Radio advertising that delivers
measurable results and profitable new customers

« Previous | Main | Next »

December 11, 2006

Direct Response Radio Advertising Success Formulas

We've always said that the key to success in direct response radio advertising comes down to one thing: insights. How many can you have, how often can you have them, and how well can you apply them.

Insights come only when you have a fundamental understanding. When you can see a radio advertising campaing from different angles and conduct an analysis with or make connections between what may be disparate elements.

But to have a fundamental understanding requires starting with the basics. Our new article, The Fundamentals of Direct Response Radio Advertising, presents one such "formula".

You buy placement in radio media to air your radio ad, which gets your message broadcast to a certain number of people. This results in a cost per person reached with your message. In advertising this is known as CPM, or cost per thousand impressions of your ad.

Some percentage of those people will respond (call, visit your web site, visit your store), giving you a response rate.

Of those who respond (otherwise known as leads), a percentage will be converted into customers (orders), and by that conversion rate generate profit and revenue.

If you can understand this formula, and the fact that your media CPO is derived from this formula, you can begin to see how to leverage the power of direct response radio to grow your business profitably. And isn't that why we're all here?

Check out our new article to learn some of the basic thinking required for earning a profit with direct response radio advertising. Insights are sure to follow.

Posted by Jeff Small & Brett Astor at 07:20 PM | Permalink