84% of consumers expect companies to create content, and one of our favorite ways to do that is through the radio!
Businesses that advertise on the radio reach untapped audiences and have a huge range of options of where to advertise now that streaming services exist. But how much does it cost? And is it worth it?
If you own a business or work in advertising, then this is for you. Join us as we breakdown radio advertising prices and give you an idea of what to expect!
Like most price points on the market, radio advertising costs are determined by supply and demand. To figure out how much a radio ad or “spot” will cost, you can follow this general rule:
Cost = Number of Listeners X Cost to Reach 1,000 Listeners
To determine the cost per 1,000 listeners, or cost per mille (CPM), take the cost of the radio spot and divide it by the number of listeners. Then multiply it by a thousand. For example, if an ad costs $300 and the station has 30,000 listeners, then the CPM would be $10.
Price Per City
Now that we’ve covered the basics, let’s break it down by city.
Location vastly affects radio advertising prices because cities with higher populations have more listeners. Most cities fall between $100 and $400 per ad, with the higher end being dense cities like Chicago at $362 and the lower end being areas like San Antonio at $81.
Price Per Outlet
Thanks to the age of technology, we also have a new form of radio advertising, and that’s streaming apps.
Prices vary widely between the different internet radio services, with Pandora starting at $1,500 per month and Sirius XM charging a minimum of $10,000 per week! While the prices may seem steep, they can actually do great things to help your brand.
Other Determining Features
The cost to advertise on the radio comes down to the aspects above, as well as a few others.
How popular a radio station is will be a huge cost factor. The more popular the station is, the more listeners you reach, which means the station can ask for more money. Piggybacking off of this, the demographics will also affect the price. Bigger stations typically reach a wider demographic, so you’re paying to advertise to more potential markets at once.
There is a factor in favor of the business though, and that’s negotiation. Most stations will ask for a standard price, but that doesn’t have to be the final sale. Depending on your hustling abilities and contract, you can potentially haggle it down 20%-40%.
Advertise on the Radio for Your Next Hit
The advertising game is tough and expensive, so your next move should be a smart one. Compared to other methods, radio advertising for businesses is a cost-effective option that allows you to reach a large volume of people, so it definitely deserves your consideration.
We hope we’ve convinced you to advertise on the radio and to seek the benefits that come with it. If you enjoyed this article, then you should hop over to our blog. We cover everything from law to sports and rec!
(Visited 5 times, 5 visits today)