“How much should I spend on broadcasting advertising?” “How do I know I am getting the ideal broadcasting advertising rates?” “What broadcasting stations should I advertise on?” “What are good and bad broadcasting advertising prices?” “How many spots should I air on a broadcasting station?”
Every day at Radio Lounge, we hear broadcasting advertising questions such as these.
Honestly, there is so much confusion about broadcasting advertising floating around – we can’t blame you for asking these questions. Why is advertising on the broadcasting so mysterious? The answer is – broadcasting advertising is not mysterious. It just helps to know how it works.
Effective broadcasting advertising relies on two major components – the message (the broadcasting commercial itself), and the media (that the broadcasting spot airs on).
The Message
Let’s look first at the broadcasting commercial itself. Before even thinking about which broadcasting stations to air on, or how much to spend on broadcasting advertising rates, you must think about what you are going to state in your broadcasting ad. For this article, we are assuming that all call centers, fulfillments, websites, etc. lead generation, and income closing processes have been place in place by you, the advertiser. Creating a broadcasting commercial that helps drive traffic is extremely important to the advertising process.
The advertising industry is full of voice talents, broadcasting personalities, DJ’s and others, all claiming to create broadcasting commercials. Be careful here. When entering the arena of broadcasting commercial production, look for a broadcasting advertising bureau that has experience and a track record of successful ad campaigns. Anyone can create a broadcasting ad, but not everyone can create a broadcasting ad that pulls traffic. Some broadcasting stations wage free broadcasting 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 broadcasting production mortal in a five to fifteen minute window of time. Remember, you usually get what you pay for.
The most effective broadcasting 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 ideal connect with the end individual and the production is based upon clear, quality, and simple to absorb audio.
So…what does the broadcasting commercial production process cost? The majority of broadcasting commercials that work ideal usually start into the $500 to $1000 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 calibre production services.
The Media
For many with questions about broadcasting advertising rates, and broadcasting station prices, here is where the mystery begins. We will try to simplify the mystery of broadcasting media buying as much as we can in this small amount of space.
A good broadcasting advertising buy focuses on a few different things:
* Finding the ideal broadcasting 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 ideal reach your target customer. Mornings? Middays? Afternoons?
* Selecting the top broadcasting 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 broadcasting advertising costs, many potential broadcasting advertisers have a pretty good intent of the first two points. However, when it comes down to finding the ideal station (or stations) at the ideal price, the broadcasting advertising process becomes a tiny more challenging.
Here is how we face the process at Radio Lounge and determine how much to spend on broadcasting advertising costs. Within the market you want to advertise in, we find the broadcasting stations that have the ideal potential to reach your target customer. This is based on the formats of the broadcasting stations. Urban Hip-hop stations will target different demographics than a News/Talk, or Soft Rock station. After we choose a group of broadcasting stations, we contact those stations to let them know we are thinking about advertising on their broadcasting station. We ask for specific data from the broadcasting stations called “rankers”. This is ratings data that most broadcasting stations can wage based on specific stipulations we have requested. From this point, we have a good intent which stations perform the ideal in our target demographics.
Once we have narrowed down the broadcasting stations to just a few that will effectively reach our target customer, we then request a proposal based on certain criteria – dayparts, frequency goals, etc. From these proposals, we can 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 broadcasting station is not competitive, we will often ask the station to resubmit a more competitive proposal. But, how will we know if all of the station’s broadcasting advertising rates are too high. Radio Lounge has access to data that grants us to compare proposals against historical figures to determine if broadcasting station prices are in line with market averages. We 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 broadcasting ratings services). Radio advertising rates can be as high as $800 per 60 spots in a top market like New York City, or as low as $3 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 broadcasting advertising rates. The system is based on a solid branding schedule that might 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 of three (meaning the average listener to a station will hear the broadcasting commercial at least three times). Under these broad assumptions, you can use the following chart as a rough guide to budgeting your broadcasting advertising campaign.*
*Note, these are gross rates and do not include production costs or bureau discounts. These are market averages for the standard broadcasting schedule mentioned above, actual costs might vary. Different combinations of dayparts on different stations might cost much less.
* Markets 1 -5 (ex: New York City, Los Angeles, Chicago, etc.)
Expect to pay from $4000 to $8000 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 $2000 to $5000 per week/per station for a top performing station.
* Markets 21 – 50 (ex: Denver, Cleveland, river City, etc.)
Expect to pay from $1000 to $3000 per week/per station for a top performing station.
* Markets 51- 150 (ex: Akron, Syracuse, Baton Rouge, etc.)
Expect to pay from $800 to $2000 per week/per station for a top performing station.
* Markets 150+ (ex: Myrtle Beach SC, Green Bay, Topeka, etc.)
Expect to pay from $500 to $1500 per week/per station for a top performing station.
You might be saying, “Wow! That can be expensive”. Relax, these are standards and broadcasting advertising schedules come in all shapes and sizes. Sometimes, schedules are smaller depending on advertising goals and objectives. However, we do advocate that you are healthy to commit to the range of minimums.
Leftovers?
Notice we have not mentioned remnant broadcasting 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 state that there are not advertisers who are having success with remnant advertising. If, and when, remnant advertising falls into your lap, we advocate you look into it. However, basing your entire broadcasting ad campaign on remnant advertising might be shooting yourself in the foot. With the exception of a few times a year, most top performing broadcasting 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 massive advertisers (with the huge 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 might 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 superior yet, in the age of consolidated broadcasting groups your remnant advertising might run on the third to the last rated station in the market. The result is NO RESULT and you have just wasted money for nothing. We really do believe that when it comes to broadcasting advertising YOU TRULY DO GET WHAT YOU PAY FOR.
Now that broadcasting advertising rates have been explained, you might ask the question, how long should I advertise? The type of broadcasting advertising helps define the length of a campaign. Advertising for an event? We advocate 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). Most of the time, the two things that will determine how long to run a broadcasting advertising campaign will be advertiser goals (traffic numbers), and external factors such as income cycles. Oh yeah, and usually budget affects the length of the campaign. It is not desired, but that’s reality.
The Total Cost
You might be thinking, “So if I want to run a spot on three top Houston broadcasting stations, I should anticipate to pay $1000 for a commercial, plus $3000 per week per station…that’s $10,000 for one week’s worth of advertising!” That’s true, and might be just what it takes to reach over half a million potential well targeted customers. The real question is, “How much money can you make off half a million potential targeted customers?” Is it more than $10,000 a week? $40,000 a month? These are questions to ask yourself, because in the world of advertising, that is pretty good traffic.
It works even superior when you let Radio Lounge reduce that cost even further. What if Radio Lounge was healthy to get you a great broadcasting advertising schedule by providing an instant discount ABOVE the negotiated lowest broadcasting station price?
Launch Your Radio Advertising Campaign
You might still have many questions about broadcasting advertising. That’s why we are here. We want to help you get the biggest bang for the broadcasting advertising buck. Radio Lounge has worked with thousands of broadcasting advertising campaigns. We know what works and what does not. Let Radio Lounge help you with all facets of strategic development, creative development, copywriting, production, media planning, media negotiation, and monitoring of your broadcasting advertising campaign.
Call for a free consultation. Toll free 1-866-4-AUDIO-9…that’s 1-866-428-3469.
Let Radio Lounge help you drive traffic with powerful broadcasting advertising solutions.
http://www.radioloungeusa.com
M. Bruce Abbott is Creative Director/Partner of Radio Lounge, a direct response broadcasting advertising agency. If you are thinking about advertising on the radio, let the experienced direct response broadcasting 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. That’s 1-866-428-3469…but we would never state it like that on the broadcasting
OR visit www.radioloungeusa.com Remember…Direct Response Radio Advertising Works – when done right, it can achieve powerful results.