• Radio is a medium that has adapted to digital streaming quite well
• In 2020 radio listeners jumped up 2% with many people tuning in at home
• Radio ad pricing is based on many factors such as time, day, length of ad and how often it’s played. 

In this very modern day and age you would be forgiven if radio advertising wasn’t in your marketing budget. However, as an industry, radio has managed the swap to a digital medium quite well. This bodes well for radio’s future. 

Dividing up your marketing budget is not always easy, however radio is still a very sound investment in your advertising game plan. There is a reason why large companies still advertise on the radio, because it’s effective.

 In fact, in 2020 radio ad spending increased, which proves you need to be thinking about it for your next campaign. 

Should I advertise on the radio?

Radio networks have a strong audience in these modern times. It’s true that streaming platforms such as Spotify have taken a share of radio audiences, however in 2020, with everyone staying home, radio audiences actually jumped 2%. 

Also it’s worth remembering that streaming radio is still radio and has been embraced by many. Radio has made the jump to digital quite seamlessly and this will ensure it’s future.

A key part of radio is listening to new artists and identifying new trends in music and that hasn’t changed.

Radio is now available on streaming services and on traditional forms such as in cars and on the radio. It’s this innovation of streaming that has likely upheld radio’s audiences. It also means that anyone anywhere in the world can listen to a radio program. 

But how much does it cost to advertise on the radio? Glad you asked! Let's explore how the radio ad cost structure works and how it can work for you. 

How does the radio ad pricing model work?

There are a few factors that will influence the price of your radio ad. Let’s dive in and explore them.

1. Ad Length

This is a big factor in the cost of your radio ad. The average length of a radio ad is 30 seconds long but you can buy 15 second ads. You can also buy longer if you wish, up to 90 seconds but it will cost you. 

According to Radio Results for a smaller radio station you can look at spending $900 AUD a week for a 30 second ad and in the larger metropolitan radio stations it can be around $8,000 AUD weekly. 

2. Time of Play

When you agree to a time slot to advertise you aren't really buying the time, you are buying the audience. ‘Drive time’ is a higher price category due to many people tuning in at this time typically commuting to and from work. 

Also if your products are adult in nature you may have time restrictions on when you can advertise and that is something you need to discuss with the radio station or the media buying agency. 

3. Day of advertising

Surprisingly, certain days have higher audiences and you pay accordingly. Tuesday, Wednesday and Thursday have better audience numbers, so the cost will be higher. Friday, Saturday, Sunday and Monday are lower cost days so you could factor in a mix of high and low cost days to ease the burden on the budget. 

If you find the idea of negotiating for ad space a bit too stressful there are agencies that can help you. 

4. The format of the ad

Is your ad a pre-recorded ad? Or it is an ad that has a live element with the radio hosts. While having a trusted voice spruik your products and services can be very helpful, they are much more expensive to arrange. 

It’s a form of influencer marketing and one that is very popular. Radio hosts commonly become beloved icons and using that trust can increase the platform of your product or service. 

However if you want to save money on your ad creation a pre-recorded ad is the most common choice as it’s more cost effective. 

 According to Radio Results, all these factors are combined in a formula that look like this:

You have a 30 second ad. Your ad will run, for example, 4-5 times a day. If it’s 5 times and your ad is $100 it's 500 a day. If you times that by 7 it amounts to $3,500 a week and per month it’s 14,000. 

Of course you will pay less for a 15 second ad and you may have some higher and low cost days to take the sting out of the price. Also you don’t have to advertise for an entire month if your budget won’t stretch that far. 

There are services that can offer discounted rates, find spots where you can advertise for free and other useful tips and tricks. These services are usually found at a media buying agency. 

Some more general tips: 

Streaming radio on platforms such as iHeartRadio are usually cheaper and can give you a massive audience.

Keep an eye on the demographic that the radio station markets itself to. For example if you are advertising to middle aged males a radio station like TripleM which has a primarily male demographic would be a great idea. 

If the radio station doesn’t cater to your demographic and service it’s not likely to give you any ROI. 

Would a media buying agency be helpful?

A media buying agency can negotiate on your behalf and also help with writing and producing your radio ad. These agencies live, eat and breathe radio ads, so you can get very informed advice. 

Your media agency can also help you select the right radio networks for your business and if it is multiple stations, undertake all the negotiations for you so you can sit back and relax.

Also if you want to do a multi medium advertising blitz, for example, over newspaper, radio and digital networks then consulting a media buying agency is a great idea.  A good media agency will have accreditation with reputable mastheads and TV networks or will have plenty of experience. 

If you are still concerned about price, there are some things you can do to reduce the cost of your radio ad. 

Are there any tips to reduce the cost of radio ads?

1. There are some ways you can reduce your spending on your radio ad. Let’s explore them. 
2. Opt for a shorter ad of 15 seconds
3. Have a clear idea of what you want in the ad so creation costs are kept to a minimum. 
4. Have a mix of high and low cost days to ensure your pricing isn’t the maximum cost. 
5. Keep it to a pre-recorded ad rather than wanting an advertorial or conversational ad.
6. Enlist the help of a media buying ad expert who will have extensive experience in radio ad buying. They can even help you get a few free spots. 
7. If you don’t need to be advertising to metropolitan networks, don’t. Regional networks are cheaper.  

Next steps

If you have decided to look into radio advertising for your next campaign you need to:

1. Identify what you want your ad to say. Do you want a general awareness campaign, or advertise a new product or sale? Get clear about your objectives.
2. Learn more about the advertising options open to you and what you can get for your budget
3. Decide if you want a 15, 30 or 90 second ad. Your budget will give you a guide on this as well, with 15 seconds being the least expensive option. 
4. Consult a producer or a media buying agency to discuss radio ad creation costs, best radio stations or platforms for your business. Then create your ad. 
5. Get quotes and information on your chosen radio networks demographics and reach. 
6. Place your ad on your agreed station or stations. 
7. Make sure you make a note of when your radio campaigns start and end to see how your sales are increasing as a result.
8. Enjoy your new customers and sales