September 2020 Local Sales Insight

AM/FM Radio Math: How Often To Run Commercials, Promos, Or Songs

No matter what is being aired on AM/FM radio, there is a fine line that must be walked with frequency. Too few times and impact is diminished. Too frequently and programmers run the risk of angering listeners the same way platforms like Pandora do by excessively reaching the same consumers and generating complaints about ad repetition.

Fortunately for AM/FM radio, a simple scheduling equation exists. It can be used to determine how often anything from station promos, commercials, or even songs should be played on AM/FM radio broadcasts. There are three sorts of schedules that can created:

  • Light/image awareness
  • Medium/high impact
  • Heavy/grand opening

Here’s how it works:

Step 1: Determine station turnover

Station turnover is defined as the number of different groups that make up a station’s audience.

To calculate turnover, first identify the station Cume, or the number of different, unique people listening to a station. Divide the Cume by the average quarter-hour persons, or the station’s audience in an average 15-minute period. Cume divided by AQH persons is the turnover ratio of a station.

Step 2: Determine the type of campaign being run

Station turnover is used in different ways depending on the goal of the campaign.

  • Image awareness campaigns: Image awareness campaigns are light campaigns. They require lower frequency. These campaigns reach half the audience an average of two times. The station turnover is the number of ads per week that will run Monday through Sunday, 6AM-midnight. If the station turnover is 22, you run 22 ads across the entire week.
  • High impact campaigns: To generate a high impact campaign, double the station turnover to determine the number of ads to run. This type of campaign reaches two-thirds of the station audience an average of three times. If the station turnover is 22, you run 44 ads across the week.
  • Grand opening campaigns: These are also called “optimum effective schedules.” This campaign was invented by legendary sales consultant Steve Marx and reaches 78% of the audience an average of 4.3 times. OES schedules are calculated by multiplying 3.3 times the station turnover. If the station turnover is 22, you run 73 ads across the week.
  • If station turnover cannot be determined, use general format turnovers from diary markets as a guide

Station turnover in practice: An example of how to use the equation to calculate a schedule

Here’s a real example for how to use station turnover to dictate how many ads should run. Using the Diary market averages, turnover is 22.

  • For a light, or image awareness, campaign, a turnover of 22 translates into 22 AM/FM radio ads per week. Image awareness campaigns reach half the station audience an average of 2 times.
  • For a medium, or high impact, campaign, station turnover is multiplied by 2 for 44 ads per week. This is a higher frequency campaign with two-thirds of the AM/FM radio station audience being reached an average of 3 times.
  • For a heavy, or grand opening, campaign, the 22 station turnover is multiplied by 3.3. 73 ads should run per week, reaching 78% of the audience an average of 4.3 times.

Attached is a station schedule worksheet. It can be used on a case by case basis. Plug in station turnover and easily calculate the investment level per week based on the goal of the campaign.

Understating a station’s audience informs frequency

Whether dealing with station promos, commercials, or songs, using turnover as a guide, any kind of campaign or programming can be optimized to effectively impact a listener.

How to put this to work

As always, understand exactly what your advertiser is hoping for, with their marketing.  Match up that desire with one of these important categories:  Image Awareness, High Impact, or Grand Openings.  The first three slides in this month Local Sales Insight explain how to construct these.

Have these packages pre-assembled, that include spots, mentions or other components, all constructed with real data about your stations, and branded with your stations’ packaging.  These approaches are easy to understand and purchase, and have lots of measurement for ROI.  Load these into the fourth slide, add your logo, and combine it with a plan for effective advertising on your stations!

LocalSalesInsights #6