The Benefits of Local Radio Advertising to Your Business

By advertising on the radio locally, you get the opportunity of delivering a simple yet powerful message to your target audience. A great point about radio advertising is that there are options available for every business size and every budget.

One of the benefits of radio is that it is a very cost-effective advertising medium, and the costs will depend on the results you are aiming to achieve. You might want to run a national radio campaign to launch a new product, or you may want a very targeted, local radio campaign.

Radio still reaches a huge audience

The 2019 survey results showed that the number of people listening to the radio is continuing to increase. In Australia, over 10 million people listen to a commercial radio station for at least one hour every week of the year.

Reach your specific audience

Each radio station is operated with specific market segments in mind, so after a careful selection process, your product or service will be advertised to your exact target market.

Radio usually gets full attention

Unlikely TV, radio listeners are far less likely to “tune out” when ads come on the radio. People carry out a wide range of activities while simultaneously listening to the radio.

Radio is the medium that people spend the most time with throughout the day, especially while commuting, providing ample opportunity for a message to reach its audience.

Radio is an anywhere and anytime medium

Advertisers have the opportunity to reach people on the go, given the radio’s portability; what offers them an edge over competitors. The accessibility of radio enables listening to occur in places that other media may have difficulty reaching. For example, your target customers don’t read a newspaper or magazine whilst driving, nor do they watch TV whilst working in the garden.

It’s said that there are 50 million radios in Australia – that’s an average of 5 devices per household. Today, radio even overlaps with the phenomenon of digital media via downloadable radio station apps.

Radio is community based

Radio is live and local, so it reflects the community. When the traffic is jammed, or the bridge is closed, you turn on the radio to find out what is happening.

Radio is more local than global. People listen to the radio to find out what is happening in their community such as special events, news, traffic updates, weather reports, sport and entertainment.

Radio offers you a bigger frequency at less cost

Advertising is all about repetition. Your target customer may well need to hear your commercial three or four times before they respond to your call to action. To reach this level of frequency, radio advertising is usually more cost-effective than other media.

Local radio offers an opportunity to promotional content

Running a competition, a “live broadcast”, or sampling your product on air. Promotional content like this can be hard to do with print or television. In other hand, radio offer this sort of target customer involvement at an affordable price.

Radio also has its own local ‘personalities’

Being personally endorsed by a radio personality can hugely add credibility to your product or service. Studies show that radio content influences people because they feel they are hearing it from a “friend”. As many know, referrals are always the best type of sales opportunity.

Why using an agency for buying radio advertising for your business?

A question that usually arises is ‘why should I use an agency to buy media’?

An accredited advertising agency costs the advertiser nothing more than buying direct. However, with the right ad agency, your ROI goes through the roof, costing you less per lead than buying direct. A good marketing agency is going to offer you transparent, hands-on help to make every ad spend dollar go further and return more.

A marketing agency provides expert media buying and planning services, ensuring that your message is carefully crafted for every audience and every medium. A full-service agency, like MAPS, also creates all your creative strategically.

Spending time to manage multiple media reps, each with their own agenda and budget to hit, as well as making sure you are having the right message, the right strategy, right ad spots… it’s not that simple.

We are an independent full-service media marketing agency built on a foundation of trust and transparency. We combine data, creativity, marketing strategy, media planning and media buying to deliver holistic business solutions.

The MAPS Agency team is based on the Sunshine Coast, Queensland, offering integrated Media and Marketing strategies to clients throughout Queensland and Australia.

How buying radio advertising through an agency actually works?

To be clearer, we are bringing to light a real example of negotiation for a client, to show you how we can create the right strategy for your business.

The client X wanted to start doing radio advertising and got a proposal of one radio station.

However, most radio listeners only tune into their favourite station, so to increase the listening audience we don’t suggest spending more on the same station, instead add another station to the mix. We guarantee you’ll achieve better results!

When you buy one radio station, your listening audience never really increases much throughout the year. They might go up or down a point or two, but each station only achieves its share.

Take Sea FM radio station located on the Sunshine Coast for example. This station achieves a cume (cumulative/accumulated audience) percentage of 33%, which is not a bad result! If you add Hot FM Sunshine Coast, which achieves a cume of 30.6% to Sea FM then suddenly you’re reaching two-thirds of the potential audience.

And more, 68 x 30 sec spots on a one station buy with Sea FM costs you $5984. Because Hot FM is number two, it is cheaper than Sea FM. So combining the spend comes to $5112 a saving of over $800.

When you consider the reach of 53,500 that can be achieved by a two station buy to the reach on a one station buy 36,273, it’s a bit of a no brainer!

This example shows the spending and reaching on Sea FM only.

Picture1
Average Results Using Only one Radio Station

Now, have a look at the difference of using the two radio stations.

Picture2
Average Results Using more than one Radio Station

As a conclusion, you must spread your radio spend across more than one station. Note that the examples used above were based on 2019 Radio Frequency survey data and the 30 second spot totals are examples, but relative comparisons based on real rates.

Get in touch with us to find out more.

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