned referrals is tremendous for future growth.

While an endless supply of loyal customers who prioritize quality over price and constantly refer your business to their friends sounds great, the reality is you need a variety of consumers. Impulse buyers drive necessary short-term working capital and cash flow, while research buyers provide long-term stability and growth.

Understanding the Media Landscape

Just like there are only two types of consumers in the buying cycle, there are only three types of traditional media: passive, intrusive, and a combination of both. 

Passive Media: The Visual Consumption

Passive media, in its singular form, can only be consumed visually. Examples include billboards, signs, newspapers, digital display ads, yellow pages, and bus benches. This type of advertising might be a quick attention grabber, but the phrase “out of sight, out of mind” is more accurate than you might think. Our visual working memory only holds information for one to two seconds. Once any form of passive media is out of our line of sight, its chances of leaving a lasting impression are minimal.

Intrusive Media: The Power of Audio

On the other hand, intrusive media is only consumed through audio. Examples include radio, podcasts, streaming audio, and storage audio (records, CDs, tapes, hard drives). As long as you are in earshot, you are consuming intrusive media. Unlike our eyes, our ears do not shut off.  Also, our minds don’t distinguish between foreground and background audio; both are recorded and stay in our audio memory for up to four seconds; double the time of visual memory. 

The Best of Both Worlds: Intrusive and Passive Combined

The third type of traditional media is a combination of intrusive and passive. In 1927, Philo Farnsworth debuted a new invention that would eventually become modern-day television.  The ability to combine print and audio advertising and broadcast it straight into people’s homes revolutionized marketing. An example of this combination’s success is the Budweiser “Wassup?” campaign. The ad quickly became a cultural phenomenon, featuring a group of friends saying “Wassup”' to each other over the phone. The campaign was a huge success, with sales of Budweiser increasing by 10% in the U.S. Inspiring a multitude of parodies and pop culture references, this ad is arguably one of the first examples of viral advertising. 

The Intrusive Power of Audio

Intrusive media is so powerful because audio is processed in the same area of our brain as emotions. Researchers at McGill University in Montreal used PET scans to chart how our brains react to music. Not only do our brains release dopamine in response to hearing music, but researchers also observed that our skin has a strong physical reaction, similar to chills while listening to music. We all have a particular song that stirs our emotions. Marketers can create that same connection by crafting audio ads and campaigns that tap into their target audience's desires, fears, and aspirations—leading to increased brand loyalty and a greater likelihood of repeat purchases.  

You can see this in some of the world’s largest brands and their most popular ad campaigns. Coca-Cola released its "I'd Like to Buy the World a Coke'' campaign in July 1971 and immediately struck a responsive chord. Coca-Cola and its bottlers received more than 100,000 letters about the commercial, and listeners called radio stations begging to hear it. For most of us, "Campbell's Soup is M'm, M'm Good" is still the first thing we think of when the weather turns cold. And every time we crave french fries, that famous “ba-da-ba-BA-BAAA. I’m lovin' it.” is the first thing that pops into our heads. In fact, since its launch in 2003, the campaign has become McDonald's longest-running and most successful to date.

Radio Advertising’s Unique Offering

Business owners and companies should always consider a strong mix of marketing strategies. Iliad Media Group has successfully used a combination of print, audio, television, and video media to drive listenership, ratings, and company awareness. But radio advertising is what’s predominantly responsible for our success. We live what we preach. And while we are not a large international company like Coca-Cola or McDonalds, we enjoy the same branding benefits in our local markets.

Branding is a powerful tool for influencing consumer behavior. Companies can build customer trust and credibility by creating a solid brand identity and consistently delivering on brand promises. This increases customer loyalty and a greater willingness to pay a premium for products and services. While a mix of marketing strategies is always smart, there is no denying that radio is an advertising powerhouse when it comes to delivering your company’s message.