Radio advertising remains one of the most efficient ways to promote brand even with the proliferation of online media in today’s business market. In fact, the internet has allowed for people to access radio stations online. That has increased the consumer reach of this medium. According to Nielsen, about 270 million Americans listen to radio each week. That’s a good number to work with when you are looking to boost your brand’s recognition. However, deciding how much to allocate to radio advertising costs is always an issue for many enterprises.
Most companies market using more than one platform. This means you have to be careful with your advertising spend. In the U.S., as with other markets, radio advertising costs are dependent on several variables. These include region and time of day. Understanding how to estimate the expenses of radio advertising helps marketers to create strategies that suit individual companies. An entrepreneur can also weigh the value of paying for radio adverts against its benefits.
What Are Radio Advertising Costs?
Radio advertising costs refer to the airing of adverts or spots on radio stations in exchange for a fee. Marketing is an integral part of any business. It allows entrepreneurs to showcase their products and services to different audiences with the intention of attracting their interests. Ultimately, it convinces them to spend money. Radio is just one of the media used to achieve this.
With radio, advertisers have to pick the most suitable stations, considering the thousands that own frequencies in the country. Typically, radio stations have niche audiences. So advertisers have to evaluate carefully which demographics they want to reach before agreeing to pay for airtime. Companies can also choose to advertise on more than one station to expand their brands’ exposure.
Who Incurs Radio Adverting Costs?
Some entrepreneurs think that the domination of online media has rendered radio advertising ancient, but that is not exactly true. Depending on your business, radio can still be a viable way to give your brand a voice. For local brick and mortar stores, radio advertising can be invaluable. This is especially due to the local stations that broadcast to your specific markets.
With the diverse programming options that radio stations offer, advertisers have a choice of different platforms. For example, a children’s bookstore can find a radio station that has kids’ programming and buy the needed spot. Consider the importance of radio advertising. Many companies don’t and still need to budget for this medium. This means that they need to learn about radio advertising costs.
How Much Is Usually Spent on Radio Advertising Costs?
Radio advertising costs range from one region to another for obvious reasons. Places like New York have broad audiences with significant purchasing power, which means paying a considerable amount for radio advertising. Looking at estimates from a leading radio station, an advertiser in Topeka may have to pay $231.75 per week. Meanwhile, one in New York needs $4,981.25. The rates are for 15 Monday to Friday and 4 Saturday and Sunday Slots. Radio airtime is sold in spots. You can find a 60 spot (60-second spot) selling between $3 and $500. This depends on the station, time of day, and audience. Advertisers can pay for different day parts, which may vary from one station to the next. However, usually they include Morning Drive, mid-day, afternoon drive, evening and late night/overnight.
Note that some day parts like the morning and evening are prime time and cost significantly more than the others. Also, radio advertising costs bundle the expenses for producing the commercial and running it. Production costs usually consist of the marketing strategy, sound editing, voice acting, and copywriting. Some stations may offer to create a commercial for free. But be cautious because the results may not merit the discount. It is more sensible to pay $400 for creating the ad and $400 for airing, then get $1500 in sales instead of paying $600 just for the airing, and then only make $500 in sales.
4 Facts Which Show That Radio Advertising Costs Are Worth it
1. A Chance to Impress
The average consumer has to deal with a lot of noise from many advertisers. This means that your brand has to do everything possible to make an impression. Try to develop a radio advertising campaign that is attractive and memorable for your target market. This way, you can generate the necessary recognition for your brand. Radio ads are short and to the point with just enough time to pass the message to the audience. When done creatively, those few seconds are all you need to rise above the noise.
2. The Costs Return as Earnings
Your radio advertising costs have a very high chance of generating great ROI. According to Nielsen, radio has the highest ROI compared to other marketing media. One study showed that radio brought in 6x the ROI, which translates to $6 for every $1. Your company can earn up to 7 times in ROI. It all depends on how good a commercial is and where it is aired.
3. Step on Secret Ground
Advertising on radio can offer a competitive advantage that your rivals may be ignoring. All businesses run to online media to try and capitalize on the large audiences. Therefore, you can have a budget to cater to the radio listeners. Some entrepreneurs forget that consumers are not always watching television or online. You can catch those potential customers who listen to the radio on their way to or from work. With proper research and creative commercials, you can appeal to a very powerful audience and gain an edge while at it.
4. Let Them Know You
The frequency of radio ads is excellent for your brand. This is because consumers get reminders after every few hours, throughout the week. People have short attention spans, particularly online and when watching TV. Once an ad is out of sight, another one comes along to distract them. With radio, a consumer may not have heard your commercial during the Morning Drive. However, there is a chance he/she will catch it in the evening or sometime in the next few days, which gives individuals an opportunity to act.
Radio advertising can generate the leads you need and position your enterprise to grab a larger market share than the competition. But you must be prudent about how to approach it. The radio advertising costs your company incurs must be justifiable in ROI and brand recognition.
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