(Paid Advertising)

Radio Ads in the Age of Podcasts (Works Like a Charm)

Ryan Chute
Ryan Chute
November 9, 2022
Radio Ads in the Age of Podcasts (Works Like a Charm)

Podcasts are all the rage these days. From true crime to politics to pop culture, there's a podcast for everyone. With almost half of the American population listening to podcasts, it's no wonder businesses are starting to take notice. So, what does this mean for radio ads? Are they a thing of the past? Not at all! Radio ads are a great way to reach your target audience. In fact, in 2020, 83 percent of Americans listened to the radio every week. Despite its reputation as an old-fashioned medium, radio is still exponentially more powerful in today's media than most other mediums. What's more, radio ads are still utilized today by most of the biggest brands in the world. There is a reason for that. So while the podcasting boom might have you thinking that radio is dead, it's actually very much alive and well. And if you're looking to pick a fight about the effectiveness of radio advertising leading into 2023, game on.

So, Nobody Listens to the Radio Anymore?

Radio and podcasts alike are both excellent mediums for delivering content. They're both relatively cheap to produce and can be easily consumed by listeners. That being said, there is a critical difference between the two. Radio is a passive medium, meaning that listeners can consume it without putting in much effort. Podcasts, on the other hand, are active. Podcast listeners have to choose to listen to a podcast, while radio listeners don't have much of a choice. In other words, radio has a much broader reach. But that doesn't mean podcasts can't be effective. Both mediums can be used to great effect; it just depends on what you're trying to achieve. Whatever the case, do not let the rise of podcasts or poorly conducted surveys dissuade you from using radio ads. At Wizard of Ads®, our expert team understands how to create and buy effective radio ads that work like a charm. We've helped businesses of all sizes create successful radio campaigns, and we can do the same for you. To learn more about how we can help, book a call with Ryan Chute of Wizard of Ads® today!

The Margin of Error-Prof. Gelman

The Margin of Error-Prof. Gelman

Why should you trust my judgment? After all, I am one person fighting against the hundreds of marketing “strategists” who say that radio is dying (or dead). The truth is, you don't have to listen to me. However you shouldn't listen to the person trying to sell you their thing, despite your best interest. Andrew Gelman, a statistics and political science professor at Columbia University, argues that the margin of error is misunderstood. What the margin of error does tell us, Gelman argues, is how much uncertainty there is in our estimate. The larger the margin of error, the greater the uncertainty. Gelman goes on to say that the margin of error should be taken into account when interpreting polls and surveys. He argues that it's important to remember that the margin of error doesn't tell us anything about the likelihood that the true value falls within the confidence interval. When looking at polls and surveys, it's important to remember that the margin of error exists and take it into account when interpreting the results. That being said, well conceived radio ads purchased with the correct frequency and reach are considerably more effective than other channels. Luckily, Nielson, an American information, data and market measurement firm, provides accurate insight regarding the matter at hand.

What Nielsen’s Case Study Shows

Nielsen has found that people tend to provide inaccurate information about their media consumption habits. In fact, their research suggests that people over-report the amount of time they spend listening to the radio. That's why the company uses "portable people meters" to track the listening habits of a representative sample of Americans. For example, in San Francisco, Nielsen measures the listening habits of 2,400 adults. This data is then used to generate estimates for the entire population of the city. And what does this data show? Radio is very much alive.

Why Do Radio Ads Still Work Today_ Even in the Age of Podcasts_

Why Do Radio Ads Still Work Today? Even in the Age of Podcasts?

In the age of digital media, it may seem counterintuitive to advertise on the radio. But despite the rise of streaming services and podcasts, radio advertising is still going strong. Why is radio so resilient in the face of new technologies? Part of the answer has to do with the fact that radio is still one of the most popular forms of media. This is because radio also has some unique advantages as an advertising platform. Here are a few reasons why radio advertising is still an effective way to reach your target audience:

More affordable than any other broadcast-type mediums

One of the reasons why radio is so popular is that it is one of the most affordable mediums available. This means that businesses of all sizes can afford to run ads on the radio. So, how much does it cost to advertise on radio? Radio advertising rates are usually based on the number of listeners that a station has. The rates can also vary depending on the time of day that the ad is played. Choosing the right time slot is important in order to reach the largest number of listeners. However, overall, radio advertising is still cheaper than other types of mediums, such as television or print. This is generally a small price to pay for such a powerful marketing tool.

Broader Audience Reach

Another great thing about radio advertising is that it allows businesses to reach a broader audience. This is because radio stations are typically played in various locations, such as in cars, homes and workplaces. Thus, businesses can find and contact potential customers no matter their location. Additionally, radio advertising is not limited to one geographic location like some other types of marketing, such as television or print. This makes it an ideal marketing tool for businesses that want to reach customers in multiple areas. Remember, the more locations a business can reach, the more potential customers it can connect with.

Higher ROI According to a Case Study by Neilsen

Since its inception, Nielsen has conducted dozens of sales-effect studies quantifying radio's sales growth and advertising return. But does post-pandemic consumer behavior spell the end of this powerful marketing medium? Nielson's case study, conducted with a national office supplies retailer, suggests that radio's influence is as strong as ever. Maybe even stronger. Using their portable people meter, Nielson found the AM/FM radio campaign drove a +23 percent sales increase in households with children. In addition, the study concluded a 6 percent customer growth, 11 percent sales lift, and 21 percent increase in category spending. While other marketing channels are important, radio's unique mix of reach, frequency and targeting ability continues to deliver results. How? The power of repetition.

The Repetition Effect on the Subconscious mind

The Repetition Effect is a psychological phenomenon where individuals are more likely to remember something if it's repeated multiple times. This effect occurs because repetition aids in the formation of long-term memories. When we hear something multiple times, the information is transferred from our short-term to long-term memory. This is why radio can be such an effective marketing tool. The repetition of the ad will help to ensure that listeners remember the product or service being advertised. Interestingly, the Repetition Effect also works on a subconscious level. Even if we are not consciously paying attention to an ad, our brain will still process the information. So, even if we are only half-listening to the radio while driving, we may still be influenced by the ads that we hear. Of course, the effectiveness of radio ads also depends on the quality of the ad itself. Overtime, your numbers will indicate whether or not your ad is working. If you don't see an uptick in business after running your ad, it may be time to revise the content.

Numbers Don’t Lie

Numbers Don’t Lie

Whether you own a small business or a large corporation, numbers will always be an important indicator of success. When it comes to radio ads, the power of numbers shouldn’t be underestimated. Like podcasts, radio ads are extremely effective in reaching and influencing listeners. And while you may be opposed to running ads on the radio because they’re "outdated", you're making a big mistake. At Wizard of Ads®, we’ve seen firsthand how effective radio ads can be. Dedicated to your short and long-term success, our team is passionate about developing ads that get results. If you’re looking for a team that understands radio ads and media buying, look no further. Book a call with Ryan Chute of Wizard of Ads™ today to learn more.

(Online)
(Offline)
(Radio Ads)
Ryan Chute
Ryan Chute

Helping small businesses become BIG brands with a holistic marketing strategy that speaks the same language across all sales and marketing channels.

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Frequently asked questions

Questions? We’ve got answers.

Who does the Wizard of Ads® for Services work with?

Wizard of Ads® for Services work with healthy and growing businesses hungry to grow by multiples, like you.

You are ready, willing, and able to grow your business. You are open to change and are seeking a distinctive angle of approach to gain the time and attention of a too-busy public.

You know that lasting relationships take time, patience, and good energy to nurture and cultivate. We carefully enter into every arrangement with the intention of working with you for as long as you own your business. You prefer lasting partnerships.

You are already a solid operator. You have successfully grown your business and appreciate the impact the right brand story will have to get to the next level in your operation. You know a strong relational message takes time to gain momentum, but it’s worth the one-time short-term discomfort for the long-term gains.

Marketing cannot fix a failing business.

We accelerate what’s already happening in a business. If your business is on the rocks, marketing will only speed up the inevitable.  

You’re focused on lasting change that leads to exponential, profitable growth, not just sales at any cost. Intuitively, you know that communication that enhances every element of your customer's experience and your employee's culture is the key to your success.

Our advertising model works best for services who have a long purchase cycle and sell a more expensive product like jewelry, furniture, luxury products, and automotive.

How does the Wizard of Ads® for Services charge?

Traditional full service marketing agencies are designed to capture the greatest amount of revenue from a client, regardless of results. Every last item is billed and expensed to the client. Typical agency fees can represent a whopping 55% of the entire advertising budget. That means a $5 million dollar advertising budget, you would spend $2.75 million on agency fees.

Think of Wizard of Ads® for Services as the Anti-Agency.

Our income is not tied to your advertising budget. Our income is exclusively tied to your growth. Our goal is to maximize your advertising impact with the lowest reasonable spend. This allows you to spend only what is necessary or to put extra horsepower into aggressively growing in your market.

The genius of this model is that it perfectly aligns our motivations as true partners for exponential profitable growth without the pain of being unaffordable. Ultimately, we are confident in taking the risk of being underpaid in the first few years because we know the results always speak for themselves.

Next, we do not accept commissions, referral fees, kickbacks, or other compensation from any service providers we recommend or engage for production work. Most agencies do. This includes the 15% agency commission for media buying. This approach is considerably different from the compensation plan employed by most advertising agencies, as it eliminates any potential conflicts of interest and allows us to focus our entire attention on helping you grow your business profitably as a true partner. For example, a $500,000 annual media buy would involve a $75,000 commission that we would have removed directly from your media providers' invoices.

This is the perfect pricing model for services who sell goods with a long purchase cycle.

By tying ourselves to gross revenue, we only have one motivation. Your motivation. We have no motivation to convince you to spend more money on marketing than what is necessary, and since we are a variable expense to sales, we NEVER become too expensive to have us on your team.

In almost every case, we end up lowering the amount of money you spend. We will stay within your planned marketing budget, including your media spend, production, and our Annual Fee. Add on the fact that you get any and all commissions back for media buys and various services provided by outside providers, and you will actually save money having us on your team.

Don’t forget, we have the largest buying power in North America for media buying, meaning for every dollar you spend buying media, we only spend 27 cents on average. This stretches your reach, impact, and frequency in a way no other agency (or yourself) can achieve on your own, saving you hundreds of thousands of dollars, eventually millions, every single year.

Clients who heed our advice and embrace our Marketing Strategy quickly add $1 million in incremental revenue to their business, making your investment a smart bet and a bit of a no-brainer.  

There is no longer any guesswork, hope, or fear that our marketing strategies are going to work. If our client’s are able to abandon any limiting beliefs about marketing, deliver operational excellence, and play the long game, our marketing strategy will accelerate their profitable growth.

Wizard of Ads® for Services pricing model is based solely on the top line revenue of your company. It consists of an Upfront Fee and an Annual Fee. These fees are inclusive of scheduled travel, services, and all other expenditures as outlined in the Consulting Agreement.

The Upfront Fee covers the intensive Uncovery Process, the first year’s Media Buy, the Creative Process, and the Market Research while the Annual Fee goes toward implementation, ongoing creative and consulting, and next year's media buy. You get a team of 3.5 people, with direct access to a top tier Creative Lead and Media Buyer, and on-demand access to me as your Master Strategist. You will also have a full-time Account Manager keeping everything on track.

While the upfront does have an initial pinch, it is easy to amortize the investment over the many years we will be working together to grow your business. Wizard of Ads® retain clients for 10 years, on average. The sale of the business is the number one reason for termination. We actively terminate the bottom 1% of clients who are unwilling or unable to follow our strategies.

Wizard of Ads® for Services believes that all rewards should be directly correlated to the success of our clients. This means that the Wizard of Ads® for Services only receives a raise when the company achieves growth. For example, if your gross sales for the year have increased by 25%, the Annual Fee you pay us in the following year will also be increased by 25%. Likewise, if your gross sales decrease, our Annual Fee will decrease by the same percentage during the following year.

This is an exceptionally easy and fair way to track and reward success. This model was developed by Wizard of Ads® over 35 years ago and has served us well because it serves our clients well.

As a rule of thumb, we take the risk of working for considerably less than our actual value in the first few years as we help accelerate growth. This means you need to be willing to pay us exceptionally well when you start doing even better.

When should I engage The Wizard of Ads® for Services?

There are four key revenue stages for engagement with the Wizard of Ads® for Services.

  1. Under $3.6 million in revenue
  2. Between $3.6 and $10 million in revenue
  3. Between $10 and $20 million in revenue
  4. Over $20 million in revenue

Under $3.6 million in revenue is an investment in your brand. This will serve you well in establishing your brand story early on and help you with your name, logo, and truck wrap design. It's easier to create pictures from a story than it is to make a story based on pre-drawn pictures. You'll be glad you did. Everyone on a fast path to growth is.

Most clients start with Wizard of Ads® for Services between $3.6 and $10 million in revenue. They have often seen a natural ceiling with their leads for demand service and are looking for ways to push past the ceiling. This can only be done with a properly executed brand strategy, specifically in mass media with a sticky story.

Between $10 and $20 million in revenue, Wizard of Ads® for Services has some natural economies of scale. This is a sweet spot where Wizard of Ads® for Services can offer some added value in getting the ball rolling.

Over $20 million in revenue is actually the lowest cost point of entry as a percentage of revenue, but not the cheapest time to start with the Wizard of Ads® for Services. Leveraging all economies of scale aside, we have been left out of the upside along the way, so engaging when over $20 million in revenue means we have to mend a lot of fences damaged along the way. This is also where clients see significant savings in their media buys and production costs.

There are also three market sizes to consider.

  • Primary Markets are the top 50 cities in America.
  • Secondary Markets are the smaller cities in America.
  • Tertiary Markets are the more rural trade areas in America.

When considering an engagement with The Wizard of Ads® for Services, consider what size market you are in. For example, a $3.6 million company in a Primary Market will struggle to get the necessary reach needed to make a splash. You either have to be more patient than a larger company or spend more money to accelerate your reach.

Alternatively, a $5 million company in a Secondary Market will look like a pretty darn big fish in a medium-sized pond.

A $20 Million company in a Primary Market will feel like a $50 million company using our strategies to potential customers.

The key to remember is that the earlier you start with the Wizard of Ads® for Services, the lower the investment to get started. As they say, the best time to plant a tree was 20 years ago. The second best time is today.

Are production costs included in your fees?

Offline, the Wizard of Ads® for Services Creative Lead will create the ad copy, cast the voice actors, source the production house, direct the performance, pick the music bed, manage all the edits, and provide you with the completed ad for final approval before sending to air on your behalf. This is included in our fees.

You pay for the production house, actors, royalty-free music, and jingles directly to avoid any potential for markups, commissions, or management fees.

We have many friends in the industry that give our clients good deals due to the large volume of work we provide them. We will introduce you to them.

Online, the Wizard of Ads® for Services Digital Lead will either coordinate production in-house or work with your preferred digital vendors. The scope of work will be determined and fees will reflect the scope of work to be done.

How long before a brand-forward strategy starts working?

In approximately three months of activation, we’ll just be getting live on air. In six months (3 months on air), you’ll be getting anecdotal feedback from people that you are being heard, but there will be no direct line to revenue.

After 6 months on the air, you’ll think you made the biggest mistake of your life signing up for this branding nonsense. After 9 months on the air (12 months in) you’ll see the light at the end of the tunnel.

At 12 full months on the air, you’ll know why you did this branding thing. Two years from now, we'll be clinking champagne flutes as you wonder why you didn’t do this sooner.

How long before we’re live?

The general guideline is 70-120 days, depending on the level of production needed and if there is a name change to your business.

This includes an onsite visit, a deep dive into research, and getting things created, negotiated, approved, produced, and live on the air.

  • Uncovery - 15-30 days based on travel. 1-2 days onsite.
  • Research - 30-60 days based on the scope of work.
  • Creative and Media Buy Process - 45 to 60 days
  • Offline Production - 15 days for radio. 30 - 60 days for television.
  • Online Production (if switching) - 60 days

This means planning for roughly 90 to 120 days in the proper development and production of a completely unique Marketing Strategy before anything hits the airwaves.

Are you exclusive?

Creatively, yes. During the term of this Agreement, all Creative Partners assigned to your Account shall not engage, directly or indirectly, as an employee, officer, manager, partner, consultant, agent, owner, or in any other capacity, in any competition of the client, including any company engaged in marketing consulting.

For clarity, the Creative Partner is defined as the individual Wizard of Ads® Partners who is responsible for creating your creative strategy and ongoing creative copy. Competition is defined as companies that engage in the same industry and business units (e.g., Furniture, Automotive, etc.) as you. The market area is defined as the area where the marketing message naturally reaches through DMA or 60 miles from the city center of the client's service area(s).

Naturally, we exclude any potential future competition in markets where you are not currently active at the date of signing.

We do not limit Media Buyers in any market. Media Buyers get better deals for larger volumes, making it beneficial for the client to have the Media Buyer available to do as many buys as possible to secure the best deals on the client’s behalf.

Do you do digital marketing?

Wizard of Ads® for Services can provide a host of digital marketing solutions for services. Wizard of Ads® has specialized Partners that provide digital services that serve services effectively. Under no circumstances will digital marketing services be offered without Wizard of Ads® for Services core solution.

It is most likely that Wizard of Ads® for Services will work with your existing digital partners and suppliers. If you do not have a reliable digital provider, we would be happy to introduce you to a number of great providers that play nice with Wizards.

Do you do jingles?

Wizard of Ads® for Services can assist you in getting a jingle for your business. Like any other tactical element of a marketing strategy, we do not produce a jingle for the sake of a jingle.

If you do not have a story or a strategic reason to have a jingle...or an ad campaign to tie it to, do not waste your hard-earned money on a jingle. You are wasting your time and money.

When you do build a single unified marketing strategy that incorporates a jingle for a specific (often scientific) reason, we have a Jingle Wizard who has studied the art and science of jingle design.

He will score you an original, royalty-free jingle, including professional singers, musicians, and producers. He will not knock off a generic jingle from a publicly available music bed that sounds like everyone else's jingle.

Your jingle will serve a very specific reason and produce a very specific result. Have you guessed how much we love jingles yet?

Who owns the copyrights?

Wizard of Ads® for Services owns copyrights for two very specific reasons. We also provide a fair use clause in all contracts to ensure you are in no way limited to the access of your creative works, whether you are working with us or not.

The first reason we own your copyright is to ensure that we do not have to go up against our own creative works in other markets we serve. This means you are not allowed to lend, give, borrow, tweak, rent, lease, or sell your creative works to any other company at any time.

The second reason we own your copyright is that we can establish a one-time value for your creative works in the event that someone steals the content. Upon selling you the copyrights, you can go after the perpetrator for theft and make a considerable bounty in a slam dunk case.

Here is how Wizard of Ads® word the fair use of your copyright for as long as your business is in operation:

All writing and/or marketing materials we create for you are not works-for-hire. Wizard of Ads® for Services hereby irrevocably grants you, and your successors in interest, the non-exclusive, royalty-free, non-transferable, and worldwide right to use the Works in connection with the marketing of your business pursuant to the Marketing Strategy for so long as your business is operational.
How do I measure brand results?

There are a number of interesting ways to measure results. Some people like to get unique identifying telephone numbers, or create branded URLs that redirect to landing pages or the website. However, much of this is a waste of time and energy as it never tells the true story of the brand journey and how it affected the decision-making process.

Other indicators of brand effectiveness include tracking new customers, reactivated customers, or running a brand equity survey to get a sense of your share of mind. Digitally you will see direct search increase, which cannot be affected by anything digital, as well as branded keyword inquiries increase. You’ll, of course, need to get your digital people to add these to your campaigns if you hope to see an increase in conversions.

Wizard of Ads® for Services racks the simplest of indicators. Top line revenue. When your branding takes effect, and the company responds in kind from the phone call or form fill-on, top-line revenue will increase. Efficacy is plotted on a T12, and total lead volume from all sources is tracked.

12 things you should know before signing up.
  1. Quality relationships take time. Branding is a long-term strategy. That’s why most services do it wrong, or not at all. There is always a lag between the start of the new campaign and the time it takes your customers to connect the dots. You MUST BE READY, WILLING, AND ABLE to endure this lag period. In our experience, the lag is typically 6 to 9 months, depending on how competitive the marketplace is, your company’s reputation, your budget in relation to reach, and the eight uncontrollable environmental factors. During this time, we will be helping you implement a transition plan to ease the pain. The good news is that this lag only happens once.
  2. Decisions by Committee. We completely reject the notion of decisions by committee. We work with a single, courageous decision-maker. We welcome decision influencers, but we only look to the Owner for the final decision. All decision-makers and influencers must be involved in the Uncovery and Marketing Strategy Presentation if they want to offer input in the future. It is critical that we have a 100% fully approved plan that can be defended and championed by all leaders in the organization.  
  3. Proven Strategy. That means we are not the low-cost provider. With hundreds of service clients and a playbook of strategic devices, tools, and tactics, this isn’t a guessing game for us. We know what to do to make your goods and services appealing to potential buyers. If you can deliver the goods, we can  build the relationships. If you are uncomfortable with the idea that you are paying us less now so that you can pay us considerably more once revenues allow, please do not commit. We intend to be your true partners, in sickness and in health...so long as you own your business.
  4. Automatic Payments. Everything is on automatic payments. If you struggle with managing cash flow, figure that out in your business first. We accept all major credit cards and ACH payments.
  5. We Cause Problems. If you don’t have a capacity issue now, I promise you will in about 9 months. Let’s deal with recruitment out of the gate as part of your comprehensive marketing strategy.
  6. We Own the Copyrights. All writing and/or marketing materials we create for you are not works-for-hire. We irrevocably grant you, and your successors in interest, the non-exclusive, royalty-free, non-transferable, and worldwide right to use the Works in connection with the marketing of your business pursuant to the Marketing Strategy for so long as your business is operational.
  7. Brand Building. We will be steering you to limit the use of discounts, rebates, coupons, and sales to attract clients. We know this feels counterintuitive to many, and we will clarify our reasoning. Rest assured, we have considerable experience in creating similar offers that are not damaging to your profitability, your brand’s integrity, and your preferable long-term client relations.
  8. Creative Authority. We must have creative authority over the words. You can accept copy as written or reject it outright, but you cannot modify the words yourself. If you do not like something as written, we are happy to discuss it and make the necessary change to maintain the integrity and intention of the words chosen. Alternatively, we will scrap the concept and create new copy that you are happy to get behind 100%.
  9. Proprietary Algorithm. The media buy must be structured in a very specific way, including running a full 52-week schedule. It is based on brain chemistry, not P&Ls. Once we have committed to the buy, it’s important to avoid adjustments unless they are calculated additions.
  10. Knucklehead Factor. You should expect knuckleheads. For example, when you start running ads that are certain to get attention, you need the courage to continue running those ads, even when you receive complaints. We celebrate complaints. It means we’ve made people feel.
  11. Digital Weasels. In about three months from the time your advertising campaign hits the airways, your digital marketers will show you a marked increase in direct and organic traffic. Some Digital Marketers will mistakenly claim this success as their own. Done properly, you can continue to spend less and less on digital lead generation by increasing your branded keyword online presence.
  12. Annual Marketing Meetings. Travel permitting, we prefer to hold Annual Marketing Meetings (AMMs) outside your city. Years of experience have taught us that we get better results when decision-makers are outside their sphere of influence, away from the day-to-day distractions of the office.

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