Financial Considerations

Financial considerations: negotiated production budget (by local sales team, by national agency, by regional agency); music royalty payments; voiceover artists’ fees; trafficking costs (scheduling, billing); rate cards

Rate cards are printed list of advertising rates charged commerical radio stations. Rate cards, usually, are for guidance only because the actual charges vary greatly according to the bargaining power of the advertiser.

 This is an example of a rate card, From this, it tells you about the radio station of how the radio station was founded, how this radio station is successful, what kind of listeners they have. They also tell you the terms and conditions of how they want you radio advert to be under their guideline. The price list lets you know how much it costs put your advert in certain time spots and how many times a day it will be broadcasted. Prices vary between the time it is played as it is more expensive to have your advert playing at peak time than others as there will be less listeners off peak so it will be more expensive to have a spot with more listeners.

Music Royalty Payments
When a radio advert is being played on the radio, it is recorded of how many times it has been broadcasted, the amount of airplay it has received and the size of the audience who have heard it, then the total royalty amount is calculated from a single advert after deducting tax and running cost and then it is split between the right holder and the performer. It is typically split 50/50.

Voice-over Artist Fees
When making a radio advert, you must find a perfect voice for your advert, which then requires you to hire a voice over, to find one, you would typically find an agency who deals with people who voiceover radio adverts. http://www.sohovoices.co.uk/ is a website where they have various people they have hired with different voices for you to choose which suits best for your advert. Then they will have a fixed rate of how much they charge hourly and with or without a studio or any other services you require.