Radio advertising has many advantages over other types of advertising. However, radio advertising does attract some costs, though it reaches the target audience in huge numbers at lowest rates. About 7% of total media expenditures by the companies are incurred on radio advertising.
Advertisers have to pay costs for the spots that are marked for advertising by the radio stations. There are many factors that affect the cost of radio advertising. For example, numbers of listeners is one of them. If a company chooses a radio station that is most popular, it must be ready to pay the highest cost also.
By choosing a radio station that has less popularity but high target audience concentration, some costs towards radio advertising can be saved.
Time at which advertisement is aired also affects the cost of radio advertisement.
Most expensive slots that attract higher radio advertisement fee are early morning hours and late afternoon hours. In these hours, maximum numbers of radio listeners can be expected.
Length of advertisement also affects the cost of radio advertisement. Long duration advertisements attract larger costs as compared to short duration ads. However, each radio station has its own pricing policy and it is very necessary that a person compares the pricing policy of each of them.
Normally, standard length of a radio advertisement is 30 seconds. But this does not mean that price charged for a 10 second radio advertisement would be 33% of standard advertisement rate. Advertiser might have to pay 50% rate in such cases.
Length of radio campaign also affects the cost of advertisements. Generally, long campaigns are cheaper in terms of per advertisement. However, going for very long campaigns, say two months is not recommended.
Sufficient campaign period for radio advertisement has been pegged at four weeks. If radio advertisements are given for a period of two weeks, overall money charged is low but per advertisement cost is high.
Type of radio advertisement chosen by the advertiser also affects the cost of advertisement. There are many options available. For example, an advertiser can promote products through competition on radio or it can go for specific shows that are aired. Cost of each of these differs. It is better if comparison is made among all the available choices.
Frequency of advertisement is another factor affecting the cost. If advertisements are repeated after short intervals, cost would be certainly high. On other hand, a person can save money by airing advertisement on alternative days or alternative weeks.