How to save money on radio ads
Posted April 05, 2018 05:30:20A new report from market research firm iSuppli says that as of March 2018, the average radio ad costs in the United States were $8,547 per station, which is roughly $1,800 per listener.
In contrast, the top three radio networks spent an average of $1.8 million on radio advertising each week, according to iSuppl.
iSupps report is based on Nielsen’s data and the network companies’ advertising budgets.
In fact, the most expensive station on radio in the U.S. is the ABC network, with an average ad spend of $5.2 million.
The top three networks spent more than $4 million on local radio advertising in the past year, according a recent report from advertising industry publication Ad Age.
In total, iSuppls report found that the radio advertising industry is expected to spend $14.2 billion this year, which would be more than the total ad spending by the Fortune 500 companies.
iSubscriptions in the $5-to-$10-per-month range are also growing fast, and the average subscriber spends $2,100 per month.
But the iSupplies report found a few key points about radio advertising:Radio stations are generally more likely to target listeners who are younger and younger than average.
For example, the biggest difference between the top 3 radio stations and the rest of the market is the median age of the audience.
According to iSubs report, stations that spend more money on local advertising tend to target younger listeners, who are more likely than the rest to be younger than 30.
iStockPhotoThe average listener age for the top radio stations is also rising.
iMarkets report found the median listener age was 32 in January 2018, and that the average listener ages of those in the 20-34 age group grew from 23 in January 2017 to 26 in January 2020.
In other words, listeners are entering their 20s and 30s at higher rates than ever before.
As for radio ads, iMarket reported that stations were spending more money targeting younger listeners than older listeners, and in some cases were spending less money targeting older listeners.
For instance, iSubcasters report that stations in the 40-49 age range spent about $3,400 per station on local ad targeting, compared to the $1 million per station that the top 5 radio stations spent on local ads in the same age group.
But iSupplis report does find that the number of ads targeted to people in the middle of the ages has grown in recent years, particularly among older listeners:In fact the top five radio stations were targeting an average age of 46 for local radio ads in February 2018, while the average age for people over 50 was 26.
iMarketResearch also found that in 2018, local radio stations in America were spending an average $1 billion a year on local broadcast advertising, and iSuppLabs report found radio stations spending more than twice as much on local TV advertising as they did on radio.
While the average ad spending is expected for radio stations to grow, iMarketData’s report found, it’s not all rosy.
The average amount of radio advertising spending per station fell by 5% from 2017 to 2018, which could indicate that the industry is becoming less profitable as a whole.
However, iShared reported in 2018 that the national radio advertising revenue of the U-verse network was $3.5 billion, which was about the same as it was in 2017.
In 2018, radio stations are expected to take in $6.3 billion in ad revenue.