Radio Advertising Guide: How to Get Started Today

Radio advertising is a great way to reach your audience with marketing messages. It’s also the cheapest form of online advertisement because it costs less than you’d spend on television or digital advertising. With that said, radio broadcasting doesn’t come without its challenges and best practices are continually changing as new technologies arise in this fast-paced industry.

Radio advertising, as ancient as it may seem, is nevertheless a tried-and-true marketing avenue for firms trying to reach a large audience. Businesses can say a lot more in a 30- to 60-second radio broadcast than they can in an online, text-based ad, and although it costs more up front, it may be a more cost-effective advertising channel in terms of CPM than other video and voice-based advertising.

Pros & Cons of Radio Advertising

There are advantages and disadvantages to advertising on the radio, as with any other media. While radio advertisements may reach a large audience within a certain geographic region, people aren’t tuned in to hear commercials, so not only does it lack search intent, but they may not even be listening to radio ads or switching stations when ads come on.

When Should You Use Radio Ads?

Let’s be honest: radio commercials aren’t for everyone. It’s great for firms with a broad target audience, such as those that are or want to be nationally renowned. If you have a powerful marketing message, it might also be an excellent alternative for individuals selling high-ticket, general consumer products or services, or those whose major purpose is to raise awareness of a newly founded firm.

Before spending money on advertising, you should think about who your target audience is, if they listen to radio, and what your radio ad would need to do or say to engage with them. If your firm is in a specialized market, radio commercials are usually not a suitable use of your advertising money. And, while we’re on the subject of budgets, you’ll need money to design and distribute your radio commercial since they’re not cheap.

Other red flags that radio advertising may not be right for you include:

• When your marketing message isn’t going to connect with a large number of people
• If you don’t have a means to tell a strong or captivating tale to convey your point,
• If you’re on a shoestring budget,
• If you have a tight deadline and need to get a word out as quickly as possible,

For example, if you’re a vegan food distributor, it’s not a good idea to run radio commercials since just 7% of Americans identify as vegan. Unless your objective is to convert carnivores, you’re already dealing with a limited fraction of the population that will be interested in your company or brand.

How Much Does Radio Commercials Cost?

Production and delivery are the two main expenses of radio advertising. The most costly part is the distribution, which may cost anywhere from $200 to $5,000 per week depending on your region and selected station. Commercial production expenses generally range from $300 to $1,000, including scripting, voice talent, and audio and visual editing.

Other elements that may affect the price of your radio commercial include:

The Number of People Who Heard Your Ad

The quantity of people who will hear your ad is the most important aspect that influences pricing. As a result, parking during the morning and evening commutes will be more expensive than parking late at night. Similarly, running an advertisement in a major city will cost more than running an advertisement in a small town.

Audience Demographics of the Radio Station

Radio stations with a target demographic of 24 to 54 years old will likewise have higher costs. This is due to the fact that this age group has the most buying power, thus many firms want to promote to them. You should also expect to pay extra for stations that cater to a rich clientele, such as jazz or classical.

Ad space.

A radio ad slot isn’t guaranteed, and the highest bidder typically gets it. As a result, if you don’t match the high rates that occur during an election, for example, your advertising may be removed off the air. Similarly, prominent marketers may purchase up airtime to promote impending bargains during peak shopping seasons, such as around Thanksgiving and before Christmas.

Special Events & Occurrences

Prices may fluctuate based on what activities are taking place in the area. This is due to the fact that rates vary based on how many other individuals wish to promote at the same time. When there is a hotly fought municipal, state, or national election, for example, campaigns tend to pump a lot of money into local radio and television.

When Should You Advertise?

Dayparts are used by radio broadcasters to divide ad hours. You probably won’t be shocked to learn that morning and evening commutes are the most popular periods for radio commercials. The number of times your ad is heard by a single person is known as frequency, while the number of individuals that hear your ad is known as reach.

You may pick whether your adverts are seen solely at a given time of day or are evenly distributed throughout the day. We recommend choosing the first option since advertising are more successful when the same individuals hear them many times. It’s simpler to do this if your advertising is broadcast at the same time every day.

How to Make a Radio Ad

When it comes to developing a radio ad, you have a few possibilities. While you could develop an ad yourself, it’s more likely that you’ll want to hire someone to do it for you. It’s fairly unusual for radio stations to develop your commercial for you, but you may have more control by hiring a professional production firm or even a freelance producer.

Here are the best How to Make a Radio Advertisement:

• Allow the station to generate the ad for you: The station may offer to construct your ad at no cost to you. Depending on who is working on the area, the quality might vary from terrible to great. If you choose this route, be sure you are not compelled to employ the advertisement if it fails to meet your expectations.
• Engage the services of a competent production company: When it comes to crafting a quality and successful radio commercial, a professional production firm is your best choice. From scriptwriting and voice selection to recording and effects, a professional production company is your best bet. Expect to spend between $800 to $1,200 each commercial in general.
• Hire a freelancer: If you already have your script, you may hire a freelance voice actor to record your commercial for you on services like Fiverr. Professional actors may be found for as low as $5, but be sure to read the evaluations to determine which actors perform best.

Why not make your own radio commercial? You should certainly avoid this choice unless you have prior voice-over acting expertise. It is difficult to convey a message purely via sound, and in most circumstances, it should be handled by a professional.

How to Evaluate the Effectiveness of Radio Ads

Evaluating the performance of physical marketing initiatives is far more challenging than measuring the effectiveness of internet marketing efforts. There are a few strategies you may use, such as employing a vanity site address or phone number, tracking sales after radio commercials, and, of course, asking your clients how they discovered your company.

Here are some of the most successful methods for determining the efficiency of a radio commercial:

• Use a vanity URL: Want to use your radio ad to generate visitors to your website? Then use a vanity URL, which you can buy from a firm like GoDaddy, to monitor and analyze the performance of the particular website using Google Analytics. You may direct visitors to a landing page on your website with a unique URL for your radio commercials.
• Use a vanity or call tracking number: You may create a number that is distinct from your regular phone number. You’ll be able to trace it back to your radio ad if someone phones your company using the tracking number from your radio ad.
• If you have the opportunity to engage with consumers one-on-one, inquire about how new clients learned about you. Alternatively, inquire how clients learned about your company (coupon, discount, etc.) via an incentivized survey, such as on a receipt or after online purchases, to enhance the likelihood that people will really fill it out.
• Track sales: The simplest method to see whether your advertising are working is to look at how much money you made during the time your ad was running. Note that you can’t ascribe a 100 percent rise or drop in sales to your radio ad, but it may be used as a broad indication.

It’s worth talking to your radio station about new approaches to assess radio ad performance. Because stations are used to dealing with advertisers (and rely on advertising revenue), they have a vested interest in assisting advertisers in determining if their commercials are effective, and they may be able to assist you in developing new techniques to measure ad success.

Alternatives to Radio Commercials

Radio advertising should be a component of your entire marketing strategy, but it shouldn’t be the only way you advertise your company. Consider additional channels such as music streaming advertisements, television commercials, YouTube ads, pay-per-click (PPC) advertising, billboard ads, and newspaper ads in addition to, or in certain situations instead of, radio advertising.

Here are some of the Alternatives to Radio Commercials:

• Music streaming ads: On-demand music streaming services like Pandora and Spotify are becoming more popular, and they, like radio, provide voice-based advertising with 15- to 30-second advertisements and a user base that spans cities and states. The average cost per thousand (CPM) ranges from $5 to $30, which is comparable.
• Advertising on television: Sometimes it’s better to demonstrate rather than convey a marketing message. In this instance, television commercials may be a viable alternative to radio commercials. To see whether television advertising is good for your company, learn more about it.
• YouTube advertisements: Similar to TV commercials, YouTube ads allow companies to run video advertising campaigns at a lower cost. Unlike TV advertising, YouTube ads charge per view or action rather than a single flat rate for air time, making it far more accessible for small companies.
• PPC advertising: Businesses with more specialised goods or services may discover that pay-per-click (PPC) search advertisements, such as Google Ads, are a better use of ad expenditure. PPC advertisements appear in search results. What makes PPC so appealing is that it allows you to connect with individuals who are actively looking for what you have to offer. Find out more about Google advertising.
• Billboard advertising: Want to reach a large audience in a certain area? Consider advertisements on billboards. They’re usually less expensive than radio commercials and reach a comparable audience. The main issue is whether a photo-based commercial or a voice-based ad is more effective in conveying your marketing message. Find out more about billboard advertising.
• Newspaper advertisements: Last but not least, newspaper ads are an excellent alternative to radio commercials. Newspaper advertising are often less expensive than radio commercials, and they have the additional bonus of capturing people’s complete attention when they sit down to read a newspaper.

Businesses should have a strong online presence, including a high-quality website, in addition to the marketing channels mentioned above. This will assist your company in being discovered organically (i.e. for free) online and in making a strong first impression. You may use the numerous efficient internet marketing tactics to advertise and grow your company if you have a quality website.

Most Commonly Asked Questions (FAQs)

Why do the prices of radio advertisements change so much?

The cost of a radio advertisement varies tremendously, and it all comes down to how many people are listening. The following equation determines the cost of a radio commercial:

Cost of Advertising per Spot = Number of People Listening x Cost to Reach 1,000 Listeners (CPM).

What is the average CPM for daytime radio?

For people aged 18 to 49, the average workday CPM rate is in the $12 to $16 range. A CPM of $8 to $12 is fair for daytime if the target demographic is older than 50. The temperature should be cooler in the evening and especially overnight.

What is the best way for me to identify the top radio stations to advertise on?

Choosing the radio station(s) you want your ad to air on is one of the first stages of radio advertising. For advertising costs and audience statistics, you may contact local stations directly.

What is the typical radio ad return on investment (ROI)?

Some small companies perform better than others when it comes to radio advertising, but according to a Nielsen research of five sectors released in 2017, marketers can anticipate an average of 11.8x return per dollar invested on their radio ad.

Conclusion

Despite the rise of on-demand services, radio remains a highly effective medium to include in your marketing mix if you want to reach a large audience. You may utilize radio to successfully increase your marketing plan and bring in more business with an acceptable marketing budget and the facts mentioned in this piece.