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Featured Special Editions Strategy & Views

How AI can drive higher profit margins

by Christian Schalt September 27, 2025 11 min read
 How AI can drive higher profit margins
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Artificial intelligence has made significant strides in recent years. Since the emergence of generative AI tools like ChatGPT in late 2022, AI has been rapidly permeating workplaces across industries, and radio is no exception. What began as a novelty for experimentation has matured into a powerful technology platform, one that now challenges traditional workflows and, when implemented strategically, can outperform human operations.

In radio, AI delivers its most meaningful contributions when it aligns with the industry’s ultimate goal: profitability. For some broadcasters, this means reallocating routine tasks from employees to AI to boost operational efficiency. For others, AI has become an integral part of the value chain, still surprisingly unchanged in most markets: creating and producing content, ensuring it captures audience attention, distributing it across platforms, and selling it to advertisers who seek impactful audience engagement.

With the rapid advancement of AI, broadcasters can now enhance each link in this chain. However, AI’s most transformative potential lies in the realm of sales, where it can increase inventory, lift CPMs, expand target groups, attract new clients, and generate actionable insights through smarter analytics and enhanced market intelligence.

More inventory means more ad opportunities

One of the most direct ways AI contributes to profitability is by expanding a station’s ad inventory, unlocking new monetization opportunities within the existing business model. Synthetic voices, such as AI-generated or cloned announcers, are now used to deliver additional content, including news bulletins, weather updates and traffic reports. Each of these audios creates fresh sponsorship slots.

Some stations even repurpose content from other platforms. RTL Radio in Germany, for instance, transforms news segments from its flagship news television channel into audio bulletins, packaging them with traditional radio ad slots for monetization.

Broadcasters are also amplifying audio campaigns across other channels. Bell Media in Canada synchronizes radio commercials with out-of-home advertising, expanding reach and impact. The Multimedia Group in Ghana utilizes AI to convert its radio content into YouTube videos, leveraging AI to enhance captions and generate more engaging headlines. The result? A reported 15% increase in YouTube ad revenues.

For advertisers requiring flexibility and speed, dynamic AI-driven creative production finally makes radio a competitive medium, while also unlocking a new premium product for broadcasters.

Contextual targeting: making audio sell smarter

One of AI’s most compelling capabilities for radio lies in contextual targeting — something that has long been missing in linear audio. Traditionally, radio content has been largely unattributed, limiting its compatibility with programmatic and contextual ad solutions. That’s now changing.

German sales house AdAlliance has pioneered “contextual podcast targeting” by using AI to analyze and categorize podcast content. The system identifies themes and topics, maps them to IAB categories or bespoke advertiser needs, and feeds this data to the ad server. Advertisers can then deploy campaigns based on context relevance — an approach that will soon extend from on-demand audio to live radio.

Beyond content, AI also unlocks deeper listener-level targeting. iHeartMedia in the U.S. employs predictive analytics powered by machine learning and big data to optimize radio ad campaigns. The system analyzes listener behavior, historical engagement and ad performance to recommend the optimal time and placement for a campaign. It also continuously adjusts live campaigns in real-time — reallocating underperforming ads, running A/B tests, and maximizing return on investment.

Reaching new clients with automation and dynamic creatives

AI is not just a tool for supercharging existing sales processes but also a bridge to entirely new client segments. Radio Gong in Munich has developed the “Radio AdMaker,” a self-service platform targeting small and  medium-sized enterprises. The platform automates the entire campaign lifecycle, from AI-generated scripts and voiceovers to music selection, scheduling and payment processing. Clients can launch radio campaigns without needing to engage directly with sales representatives.

This AI-powered tool opens the door to advertisers who traditionally viewed radio as too complex or costly to navigate. “Radio AdMaker” has since become an established solution in the German radio advertising market, expanding the advertiser base without increasing overheads.

Another promising trend is bundling radio inventory with other media assets, such as TV, digital and out-of-home, through AI-enabled media planning. In Germany, media companies are already using AI to tailor crossmedia bundles for local markets, enhancing effectiveness and streamlining execution.

Historically, one barrier to radio advertising has been its perceived inflexibility. But AI is shifting that perception. Turkish airline SunExpress is an example. It utilizes dynamic creatives generated by AI that are automatically updated every week. These ads adapt based on location, market demand and competitive positioning, allowing for faster and more responsive campaigns than many of their rivals.

For advertisers requiring flexibility and speed, dynamic AI-driven creative production finally makes radio a competitive medium, while also unlocking a new premium product for broadcasters.

The road ahead: human experience plus  machine intelligence

The use of AI in radio sales operations is still in its early stages, but it is progressing rapidly. The technology is most effective when focused on radio’s fundamental objectives: content creation, audience engagement and commercial success. Crucially, AI is an amplifier, not a replacement for the human touch.

Where AI meets creativity and human experience, the results are compelling. Broadcasters who embed AI not as a gimmick but as a strategic partner will find themselves with more inventory, higher CPMs, broader advertiser bases and sharper insights. 

The opportunity is not just to let AI do radio, but to align it with radio’s goals.

The author is chief digital officer at RTL Radio Deutschland.

This article originally appeared in the RedTech International special publication Radio Futures 2025

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RedTech Magazine May/June 2025 looks forward

Tags: AdAlliance AI AI in Radio Bell Media Canada Germany Ghana Multimedia Group Radio AdMaker Radio Gong radio sales RTL Radio Deutschland sales
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