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August 18, 2006

Radio Advertising Costs - How Much?

This is one of the most common questions we get.

At the risk of sounding evasive, the true answer is that it costs nothing. Why? Because you make money, otherwise you won't do it for long. Let us explain.

In direct response radio advertising, every dollar spent is tracked to see how much revenue it produces. If it doesn't produce profitable revenue, spending on that advertising won't continue. Of course you'll spend some money up front on ad development and initial testing to dial in on the most profitable media and creative approaches, but these are very small sums and even still they're expected to produce a positive, profitable return.

Once this concept is understood, the most common question we get is "how much can you spend, and how quickly?" Usually that question is asked rather excitedly. That's what happens when the lightbulb goes off and people realize how powerful direct response radio advertising can be.

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