The Advantages of Radio Advertising

In the marketing world, radio has earned the reputation of being the odd step-cousin. You know the one. No one knows quite what to do with him. Especially at family gatherings when everyone tries hard to avoid sitting with him. (After all, who knows WHAT he'll start talking about.)

Much of that reputation comes from radio being tough to track. On one hand, radio does work. Businesses do notice an increase in sales when they add radio to the mix. However, radio doesn't test well. In surveys and other tracking methods, radio tends to be the one with the dismal scores.

A good friend of mine, who's also a marketing consultant but before that she sold radio for many years, has a theory about that. She says radio works on a subconscious or unconscious level. People remember the ad, but not that they heard it on the radio. So, they tend to credit a different medium for the ad, like the yellow pages. Yellow pages gets a boost while radio drops a few points.

Regardless, radio should not be ignored because it does work. And many marketing consultants will probably tell you radio is an excellent medium to reach a local market.

However, I feel there are possibilities beyond merely reaching local customers.

Internet radio shows are starting to take off in a big way. That means advertising and sponsorship opportunities are also taking off. In addition, "offline" methods have been shown to be pretty effective at driving traffic online. If increasing Web traffic is your goal, using traditional media outlets to increase traffic should be a part of your mix.

If people already know you (which they might in your local market) they're more likely to be loyal. And they're more likely to send other customers to your site. Depending on the costs of radio in your community, radio may be a very affordable way to get a good viral campaign going. (A viral campaign is when your customers send promotional items about your business such as e-mails, articles, Web site urls, etc. to their friends and family members.)

Below are some other positive reasons to use radio:

Affordable

When you compare spot to spot, radio tends to be one of the least expensive media out there. However, one spot ain't going to do it. To reach your target market, you need to purchase several spots. That's why radio can also turn into one of the more expensive media. However, there are ways to keep your costs in line yet still reap the benefits of radio -- for instance, buying less spots but running them all in one or two weeks, so your customers are more likely to hear your message.

Psychological, if you voice the commercials yourself

Hearing your voice makes people feel like they "know" you. (Hence the popularity of audio on Web sites. In fact, marketing gurus claim just by adding audio to a site substantially increases how many people buy.)

People tend to buy from people and businesses they know and trust. Hearing your voice helps them feel as if they know you. These psychological aspects may be another reason to consider running a few radio ads in your local market even if you have an Internet business.

Speed

Y ou can get your spot up and running in no time.

Loyalty

Listeners choose stations based on the music or shows they like and they tend to be quite loyal to that station. If you know what your customers enjoy listening to, it's an excellent way to reach them. (I include both music and talk shows in this.)

Good support medium

Radio works really well when paired with other marketing mediums (like print, direct mail or television).

But for every positive, there's a negative. In the spirit of being objective, here are a few for radio:

Background medium

Radio tends to be on in the background, which means it tends to be ignored. Generally, your target market needs to be exposed to your ad more times than other marketing media before they'll act upon your message.

Little staying power

The lack of visuals again keeps radio from "sticking" with people. At least, that's what some of the marketing gurus say. But, here again my marketing consultant friend differs. She thinks it's that subconscious thing again.

And if you can write a spot that creates pictures in your customers' heads, you can actually work this to your advantage. In fact, according to my friend, if the picture is defined enough, not only will people remember it better, but they'll also think it was a print ad instead of a radio ad.

Hard to track

It's impossible to know exactly how many people are tuning in at any given time.

A final note: Because radio is subconscious, keep that in mind when crafting your ad. Repeat your business name a lot and any other branding info, so it gets into your customers' heads. Don't put in phone numbers. Instead, purchase a memorable Web site domain name and repeat that. And remember to create "pictures" whenever possible.

Creativity Exercise -- How can you use radio in your business?

Would radio work for your business? Let's find out.

Take out a sheet of paper and a fun pen. (I'm partial to gel pens.) Draw a line down the center.

On one side, put the header: Why advertising on radio is a good idea for my business. On the other side, put the header: Why advertising is a bad idea for my business.

Now pick a side and start writing down reasons.

You might be more comfortable starting with the side that's easiest for you. Then when you work on the other side, you can simply turn the reasons around.

For instance, let's say you started with the bad idea. One of your reasons was: My product is completely visual. You could turn it around by saying "Because my product is so visual, I'll have to work harder to create pictures in my customers' minds. And because the customers create their own pictures, they're more likely to remember them."

Or what if you started with a good idea, and one of the reasons was: "Because my business is local." You could turn it around and say "Because radio is holding me back -- I'm only reaching this local market." (Ah, now I'm even going against what I said earlier. Maybe with this statement you could look for ways to get your customers to spread the word outside the area about your business.)

As you saw by my last example, you'll be amazed at what comes out when you do this exercise. Even if you don't change your views on radio advertising, you may come up with new and powerful insights to your business.

Radio Advertising Pros and Cons

Radio is probably not the first thing that comes to mind when you are thinking of ways to advertise your business. Especially in these days of social media and Facebook fan pages, radio might seem old-school. But radio can be an important part of your media strategy. To do it right, you need to know the pros and cons.

Pros

You can target your advertising to a specific audience. Different radio stations have different formats, from news/talk to oldies to rock. Decide who you are trying to reach (teenagers, families, urban men, suburban moms), and then choose the radio format that reaches your audience.

A 30-second ad on radio is often less expensive than a 30-second TV ad and easier to produce.

Radio ads can be produced very quickly, unlike television ads. And unlike magazine print ads, you do not have to wait for the next issue to come out.

Cons

While a reader can cut out your print ad and save it for later use, a radio ad is very ephemeral, playing over the radio for a minute or less.

Morning and evening commutes are key times when many businesses want their ads to run, and there are only so many spots to go around. This can drive up the cost for those choice time slots.

Radio can often be background noise. You will need to run your ad more than a few times in order for it to make an impact.

Tips

If you decide to go with radio advertising, there are a few things that will help make it more effective.

Radio ads engage listeners by constructing a 30- or 60-second story, keeping the product or service being sold at the forefront throughout, covering all the key points in an efficient and entertaining way and finishing with a call to action such as a phone number. If you will be writing the ad yourself, make sure to use informal language and write the way you talk. The proper pacing is also important; trying to cram too much into your ad will only make you seem pushy. Include the proper pauses, just as if you were speaking to the customers directly.

Remember that people listening to your ad are probably doing something else at the same time, like driving in their cars or doing household chores. For this reason, repeat key information such as your company name and the name of

the product or service you're selling. Let them know the call to action is coming (Have a pen or pencil handy?), and then repeat your phone number or Web address at least three times.

The music and tone of the ad should also fit the station the ad will be airing on. For example, if you'll be buying time on a rock music station, you don't want to use a country jingle in your ad. It also pays to choose the proper type of station or programming, and make sure it is a good fit with your customer base.

For information on other types of advertising, including the advantages and disadvantages of each, be sure to check out Television Advertising Pros and Cons and Print Advertising Pros and Cons.

Radio Advertising for Small Business

It’s all too easy to waste money on ineffective advertising. Choosing the most cost effective advertising medium - newspapers, magazines, radio, TV, the internet, etc - for the right job requires a clear understanding of:

Your customers - who they are, where they are, what they want and their reading, listening and viewing habits. Don’t rely on guesswork. A simple DIY customer survey will give reliable answers.

The different advertising media. When planning an advertising campaign It’s essential to compare all the advertising media, considering their strengths and limitations, to decide which will be the most cost effective for your business at any given time.

Radio advertising isn‘t appropriate in all situations, but it has some significant advantages and local radio stations in particular can be surprisingly inexpensive.

Advantages of Radio Advertising

Clearly Defined Broadcasting Area

Transmitter locations and broadcasting range allow you to focus your advertising nationally or locally to match your target catchment area.

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If your custom is largely local, you can avoid wasting money in unproductive areas.

Efficient Audience Targetting

Many stations have a large audience, and local radio stations will often reach a significant majority of the local population.

Different radio stations tend to have their own loyal, often passionate, audience who often share common interests or characteristics.

This makes it possible to target a particular age, interest or socio-economic group.

Read on

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How to Build a Brand on Radio

Audience Sympathy

Listening to a favourite radio programme in the comfort and privacy of the home or car has an intimacy which can create a feeling of identification with the advertiser, and encourages trust. Build on this by emphasising your local credentials if possible.

Low Advertising Avoidance

Many people won’t bother to read a newspaper advertisement, or will actively switch off TV advertising. Studies show that listeners are far less likely to take avoiding action with radio advertising.

Quick Response

Radio ads can be relatively quickly produced and programmed, usually in a matter of days.

This allows you to take advantage of unexpected opportunities.

Timing and Flexibility

You can choose the day, and even the time of day, when the audience will receive your message.

You can also decide on a short term “blitz”, with frequent repetitions at short intervals, or less frequent advertisements spread over a longer period.

The former is ideal for whipping up interest in a special event, such as a sale.

Affordability

Radio advertising is undoubtedly more expensive than a newspaper classified ad, and repetition is vital, which also increases cost. Conversely, a series of short advertising spots may cost less than a single large and prominent newspaper spread, and is certainly far cheaper than TV.

Radio advertising rates vary according to audience numbers, the prestige of the station and the length, timing and prominence of the advert.

Disadvantages of Advertising on Radio

Lack of Visual Impact

If a visual image is important to whatever you are advertising, radio isn’t the right medium.

Use it instead for advertising things which can be readily appreciated without imagery, eg a restaurant or bar, a sale, or a major event like the opening of a new branch or service.

Forgettability

Because there is no visual image to reinforce the memory, radio adverts are often quickly forgotten.

You can compensate for this by frequent repetition, and by careful timing.

Difficulty of Evaluation

Because of the “forgettability” factor, people often don’t recall how or when they heard of a product or service. This makes it difficult to gauge the success of your advertising even with a customer survey.

Including in the advertisement a special offer tied to the name of the radio station can help to measure response levels.

Conclusion

Well targetted radio advertising will often find a receptive audience, but depends on repetition to achieve cost effective results.

Writing Effective Radio Ad Copy

Six Steps to Successful Radio Commercials

Most of today's business owners and managers understand the importance of advertising, but many cringe at the thought of having to write a radio script for their company. Inundated with the daily tasks of running their business, scripts can be pushed off until the last minute, or handed over to high-priced advertising agencies. But that doesn't have to be the case.

As is usual in life, there is a process.

1) Determine Your Radio Commercial Length

First of all, know the length of the radio spot that you need to write. Most radio stations these days sell :15, :30, and :60 commercials. You'll need to be precise. Radio adheres to a strict clock, so your :60 ad likely won't be acceptable as a :62 second ad.

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Typically, a radio script format calls for 12-point type in all caps, with double spacing between each line. With this in mind, here is a simple guide to follow:

:15 = 4 typed lines

:30 = 7-8 typed lines

:60 = 12-14 typed lines

And if you're including any pricing figures, or your phone number, be sure to write each number as text to give you a more accurate line count.

2) Plan What You Want to Say in Your Radio Ad

Before you start, take a few minutes and make a list of the necessary points that you need to have included. These should be key attributes and selling points that sets your business apart from the competition. Be clear and concise, and try to avoid listing too many different different points, as this can lead to confusion on the listener's part. If your company is blessed with multiple key attributes, consider running multiple ads that incorporate the different attributes, but be sure to maintain the same "feel". You want your script to have a natural flow, not be crammed full of as many words as you can fit within the time limit.

3) Use a Strong Opening Statement in Your Radio Ad

Simply put, your commercial's opening line will likely determine whether or not the listener sticks around, or changes the station. This really needs to be an attention-grabber. Unless you're a seasoned Hollywood comedy writer, you might want to avoid trying to be too cute or clever here. Instead, consider using a strong, open-ended question that's pertinent to your company and/or industry, which the average listener can relate to. Here are a few examples:

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Are you paying too much for car insurance?

Is your home as safe as it could be?

When is the last time you enjoyed a really good burger?

By posing a question like this, right out of the box, the listener could be compelled to want to hear the answer, and the rest of your ad.

4) Include Key Attributes and Your Company Personality in Your Radio Ad

The purpose of an ad -- any ad -- is to arouse enough curiosity that the target is compelled to act upon it. Get that? You don't need your ad to close the deal; you just want it to tease your product or service enough that the target decides to contact you. And that's where you and your staff come in.

With the body of the ad, address the opening question in a clear and concise manner, while working your company's key attributes into the mix. In a :60 ad, you'll want to include your company's name at least 4 times. Shoot for 3 times in a :30, and at least twice in a :15. And, unless you have trained voice actors available, keep the script to one person. It's a lot safer.

Also, show your company's personality. Known for having the lowest prices in town? Say it. Environmentally focused? Say it. Sell the only authentic German widgets within a 40 mile radius? Say it. Don't be afraid to brag a little here-just don't overdo it.

5) Use Effective Contact Info in Your Radio Ad

Just use a phone number, right? Not necessarily. When you consider that a large portion of your audience will be driving, cooking, working out, or engaged in some other activity as they're hearing your ad, most won't have a pen and paper ready to write down your digits. Which means that unless you have a Nursery School-simple number like 1-800 BIG-JOES, you'll have to repeat it, which takes up a lot of script space. And you STILL won't have guaranteed retention. Instead, consider using your web address. Most of the time they're a lot easier to recall, and it gives the listener a 24 hour point of access to your business.

6) Further Suggestions for your Radio Script

Above all, adhere to the K-I-S-S rule. The most effective ads usually do. And remember to time your script after you're done. If you don't have a stopwatch available, double-click on the clock on the bottom right of your computer screen, and use the pop-up. Ideally, you'd like to bring the script in a few seconds short. This will give the station's production manager time to add a music intro or outro, and allow him or her to not have to rush the read.

Proper utilization of these six points will allow you to take a more seasoned approach with your copywriting, and should garner better end results. Writing a radio script isn't rocket science, but it can be daunting. However, if you can

convey a few select points and ideas in a clear and concise manner, and keep your target interested, your radio campaign will indeed pay dividends.

Radio Advertising Costs Less Than You Think!

"We killed in the last sweeps!" beams the eager young rep from WIYU 106.5 FM, brandishing a Power Point print-out stuffed with Arbitron Charts. "And we can deliver your hot demo at a 3.8 frequency and a whopping 1.6 reach. You get 80 total GRPS in 13 weeks plus free creative and production!"

You glance at the bottom line on the Tapscan Contract, nod wisely, and promise to think about it. You know how everything in your Corporate Empire works. But how does Radio work?

Moments later you bark into your intercom: "Madge! Get something on radio advertising costs off the Internet." And here you are.

This article will clarify how radio is priced, what you're really buying, and what you should expect for your money.

If you have a modest budget, you can test radio for $500 to $1,000 plus a little elbow grease. Scan this page, then click to Do It Yourself Radio.

Radio is a misunderstood and poorly sold media. Local station reps strive valiantly to pry dollars away from local TV and Cable. They peddle Average Quarter Hour audience numbers and tout their recent jumps in the Arbitron ratings. They want you to buy thirteen-week schedules because, they claim, radio is a frequency media. It's not.

Radio is a loyalty media. The same people listen to the same two or three stations every day. You can build awareness and sales within those narrow slices of the population without spending a ton of money on frequency. Or you can build broad awareness and sales by spreading your money judiciously and briefly among five to ten stations that reach your Target Audience.

Gross Media dollars, phone calls, unit sales, and gross revenue are hard numbers. Radio is chock full of fuzzy numbers - statistical concepts such as "weekly cume," "AQH," "reach" and "frequency."

If you learn how to judge and manipulate the fuzzy numbers you can use radio to drive in the hard numbers.

Read on.

Radio Advertising Costs less than

TV or Newspapers.

Compared to television, magazines, and newspaper, radio does deliver Target Audiences at very low costs.

You can reach, say, Females aged 25-34 for $18.50 per thousand in local radio or for only $1.99 per thousand on Sirius/XM. The same ladies could cost $36.00 or so per thousand in a TV :30 or $85.00 per thousand in a half-page newspaper ad.

Understand that radio is sold by the spot (:30 or :60), but what you're really buying is ears (AKA Gross Impressions).

A $20 radio :60 is obviously cheaper than a $50 Cable TV :30, but the more important issue is how many people hear the radio or see the TV commercial.

The most useful radio advertising cost is Cost per Thousand.

If that $20 radio :60 delivers 4,000 Gross Impressions, then the CPM is $20/4 = $5.00.

If the $50 Cable :30 delivers 5,000 Gross Impressions then the CPM is $50/5 = $10.00.

When the eager young rep promised 80 GRPS (Gross Rating Points), she was selling a total number of Gross Impressions equal to 80% of the total local population of persons aged 12+ or 18+.

If she promised 80 TRPS (Target Rating Points), she'd deliver a total number of Gross Impressions equal to 80% of the local population in your Target Audience - Females 25-34 or Males 25-59, for example.

Her station would reach 1.6% of your "hot demo" at a average frequency of 3.8 each week. Reach times Frequency times Weeks equals GRPS (or TRPS).

1.6% Reach x 3.8 Frequency x 13 weeks =

79+ GRPS.

That does NOT mean 80% of the market will hear your commercial. Here's why:

RADIO GLOSSARY

Average Quarter Hour

Gross Impressions

Cost per Thousand

GRPS

Target Audience

Reach

Frequency

Optimum Effective

Frequency

Cume

Cume Quota

Radio stations hone in on narrow slices of the population. They try to attract and keep loyal audiences - people who will listen to the same two or three stations every day.

If there are 1,000,000 Females aged 25-34 in the market, and the station reaches 1.6% of them, the station's F25-34 Cume (cumulative audience) is 16,000 unique individuals of that gender and age range.

Also, please understand that "reaching" your Target Audience does not guarantee that they'll listen to your commercial, or respond to it, or do anything. Radio stations sell ears. They do not sell Widgets. Which brings up:

The Three Fatal Fallacies of Radio.

# 1 Fallacy of Radio: Frequency Builds Response.

Frequency builds receipts for radio reps. All response (calls, clicks, store visits, UPC-tracked unit sales) comes from Active Shoppers. How often an Active Shopper has to hear a commercial to respond to it is a function of the copy. Most people decided to act, or not, after 1 to 3 exposures to a message.

The number of Active Shoppers who listen to any station this week is your Cume Quota. That quota may refresh itself from week to week. If so, moderate frequency can maintain steady response over time, but excess frequency is a waste of money.

# 2 Fallacy of Radio: Cheap Spots Build Profits.

When you glanced at that Tapscan Report you noticed that most of the schedule will run at night, after 8pm. Those spots only cost $20 or so. What a deal! But wait, there's less!

Those $20 spots only deliver 4,000 Target Audience Gross Impressions. Fewer people listen to radio at night than during daylight hours. If you buy a lot of night time, weekend, or overnight spots you'll develop your frequency among a tiny sliver of the population. Essentially you'll pound the same nails over and over again - missing most of the other people in that Cume Audience entirely.

You'll "save money", but you won't build huge awareness, or response, or profits.

# 3 Fallacy of Radio: Powerful Announcers Build Brands.

When the rep promises "Free Production" does that mean she'll write the copy - from your Yellow Pages ad - and get the station announcer to read it? Is that the same Powerful Announcer who reads bullet point copy for Mattress Mountain, Larry's Lawn Care, and BeBe's Bodacious BarbieQueue? How expensive is "Free Production" if your message gets lost in the Daily Drone of Urgent Copy?

Does Free Creative really work in radio? Mine does. But it's not Free - well, not at first.

Radio Advertising Costs for Retailers.

Here's a handy planner you can construct for yourself in Excel. Plug in the Market Population, your own "hot demo" (say, Persons 25+), the weekly retail market (1.0% to 2% is normal), and what you're willing to pay for an "UP." Car dealers usually pay $30.00. I set it at a more modest $5.00.

Since there are 430,000 P25+ in your market and 1% (4,300) are likely to be Active Shoppers this week, your maximum radio budget is 4,300 x $5.00 = $21,500.

Next, ask your rep for her station's P25+ weekly cume. Say it's 25,000. This week's Active Shoppers are the same 1% or 250 P25+.

So your ideal weekly budget on WXYZ is 250 x $5.00 = $1,250 as long as that budget delivers an Effective Frequency of 1.0 to 3.0.

How many other stations should you buy? Usually four or five will deliver most of your Target Audience. Use my Cume Ranker method to pick them. Then use Optimum Effective Scheduling to decide how many spots to buy on each station. Buy down the list until you run out of money.

Radio Advertising Costs for Direct Response.

The idea is similar. Instead of "$ per UP" you set an affordable Media Cost per Sale - usually 24% to 38% of gross revenues. Multiply that by your Target Incremental Sales. Now you have a budget.

How you spend it is another matter. Fortunately, there are 40 or so articles on this site that answer that question.

Red FM hikes advertising rates

RnM Team 31 May 10 18:23 IST

MUMBAI: Red FM has announced an increase in its advertising rates to the tune of 12-15 per cent effective from 1 June 2010. The decision to hike rates folows the re-branding of the erstwhile S FM stations into Red FM expanding the Red FM Networkacross 50 stations and a listenership of 34 million.

Commenting on the hike, Red FM Senior VP and National Sales Head B. Surendar said, “We had rationalised our ad rates during the recession and now, we are correcting it. In the past year or so, we have consolidating out position as the largest network with a spread of 50 stations across India. The

re-branding exercise has helped us increase efficiencies and reap the benefits of scale while offering cost effective solutions to our clients. In less than a year after the re-branding, Red FM Network has shown a robust performance in IRS with a total Listenership of 34 million. In addition to this, our recent success at the India Radio Forum where we swept the awards with a total of 9 awards, proves that we have the stamp of approval from both our listeners as well as the trade.”

The stations boosts of being one of the first stations to adopt the CHR format. Commenting on the effect that the rate hike will have on the advertisers, B. Surendar added, “As a media company, our services go far beyond radio and into 360 degree solutions for our clients. Our advertisers understand the value proposition we offer and come to us because of a differentiated brand, a proven track record, the strength of our network and because of our ability to provide 360 degree communications solutions.”

Radio Advertising Ideas

More of ads, less of content. These days it has become a near-common phenomenon on nearly each and every radio station. Radio advertising is one of many different types of advertising. It has been in practice for many many years, but it has only been in the last few years, that its true potential has been realized and consequently, tapped. Of course, with the global penetration of computers and Internet technologies, Internet marketing and Internet advertising has fast-emerged as a bankable option for businesses, entrepreneurs, product companies, etc. However, radio advertising has still continued to remain strong in the wake of all other competition. For those of you who are newcomers to radio advertising, and would like to make use of it for your product or service promotions, here are some radio advertising ideas.

Radio Advertising Ideas that Work

Here are some advertising ideas for radio promotions. You can browse through them and select the one that best suits your needs.

Jingles

An ad jingle is the most popular and commonly used advertising option, when it comes to radio advertisement ideas. Just tune in to any commercial radio station and listen in for an hour. You are bound to come across a couple of dozen ad jingles at the very least. Ranging from the musical ones to the mimicry-based ones, and the funny ones to the ultra-serious ones, ad jingles are a dime a dozen. As someone who wants to promote or advertise his/her product or service, an ad jingle is a fantastic way of doing so creatively, with impact, and within a short span of time (30-odd seconds or even lesser). Read on promotional advertising.

Contests

If you're a company or a business who has just launched a new product or service, you can think of promoting it through listener contests. You can have a contest wherein the RJ (radio jockey) asks product-based contest questions and listeners are invited to send in their answers via text messages or phone calls. You can then award free product samples or gift coupons or something similar to the lucky winners. This is a very popular advertising technique and one that ensures a good deal of listener response and participation.

Sponsorship Deals

Many radio stations offer package deals or sponsorship tie-ups to interested advertisers wherein the advertiser can sponsor a certain daily/weekly segment of the radio station in return for airtime and product promotion messages and ads. This can be another radio advertising idea that prospective advertisers can consider and make use of.

Radio Advertising Effectiveness

So how effective is radio advertising? How can you make the most of it? Well, here are some things to keep in mind:

Radio advertising is all about getting your message across to the listener effectively, with impact, and in the short amount of airtime available.

Unlike television or Internet advertisements, the visual aspect does not exist in radio advertising. Therefore, this needs to be compensated or made up for, in some other way.

Professional advertising agencies and PR firms can help you in this aspect by coming up with creative, catchy jingles, punchlines and ad content which will instantly grab the attention of the listener and keep him/her hooked.

The timing of the ad is very important in radio advertising. Your ad should be played at a time when maximum number of people are tuned in to that particular radio station, i.e. during the peak listening hours.

If your city or town has multiple radio stations, you could think of playing your ad on more than one radio station, so that you end up reaching across to more number of people (than you would, in case of just one radio station).