A simple guide to advertising spending in 2022

A simple guide to advertising spending in 2022

Radio advertising costs on average $ 200 to $ 5,000 per week, depending on location, ad length and the size of the listening audience. Producing radi

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Radio advertising costs on average $ 200 to $ 5,000 per week, depending on location, ad length and the size of the listening audience. Producing radio ads costs from $ 1,000 to $ 2,500, depending on inclusions such as music, voice actors, and editing, but some stations have internal resources to reduce your costs. Learn more about what drives the cost of radio advertising to find out if it’s a good investment for your small business.

How much does a 30-second radio ad cost by location

As a guideline for radio advertising costs, we used estimates from the experts at Gaebler. Not surprisingly (and similar to TV advertising costs) the cost of running radio ads is higher in larger, more competitive markets. In New York, NY, for example, the cost of a 30-second radio ad would be more than $ 1,400, while in Topeka, Kansas, the same 30-second radio ad would cost as little as $ 25.

While this may sound like a bargain, keep in mind that in addition to the cost of airtime, radio advertising also involves the cost of producing ads. In addition, your advertising rate may increase dramatically depending on how many times a week you want your ad to show and on which programs. Making ads appear in the middle of the night when there are few listeners will be cheaper than during popular drive-to-work programs, but will also reach far fewer people.

Traditional radio advertising costs by city

(Source: Gaebler)

Traditional radio advertising is primarily local, which may limit your audience. Streaming radio commercials, on the other hand, offer a national or even global audience segmented on listener interests rather than location. Ads on radio programs streaming through the internet allow you to target a much larger audience, as listeners can be located anywhere in the world. As such, however, streaming radio ads can be more expensive in comparison.

Streaming radio advertising costs by outlet

Streaming radio advertising rates can vary depending on the time of day as well as the popularity of programs and stations. In other words, you can not simply divide the total cost by the number of ad spots to determine how much you pay for each spot for a radio ad campaign. This will not be accurate because some times of the day are much more expensive than others. Holidays and special occasions can also affect radio advertising prices.

How to calculate radio advertising costs per spot

The general formula for calculating the cost of a radio ad is simple – it comes down to the number of listeners multiplied by the cost of reaching 1,000 listeners (CPM). As already mentioned, the number of people listening to a radio station differs based on time of day, time of year, station and program popularity. Consequently, radio advertising costs cannot be calculated as a fixed rate.

Radio Advertising Cost Comparison.

What is ‘Prices per place’ in radio commercials?

Some radio stations offer prices per location, allowing you to purchase specific locations (or times) at a generally attractive price point. However, prices per place are generally used to ensure ad placements during the times of the day (or night) when there are fewer listeners. Advertising seems cheap, but only because you reach a fraction of the listener base of a peak audience.

Radio advertising prices per location.

For example, a spot that is broadcast at 01:00 may have less than one tenth of the listeners of a spot that is broadcast at 13:00 With prices per spot, a radio station can make the cost per spot sound very cheap, while you may pay more per listener than when you paid to advertise during times with higher listeners. To ensure you get full reach and the best value for your advertising budget, also ask for the cost per thousand listeners, or CPM, of these sites.

Factors Affecting Radio Advertising Spot Costs

Many factors can affect radio advertising costs, but most are related to listener demographics, competition, and how well an advertiser can work out a reasonable advertising cost with a station. Below are the key elements that determine radio advertising costs, such as how many people listen during your time slot, audience demographics, demand for ads, and your ability to negotiate prices.

Here are the significant factors that influence radio advertising costs:

  • Outcome: Bigger name radio stations and programs are going to produce more expensive advertising slots, and this applies to traditional radio ads as well as the cost of streaming ads.
  • Number of listeners: The more people likely to hear your ad, the more you can expect to pay.
  • Demographics: Some audiences are more popular with advertisers than others. For example, expect to pay more for a 25- to 54-year-old adult audience.
  • Competition: It’s common to pay more for ads when many different advertisers want you to run ads during the same time slots. This can happen, for example, during the holiday season when many retail stores are advertising sales.
  • Negotiation: Stations will generate a price proposal, but this is not necessarily the final price. You may be able to reduce the cost of radio advertising from 20% to 40%, depending on your negotiation skills and the terms of your contract.

Keep in mind that not all radio ads are priced the same way. The final cost depends on the station’s policies, listeners, demand (competition) in a specific market, and other variable factors. For example, if a popular event is taking place in your town, such as a highly contested political election, the price of an advertising space will increase.

Radio Commercial Production Costs

In addition to what you will pay for airtime is the cost of radio advertising production. It can be minimal for those who are able to produce high quality radio ads in the home. On the other hand, it can cost from a few hundred to thousands of costs for those who have to leave advertising production in the hands of outside experts. If you are not sure which one to use, opt for professional services to ensure high quality ads designed to deliver the results you want.

Unless you have internal production capabilities, there are two main ways to produce radio ads:

  • Outsource advertising production to a professional agency: This is the more expensive option, and outsourcing to an agency can cost anything from $ 350 to over $ 3,500. However, it may offer you a higher quality, higher quality ad.
  • Hire a freelance voice actor or screenwriter: You can write ads in-house and then hire professional voice talent to record your ad for you. It’s a low cost way to produce a radio ad and involves an investment of as little as $ 5 using Fiverr. Similarly, if you need help writing a screenplay, experienced Fiverr professionals can help.

Try Fiverr

Radio Advertising Cost Proposal Terminology

When it’s time to buy a radio ad, your local radio station (or internet streaming service) will generate a cost offer, often referred to as a media purchase offer. The proposal is likely to include an advertising rate table showing specific costs as well as terms specifically for radio advertising, which may make the proposal difficult to understand.

Because there are many words and terms that are unique to radio advertising, you want to understand them before agreeing on a price. To help, here’s a quick glossary of terms commonly used in media buying suggestions:

  • Len: Length in seconds, or how long the radio ad is produced once (eg 60-second spot, 30-second ad, 15-second ad, etc.)
  • Places: Number of times the ad will run
  • Course: Cost per ad slot
  • Cost: Rate the number of places
  • Average quarterly hour (AQH): The average number of people listening to a particular station for a period of at least five minutes during a period of 15 minutes
  • Frequency (Frequency): The average number of times the same person will hear an ad
  • Net reach: The number of different people reached in a given ad run

Example Radio Station Rates Graph

Example Radio Station Rates Graph

Sample radio station cost proposal for a 13-week time frame

Quick Stats for US Radio Advertising

The US radio advertising industry raised nearly $ 15 billion in 2021 from approximately 15,500 radio stations and 272 million listeners. Although less than pre-pandemic numbers, the industry is recovering and should reach more than $ 16 billion by 2024.

Large national companies, such as Home Depot and Disney, invest heavily in radio advertising, but it’s not just for household brands. In fact, the majority of those who advertise on traditional radio stations are local businesses, and 14% of small businesses set aside a portion of their advertising budgets for radio advertising. Learn more about why small businesses promote themselves on the radio and how to measure advertising performance in our guide to radio advertising.

Frequently Asked Questions (Frequently Asked Questions)

How To Get The Lowest Radio Advertising Cost?

It is almost always possible to negotiate lower prices for radio advertising. Use the station’s advertising rate map as your baseline, ask for discounted rates, offer gifts and contests, and consider off-peak times to save money. It is also common to get discounts for buying bulk ads, which can effectively generate brand awareness when marketing a new business.

Which age group listens to the radio the most?

One of the more challenging aspects of radio advertising is the limited audience targeting capability, especially compared to alternatives like social media advertising. However, there is still a lot of valuable data on radio audiences. For example, more than 82% of Americans over the age of 12 listen to the radio each week, including more than 87% of American adults between the ages of 35-64, 82% of American adults aged 18-49, and more than 75 % of 18-24 year olds.

What are the most popular alternatives to radio advertising?

Radio advertising provides an effective way to reach a broad local audience, but it is not the only way available to small businesses. Depending on your market, television ads and newspaper ads, including marketing materials, can also help you reach a broad local audience. However, none offers the ability to target audiences with the accuracy of social ads or buyers based on search intent as when advertising on Google.

Bottom Line

How much radio advertising costs varies according to several factors, but is generally calculated based on the number of listeners multiplied by a station’s price per 1,000 listeners. However, prices are usually negotiable and should be considered along with the cost of radio advertising production to determine if it is an effective advertising strategy for your business.

For low-cost voice talent, advertising production and radio screenwriting, we recommend Fiverr. Experienced radio commercial services are available from as low as $ 5 per project.

Visit Fiverr

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