Did video really kill the radio star? Is radio advertising still an effective tool with all of the streaming services, social media platforms, and podcasts available now? Let’s take a look at some stats first. “The average American listens to 1 hour and 39 minutes of radio daily,” according to research done by online Market Splash. That’s a surprising number but it demonstrates that people are still listening to the radio. There are some pros and cons, as with anything, to using radio advertising.
Pros:
1. Reach a large audience
2. Target specific areas
3. Target specific audiences during shows, genres, etc.
4. More cost-effective than T.V. or digital ads
5. Produced fast and air immediately
Cons:
1. Minimal buying intent
2. Choice time spots are more expensive
3. Ephemeral and short
4. Not a guarantee that the right audience is listening
5. Listens tune in and out (typically because they are driving to and from work)
6. Limited performance tracking
If the pros outweigh the cons for your brand, how do you create a radio ad? First, there are three ways to do so.
1. Hire freelance: Hire a freelance team to create your ad.
2. Have the station create it: This can include professional production quality. It is usually the radio host reading the prompt in the ad so keep that in mind if you’re looking for something with a little pizzazz.
3. Hire a production company: They will do everything from writing, recording, and mixing it. This is the best option in our opinion for the highest quality. It is still very cost-effective ranging from around $800-$1,200.
Once you have decided which option you will go with you need to decide which type of radio ad you want. Do you want:
1. A jingle
2. A testimonial
3. A sponsorship
4. A live read
5. A narrative commercial
There will be different levels of cost depending on certain factors, such as the time slot you choose. Peak commuting hours are the costliest because they reach the largest audience. This is from 6-10 am and 3-7 pm. Audience demographics can also impact the pricing. Stations that have listeners between 24-54 will be higher due to their high purchasing power. Stations that have wealthier listeners, such as jazz or classical will also be higher. Special events will also increase pricing. According to Nielsen Sales Effect Studies, radio ads can have a massive ROI with an average return of $9.9 for every dollar spent. Let’s just say that the answer to our first question is no, the video did not kill the radio star.
