The other cost after air time is is the production cost, or the price for producing the commercial. Some stations will include production as an added-value option and incentive to advertise on their station. But be sure to consider your options before you commit to in-house production.
Usually, the production teams at the station are fine as long as the voice-over talent (usually an on-air person) and the producer have a track record of working successfully with small businesses. Most do, considering that small companies are the local stations’ most reliable clients.
If you decide to get your spots produced “outside,” be aware that prices vary significantly between metropolitan and regional areas as well as between production houses and ad agencies. However, consider the return on investment. It may be worth a few thousand dollars to produce a top-notch spot that generates a response instead of an in-house spot package deal that does nothing.
Compared to other advertising mediums, making an ad for radio isn’t a huge burden on your budget. However there is a fine art to creating an advert that is both compelling and receptive to the listener.