Financial considerations

1. PR11 the Commercial Production Process
Financial considerations
The cost for a radio can vary; this is because there is no certain set price for an
advert. The general cost of advertising on the radio is about £2 for every 1000
listeners so the more listeners the adverts gets the more expensive it becomes. The
advert cost will also vary depending on what day it’s getting played on and what
time. An example of this is, the most popular times are the mornings and/or late
afternoon this is the time that most people listen because most people are going to
and from work. Due to this the cost of advertising at this time will be very expensive
than any other time. Most Radio Adverts are around 30 seconds long but shorter
adverts are half the price of 30 second ones. When it comes to choosing a station to
advertiseon the choice will come down to the Radio Station that attracts their
required target audience rather than the more popular stations. The station will then
play the advert for around 4 weeks, unless it’s a highly intensive campaign in which
the advert will be played for a longer period of time.

2. When people want permission to use an artist/bands song they have to pay
for it this is where the PRS comes in. You pay the PRS to use the music; after
you have paid for this the artist will get royalties- this is the money that you
owe the artist for using his music.
Another thing along with the permission of music you have to think about is
the trafficking cost, this includes scheduling and billing. In broadcasting, traffic
is the scheduling of programmaterial and in particular the advertisements, for
the broadcast day. In a commercial radio or TV station there is a vital link
between sales, traffic keeps all the information about commercial time
availability.
Ways that people can know about prices etc. are by using a rate card. This is
a document containing prices and descriptions for the various ad placement
options available froma media outlet. Below is an example of an advertising
rates card.