Radio advertising is a tried and tested marketing channel for businesses looking to promote a message to a wide regional audience. In a 30- to a 60-second radio commercial, businesses can say more than an online text-based ad with limited reach. In this article, we explore the advantages of radio advertising, when and how to run them, and if radio ads are suitable for your business. Show
Pros & Cons of Radio AdvertisingLike every advertising medium, there are pros and cons to advertising on the radio. For example, while radio ads can reach a wide audience within a particular geographical area, people aren’t tuning in to listen to the radio for ads, so there is a lack of search intent. As such, people may switch stations or simply tune out if your ad doesn’t grab their attention. Is Radio Advertising Right for Your Business?Radio advertising isn’t for every business. It works best for those with a broad, regionally based target audience or brands aspiring to be nationally known. It can also be a good option for those selling high-ticket consumer goods or services. Most importantly, radio advertising is an excellent option for those whose primary goal is to grow awareness of a newly launched startup business—provided you have a strong marketing message. Before investing money into radio ads, consider who your audience is, whether they’re listening to the radio, and what your ad would need to say to resonate with them. If your business is in a niche market, radio ads probably won’t be a good use of your ad budget. You also need the funds available to create and deploy your radio ad as they have steeper upfront fees than other types of advertising (like online search or display ads). Types of Businesses Radio Ads Work Best For
For example, if you’re a distributor of vegan food products, it is not advisable to do radio ads since only 7% of Americans identify as vegan. In other words, unless your goal is to convert carnivores, you’re already starting with a tiny percentage of the audience that will have an interest in your business or brand. On the other hand, if you’re opening a new restaurant, radio advertising can be a great way to get the word out about what sets your restaurant apart from the rest. You can tailor ads to run before your grand opening to help fill seats, generate attendance at a soft opening, and build brand awareness and buzz about your menu. Best Times to Run Radio AdvertisementsRadio stations split up ad times into different parts of the day. You probably won’t be surprised to know that the most popular times to run advertisements on the radio are during the morning and evening commutes. Conversely, the evening (7 p.m. to midnight and midnight to 6 a.m.) offers the lowest listenership. While they may be better budget-wise, they will also provide the least reach for your radio ads. You can choose to have your ads shown exclusively in a certain day spot, or have an equal distribution of your ads throughout the day. We suggest you go with the first option since ads are usually more effective when the same people hear your ad multiple times. It’s easier to achieve this when you run your commercial at the same time every day. 3 Ways to Create Radio AdsThere are a few different options for creating a radio ad to promote your small business. While you could create an ad yourself, you can ensure quality ads by having them produced. It’s not uncommon for radio stations to create the ad for you, but you can also maintain more control by hiring a professional production company, or even a freelance producer. Here are three common ways radio ads are created:
What about creating the radio ad yourself? Unless you have experience with voice-over acting, you probably want to steer clear of this option. Conveying a message solely through sound is a difficult task, and in most cases, should be handled by a professional. Radio advertising consists of two primary costs: production and distribution. The distribution costs are the most expensive and can range from $200 to $5,000 per week, depending on your location and chosen station. The cost of producing the commercial, including copywriting, voice talent, and audio/visual editing, typically comes to around $300 to $1,000. Factors Impacting Ad CostsNumber of people listening to your adThe main factor affecting cost is the number of people who will be listening to your ad. Costs are often based on cost per mille (CPM), or thousand, such as the average CPM for radio ads. Therefore, spots during the morning and evening commute will cost more than spots late at night. Likewise, playing an ad in a big city will cost more than an ad spot in a small town. Demographic of the radio station’s audienceRadio stations that have an audience between the ages of 24 to 54 will also have higher prices. That’s because this age group has the highest purchasing power, and therefore many businesses want to advertise to them. You can also expect to pay more for stations that attract a wealthy audience, such as a jazz or classical station. Demand for an ad spot among advertisersA radio advertising spot is not guaranteed and usually goes to the highest bidder. Therefore, your ads may be knocked off the air if you don’t match the astronomical rates that occur during an election. The same may happen during major shopping times, such as around Thanksgiving and before Christmas, where more advertisers may buy up airtime to promote upcoming sales. Special events & occurrencesRadio ad costs may change depending on events around town. This is because prices fluctuate depending on how many want to advertise during that time. For example, if there is a highly contested local, state, or national election, campaigns tend to pour money into local radio and TV at elevated rates. For more information on radio ad cost, view our in-depth guide to radio advertising costs. How to Measure Radio Ad PerformanceMeasuring whether your offline marketing efforts like radio advertising are successful is more difficult than measuring online efforts. However, you can employ a few tactics, such as using a vanity web address or phone number, keeping track of sales post-radio ads, and asking new customers how they found your business. Here are some of the best ways to measure the performance of your radio ads:
It’s also worth discussing how you can measure radio ad effectiveness with your chosen radio station. Stations are well-versed in working with advertisers, as they are one of their primary sources of funding. That means they have a stake in helping advertisers understand if ads are working and may be able to further help you come up with ways to track ad performance. Here are some of the key performance indicators (KPIs) you can use to measure ad performance, including the radio terminology you’ll need to know: Best Alternatives to Radio AdvertisingRadio advertising can be one part of your overall marketing mix, but it shouldn’t be the only advertising channel to promote your business. In addition to, or in lieu of, radio advertising, consider other channels such as music streaming ads, television advertising, YouTube ads, pay-per-click (PPC) advertising, billboard ads, and newspaper ads. Here are some of the best alternatives to radio advertising:
In addition to the above marketing channels, every small business should establish a solid online brand presence with a high-quality website. This will help your business get found online organically (aka for free) and will help make a great first impression. With a professional website, you can use many effective website marketing strategies to promote and build your business. Insightful Radio Advertising Statistics for Small BusinessesRadio advertising statistics show that not only is this a valid marketing idea for small businesses today, but it’s an effective way to drive web traffic and build brand awareness. Here are several radio ad stats that make the case:
Frequently Asked Questions (FAQs)Does radio advertising work for small businesses?Radio ads can be an effective advertising channel for small businesses since they can easily drive up brand awareness and new customers with their wide reach. Local radio stations provide an opportunity for targeting and affordability for mass advertisement. Radio ads can be effective if your marketing message can apply to a broad demographic. How do I find the best radio stations to advertise on?One of the first steps to radio advertising is deciding what station(s) you want your ad to run on. You can reach out directly to local stations for advertising rates and audience information. If you don’t already have stations in mind, use Radio Locator to see the stations that are located in your area and the type of genre they play. How long are radio ads?Most radio ads range between 30 and 60 seconds in length. This means that advertisers should use radio ads to focus on a central idea and a singular call to action, all while making the actual ad compelling for listeners to tune in. Bottom LineDespite the proliferation of on-demand services, radio is still a compelling medium to add to your marketing mix to capture a wide audience. With an adequate marketing budget and the information detailed in this post, you can use radio to effectively boost your marketing strategy and bring in more business. You Might Also Like…
What are the types of radio advertisements?Radio advertising comes in three main categories: live reads, spoken by an on-air personality; sponsorships, which show a business sponsoring a radio segment such as traffic or weather; and produced spots, which can incorporate dialogue, background music, sound effects, or even a short, catchy tune known as a jingle.
What is meant by radio advertising?Radio advertising is the practice of purchasing ad spots on popular radio stations to promote your products and services. Businesses like yours pay for every second of airtime, and the station broadcasts your radio commercials to its audience.
Are there ads on the radio?A typical FM radio ad will be a 30 second spot. AM radio, which is mainly talk radio, is typically syndicated. The radio shows come with their own syndicated advertising, which uses about 12 minutes per hour just like FM radio. However, AM then additionally has space for local radio ads.
What is the purpose of a radio commercial?Radio is an effective advertising medium because it's 100% audio-based. The advertiser's message can resonate in the consumer's ears with proper voice acting, sound design, and copy. A radio ad is cost-efficient, targeted, easy to track, and extremely effective if done properly.
|