How to Allocate Advertising Fees for Radio Shows
A radio show is a format where potential members of your target market tune in regularly to listen to news, views and entertainment. Radio stations commonly host more than one show that may appeal to a variety of listeners. As a marketer, if you choose to advertise on the radio you should consider allocating your funds to more than one radio show at a station if it's consistent with your marketing plan.
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Instructions
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Ask your radio sales representative for a listing of all shows on the station along with a description of each show's theme, host, time slot and statistics about the average listener.
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2
Review your marketing plan, which should have a description of each of the individual segments -- groups of potential buyers with a similar profile -- you plan to target. For instance, you might assign employed young women aged 20 to 35 to segment one and teens 13 to 19 who are tech-saavy to segment two.
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3
Match your defined segments as closely as possible to the target listener of each of the various radio shows at the station. In many cases, if you quote the various marketing segments to your sales representative, he can help you with this process.
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Determine what percentage of sales each segment contributes to your company's revenues based on historical sales data. You may have to talk to sales representatives to get rough estimates.
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Allocate your radio budget to the shows based on the percentages estimated in the previous step. For instance, if your top target market brings in about 70 percent of revenues while segment two brings in 30 percent, put 70 percent of your radio budget for that particular station to the show that reaches the top target audience, and the other 30 percent to the other show.
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Adjust your percentages as needed on the second round of your radio advertising campaign if you find it successful. Remember to keep data on the sales as well as the demographics of buyers and ask callers to identify the radio show they were listening to when they heard about your offering.
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Tips & Warnings
On the first round of radio ads spend conservatively --- especially if this is your very first time advertising in this format. If you see the results you want, then increase your spending on radio ads incrementally.
Negotiate on the price of your radio campaign by agreeing to mix cheaper 10- and 15-second commercials with longer ads during the various shows. These shorter ads are quick reminders for listeners who may have heard the longer ones already.
