Most radio industry consultants agree that there exists a fine but discernable line between devaluation and over-valuing your radio advertising services. But to strike a balance is crucial for real returns and profit, so how do you define radio advertising pricing and how do you create a point of difference?
Defining a Price
First you have to start with the raw value of a service, that’s factoring in commercial script writing, radio commercial production, radio advertising air-time and any other core costs. Once you’ve established that, then an estimate of time and tools should come into play, as should ‘positioning’. Positioning is the understanding of what your stations ratings and engagement are, and can therefore achieve. (i.e. can your station supersede competing stations with a greater reach?). Your final fee should factor in positioning, so the better your radio station is doing, the more you can charge (relative to your reach). It’s also really important to do relevant research. What are other stations charging? What special add-ons are they adding? Do they have faster delivery or better quality? Find out, ensuring that you remain competitive.
Point of Difference
Once you’ve established a sound price for what your station can offer (in terms of reach), then it’s time to establish a sound Point of Difference, to encourage new business, and keep current clients happy. Take time to consider the features and add-ons that other stations offer, and create a unique, consistent theme or feature from your own station. Whether it’s complimentary commercial production, exceptional talent or extra air-time, make sure to survey and engage current clients, to find out exactly what Point of Difference would improve their satisfaction level toward you and your radio advertising services.
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…Who knows, we might be your Point of Difference!