Broadcast Television and Radio: What’s New in Paid Media
April 16, 2025
Uncategorized

If you haven’t bought advertising in a while, especially on broadcast television or traditional radio, you might be surprised at how far these mediums have evolved, particularly in their digital extensions. While traditional linear advertising still holds sway for reaching broad audiences, the advent of streaming television and radio, along with sophisticated data analysis, has ushered in a new era of highly targeted paid media opportunities.

While enhanced targeting capabilities don’t guarantee advertising success, they do broaden the potential for television and radio advertising. Businesses that previously dismissed these channels due to a perceived lack of precision or high cost might now find them viable and valuable components of their paid media mix.

The PESO Model Context

Before delving deeper into these evolving paid media options, it’s helpful to understand where they fit within a broader communications framework. The PESO model categorizes media into four types used synergistically to build brand awareness, authority, and trust:

  • Paid Media: In today’s fragmented media landscape, paid media is no longer solely the domain of advertising departments. It’s integral to integrated communications strategies. Paid media encompasses any exposure purchased on a third-party platform, including traditional print, TV, and radio, as well as digital channels like search engines, social media ads, CTV, streaming audio, and podcasts.
  • Earned Media: Earned media is publicity or recognition gained through channels a brand doesn’t own or pay for directly. Examples include media coverage in news outlets, industry awards, positive online reviews, and endorsements from influencers or satisfied customers.
  • Shared Media: Overlapping with earned and owned media, shared media generally refers to content distributed and engaged with on social media platforms, fostering community and conversation around a brand.
  • Owned Media: Owned media includes any content created and controlled by the brand, hosted on platforms it owns. Examples include websites, blogs, self-produced podcasts and videos, white papers, webinars, case studies, newsletters, and proprietary social media channel content.

This article focuses on the Paid Media segment, specifically television and audio.

Linear TV and Radio: The Traditional Approach

Linear television refers to traditional broadcast, cable, or satellite TV watched according to a predetermined schedule set by networks. Similarly, linear radio refers to AM/FM broadcasts received over the airwaves.

The primary strength of linear advertising is its ability to simultaneously reach a large, diverse audience, particularly during prime time or popular live events like news and sports. However, this broad reach comes at the cost of targeting precision. Advertisers select channels or stations based on general audience demographics or program formats, hoping to capture their desired segment within the larger viewership or listenership. Targeting specific interests, behaviors, or precise geographic micro-segments is generally not possible.

Market trends for linear broadcasting

Linear television is still significant for reaching certain demographics and covering major live events. In Deloitte’s 2025 digital media trends report, 49% of consumers surveyed have a cable or satellite TV subscription. In audio, Radio and Television Business Report notes that traditional linear radio dominates at 67%, followed by podcasts at 18%, streaming audio at 12%, and satellite radio at 3%.

The Rise of CTV and Streaming Audio

Connected TV (CTV) encompasses any television set connected to the internet, allowing access to streaming content. This includes Smart TVs with built-in apps, external streaming devices (like Roku, Amazon Fire TV, Apple TV), and gaming consoles. Streaming audio is listening via internet platforms like Spotify, Pandora, Apple Music, TuneIn, and iHeart, accessible on various devices.

Consumers, particularly younger generations (Millennials and Gen Z), are increasingly spending their media time with streaming services and digital audio. According to Marketron, streaming services now account for over 40% of total TV time, 89% of US households have a streaming subscription, and Wurl data says over 80% of US households have at least one connected TV device.

This shift in consumption habits has set the stage for a revolution in paid media. 

Targeting Capabilities: A Paradigm Shift

The most significant departure from linear broadcasting lies in the sophisticated targeting capabilities of CTV and streaming audio platforms. These digital channels leverage data in ways traditional media cannot, enabling advertisers to move from a broad “shotgun” approach to highly precise audience engagement.

Connected TV (CTV) Targeting Mechanisms

CTV advertising combines the high-impact visual experience of television with the targeting precision of digital marketing. Ads are often purchased on an impression basis, allowing for data-driven decisions. Key data sources and methods include:

  • First-Party Data: Advertisers can utilize their customer data (e.g., email lists from CRM systems, website visitor information, purchase history) to target existing customers or retarget prospects on CTV platforms.
  • Third-Party Data: Platforms and data providers offer access to vast datasets, allowing advertisers to target audiences based on demographics (age, income, household size), interests (hobbies, lifestyle), behaviors (purchase intent, app usage, content consumption), and psychographics. This enables reaching new, relevant audiences beyond an advertiser’s existing customer base.
  • IP Address Targeting: CTV’s reliance on internet connections enables precise geographic targeting based on a household’s IP address. This allows for hyper-local campaigns, targeting specific zip codes, cities, or custom regions, a capability far exceeding traditional broadcast DMAs.

This shift towards granular, data-driven targeting represents a fundamental change from the broad demographic and geographic segments used in linear TV, allowing for significantly reduced ad waste and increased relevance.

Streaming Audio Targeting Capabilities

Like CTV, streaming audio advertising leverages digital data for precise audience targeting, moving far beyond the limitations of traditional radio. Key targeting parameters include:

  • Demographics: Age, gender, location.
  • Behavioral Data: Listening habits (genres, artists, podcasts consumed), time of day, device type (mobile, smart speaker, desktop).
  • Interests and Context: Targeting based on declared interests, playlist themes, podcast topics, or even inferred listener mood or activity (e.g., workout, focus, commuting).
  • Location: Precise geographic targeting similar to CTV.
  • First/Third-Party Data: Platforms utilize their own listener data and often integrate third-party data for richer audience profiles.

Buying Methods: Navigating the Options

Purchasing CTV and streaming audio advertising involves several methods, each with distinct advantages and disadvantages regarding control, reach, cost, and complexity.

  1. Direct Buys

This traditional method involves negotiating and purchasing ad inventory directly from the publisher or platform owner. Examples include buying CTV ads directly from Hulu’s self-serve platform, a local TV station group like Sinclair or Hubbard that sells its streaming inventory, or buying audio ads directly from iHeartMedia or Spotify.

Pros:

    • Premium Access & Control: This often provides access to the most desirable premium inventory (e.g., ads within hit original shows) and guarantees placement within specific content or context.
    • Customization: Allows for the negotiation of unique sponsorships or integrations beyond standard ad units.
    • Ad Production: In some cases, the publisher will assist with ad production, which is helpful if you don’t have a budget for creative services.
    • Guaranteed Delivery (Sometimes): Direct deals can sometimes include guarantees on the number of impressions delivered.

Cons:

    • Limited Reach: Inventory is restricted to that specific publisher or platform, potentially missing audiences elsewhere.
    • Manual Process: Negotiation and setup are often manual and time-consuming, involving insertion orders (IOs) and communication with sales reps.
    • Less Flexibility/Optimization: Once the campaign is locked in, it is difficult to make real-time adjustments or optimize based on performance data.
    • Higher Costs/Minimums: Often requires higher budget commitments and may have higher CPMs due to the premium nature and manual overhead.
  1. Programmatic Buying (via DSPs)

This method utilizes technology platforms called Demand-Side Platforms (DSPs) – such as The Trade Desk, Amazon DSP, Basis Technologies, or Madhive – to automate the buying process across a wide range of publishers and inventory sources in real time.

Pros:

    • Efficiency & Scale: Automates buying across vast inventory, enabling broad reach and efficient campaign management.
    • Advanced Targeting: Leverages DSP capabilities to apply complex data segments (first-party, third-party) for precise audience targeting.
    • Real-Time Optimization: Allows for in-flight adjustments to bids, targeting, and creative based on performance data.
    • Flexibility: Budgets can often be adjusted more easily.

Cons:

    • Requires Expertise: Effectively managing campaigns on a DSP requires specialized knowledge and skills.
    • Transparency/Fraud Concerns (Open Market): The open marketplace can pose risks regarding ad fraud and lack of transparency about exact placements.
    • Data Costs: Utilizing third-party data segments often incurs additional costs.
    • Variable Pricing: Costs in auctions can fluctuate based on demand.
  1. Self-Serve Platforms

Some platforms offer simplified, self-serve advertising interfaces, such as Spotify Ads Manager or AudioGO.5 These are often designed for smaller advertisers or those wanting direct control over campaigns on a specific platform.

Pros:

    • Accessibility: Lower minimum spend requirements (e.g., $250 on Spotify/AudioGO) make them accessible for smaller businesses.
    • Direct Control: Advertisers manage their campaigns directly on the platform.
    • Ease of Use (Potentially): Often designed with simpler interfaces than complex DSPs.

Cons:

    • Limited Inventory: Reach is confined to that single platform’s audience and inventory.
    • Potentially Fewer Features: May lack the sophisticated targeting, reporting, or optimization capabilities of enterprise-level DSPs.
    • Requires User Input: Still demands time and effort to set up, manage, and optimize campaigns.

The choice between these methods hinges on factors like budget size, internal expertise, campaign goals (broad awareness vs. targeted performance), the need for specific premium inventory, and the desired level of control versus reach.

Understanding Costs: CPM Benchmarks and Influencers

The primary pricing model for CTV, streaming audio, and podcast advertising is Cost Per Mille (CPM), meaning the cost an advertiser pays for one thousand impressions (views or listens). Understanding typical CPM ranges and the factors that influence them is crucial for budget planning and evaluating value.

Current CPM Benchmarks (Note: These are general ranges and can vary significantly)

  • CTV Advertising:
    • General industry discussions often place CTV CPMs in the $15 to $40+
    • Specific platform estimates (may vary): Hulu ($20-$40), YouTube TV ($10-$20), Roku ($20-$30). Self-serve platforms like Vibe.co might offer ranges like $15-$25.
  • Streaming Audio Advertising:
    • Often cited in the $10 to $30
    • Spotify: Typically $15-$25, but can range from $5-$30 depending on targeting.
    • Pandora: Typically $5-$25.
    • AudioGO (self-serve): Starts at a base rate of $18
  • Podcast Advertising:
    • Ranges can be wide, often $15 to $50+, depending heavily on the show, ad type, and placement.

Key Factors Influencing CPM Rates

Several variables determine the final CPM price an advertiser pays:

  1. Audience Targeting Specificity: The more granular the targeting (e.g., niche demographics, specific behaviors, precise geo-location, use of valuable first-party or third-party data), the higher the CPM. Reaching a highly specific, valuable audience costs more than broad reach.
  2. Platform and Content Quality: Advertising on premium streaming platforms (like Hulu, Peacock, Max) or alongside highly popular, exclusive content (hit shows, live sports) generally commands higher CPMs than advertising on free ad-support streaming (FAST) channels like Pluto TV or Tubi.
  3. Ad Format and Creative: More engaging or complex formats often cost more. High-production quality video, interactive elements (like QR codes or shoppable features), and longer ad lengths can increase CPMs compared to standard banners or shorter spots. In audio, a host read will run you more because research has shown that personalities overshadow music as a primary driver for broadcast radio listening.
  4. Inventory Demand and Supply: Basic economics apply. High demand for limited inventory drives prices up. This is common during peak seasons (like Q4 holidays), major cultural or sporting events (Super Bowl, Olympics), or elections.
  5. Geographic Location: Targeting viewers or listeners in affluent metropolitan areas or regions with high advertiser competition may result in higher CPMs.
  6. Buying Method: Direct buys or Programmatic Guaranteed deals, which offer more certainty and premium access, often have higher CPMs than buying through open RTB auctions where pricing is more variable.

It is crucial to look beyond the raw CPM number. A higher CPM might be justified if it delivers a highly qualified, engaged audience within a premium, brand-safe environment, leading to better overall campaign performance and return on investment (ROI). Conversely, a very low CPM might reflect low-quality inventory or imprecise targeting, resulting in wasted ad spend.

The Evolution of Modern Paid Media Strategies

The evolution of television and radio advertising into the digital realm via CTV, streaming audio, and podcasts presents significant opportunities for advertisers. These channels blend traditional broadcast’s broad appeal and immersive nature with the precision, measurability, and flexibility of digital marketing.

Looking ahead, the evolution will continue. AI and advertising technology advancements will likely bring even more sophisticated targeting and optimization capabilities. Consumer behavior will keep shifting, influenced by new content formats, pricing models, and device innovations.

For businesses seeking to connect with modern consumers, embracing the targeted, measurable, and engaging potential of CTV, streaming audio, or podcast advertising may be the appropriate next step in your paid media strategy.