Exploring Radio Advertising: Is it Right for You?
According to some advertising experts, radio is one of the most underutilized sources of media today.
To help you uncover whether or not radio advertising is a good move for your agency, we've compiled a how-to guide of radio advertising, including the advantages and disadvantages for advertising on the radio, as well as some additional tips to help make the most of your ads.
The Pros and Cons of Radio Advertising
According to the Radio Advertising Bureau (RAB), 90 percent of consumers spend an average of 20 hours per week listening to the radio. With these types of statistics, radio advertising appeals to many insurance professionals as a way to spread their message to entire communities.
Advantages of radio advertising include:
- Ability to target specific demographics
- Less expensive form of advertising
- Informal style creates a relevancy with which consumers can relate.
- Advertisers benefit from the personal and emotional reactions from listeners
- Spreads your name and that of your agency throughout the community
Confirming these benefits is a recent study by the Radio Ad Effectiveness Lab, which reported that that radio advertising added 15 percent of total brand recall as compared to television alone.
The study also revealed what many experts thought to be true, which is that radio advertising breathes new life into existing methods of advertising, such as newspaper ads, stating that radio ads in combination with newspaper ads further boosts message recall, thus increasing brand recognition.
But, like other advertising mediums, radio does have its limitations.
Disadvantages of radio advertising include:
- Extensive research needed to compare costs of airtime amongst each radio station in the area
- Extensive research needed to determine which stations will effectively target desired markets
- Limited amount of time to include important information
- Ad success is dependent on correct timing and station placement
- Ad scripts are only as good as the person reading them
- Despite the high number of radio listeners, many listeners change the dial during commercials
Because of these disadvantages, it's important to recognize the risk involved and learn how to buy radio time in an effective manner to offset these drawbacks and further the success of your agency.
Buying Radio Time
Each radio station will have its own advertising departments—all of which will try to sell you on why their station is best. Researching the stations beforehand is the best way to get an idea of who you'd like to advertise with before the sales pitches begin.
Research or no research, you'll need to know some of the following about prospective radio stations:
- Station ratings
- Type of programming
- Type of music played
- Geographic span
- Number of listeners
You'll want to look closely at this information before deciding which station(s) through which to advertise your agency.
Most stations price radio spots in 30 and 60-second blocks. And, while a 60-second radio spot may sound more beneficial, studies confirm that most listeners diffuse their attention after 20 to 40 seconds. Most experts recommend asking the station for two 30-second blocks for the price of one 60-second block to get the most for your bottom dollar.
When it comes to running the ad, keep in mind that you may need to run it five or six times before the message resonates with listeners. It is for this reason that most radio spots are purchased in chunks—running ads with high frequency over a short period of time is statistically more effective than running ads with low frequency over a long period of time.
You'll also want to do plenty of research when selecting the time slots during which your ad(s) will be played.
On average, stations will give you three choices: prime time, or "drive time," midday and "run-of-the-station", or whenever they can fit you in. Identifying the times when your targeted demographic(s) tune in will help you decide when you'd like your ad to be played—an ad for life insurance is likely to do better during the farm updates than the top 40 countdown.
Additional Tips
If you think radio advertising might be right for you, here are a few more tips for the road:
Don't discount foreign stations. If you have bilingual staff on hand, advertising on non-English-speaking stations can give you an advantage over competitors.
Avoid tunnel vision. Don't count on radio as your sole source of advertising. Couple your radio ads with print ads or TV commercials to up the ante.
Think seasonally. Listeners tune in more during the spring and summer and less during fall and winter months. Plan your ad campaigns accordingly.
Keep it simple. 30 seconds isn't a lot of time. Avoid disclosing lengthy phone numbers and addresses. Instead, describe your location: "Downtown on 1st and Main." If you need to disclose a phone number, simply repeat your name and agency and direct listeners to the phone book.
Ultimately, you'll need to weigh the pros and cons to decide whether radio advertising is right for your business. No matter what advertising medium you choose, doing your homework ahead of time will help you make the best decisions for your business!
This information was provided by InsureMe, the leader in online insurance leads for the insurance industry. Since 1993, InsureMe has helped thousands of insurance agents succeed in the insurance business by providing top quality leads that are both detailed and affordable. For more information on InsureMe leads, please visit our agent Web site at agent.insureme.com.
