Advertisers looking to launch a four-to-six-week national campaign on radio should start with a minimum budget of $50,000-$100,000, according to Mark Lipsky, CEO of audio-only ad house The Radio Agency.
"It's a sad truth, but underfunded programs are the number one killer of successful advertising campaigns,” Lipsky says. "If a major market campaign requires $40,000 to deliver an appropriate number of advertising impressions, a budget half that amount will fail to deliver the impact needed to convert mild customer interest to a decisive action to purchase."
Addressing local ad campaigns, Lipsky says that while a comparative local campaign can cost far less, those costs will vary dramatically depending on market size. “A radio ad running in New York City is going to cost substantially more than an ad running in Wichita,” he says.
Providing this information, Lipsky feels The Radio Agency bucks the agency trend when it comes to issues of price. "Most advertising agencies absolutely dread the question of how much it costs to run a radio advertising campaign," he says. "But we understand the importance of an advertiser knowing the costs involved, so they can make informed decisions."