It’s typically the first, and one of the most common questions our agency is asked: “How much does a radio ad cost?” The simple fact is a radio ad can be as cheap as $1 or as pricey as $40,000. Much like ordering food at a restaurant, the price depends on the value and quality of the dish. In this case, that’s determined by how many people the message reaches and if there are special attributes to that audience that might merit a premium price.
The primary determinant in the cost of a radio ad is the number of people the ad reaches. If you call a local radio station and ask for advertising rates, you’ll find that as audience size changes throughout the day, so does the cost of purchasing commercial time.
A Morning Drive spot (6-10am) is typically the most expensive, due to advertiser demand and the fact that it reaches a large audience which includes people commuting to work. But don’t go spending your entire budget on Morning Drive based on audience size alone. A less-expensive day part that reaches fewer people may be a better decision. Let’s say you’re marketing a sleep-aid product. An overnight spot schedule might be a more natural – and cost-effective – place to air. Or if you want to consumers to visit your restaurant for lunch, a mid-day spot may be the best choice. Keep the consumer’s lifestyle and behavior in mind and purchase airtime around their schedule, not yours.
Unlike AM/FM Radio and SiriusXM Satellite Radio, which reach a station’s (or channel’s) total listening audience each time an ad is played, Podcast and Streaming (e.g. Spotify and Pandora) advertising is served one listener at a time, when an individual plays programming content. Podcast advertising rates are driven by the number of streaming exposures and listener downloads a show generates. A show that reaches millions of loyal listeners like The Joe Rogan Experience will be far more expensive to sponsor than a podcast that reaches only a few thousand people. Keep your target audience, and your budget, in mind at all times. By utilizing small podcasts, you can put together a great campaign without triggering a six-figure expenditure. For Streaming, you’ll most likely be paying a fixed CPM (cost per thousand impressions) and targeting your audience by age, gender and geography; unless you’ve bundled in lifestyle and buying-preference data at a premium upcharge.
Radio advertising rates vary by geography, station/channel/network, time of day, and even how frequently your commercial runs. The Radio Agency has been building rock-solid media plans across all platforms of radio – for first-time and veteran radio advertisers alike – for over 25 years. Point being, we know the right questions to ask to get the best possible rates for you, regardless of the platform. Drop us a line if you’re interested in radio advertising, and together we’ll build a plan tailored for your brand’s success.