Is Radio Advertising Right For You?

I was given a gentle nudge from my father the other day. He was reminding me of my radio roots and was wondering when I would do an article on radio advertising. I literally grew up in radio (it was on in every room of our house) and I have fond memories of the time I spent working at the station. So Dad, as promised…..here we go!

Is the radio the right medium for you to market your business? It all depends. Many businesses have blossomed from it and others have been burnt badly. While there are always exceptions to the rules (and I LOVE exceptions), here are some good guidelines when it comes to choosing RADIO as a place to promote your business.

Do you market to consumers? The radio is renowned as a medium that reaches the local masses (and now with the influx of satellite radio and online streaming, even a bigger geographic area). So if you need to get your message out to a large group of people then the radio can be a great source. This doesn’t necessarily mean that if you market to businesses that the radio is a definite no go. There are just some extra “ifs”. “If” you are lucky enough to know that the key decision makers in general, listen to one station, and “If” they will actually listen to your message via the radio, and “If” your product or service fits the format of the radio station …well maybe!

Do you intimately know your target audience? Sales reps will always let you know what way their radio station is skewed. They can give you great information like age and sex breakdowns, income and educational levels of their listeners and what times of day they are most likely to listen and for how long. Many businesses assume that if a radio station has a huge amount of listeners that fit the profile of their audience that this is where they should invest. But, trust me it is not always a good indicator.
Ask! Ask your clients and potential clients what radio station they listen to and what time of the day. You may find that YOUR audience actually favours a smaller station or that they listen at a different time. Not only could this save you money on advertising, but you could very well end up with a healthier ROI.

If you are going to survey your clients, ask them to give their top 3 stations in order of preference. People listen to more than one station, and your best deal (in terms of audience and rates) might be in pursuing the second choice if it’s a big enough contender!

Does your offering fit the format? An Adult Video Store may have some difficulties advertising if the station is concerned it will offend their listeners. Alternatively if you have a complex product or service and can’t find a way to simplify it, radio may not be the right place for you. People have to be able to “get it” in 60 seconds or less.

Do you have at least $5000 to spend? While some might argue with me on this, this is the bare minimum I would recommend to run a campaign in a major city.

Notice I said campaign and not an annual spend. Like all marketing activities, the radio requires frequency, consistency and location, location, location. You need to have what’s called a certain level of “saturation.” Your rep can help you determine what a good level of saturation is for your campaign.

Why $5000? Because if you can find some cost-effective promotions, spots, or radio stations this number can start to pay off. It’s important to note that a 30 second prime time spot in Calgary can hover around the $300 mark on the larger stations, hence why I stress that $5000 is just the MINIMUM. If you have never used this medium before, you HAVE TO be able to invest a fair amount to get a good indication of your ROI.

Is your product or service something the radio station may want? Radio stations today are really looking at creative ways to promote loyalty in their listeners. If you have a coveted product or service you may be able to develop a contra deal with the radio station, whereby they will take a certain amount of product in exchange for advertising. If you have desirable products or services, definitely ask about the loyalty programs offered by many of the radio stations. They have some great ways to drive business to your location and provide you, along with your radio campaign, some online advertising.

Does the cost of a customer warrant the spend? If the average amount of money that a new customer spends with you over a lifetime is $500, hopefully you aren’t going to spend that much to attract them! If you haven’t worked out the value of a new customer you better!

A WORD OF WARNING
Don’t cheap out! Sadly I see this far too often! When you are looking at the cost of a radio spot, don’t cheap out. By this I mean, don’t go with a smaller radio station just because their spots are cheaper when you know your audience is really listening somewhere else. Also don’t purchase evening and weekend spots, when you know your audience is really listening in the morning and at drive time! Yes, these spots are more expensive….because your audience is actually listening then!

About that Radio Ad….

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