The first radio broadcasts aired in the early 1900’s. 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. 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.

In February 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. WEAF of New York is credited with airing the first paid radio commercial.

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. While radio had the obvious limitation of being restricted to sound, as the industry developed, large stations began to experiment with different formats.
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. Although consumers have more choices today, 92 percent of listeners stay tuned in when commercials break into their programming.