August 28, 1922

Today, we turn our attention to August 28, 1922, a pivotal day in the history of advertising and broadcasting. On this day, the first commercial radio advertisement was broadcast on WEAF in New York City, heralding the beginning of modern advertising as we know it.

Commercial advertising by audio services predates even radio broadcasting, beginning with the 1893 establishment of the telephone-based Telefon Hírmondó in Budapest, Hungary. This "telephone newspaper" was selling twelve-second spots for one forint each to reach the subscribers listening to the service's programming as early as 1901. However, the advent of radio brought a new dimension to commercial advertising.

The first radio stations, introduced in the late 1800s, used crude spark transmitters, capable only of transmitting Morse code. In the early 1900s, the first audio-capable transmitters were invented, initially used for point-to-point communication but soon for broadcasting news and entertainment. Many early broadcasts effectively served as advertisements for the station owners and the new technology. It became common for stations to play phonograph records in exchange for mentioning the companies that provided them. The earliest known example of this practice was in July 1912, when Charles Herrold in San Jose, California, began making weekly radio broadcasts featuring records supplied by the Wiley B. Allen company.

A more ambitious effort occurred in the fall of 1916 when the De Forest Radio Telephone & Telegraph Company operated an experimental station, 2XG, in New York City. Lee de Forest arranged with the Columbia Gramophone record company to broadcast phonograph records from their offices, announcing the titles and the company with each play. This effort showcased the practicality of conducting regular advertising and news talks by radio.

However, it was not until after World War I that radio broadcasting truly began to take off. In February 1922, the American Telephone & Telegraph Company (AT&T) announced plans to establish stations dedicated to selling airtime to interested parties, which they called "toll broadcasting." Their flagship station, WEAF in New York, aired its first paid radio commercial on August 28, 1922, for the Queensboro Corporation, advertising a new apartment complex in Jackson Heights, Queens, near the newly completed #7 subway line.

Initially, the idea of radio advertising was controversial. Some early radio stations were funded by radio equipment manufacturers and department stores, providing programming for their customers and financing the stations through sales. However, as more stations began operating, the financial strain of running a station became apparent, especially with the costs associated with paying performers and music royalties.

AT&T's concept of selling airtime gained traction. Despite initial resistance, no other financing scheme proved practical, and by the late 1920s, most U.S. radio stations were carrying commercially sponsored programs. During radio's golden age, advertisers often sponsored entire programs, with messages aired at the beginning or end of a show. Radio had the advantage of engaging listeners' imaginations, making it a powerful medium for advertising.

The radio industry has evolved significantly over time, but radio remains a prominent advertising medium. Today, 95% of people still listen to the radio every week, and internet radio listening has grown rapidly. Despite the rise of new technologies, radio continues to be an effective and cost-efficient way for businesses to reach their target consumers.