When people think of the best ways to advertise now, their minds often go digital. Business teams focus on SEO-driven content, social media ads, and email marketing to get new customers.
However, these aren’t the only advertising methods available. Radio ads remain a popular approach for introducing people to a company’s ANT radio services.
It’s worth noting that radio has changed over the years. Radio ads canplay on local radio stations, but many people pay for ads on XM and streaming radio stations.
These new methods have kept radio ads alive. However, is the radio ads price tag worth your time?
If that’s what you’re wondering, keep reading! We’ll explore the ROI of a radio ad in the guide below.
Average Radio Ads Price
Calculating an average radio advertisement price can be a challenge. This is because the radio ad cost comes from the rate based on the airtime’s value.
How do you find airtime value? First, you have to determine how many people the ad reaches. Other factors, like the average listener age, annual income, and audience demographics, can also affect airtime value.
Usually, people determine the cost of radio commercial ads with this equation:
Cost = Amount of Listens x Cost to Reach 1,000 Listeners
The biggest takeaway from this is that radio stations often charge per radio spot. Different air times have varying numbers of listeners, making some spots more valuable than others.
Internet Radio Advertising Prices
Internet radio advertising has become increasingly popular. From Spotify to Pandora Radio, these radio stations help several businesses accrue revenue.
These stations have more consistent advertising rates than many local radio stations. However, these rates may also be much costlier than local rates. The reason for this is they often charge by monthly or weekly packages.
For example, Sirius XM charges a minimum of $10,000 for each week of advertising. iHeart Media offers a weekly package as well, with rates ranging between $5,000 and $25,000.
In contrast, Pandora Radio offers much more affordable rates. Their advertising packages begin at $1,500 monthly.
Choosing Ad Frequency
Ad frequency refers to how often a person will hear the ad in a standard period (such as a week). Radio ad networks often want you to run your ads frequently. To entice you to pay for more ads, they often offer bundle packages that let you save money.
Many advertisers seize this opportunity by advertising at multiple radio stations simultaneously. Usually, they find the best frequency package for a week at one studio while doing the same for another.
Is the Cost Worth It?
Radio ad costs can be worthwhile if you hit the perfect ROI sweet spot. To reach that point, target the right audience at a time when most people will hear the ad. Then, ensure the ads play at a high enough frequency that you get the best ROI.
Are Radio Ads Right For You?
As you can see, radio ads price ranges can vary tremendously. However, your company can receive a significant ROI with the right formula. So, take a chance and find the best radio advertisement deal for you!
We hope you enjoyed this article! If so, check out our other content today.