East Bay Radio Advertising

How To Use Radio Effectively

I have spent over a decade in radio and marketing. Everything from Top 40 stations to Oldies, Country to Spanish language. I've been involved in every aspect of radio including being an on-air DJ on a 100,000 watt station in South Dakota, as an account executive in small and large markets, and a consultant nationwide with the some of the largest broadcast groups. I have learned what works on radio and what doesn't. Now, I'd like to share that information with you so you will be better prepared when using radio in your next advertising and marketing campaign.
Formats
It's essential for you to realize that the type of programming, or format, of a particular station should determine the type of commercial you should run. I am always amazed when a radio station runs commercials that do not fit the particular audience that listens to the format. A good example would be an ad promoting a monster truck event on a jazz station. When a commercial that does not fit the format comes on, many listeners will automatically tune it out. If you are on a very limited budget and cannot afford to cut a spot for each station you will be using, consider using live commercials. The listener already relates to the announcer and will not see the commercial as an intrusion, since the DJ usually reads a liner or two during the course of a break. This can also lend credibility to your product and/or service because it is almost an implied endorsement. However, this does not work with automated or semi-automated stations which are run by a computer which inserts the commercials at their appropriate times. In this case, it would be worth the extra investment to cut a spot custom made for that station.
Demographics, Ratings, and Cost Per Prospect
I'm a firm believer that demographics don't buy products, people do. No doubt you have been told by a radio rep, "Our audience demographic is males aged 18-34 with a crossover into the 25-54 group", or something like that. Next time you hear that say, "Yes, but do they buy (your product inserted here)" Many times people in the media tend to conveniently overlook the fact that, although they may reach a very appealing demographic group on paper, in real life the audience is not a very active buying audience. An example of this is using a station that reaches the 55+ crowd. This demographic is a great audience for a variety of services, but they spend money in unique ways. They are in the distribution phase of their life and are generally looking to protect their wealth, not spend it. So putting a heavy campaign on-air that promotes a lot of retail spending can fail.
Ratings don't say much either. They are a snapshot of the moment in time during which the ratings were taken. Afterwards, tastes may fluctuate, people move into and out of town, or a new station may come onto the scene and take everyone's audience.
The point is you should try to determine which station(s) will reach the demographic YOU want but more importantly, reach the BUYERS that need your goods or service. For example, the town I lived in has 16 radio stations to a population of 450,000. The top two radio stations fluctuate each year. One is an Adult Contemporary station aimed at the 25-54 female audience, the other is a Rock station that reaches 18-34 males. Currently, the Contemporary station is holding down the Number One spot with the majority of listeners tuning it in throughout the day.
Now, let's say you are selling automobiles to an upper scale, affluent audience. Which station would you choose? It's hard to tell with just demographics and ratings, isn't it? Well what if I added that fact that the Rock Station audience tends to have an average of 30% more discretionary income than the Contemporary audience? Now which station would you use?
These factors are extremely important when deciding which station to use. It does not matter which station is number one ONLY that the station or stations you choose reach the audience you want to reach. In this case, I would recommend that my client use the Rock Station because, even though the overall audience is smaller, the people it does reach are in a more tenable position to buy the automobiles.
This factor is what some people call "Cost Per Prospect." It is a variation of the venerable "Cost Per Thousand" used by many stations to illustrate how much it costs to reach 1,000 listeners. It is crucial for you to determine not the cost per thousand, but the cost per prospect. This is how much it costs to get one new prospect in your store based on the advertising you run. Afterwards, you should try to determine the cost per customer, or how much it costs to convert that prospect into a customer, again, based on the cost of your advertising. Once you determine that, you can easily see how much each commercial really costs. You may find that while you are only paying ten dollars for a spot on a station, you're only getting one prospect for every three times the spot runs... a cost of thirty dollars per prospect! If that person buys only twenty dollars worth of merchandise from you... well, you can do the math.
Production
Please, Please, Please don't record a radio commercial yourself unless you have at least a few years worth of radio experience. I take note every time I hear a spot that was done by an owner of a company using one of their family members and do not deliver an effective message. Why do people who have never been in the business think that they can do a better job than a veteran? I believe it may have to do with the radio sales people who, in an effort to kiss up to their client, encourage them to do so. "Oh, you'll be great!" they exclaim. And when the spot bombs because the client can't read, the sales rep says, "Well, we'll just have to try again." Neat way of increasing the buy, wouldn't you say?
Seriously, use the stations talent or better yet, hire a production company. They know what they're doing. If your budget won't allow that and you must use the station, use a team effort to write and produce your commercials. Using Radio DJ's and the production staff along with myself and your thoughts to write, record, and edit a clean message. Radio DJ's are on the air an average of 4 hours and know what sounds good and what the listeners tune in and out.
Regardless of who writes it, however, make sure it is effective and sells your product. We're not looking to win awards, just sales. "If it doesn't sell, it's not creative." Also, look into using sixty second commercials as opposed to thirty second. In case you weren't aware of it, a radio commercial is sold by the minute so every other time unit is a percentage of the sixty. So a thirty does not cost you half of a sixty. Instead, it usually costs 70-80% of the sixty and a fifteen second liner usually costs about 30-50% of the sixty. If you look at it this way, you can see how buying a sixty is actually less expensive than buying thirty. If you are accustomed to buying thirty second spots, think of it as buying one thirty and getting a second for just two or three dollars more. Look into that.
Cost
Now we're getting to the best part. How much should radio time cost? Well, of course it's going to differ from market to market. Locally, you can buy a radio spot for as little as 75 dollars or as much as $175. Go to L.A. or New York and the prices are astronomical. The point is there is no standard rating system for radio commercial air time. Most stations will charge according to their position in the ratings with the top stations charging more. Overall, pricing a station is based on market averages.
What can you do to stretch your radio budget? Trade is one excellent way of doing this. With most stations usually engaged in some sort of on air promotions, free products or services to give away are always welcome. Some stations will go as far as giving you all the air time you need in exchange for your freebies while others will only trade a part of the air time and require cash buys as well. You will have to negotiate that with your station rep but you can usually work out a deal that is beneficial for both. Another way to stretch your budget is to negotiate for late time hours. Increasingly, more and more people are working swing shifts or overnight shifts so you can't always reach them during "normal" listening hours. Ask your station us to throw in some free overnight and early morning spots in addition to your buy. Most will and you can actually double the amount of exposure you have without doubling your budget.
USE FIKE SHWAY EFFECTIVELY

I am available for a consultation anytime. Look me up at bayarearadioadvertising.com