While you can determine your radio advertising budget well before you book any activity in, it is important to understand the different factors that will impact its cost. Not all radio spots and programs attract the same advertising rates, so today, we are going to run you through the three things you and your marketing agency should consider before making a commitment to a budget.
What Is Your Campaign Goal?
Traditionally radio is a high frequency medium that reaches a lot of people. While it can be a good advertising tool to keep your brand top of mind, you want to make sure that it aligns with your campaign goal. Generally if your goal is to drive more sales, this form of advertising will be very effective and so you may consider allocating more of your budget to this medium than others. Of course it is important to consider the stations and programs that will reach your target audience at the right time to get a response to your strong call to action.
What Industry Do You Operate In?
Car sales, clothing retailers, supermarkets, legal practitioners all operate in slightly different industries and therefore their radio advertising will differ too. This is a consideration all businesses must make to determine what budget they should dedicate to this medium for advertising. For retailers, this medium can be great to let their audience know about promotions and sales, which often are restricted by a timeframe. This might mean that spending more on radio ads during these time periods and pulling back on other efforts is the right choice for you. Those industries, such as service based professionals, where retailing is not a major activity, may aim to create more consistent advertising schedules across radio. This means the budget can be spread more evenly over time to create consistent messages rather than those which require action now before a special offer ends, meaning higher frequency in a shorter time period. What you sell or offer and when is a big factor in deciding how much to spend in radio.
Who Is Your Target Audience Listening To?
There are a multitude of radio stations available to advertise on throughout both metro and regional areas, all listened to by different demographic groups. This means that along with deciding who your target audience is based on their age, gender and buying habits, you must also decide what radio stations and programs they listen to, which will become a major budgeting factor.
Take the larger and more popular metro radio stations for example. They have greater listenership, which means a greater reach, but with this will generally come higher rates. But it is not just the station you advertise on that will help determine the budget you need to advertise effectively, the time slot you advertise in is also an influencer. Much like the popularity and listenership of a station as a whole, different program times attract different audience sizes and types. Often the most popular time to advertise are what are known as the ‘drive times’, when people are traveling to and from work. While you may pay a premium for these spots, you are guaranteed that a lot of people are going to hear you advertising.
These are just some of the considerations to make when budgeting for your radio advertising spends. If you would like to find out if you are currently doing your advertising right, download our free eBook with 10 questions you should ask your marketing agency!