Radio Advertising Costs

Radio Advertising Costs: How Much Should I Spend?

"How much should I spend on radio advertising?" "How do I know I am getting the best radio advertising rates?" "What radio stations should I advertise on?" "What are good and bad radio advertising prices?" "How many spots should I air on a radio station?"

Advertising

Honestly, there is so much confusion about radio advertising floating around - I can't blame you for asking these questions. Why is advertising on the radio so mysterious? The answer is - radio advertising is not mysterious. It just helps to know how it works.

Radio Advertising Costs

Effective radio advertising relies on two major components - the message (the radio commercial itself), and the media (that the radio spot airs on).

The Message

Let's look first at the radio commercial itself. Before even thinking about which radio stations to air on, or how much to spend on radio advertising rates, you must think about what you are going to say in your radio ad. For this article, I am assuming that all call centers, fulfillment, websites, etc. lead generation, and sales closing processes have been put in place by you, the advertiser. Creating a radio commercial that helps drive traffic is extremely important to the advertising process.

The advertising industry is full of voice talents, radio personalities, DJ's and others, all claiming to create radio commercials. Be careful here. When entering the arena of radio commercial production, look for a radio advertising agency that has experience and a track record of successful ad campaigns. Anyone can create a radio ad, but not everyone can create a radio ad that pulls traffic. Some radio stations provide free radio commercials if you advertise on their station. Most of these free commercials are never based on strategy and are just one of several dozen commercials that have to be created by an overworked radio production person in a five to fifteen minute window of time. Remember, you usually get what you pay for.

The most effective radio commercials are built on a solid, proven strategy. The copy is written using time tested formulas that maximize potential response. The talent is handpicked to best connect with the end user and the production is based upon clear, quality, and easy to absorb audio.

So...what does the radio commercial production process cost? The majority of radio commercials that work best usually fall into the 0 to 00 price range. There are always exceptions to the rule (lots of revisions to copy or audio, additional voice talents, celebrity endorsements, etc.) but this figure generally covers development of a solid strategy, copy from experienced copywriters, performance by high caliber voice talents, and the highest quality production services.

The Media

For many with questions about radio advertising rates, and radio station prices, here is where the mystery begins. I will try to simplify the mystery of radio media buying as much as we can in this small amount of space.

A good radio advertising buy focuses on a few different things:

* Finding the best radio stations in a market that match your customer's demographics (age, gender, income level, etc.) and psychographics (interests, beliefs, hobbies, personality traits, etc.).

* Finding the dayparts that best reach your target customer. Mornings? Middays? Afternoons?

* Selecting the top radio stations that most efficiently reach the highest potential customers, the right number of times (defined as frequency), for the least amount of money

Usually, when researching radio advertising costs, many potential radio advertisers have a pretty good idea of the first two points. However, when it comes down to finding the best station (or stations) at the best price, the radio advertising process becomes a little more challenging.

Here is how to basically determine how much to spend on radio advertising costs. Within the market you want to advertise in, find the radio stations that have the best potential to reach your target customer. This is based on the formats of the radio stations. Urban Hip-hop stations will target different demographics than a News/Talk, or Soft Rock station. After selecting a group of radio stations, contact those stations to let them know you are thinking about advertising on their radio station. Ask for specific data from the radio stations called "rankers". This is ratings data that most radio stations can provide based on specific requirements requested. From this point, you can get a good idea which stations perform the best in your target demographics.

Once you have narrowed down the radio stations to just a few that will effectively reach our target customer, request a proposal based on certain criteria - dayparts, frequency goals, etc. From these proposals, see who reaches the target audience most efficiently - using tools like Cost Per Point (ratio of spot rate to ratings percentage), Cost Per Thousand (ratio of spot rate to audience category totals), etc. If a radio station is not competitive, ask the station to resubmit a more competitive proposal. Ask about added value. Yes...it is quite time consuming...and yes it is tough to know if all of the station's radio advertising rates are too high. You really have to know the market and the going rates. (This is where having an experienced agency is extremely beneficial!) An agency can compare proposals against historical figures to determine if radio station prices are in line with market averages...then negotiate, and help execute the purchase.

Great...but what does this cost? It depends on the size of the market you wish to advertise in as determined by Arbitron (the radio ratings services). Radio advertising rates can be as high as 0 per 60 spots in a top market like New York City, or as low as per 60 spots in Kerrville, TX. How will you know what to spend?

Here's a valuable system we have used from our history of working with radio advertising rates. The system is based on a solid branding schedule that may run one spot per day in the morning drive, one per day at midday, and one per day in the afternoon drive - Monday through to Friday, and two spots on Saturday and Sunday. That's nineteen spots a week at sticker price. This type of schedule is good for achieving a desired frequency level (meaning the average listener to a station will hear the radio commercial a certain number of times). Under these broad assumptions, you can use the following chart as a rough guide to budgeting your radio advertising campaign.*

*Note, these are gross rates and do not include production costs or agency discounts. These are market averages for the standard radio schedule mentioned above, actual costs may vary. Does not factor in added value, ROS schedules, bonus spots, etc. Different combinations of dayparts on different stations may cost much less.

* Markets 1 -5 (ex: New York City, Los Angeles, Chicago, etc.)

Expect to pay from 00 to 00 per week/per station for a top performing station.

* Markets 6 - 20 (ex: Dallas/Ft.Worth, Houston, Phoenix, San Diego, etc.)

Expect to pay from 00 to 00 per week/per station for a top performing station.

* Markets 21 - 50 (ex: Denver, Cleveland, Kansas City, etc.)

Expect to pay from 00 to 00 per week/per station for a top performing station.

* Markets 51- 150 (ex: Akron, Syracuse, Baton Rouge, etc.)

Expect to pay from 0 to 00 per week/per station for a top performing station.

* Markets 150+ (ex: Myrtle Beach SC, Green Bay, Topeka, etc.)

Expect to pay from 0 to 00 per week/per station for a top performing station.

You may be saying, "Wow! That can be expensive". In some cases it is! These are standards and radio advertising schedules come in all shapes and sizes. Sometimes, schedules are smaller depending on advertising goals and objectives. However, it is recommended that you are able to commit to the range of minimums.

Leftovers?

Notice nothing has been mentioned about remnant radio advertising here at all. Remnant advertising is the practice of buying unused inventory at deep discounts. Remnant advertising success exists more in theory than in practice. However, this is not to say that there are not advertisers who are having success with remnant advertising. If, and when, remnant advertising falls into your lap, it is strongly suggested that you look into it. However, basing your entire radio ad campaign on remnant advertising may be shooting yourself in the foot. With the exception of a few times a year, most top performing radio stations do not have that much unsold inventory. Often, the largest advertisers have contracts that guarantee so many low cost/no cost spots that have to run. The reality is that if large advertisers (with the big dollar schedule) need their spots to run, or if another advertiser pays just one penny more than you did for your remnant spots - bump! You just got bumped off the air that day. You may pay for twenty spots and only get two that air. The stations will make it up to you, but what if you were counting on that advertising to drive sales. Or better yet, in the age of consolidated radio groups your remnant advertising might run on the third to the last rated station in the market. The result is NO RESULT. I am a firm believer that when it comes to radio advertising YOU TRULY DO GET WHAT YOU PAY FOR.

Now that radio advertising rates have been explained, you may ask the question, how long should I advertise? The type of radio advertising helps define the length of a campaign. Advertising for an event? We recommend shorter, more compact schedules to create buzz leading up to the event or launch. Branding a product? Often, long term schedules with a bit of breathing room work best. Maybe even flighting could work (on two weeks, off two weeks or some other length of time). Most of the time, the two things that will determine how long to run a radio advertising campaign will be advertiser goals (traffic numbers), and external factors such as sales cycles. Oh yeah, and usually budget affects the length of the campaign. It is not desired, but that's reality.

The Total Cost

You may be thinking, "So if I want to run a spot on three top Houston radio stations, I should expect to pay 00 for a commercial, plus 00 per week per station...that's ,000 for one week's worth of advertising!" That's true, and may be just what it takes to reach several thousand potential targeted customers. The real question is, "How much money can you make off a few thousand potential targeted customers?" Is it more than ,000 a week? ,000 a month? These are questions to ask yourself, because in the world of advertising, that is pretty good traffic.

It works even better when you let a professional advertising agency reduce that cost even further. Let the agency get you a great radio advertising schedule by providing an instant discount ABOVE the negotiated lowest radio station price plus great added value.

Radio Advertising Costs

M. Bruce Abbott is Creative Director/Partner of Radio Lounge, a radio advertising agency located in Houston Texas. Let Radio Lounge help you with all facets of strategic development, creative development, copywriting, production, media planning, media negotiation, media buying and monitoring of your radio advertising campaign.

If you are thinking about advertising on the radio, let the experienced radio advertising professionals at Radio Lounge make your campaign a success. Call us for a free consultation. No pressure, just friendly people who love to help companies succeed with their advertising on the radio.

Call toll free, 1-866-4-AUDIO-9.

OR visit http://www.radioloungeusa.com

Remember... Radio Advertising Works - when done right, it can achieve powerful results.

Fifteen Advertising and Promotional Ideas

Every successful company uses some sort of promotion to influence certain audiences, usually customers or prospects, by informing or persuading them. Reasons for promoting a business include: increasing visibility; adding credibility to you or your company; enhancing or improving your image and bringing in new business. The following cost-effective, easy-to-execute ideas have the power to increase sales in a way that conventional advertising cannot. The key is to find the methods that are appropriate for your business, marketplace and professional style.

1. Contests

Advertising

As one example, a cookware store decided to sponsor cooking contests. After sending out a press release announcing a competition for the best cookie or chocolate cake, a mailing went out to the store's customers soliciting entries. Food editors, professional chefs and cooking teachers were invited to be judges. Both the winners and the winning recipes were publicized. Essay and design contests are also possibilities, such as a furniture store establishing a prize for student furniture design. Pie-eating, pancake-flipping, oyster-shucking and grape-stomping contests make sense for restaurants. Dentists can hold smile contests, while video rental stores can stage movie trivia quizzes.

Fifteen Advertising and Promotional Ideas

2. Newsletters

Another good way to promote, particularly for brokers, banks and business consultants, is through newsletters. Newsletter articles demonstrate how much you know about your field and do so in a low-key, informative way. They also help keep your company high in the consciousness of your prospects.

3. Demonstrations

Demonstrations are an option to attract people to your place of business, to show them how to best use your product and to establish your credibility. A retail-wholesale fish outlet holds cooking demonstrations twice a week, featuring a different restaurant chef each time and attracting substantial crowds. Recipe cards are even given out. Wallpaper demonstrations, fashion shows, gift wrapping, refinishing and computer demonstrations have all worked well for retailers who were selling products associated with them.

4. Seminars

Often more appropriate for business-to-business marketing, seminars are the commercial side of demonstrations. If you hold a seminar, follow these rules for success:

1. Schedule the event at a time that is convenient to most attendees.

2. Be specific in the invitation about when the event begins and ends, who will be there and what the agenda is.

3. Follow up the invitations with personal phone calls.

4. Charge for seminar entrance to give it a higher perceived value.

5. Follow up after the event to get people's reactions.

5. Premiums

Also called an advertising specialty, a premium is a gift of some kind that reminds your customer of you and your service. There are thousands of premiums from which you can choose: key chains, coffee mugs, refrigerator magnets, baseball caps, paperweights - just about anything that can be engraved, imprinted, silk-screened or embroidered with your company name and phone number.

6. Speeches

Depending on your topic and your market, you might want to speak before chambers of commerce, trade associations, parent groups, senior citizens or other local organizations.

7. Articles

Another possibility is to write an article for a trade journal, reprint it and mail it off to your friends, customers and prospects. Well-crafted articles position you as an expert and are a particularly good way to promote a consulting business.

8. Bonuses

If you have a restaurant, give away a glass of wine with dinner to introduce a new menu. If you sell to retailers, give them a display fixture with the order of a gross. If you sell office supplies, give away a new pen with a sizeable purchase. If you're in the cosmetics business, offer customers a free sample blusher when they buy mascara and lipstick.

9. Coupons

For best results, the price break should be significant - at least 15 percent. Coupons are one of the least expensive ways to develop new trade and are an excellent tool for evaluating advertising. However, one theory holds that coupons draw people who only buy discount and never become regular customers, so be sure to monitor the results.

10. Donations

Donating your product or service to a charitable cause often results in positive exposure to community leaders, charity board members, PTAs and civic groups. While consumer products are desired most, many organizations also look for donations of professional service time. If you have a restaurant or a large meeting facility, consider hosting an event for a charitable organization. This strategy works best if volunteers for that charity are potential customers.

11. Samples

No matter what you do to promote your business, giving potential customers a sample is an excellent way to attract attention and make a positive impression. In many cases, it makes just as much sense to spend your marketing and advertising dollars on giving out your own products instead of buying advertisements - especially if cash is tight. The key is to give samples to the audience you want to reach (i.e., software packages to computer user groups or nutritious snacks to health-oriented consumers). In the food arena, where one taste is worth a thousand words, firms now exist that test market new products for large and small companies alike through in-store demonstrations. A good demonstration company not only keeps track of how much of your product was given away but also submits detailed reports on what people said about the product and how much of it was purchased.

12. Free Trials

If your product is too big or expensive to give away outright, why not offer a free trial to qualified customers? Try shipping it out to prospects with no strings attached. Most people will appreciate the opportunity to try the product, and many will like it enough to buy it.

13. Free Services

If you can't afford to give away products, offering your services as a way of generating new business can also pay off. For example, if you own a retail clothing business, send out a flyer offering customers a free fashion consultation to draw them into the store.

14. Special Benefits, Rates or Notices

Smart organizations go out of their way to make customers feel important and appreciated. Frequent flyer clubs are the most pervasive example of loyalty-building benefits for customers only that are now being adapted by many kinds of businesses. Most software companies sell program updates to customers at discounted prices. And advance notices about sales or other changes or opportunities can help cement customer ties.

15. Say "Thanks"

One of the best ways to let customers know you value their business, and to simultaneously encourage their continued patronage, is also one of the easiest. It boils down to saying "thank you" in letters, mailers, surveys, statement stuffers, receipts and invoices, and in person.

Learning how to persuade and influence will make the difference between hoping for a better income and having a better income. Beware of the common mistakes presenters and persuaders commit that cause them to lose the deal.

Conclusion

Persuasion is the missing puzzle piece that will crack the code to dramatically increase your income, improve your relationships, and help you get what you want, when you want, and win friends for life. Ask yourself how much money and income you have lost because of your inability to persuade and influence. Think about it. Sure you've seen some success, but think of the times you couldn't get it done. Has there ever been a time when you did not get your point across? Were you unable to convince someone to do something? Have you reached your full potential? Are you able to motivate yourself and others to achieve more and accomplish their goals? What about your relationships? Imagine being able to overcome objections before they happen, know what your prospect is thinking and feeling, feel more confident in your ability to persuade. Professional success, personal happiness, leadership potential, and income depend on the ability to persuade, influence, and motivate others.

Fifteen Advertising and Promotional Ideas

Kurt Mortensen’s trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.

If you are ready to claim your success and learn what only the ultra-prosperous know, begin by going to http://www.PreWealth.com and getting my free report "10 Mistakes That Continue Costing You Thousands." After reading my free report, go to http://www.PreWealth.com/IQ and take the free Persuasion IQ analysis to determine where you rank and what area of the sales cycle you need to improve in order to close every sale!