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The first radio broadcasts aired in the early 1900’s.^{[6] [7]} However, it wasn’t until 1919 that radio stations began to broadcast continuously, similar to what we know today. In the United States, on November 2, 1920, KDKA aired the first commercial broadcast.^[8] As more stations began operating on a continuous basis, station owners were increasingly faced with the issue of how to maintain their stations financially, because operating a radio station was a significant expense.^[9]

In February of 1922, AT&T announced they would begin selling “toll broadcasting” to advertisers, in which businesses would underwrite or finance a broadcast, in exchange for being mentioned on the radio.^[10] WEAF of New York is credited with airing the first paid radio commercial, on August 28, 1922, for the Queensboro Corporation, advertising an apartment complex.^[11] However, it appears other radio stations may actually have sold advertising before WEAF. As early as May 1920, an amateur radio broadcaster leased out his “station” in exchange for $35 per week for twice-weekly broadcasts.^[12] And, in Seattle, Washington, Remick’s Music Store purchased a large ad in the local newspaper advertising radio station KFC, in exchange for sponsorship of a weekly program, in March 1922.^[13] Additionally, on April 4, 1922, a car dealer, Alvin T. Fuller, purchased time on WGI of Medford Hillside, Massachusetts, in exchanges for mentions.^[14] So, although WEAF is credited with the first advertisement, it appears other radio stations ran advertisements prior to August 1922.

During radio’s Golden Age, advertisers sponsored entire programs, usually with some sort of message like “We thank our sponsors for making this program possible”, airing at the beginning or end of a program.^[15] While radio had the obvious limitation of being restricted to sound, as the industry developed, large stations began to experiment with different formats.^[16] The “visual” portion of the broadcast was supplied by the listener’s boundless imagination.^[17] Comedian and voice actor Stan Freberg demonstrated this point on his radio show in 1957,^[18]using sound effects to dramatize the towing of a 10-ton maraschino cherry by the Royal Canadian Air Force, who dropped it onto a 700-ft. mountain of whipped cream floating in hot-chocolate filled Lake Michigan, to the cheering of 25,000 extras.^[19] The bit was later used by the USA’s Radio Advertising Bureau to promote radio commercials’

The radio industry has changed significantly since that first broadcast in 1920, and radio is big business today. Although other media and new technologies now place more demands on consumer’s time, 95% of people still listen to the radio every week.^[20] Internet radio listening is also growing, with 13 percent of the U.S. population listening via this method.^[21] Although consumers have more choices today, 92 percent of listeners stay tuned in when commercials break into their programming.^[22]