The costs of radio
advertising vary greatly among radio stations. Some attributing factors
are ratings, programming schedules (which may include "special events"
where ad rates are billed at a premium), and quite simply, supply and
demand. Here in the Cleveland area, the major players in radio are Clear
Channel and Chancellor. These two conglomerates own a significant
portion of the radio stations with high ratings placement. Though the
format of the stations may be different, their pricing schemes are often
similar. During the late 1990s, a sample of radio advertising costs for
Clear Channel and Chancellor
stations locally, revealed charges $10.00 - $270.00 for one 60 second slot.
One of these stations suggested
14 of the 60 second slots over a period of one week. The total cost for
this package would be approximately $1,530.00 and this is only 14
minutes of advertising spread across one week! The monthly cost would be
in the neighborhood of $6,120.00! That’s outrageous!
Advertising on the
radio is not only a large financial commitment, but also an enormous
time commitment. First, you must research the various stations in your
area to determine when and where you can reach your target market.
Second, you must contact a sales representative for that station (which
in itself can prove to be difficult depending on how busy they are).
Then, you would meet with the rep, exchange information about the
companies, create a marketing plan, and then record a 60 second spot.
After all is said and done, you may even find yourself preoccupied with
listening to the radio to assure your spots are being played. Remember,
not only are the costs high, but advertising in this manner consumes a
great deal of time as well. Time is money. Many business owners actively
manage and participate in the day to day operations of their business;
to make time for all of these advertising meetings, they would have to
pay someone to take their place at work.
Most sales associates I
have spoken with among the industries of newspaper, radio, and
television agree that an ad will not be effective if it is not run for a
long period of time. Again, that means these forms of advertising are
extremely costly; considering an average cost of over $1,500.00 per week
to advertise on the radio. Another problem with radio, according to a Arbitron Ratings poll
of that time, is that radio may be losing its young
listener base. The number one reason young people are turning off their
radios is too many commercials. In support of this reasoning, is clear
evidence that radio ad sales will reach a record number this year
[1998-1999]. A
business needs to gain a young customer base to ensure future success.
Radio spots will not necessarily meet this business requirement!
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