This thesis explores the impact of targeted advertising on revenue generation for radio stations in Croatia, with a particular focus on technological innovations that enable more precise targeting of listeners. The paper analyses key technological aspects such as programmatic advertising, machine learning, geotargeting, and dynamic ad insertion, and examines their influence on the business models of radio stations. By analysing the processes of data collection and analysis, audience segmentation, and examples of successful campaigns, the study evaluates how targeted advertising increases the competitiveness and revenue of radio stations. Special attention is given to the regulatory framework and market conditions in Croatia, which shape the opportunities and challenges for radio stations in implementing targeted advertising. The research findings indicate that targeted advertising can significantly boost radio station revenues, provided that the technological solutions are properly implemented, and data privacy regulations are respected. The paper also offers recommendations for optimizing advertising strategies and guidelines for the further development of targeted advertising on radio in Croatia. This thesis contributes to a better understanding of how digital transformation and technological innovations can enhance radio advertising and provides practical guidelines for radio stations aiming to maximize their revenues through more effective use of targeted advertising.