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CTV vs Radio Advertising: What’s worth your budget in 2025?
In 2025, advertising is all about connecting with the right audience. Radio has been around forever and works well sometimes, but CTV (Connected TV) is quickly becoming a go-to choice for focused audience targeting.
Here’s why: it offers more precise targeting, better tracking, and higher engagement. If you're not exploring CTV, you could miss out on a huge opportunity.
In this article, we will find out which option is best for you. Here’s what we’ll cover:
- A quick overview of CTV and radio advertising.
- A comparison table showing their reach, costs, and results.
- Why CTV, especially with platforms like Vibe.co, is leading the way for advertisers in 2025.
By the end, you’ll have a clear answer to whether CTV or radio advertising fits your goals better. Let’s get started!
CTV vs Radio Advertising: (Quick Comparison)
Here’s a quick comparison of CTV vs Radio Advertising.
| Aspect | CTV Advertising | Radio advertising |
|---|---|---|
| Ease of setup | It provides user-friendly tools with a guided setup process. | It offers a straightforward process but is less dynamic. |
| Adjustments | It allows real-time edits and adjustments during campaigns. | It uses broad targeting with limited control over who hears the ads. |
| Control | It allows for control with precise audience targeting (e.g., age, habits). | It allows for control with precise audience targeting (e.g., age, habits). |
| Targeting | It enables specific targeting tailored to demographics and viewer behavior. | It focuses on general targeting for broad awareness but may lead to wasted impressions. |
| Engagement | It combines visuals and sound for high-impact, memorable ads. | It relies only on sound, which is effective for repetition but easier to igno |
| Cost | It has a higher upfront cost ($20–$50 CPM) but offers measurable ROI through precise targeting. | It is cheaper ($200–$1,000 per week) and ideal for small budgets, but it is less efficient due to broad targeting. |
| Sustainability | It has a growing audience with the increasing popularity of streaming platforms. | It faces a declining audience, particularly among younger demographics. |
Key Takeaways
- CTV Advertising: Offers better flexibility, precise targeting, and measurable performance, making it ideal for modern, scalable campaigns.
- Radio Advertising: A budget-friendly option for local businesses but lacks the adaptability and precision of CTV.
What is CTV Advertising?
CTV advertising, or Connected TV advertising, is targeted advertising delivered on streaming TV platforms. Imagine watching your favorite show on a smart TV or streaming app like Disney+ or Peacock.
Unlike traditional TV ads that broadcast to everyone, CTV ads are delivered over the internet and can be tailored to specific viewers.
How Does CTV Advertising Work?
CTV advertising allows businesses to show ads to people based on factors like:
- Age: Promoting products suitable for specific age groups.
- Interests: Tailoring ads to hobbies and search history like cooking, fitness, or technology.
- Demographics: Targeting segments by household income, ethnicity, or political affiliation, for example.
- Location: Advertising local services to viewers in a particular area.
For example, if you enjoy cooking shows, you might see ads for kitchen gadgets instead of irrelevant products.
Pros and Cons of CTV Advertising
| Pros | Cons |
|---|---|
| Precise Targeting: Reach specific groups, ensuring relevance and engagement. | Ad Avoidance: Some viewers use ad-free streaming services (although their numbers are dwindling due to cost) |
| Real-Time Analytics: Instantly track ad views, visits, and purchases to optimize campaigns. | Higher Costs: CPM ranges from $20 to $50 per 1,000 views, making it pricier. |
| Campaign Flexibility: Easily adjust audience, content, or timing for better results. | Inconsistent Metrics: Measurement varies across advertising platforms, complicating comparisons. |
Usual Costs of CTV Advertising
CTV advertising costs depend on factors like your audience and campaign goals.
Here’s a rough idea of costs:
- CPM (Cost Per Mille): $20 to $50 for 1,000 views.
- Ad Length: Longer ads typically cost more.
- Targeting: The more specific your audience, the higher the cost.
- Outcome Bidding: Advanced platforms like Vibe.co can even adjust bidding to optimize for specific KPIs like web traffic, cost per install, or cost per session, for example.
Despite the costs, the ability to track and adjust campaigns makes CTV advertising a smart investment.
What is Radio Advertising?
Radio advertising allows businesses to promote their products or services on commercial radio stations.
It has been used for years to reach people listening to music, news, or talk shows.
How Does Radio Advertising Work?
Radio ads are played during specific times, like morning or evening commute shows. Businesses pay for these time slots to reach listeners.
These ads are heard by everyone tuned into the station, so targeting specific groups is not easy. For example, a local bakery might run ads during a morning show to attract breakfast customers.
Pros and Cons of Radio Advertising
| Pros | Cons |
|---|---|
| Great for Local Audiences: Ideal for connecting with nearby customers, like for a local bakery or restaurant. | Hard to Target Right Audience: Reaches a wide audience but lacks precision, making it harder to connect with the right people. |
| Affordable for Smaller Budgets: Cost-effective compared to other media, suitable for businesses with limited budgets. | No Visual Element: It relies solely on sound, making capturing attention or leaving a lasting impression harder.. |
| Frequent Exposure: Ads are repeated throughout the day, keeping your business top of mind. | Difficult to Measure Success: Tracking ad impact and audience action is challenging, complicating campaign improvement. |
Usual Cost of Radio Advertising
When planning a radio campaign, understanding the costs involved is essential. Let’s break it down into two main categories:
1. Ad Placement Costs
The cost of airing a radio ad varies based on the station's reach, time of day, and market size. According to Fit Small Business, average costs are:
- Local Stations: $200–$1,000 per week.
- National Stations: $5,000–$8,000 per week.
While radio ads can be affordable for smaller campaigns, their limitations in targeting and tracking effectiveness must be considered.
2. Production Costs
Creating a radio ad involves scriptwriting, voice talent, and editing expenses. As noted by The Pricer, production costs typically range from $300 to $1,000.
Although production is relatively inexpensive, radio ads lack visual elements, which can limit engagement compared to formats that combine audio and visuals.
Understanding these costs helps in making informed decisions about incorporating radio advertising into your marketing strategy.
Now that we’ve talked about the costs and benefits of radio advertising, let’s look at an example.
CTV vs Radio Advertising: A Detailed Comparison
When deciding between CTV and radio advertising, it helps to compare their strengths and weaknesses. In this section, you will learn which platform is easier to use, performs better, and provides more value in terms of costs and sustainability.
Ease of Use: Which Is Simpler?
Ease of Setup with CTV:
- Campaigns are simple to set up, like following a checklist.
- Audience targeting options include age, location, demographics, and interests.
Flexibility with CTV:
- Real-time adjustments allow real-time optimization to improve performance.
- Example: Adding budget to target channels that are overperforming for your campaign.
Radio Advertising Limitations:
- Fixed time slots make changes difficult once the campaign starts.
- Lack of flexibility can waste budget if the audience doesn’t respond as expected.
CTV provides more control and flexibility, making adapting to what works best easier.
With radio, you’re stuck with the initial plan, which can be a challenge if something isn’t delivering the results you want. If flexibility matters, CTV is the smarter choice.
Performance: What Works Best?
CTV and radio perform differently across three areas: targeting, engagement, and tracking. Let’s see how they compare.
- Targeting and Reaching the Right Audience:
- CTV: Allows precise audience selection based on age, interests, and habits.
- Example: A children’s toy company delivers ads only to families with children under a certain age or who have recently searched for toys online.
- Radio: Broad audience targeting, suitable for general awareness but prone to wasted impressions (e.g., fitness gear ads reaching non-active listeners).
- Engagement and Holding Attention:
- CTV: Combines premium visuals and sound for memorable ads, like a travel agency showcasing stunning destinations.
- Radio: Relies only on sound, effective for repetition but less impactful and easily ignored when multitasking.
Costs and Sustainability: Which Is More Affordable?
Affordability of Radio Advertising:
- Ideal for smaller budgets, popular among small businesses.
- Example: A local company can spend $500 weekly to boost brand awareness.
- Limitation: Broad audience targeting may not always reach potential customers, leading to inefficiencies.
CTV Advertising Costs and ROI:
- Cost ranges from $20 to $50 CPM, but precise targeting minimizes waste and boosts ROI.
- Access to a growing and engaged streaming audience makes it a scalable choice.
- Example: DocuSign’s CTV campaign increased ad recall by 33% and trial sign-ups by 126%, highlighting its cost-effectiveness.
CTV vs Radio Advertising: Comparing Campaign Performance
| Aspect | CTV Advertising (Vibe.co) | Radio Advertising (iHeartMedia) |
|---|---|---|
| Targeting | It helps you precisely reach specific groups (e.g., health-conscious viewers on Roku and Hulu). | It connects with local audiences via specific stations but lacks precision. |
| Engagement | It combines visuals and audio, helping create memorable, high-impact ads | It relies only on sound, which can feel personal but is less engaging. |
| Measurability | It allows you to track performance in real-time and adjust campaigns for better results. | It makes it harder to measure and refine performance due to limited tracking. |
| ROI | It helps achieve high returns, like TruHeight Vitamins’ 728% ROAS and increased sales. | It drives results, like Non-Stop Travel selling 200 cruise packages for $25,000. |
| Cost Efficiency | It provides better value for money with flexible budgets and measurable ROI. | It is affordable upfront, helping small businesses, but it is less optimized overall. |
| Best Use Case | It is ideal for campaigns needing high engagement and measurable results, helping scale effectively. | It works well for local campaigns or budget-conscious advertising. |
| Flexibility | It lets you adjust campaigns in real-time, optimizing performance on the go. | It uses fixed time slots, making it hard to adapt once the campaign starts. |
Summary-
While both campaigns succeeded in driving results, CTV advertising through Vibe.co stands out for its precise targeting, measurable performance, and high ROI.
Radio advertising via iHeartMedia is effective for local campaigns and budget-friendly initiatives but lacks CTV's modern capabilities, making it less versatile for broader or highly targeted outreach.
Each medium has its strengths, but CTV offers a more robust, scalable solution for businesses aiming to maximize impact and returns.
How Platforms Like Vibe.co Make CTV Advertising Worth It
Vibe.co doesn’t just run ads—it ensures they connect with the right people.
From running ads on leading streaming platforms to offering precise targeting and real-time tracking, Vibe.co makes running campaigns that deliver results easy.
- Over 500 Channels and Apps: Your ads can appear on popular streaming platforms like Roku, Hulu, and Fire TV.
- Precision Targeting: Show ads to specific groups, ensuring your campaigns reach the most relevant audience.
- Real-Time Tracking: Instantly measure ad performance, allowing you to make adjustments for better results.
Success Stories with Vibe.co
- TruHeight Vitamins:
- Targeted health-conscious viewers on streaming platforms like ESPN+ and Roku.
- Achieved a 728% ROAS, significantly boosting website visits and sales.
2. Wahha Design:
- Launched their first CTV campaign targeting busy moms and health-conscious men.
- Achieved a 832.17% ROAS, delivering massive reach and low cost per page view.
Whether you’re a small business looking to grow or an established brand aiming to scale, Vibe.co helps you maximize the potential of CTV advertising.
Conclusion
So what’s the key takeaway? If you want ads that reach the right audience, adapt easily, and deliver measurable results, CTV advertising stands out as the clear winner for 2025.
Here’s a quick recap:
- Radio advertising works for local reach but struggles with tracking and targeting.
- CTV advertising, on the other hand, gives you precision targeting, measurable ROI, and the flexibility to adjust campaigns.
- Platforms like Vibe.co make running successful CTV campaigns, tracking results and growing your business even easier.
Why settle for “hoping” your ads work when you can actually see the results?
Explore Vibe.co today and see how simple, targeted, and effective CTV advertising can be.
Your audience is already streaming—are you?
