Radio advertising


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Radio advertising

  1. 1. Radio Advertising Executive Summary Advertising in general expresses the positioning. Powerful advertising is the resultof powerful planning. Great ideas and great ad campaigns don’t just pop out from nowhere, they are built on the key communication points that motivate sales. Radio is entirely a medium of sound, which evokes smells, sensations and visualimages which brings the listeners imaginations into play. Radio advertising is one of the tools of advertising which is effectively used forcommunication and positioning. It is one of the foundations for effective and successfuladvertising. Radio can be used effectively for advertisement since it can target the largeaudience because of its high reach. Radio is good at increasing awareness about the brandand business and helping in building the brand image. But all this was only for pure academic purpose. With the advent of televisionradio lost its popularity and thus its purpose with the marketers. This led to sharp declinesin the proportion of advertisement spending on radio as compared to other media. But then came the governments order on liberalization and privatization. Thisbrought about loads of changes in the world of radio broadcasting in India. Prominentand established companies entered the business of FM Broadcasting. FM broadcasting has breathed a new life into the medium of Radio in the past fewmonths. Could radio now think this as a new phase of its life or a re-birth? Of course yes,people are today talking only Radio---- Radio Mirchi, Radio City, RED, Go and WIN.One will find people with radio sets of different shapes and sizes listening to theirfavourite music on roads, in hotels, even the bidi shops aired on any of the musicchannels. The radio channels are now vying against each other to provide their best to thelisteners 1 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  2. 2. Radio Advertising However one can see that although radio is an excellent medium it has been usedto its full potential and various efforts should be taken to improve it as with properdirection radio can reach heights as it is the cheapest and a very good medium. Objective Through this project my objective has been to understand the following • To find out about the current scenario of the radio industry. • The reasons for a stunted growth of the industry • The various steps in radio advertisement • Realizing the needs and wants of consumers and fulfilling them • What the various radio stations have to offer the masses. 2 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  3. 3. Radio Advertising Research Methodology Through this project I have made an effort to understand the advertisng tool calledradio advertising which is being increasingly recognized by marketers as a powerful toolthat helps in finding new customers and retaining the existing ones at a much lesser cost.Primary Research: The aim of primary research was to understand radio advertising as it is seen inthe corporate world. To understand this I have taken two interview from different fields. Mr. Madhav Joshi who is currently working in Leo Burnett who helped meunderstand what all goes into the making of a radio advertisement. The mode of interview used was an informal one where he answered myquestions on one to one basis. Also Mr. Sudarshan Sahe the senior marketing manager of Radio City gave me aninterview and helped me in trying to understand as to how the station works and looksafter the needs of its consumers Secondary Research The aim of secondary research was to understand as to why radio advertising hasbeen able to grow at a considerable rate as compared to the other media.also the fall outof radio in the last decade . It was also undertaken to understand how radio advertising is done and what rethe current players in the market. 3 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  4. 4. Radio Advertising Secondary data collection method: desk research Secondary data collection sources: internet, books, newspaper articles Introduction Old media don’t’ die! They just bounce back in new avatars. Not so long agoradio had been written off as fuddy-duddy, down market and not so cool. Television andlater “new media” were touted to being the media of the future. But thanks to technologyradio is making a comeback. In fact, in its new avatar-fm-radio is all set too become thehippest, coolest and most with -it medium. FM radio is a new entity altogether and has to deal with new market dynamics.Media owners dealing with new markets will virtually have to draw up their strategies asthey go along, create programming that is new, innovative and grab away eyeballs fromTV sets and make them tune into their radio sets. It’s a whole new challenge andcompetition is never far away. Ad revenues will also not be easy to come by, asadvertisers will expect media players to put their money where their speakers are beforethey commit large sums of money towards radio advertising. The other challenge forradio in attracting advertisers is the nature of the medium-radio has always consideredbeing a reminder medium. The involvement of listeners to radio is low, Vis a Vistelevision or print media. However in spite of the various challenges the emergence of private FM stationsis certain to increase the quantum of radio advertising in the country , much like satellitechannels did to the quantum of television advertising in the country. That should open upa vast new market of consumers-100 million Indian households own an estimated 150million radios, outnumbering television sets 3:1. The geographical area covered by radio in India in India is as high as 98 percentand the penetration level is approximately 97 percent. But FM presently covers only 17 4 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  5. 5. Radio Advertisingpercent of the area and 21 % of the population of India through transmitters. Currentlyradio has just 2 percent of the 9000 crore Indian advertising market according to anArthur Anderson’s survey. Globally depending on each country, radio has a 5 % to 12 %of the advertising cake. On the higher side are countries like the United States with 13 %,Canada with 12.7% and Spain with 9.1%. FM station executives are not forthcomingon multi-platform strategies as yet. Given that radio has penetrated into 100 millionhomes and a FM set costs around Rs. 50/- FICCI estimates FM’s share up from thepresent 1.5 percent to 5 % in five years. They have also forecasted that revenues fromradio advertising in India will be Rs. Rs. 1200 crores by 2005 and Revenue of radioservices is expected to rise to Rs 689 crore by 2008 at a CAGR of 30 per cent. While TV is a family medium, radio is personalized. Also advertising of certainproduct seems to work very well while some might not. For example, cellular phoneservice or auto related products would have a good impact when advertised on radio isprimarily known as a “drive time” medium most people who turn in are doing so whilecommuting. Thus the potential if FM is better is bigger town, as the car population ismuch bigger. This would be the key when evaluating the medium. Also one must notforgot that radio continues to be a medium that has tremendous reach among the poor andmarginalized sections of society. With the coming of more channels, and the emergence of lifestyle advertising,radio will become a push and pull medium. As said earlier, is not just making a comebackbut is being reincarnated into a new avatar. 5 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  6. 6. Radio Advertising Some Basic Technical KnowledgeAny radio setup has two parts: • The transmitter • The receiver The transmitter takes some sort of message (it could be the sound of someonesvoice, pictures for a TV set, data for a radio modem or whatever), encodes it onto a sinewave and transmits it with radio waves. The receiver receives the radio waves anddecodes the message from the sine wave it receives. Both the transmitter and receiver useantennas to radiate and capture the radio signal. When you listen to a radio station and the announcer says, "you are listening to91.5 fm “what the announcer means is that you are listening to a radio stationbroadcasting an fm radio signal at a frequency of 91.5 megahertz. Megahertz means"millions of cycles per second," so "91.5 megahertz" means that the transmitter at theradio station is operating at a frequency of 91,500,000 cycles per second. Your fm(frequency modulated) radio can tune in to that specific frequency and give you clearreception of that station. All fm radio stations transmit in a band of frequencies between88 megahertz and 108 megahertz. This band of the radio spectrum is used for no otherpurpose but fm radio broadcasts. Common frequency band includes the following… • AM radio - 535 kilohertz to 1.7 megahertz • FM radio - 88 megahertz to 108 megahertz 6 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  7. 7. Radio AdvertisingAM radio has been around a lot longer than FM radio. The first radio broadcasts occurredin 1906 or so, and frequency allocation for AM radio occurred during the 1920s. In the1920s, radio and electronic capabilities were fairly limited, hence the relatively lowfrequencies for AM radio. FM radio was invented by a man named Edwin Armstrong inorder to make high-fidelity (and static-free) music broadcasting possible. He built thefirst station in 1939, but FM did not become really popular until the 1960s. Royalties FM is primarily a music channel, so the question of royalties is relevant. TheIndian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd.(PPL) are supposed to hold all the rights of royalties. They are demanding Rs. 1,500 perhour (as against Rs. 100 per hour, at which they are supplying music to AIR), PPL isdemanding a royalty of Rs. 250 per hour of needle time, the actual duration of a piece ofmusic. The IPRS is demanding Rs. 100 per hour. The IPRS claims royalty for the originalcomposers and authors of music. Cost - Aspect A Licencee pays Rs. 6000/- per hour. Add Rs. 1,500/- for the music. Add Rs. 3,000/- for the technology, salaries and other expenses. An hour longshow thus costs Rs. 10,500. 10 - Minutes have been set aside for advertising. One minute is reserved out of10 - minutes for social awareness advertising. Thus, advertising time available for sale is 9 - minutes. In other words, 18 advertisements each of 30 seconds can be accommodate in anhour. 7 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  8. 8. Radio Advertising This is the high target. Besides the tariff card should be modest, considering thelimited range and listenership supposing a 30 - seconder costs Rs. 500 at prime time for18 such spots, the total revenue generated is Rs. 9000/- . Another estimate puts theproduction cost of an hour long programme around Rs. 6,000/-. Add Rs. 6,000/- of thelicensee fee to AIR. Studio hiring costs are between Rs. 500 - Rs. 1000 an hour. The total expensesare thus Rs. 12,500 to Rs. 13,000 per hour. Advent of Format Radio The arrival of Moving Pictures with sound and then Television were expected tobe the death knell for Radio. However Radio has not just survived repeated predictionsof its demise but grown tremendously. It has benefited listeners and advertisers alike andearned the status of a Constant Companion... What allowed Radio to accomplish thisfeat? Read on for the long journey the Radio industry has covered thus far. It was way back in 1895, that Guglielmo Marconi invented an antenna to send andreceive radio signals. It took quite a while before Reginald Fessenden developed the firstradio receiver in 1913. However, experts give a lot of credit to David Sarnoff whoactually conceived what is called as the "radio music box". It was Sarnoff who suggestedthat radio should be mass-produced for public consumption. His persistence paid off in1919 when such sets were available for general purchase. This saw the beginning of whatwas later looked on as the Golden Age of Radio. Early 1920s saw the launch of commercial radio. People in households wouldgather around the radio to listen to their favorite programs much as they do today withTV. Radio became the first medium delivering entertainment to the masses in theirhomes. The 1st paid announcement on radio was a 10-minute capsule from HowthorneCourt; a Queens based Real Estate Company. This era was characterized with block 8 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  9. 9. Radio Advertisingprogramming wherein radio offered something to everyone. News, drama, sports; livemusical recordings would be presented in 30 or 60-minute programs. A network soapopera could be followed by a 15-minute newscast followed by one hour of a concert. Then in the 1950s TV began to catch the publics attention. Audiences werecharmed by the audiovisual experience of TV. A large number of popular shows movedfrom radio to TV. That was not all, as the radio industry was also losing a large numberof talented staff to TV. At this point in time, radio experts discovered an opportunity that only radio couldprovide. They realized that radio was the only medium that could be used while doingother things, like getting dressed for work, cooking a meal, traveling to office, studyingand more. Radio turned local and moved to what is known in the industry as Formatprogramming. This era also spawned two of radios greatest strengths: immediacy andlocal service. Format radio strategy was based on providing the same kind ofentertainment to a selected audience, throughout the day, seven days a week. As the story goes, Storz and McClendon used to frequent a local malt shop, whichhad a jukebox. They observed that the customers would usually come and play the samesongs that they liked, over and over again. In fact, the staff serving these people wouldend up playing just the same songs even when the shop was closed.From this insightemerged the "Top 40" format or the "Contemporary Hit Radio (CHR)" format were themost popular hits would be played on a higher rotation. This led to a change in the way radio time was being sold. Sales people shiftedfrom selling programs to selling commercials. It also led to a shift in the way radioprograms were scheduled. As radio was being used as a background medium ofentertainment, it had to be relevant to the listener at every point of time in the day. Theshows therefore had to be reflective of various day parts in the life of the listener. 9 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  10. 10. Radio Advertising Irrespective of the form it came in, format radio definitely made radio not justsurvive the onslaught of TV but also made it grow tremendously. Being the only mediumthat could be carried and used wherever you are, it could update you about your worldthroughout the day while providing you with the entertainment you like all the time.Radio became "The Constant Companion". The total number of radio sets at the time of independence in 1947 was a that time a radio receiver used to be a status symbol in this country. But todayits possession is taken for granted. According to estimates, there are radio sets in about105 million households in the country. History of Indian Radio For more than 4 decades, the Government of India did not permit private radiostations to broadcast in India. Then history changed its course. In 1993, the Governmentallowed private FM operators to buy blocks (chunks) on All India Radio, prepareprogramming content, book commercials from advertisers and broadcast the whole lot.Within 4 years, (1997-98), the FM Radio advertising and sponsorship business grew toRs. 93 crores with Times of Indias Times FM & Mid-Day Groups Radio Mid-Daybecoming the main players. Then, in June 1998 the Government, through its electronic media regulatory bodyPrasar Bharti, decided not to renew contracts of private FM operators.Not surprisingly,the advertising revenue fell by 50% within a year! This time, the Government gave the green light to privatize radio in India. July 6,1999 was the historic day when the Government announced that 150 new FM channelswould be licensed across 40 cities . And in 2000, the Government auctioned licenses for private FM channels tobolster the revenue. And the focus on metros was evident in the bidding. Expecting to 10 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  11. 11. Radio Advertisingcollect Rs 800 million from auctioning 108 licenses, the government had to actually facemass withdrawal of bidders because of the huge license fee. A handful of serious bidderschose to remain. In response to the Governments offer, many companies bid for the licenses tooperate in key markets. But the going was not so easy. Many gave up, unable to shell outthe high license fee. For instance, the bidding price for the Mumbai license wasreportedly to the tune of Rs 9.75 crore. Others dropped out saying the business was notviable. So, in effect, the competition shrank, players consolidated and the Governmentextended its deadline. Today, there are roughly 10 players who will operateapproximately in 37 cities across the country. The government collected close to Rs 4.6 billion as license fee for the privatelyrun FM radio channels in 40 cities. New Media Broadcasting, a Zee Group company,which focused mainly on the smaller towns, won the largest number of bids. The first round of bidding - for 76 channels in 26 cities, garnered close to Rs 3.5billion. The government got the highest bids - Rs 97.5 million from each of 10 broadcastcompanies - for stations in Mumbai. Interestingly, the bids for Hyderabad and Nagpurcame next, each for Rs 77.2 million and Rs 74 million, respectively, while the bids forDelhi were Rs 71.2 million each 11 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  12. 12. Radio Advertising Radio is expected to follow the growth of the Television industry, which grewrapidly following the entry of private players Currently, FM coverage in India is restricted to just 17% of the country,compared to 89% of All India Radio (AIR). Players in Different CentersCompany Location of Centers Number of Bid amount for Centers first years license (Rs. crore) 12 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  13. 13. Radio AdvertisingEntertainment Delhi, Mumbai, Calcutta, 12 43.87Network [India] Chennai, Ahmedabad, Bhubaneshwar, Cuttack, Hyderabad, Indore, Jabalpur, Lucknow, PuneHitz FM Calcutta 1 1.00India FM Calcutta 1 1.00Living Media Delhi, Mumbai, Calcutta 3 17.87Mid Day Delhi, Mumbai, Chennai 3 20.17BroadcastingMillennium Delhi, Mumbai, Chennai 3 20.17BroadcastingMusic Broadcasting Delhi, Mumbai, Nagpur, 6 41.37 Bangalore, Patna, LucknowSumangali Chennai, Coimbatore, 3 9.87Publications - Sun TirunalveliTVVertex Calcutta, Indore, Bhopal, 4 2.90Broadcasting VishakapatnamUdaya TV - Sun TV Vishakapatnam 1 0.50 Incidentally, Music Broadcasting became the first firm in India to commenceprivate FM broadcast from Bangalore in July.Licence Fee and revenue sharing model 13 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  14. 14. Radio Advertising Currently, FM players pay annual licence fees, which go up by 15 per cent everyyear. Private FM radio sector would shift to a revenue-sharing model from the existinglicence fee regime. However, revenue-sharing also exists in the media sector. Theobjective is to “make FM radio a success story”. It’s better to keep the revenue-sharingfigure low than to have a failed project. There has been debate on whether to recommenda revenue-sharing structure or a fixed amount for a period of 10 years; it is firm onrevenue-sharing now. Revenue-sharing will follow payment of a one-time entry feethrough a process of bidding. Revenue-sharing figure is quite low at around 4 %. While the private FM players had sought revenue-sharing in the band of 2-2.5 percent, the panel has fixed it at 4 per cent.Setting up new radio stations After the second round of privatization, the number of FM radio stations targetedis around 300 to 400. The panel also suggested that players wanting to enter the sector inthe second round of licensing need to have a technical viability clearance by a financialinstitution on the financial viability of the project. It has also recommended to thegovernment to release additional spectrum for the use of FM radio companies so that thenumber of companies operating in one centre can go up. Future of Radio Industry FM Radio can play its part in building a stronger business future for India.Providing free-to-air local broadcasts of music and entertainment, helpful information - 14 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  15. 15. Radio Advertisingtraffic advisories, community announcements and public service messages provide a realvalue-added service. But at current levels of advertising support, each radio station isreeling under the brutal financial impact of high costs. With more players in the fray theFM radio industry would grow and also enhance the government’s yield from licensingradio naturally. The new India deserves an active private FM radio sector. It can provide a levelplaying field with benefits for listeners, for advertisers, employment & career options.Spearhead the government objective of growing the FM radio business in India. With the government ready to reduce the license fees it will help in attractingnewpalyers like reliance which had earlier backed out only due to the entry fees.alsogovernment allowing foreign players to enter he Indian market it will help the industrygrow. Virgin group has already started exploring the Indian market for suitable partners.various radio stations are coming up with IPO for example Radio Mirchi thus helpingthem expand. The future looks bright as the reach of radio is expected to raise post the increasein the number and quality of players in the industry. It is on the basis of these key driversof growth, it is being predicted that radios share in the total advertising pie will see anincrease in the medium term. There are an estimated 150 million radio sets across thecountry. The Rs 1.6 billion industry is reported to be growing by 31 per cent every yearand should touch the Rs 6.2 billion by 2007, with revenue rising at 23 per cent annually.Also, though radio has only a 2 per cent share in the Rs 6,000 crore Indian advertisingmarket, advertising spending is expected to amount to Rs 500 crore this year. SWOT Analysis 15 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  16. 16. Radio AdvertisingStrengths: • Recently, the government has agreed upon revenue-sharing model, which is 4 % for the growth of the radio stations. So that they can develop themselves well because this industry is still in an introduction stage. • The success of private FM stations, and reveals that radio listenership habits have changed considerably; not only are listeners tuning into it more often but also sticking to radio for longer hours everyday. • The advertisers, who would depend on word-of-mouth, pamphlets, brochures or ads in local supplements of newspapers, are welcoming the opportunity. • Radio is considered as a background medium, because people can listen to radio anytime and anywhere they want. It is also a free medium. • 90% of India has access to radio which is unmatched by any other media. • Radio also reaches to uneducated village folk who do not read print publications. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. They can’t afford a TV set. Therefore radio is more popular. • Radio is the least cost medium and it helps to reach mass audience with various backgrounds. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. • Radio is considered as a medium where the “Proximity to purchase” is very high. • Radio is a complement to another media. Therefore, other media or the advertisers or agency can use this medium for brand recall.Weakness: 16 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  17. 17. Radio Advertising • One of the major weaknesses of Radio is that there is very less differentiation in the programmes that are aired. Most of the stations plays much of the music that is played consist of Hindi Film songs, and therefore it is difficult to differentiate between the programmes of the different channels. • Fragmented Audience - the large number of the audience in India is fragmented in various remote places. And therefore, the percentage of listener tuned to anyone station is likely very small. • No proper research available - research is very important for any advertising segment. Research is the main base to attract client and get more revenue. But, in India there is no proper research is available. Many stations are conducting their own research which can be biased. • Radio-only nature of radio communication is a tremendous creative compromise. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. And like its radio message creates a fleeting impression that is often gone in an instant. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. • Increase in listenership numbers but no increase in ad revenue. This is the situation that every radio channel is facing. • Short commercialsOpportunities: • Getting copyright licenses from the government for running mega events which are aired on the AIR radio station and have been restricted to be aired on other private stations. • Launching a radio station with 24-hour news channel • Tie-ups with BEST or railway authority for playing the FM in train and in bus. • The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium 17 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  18. 18. Radio Advertising • The new radio stations which will come in future they can have venture with the college or university campuses. And can play their station which will exclusively provide with the information relating to that university/college campus. • With the coming of the many more new players in the radio industry each channels can position themselves quite different from others, like, if some station is targeting the health conscious people then their programming strategy will vary accordingly. And then it is easier for the advertisers also to decide on which channel to advertise. • Allowing private FM players to start news and current affairs programmes. • One has to constantly innovate, and that is the challenge. Brand building is thus much more difficult. At the same time, we are very bullish, and gung-ho about this whole enterprise. • Leaves huge scope for innovation in local marketThreats: • The biggest threat to private radio industry players is ALL INDIA RADIO. AIR is the biggest player in India because of its reach, low charges, government channel etc… • Because of the new government policies there will be more number of stations and then competition will also increase. This is one of the biggest threats it faces. With no particular differentiation in the music. So, there is a fear of losing its brand loyalty. 18 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  19. 19. Radio Advertising Advertising in India India has been among the fastest growing economies in the world, with a nominalGDP CAGR of 9.94% over the last 10 years (1995-2005). The nominal GDP for fiscal2005 was Rs. 30,636 billion. According to CSO estimates nominal GDP growth for fiscal2006 is estimated at 10.9%. There is a correlation between the economic growth rates ofa country i.e. the nominal GDP growth rate, and growth rates of the advertising industry The Indian advertising spends, as a percentage of GDP, is 0.34%, which lags behindother developed and developing countries During fiscal 2005, the gross advertising spend in India is estimated at Rs 111billion, and is expected to grow at 14.2% to reach Rs. 127 billion by fiscal 2006 19 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  20. 20. Radio AdvertisingSegmentation in advertising The five key industry segments comprise print, television, radio, cinema, andoutdoor. These different segments within the industry are at varying stages of growth andcorporatization Media Spends as % of Total Ad Spend Year Print TV Radio Cinema Outdoor Internet 2000 49.0% 39.3% 2.5% 0.5% 8.4% 0.3% 2001 48.4% 40.6% 2.7% 0.4% 7.5% 0.4% 2002 47.2% 41.9% 2.9% 0.7% 7.0% 0.4% 2003 46.6% 43.0% 2.9% 0.7% 6.5% 0.4% 2004 46.3% 43.7% 2.9% 0.6% 6.0% 0.3% The Indian television industry has grown rapidly, especially since 1991, which sawthe beginning of satellite broadcasting in India. This growth was also aided by theeconomic liberalization program of the Government. The growth of the satellitetelevision audience saw proliferation of a number of satellite television channels offeringmore choices to media buyers and consumers of entertainment. Thus, the televisionbroadcasting business, which started off as a single government controlled televisionchannel, now has over 300 channels covering the Indian footprint, resulting in growingad spends on this medium. Reforms and proliferation of private players were the keyreasons for this rapid growth of the share of television in the advertising industry. 20 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  21. 21. Radio Advertising Radio Advertising Radio is still the king when it comes to getting your music. The best way for anew band to get heard by the public and record label executions is over the airwaves. Paradoxically, radio currently has only a 2.9 per cent share of the total advertisingpie in India. Globally, depending on country, radio has a 5 per cent to 12 per cent share ofthe advertising cake. On the higher side are countries like the United States, with 13 percent, Canada, with 12.7 per cent and Spain, with 9.1 per cent. Companies that advertise on FM channels today such as Hindustan Lever (HLL),Dr Morepen, Amul, Castrol, Santro, Britannia, Parle, DSP Merrill Lynch etc aredominating the advertising on each one of the FM channels, be it Radio Mirchi, Go 92.5Red 93.5 or Radio City. Today, 70 per cent of the advertising comes from big-budget, national advertisersand the balance 30 per cent comes from retail. It is a known fact that retail advertisingwill grow because radio presents the perfect advertising medium for local businesses in alocal environment. But national advertisers are also operational in the local market,implying that it is as important to them as it is to a retail advertiser, if not more. Nevertheless, it is undeniable that radio can be integral in exposing a new artist,new product or services to new fans and taking a local market to a national level.Accordingly, it is extremely difficult to obtain meaningful airplay. Putting it bluntly,successful radio promotion revolves around making and managing relationships. Radio promotion is an art that demands a certain style you may simply neitherhave nor desire to cultivate. On top of that, it can take a great deal of time to make all thecontacts and connections that are required for successful radio promotion. 21 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  22. 22. Radio Advertising Advertising agencies that control the national picture will be slow to move on toradio for creative reasons. They have people who love to make television commercials,but dont have anybody who knows how radio works. Here, only about 2.9 per cent of themoney spent by advertisers goes to radio, and up till now, all of that went to ALL INDIARADIO. However, in revenue terms, money from advertising has gone up. Revenue fromcommercials on AIR, including on Vividh Bharti and Primary Channel (including FM)rose from Rs 393 million in 1990, to Rs 808.4 million in 2000, & Rs. 600 crores in 2002,representing a growth of about 7.5 per cent per annum. A clear advantage that radio has is that it can easily target city-basedaudiences. This makes sense if the advertiser, like a food chain that is opening an outletin Mumbai, wants to target a specific audience. In such cases, it does not make muchsense to advertise on TV, and the print medium is too expensive. Radio is the best bet forsuch small-scale promotions. It is also aptly suited for local promotions, and onceaudiences can be targeted, it has tremendous potential to eat into local mediums.Consumer opinionsThe evidence from the qualitative research is that young people feel their local FMstation is aimed at people like them, but the advertising is not - they feel, probably quitecorrectly, that most advertising is aimed at adults.Because radio is a real-time intrusive medium, they have to sit through the full length ofany ads which are for irrelevant products. There was evidence of three sorts of memories: Relevant : This includes Ads which mentioned areas or names of specific interest, e.g.films, outlets selling favoured brands, concerts Vague/ not relevant: This includes memories of ads for local garages, cars andinsurance companies - little or no specific detail remembered 22 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  23. 23. Radio Advertising Sonic Brand Triggers: Much evidence of childrens ability to pick up on musical Sonic brand Triggers (SBT’s) and sing them out loud. Pros and Cons of Radio Advertising Every medium has special strengths and weaknesses that makes it more or lesssuited to special marketing problems of specific advertising. There is no one mediumwhich is ideal for advertisers or every situation. Radio has a number of characteristicsthat makes it an ideal vehicle for numerous advertisers as either a primary or secondarymedium. Also, there are certain disadvantages of this media which need to be considered.Advantages of Radio1. Largest Reach and Frequency Radio offers an excellent combination of reach and frequency. The average adultlistens more than 3 hours a day, radio builds a large audience quickly and a normaladvertising schedule easily allows repeated impact on listener. 90% of India has access toradio which is unmatched by any other media. Radio is not only the medium of hearingnews but also is a source of entertainment and advertising for the rural masses. Radio alsoreaches to uneducated village folk who do not read print publications. At the placeswhere the literacy rates are low where people hardly read newspapers and radio is theonly medium that they can understand. They can’t afford a TV set. Therefore radio ismore popular.2. Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enableadvertisers to select the market they want to reach. From a marketing perspective, radiohas the ability to reach prospects by sex, age group, ethnic or religious background,income group, employment category, educational level or special interest with a format 23 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  24. 24. Radio Advertisingthat adds even greater dimensions to its already strong personal communicationenvironment. Radio’s high overall reach and its ability to provide numerous formats make it amultifaceted medium. Because of the relatively low cost of production, advertisers areable to adapt commercials to the various stations then buy, a strategy that would normallybe prohibitively in television.3. Cost –Efficiency Radio is the least cost medium and it helps to reach mass audience with variousbackgrounds. Radio offers its reach frequency and selectivity at one of the lowest costsper thousand and radio production is relatively inexpensive. National spots can beproduced for about one tenth the cost of a TV commercial, and local stations oftenproduce local spots for free. Also, radio ads can be produced very quickly.4. Creativity and Flexibility Radio is the most flexible medium because of very short closing periods forsubmitting an ad. This means an advertiser can wait until close to an air date beforesubmitting an ad. With this flexibility of simple formats such as voice only can be createdalmost immediately to reflect changing market conditions or advertisers can takeadvantage of special events or unique competitive opportunities in a timely fashion. Radio also offers timeless, immediacy, local relevance and creative flexibility.The personal nature of radio, combined with its flexibility and creativity, makes radio thechoice for numerous product categories. Copy changes can also be made very quickly. While radio may be one-dimensional in sensory stimulation, it can still havepowerful creative impact. Radio has been described as the theatre of the mind. Themusical formats that attract audiences to radio stations can also attract attention to radioads. Audiences that favor certain music may be more prone to an ad that usesrecognizable, popular songs. 24 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  25. 25. Radio Advertising5. Proximity to Purchase The mobility of radio and its huge out - of - home audience gives the medium anadvantage enjoyed by few other advertising vehicles. In the competitive environmentfacing most companies, it is imperative that brands achieve consumer reinforcement asnear as possible to the purchase decision. Radio’s daily frequency offers scope forcontinued messages and hence the consumers are more likely to remember that productand consumer lend up buying that product.6. As a Complement to Another Media In some cases, radio is the primary medium for local advertisers. However fornational advertisers and most large local and regional firms, radio is most often used ascomplementary medium to extend the reach and frequency of primary vehicles in theiradvertising schedule. A fundamental marketing strategy for radio has been its ability to successfullywork with other media to increase reach and frequency or to reach non-users and lightusers of other media. The radio industry realizes that the bulk of its revenue comes fromadvertisers who use radio as a secondary medium.7. A personal medium The human voice is the most personal means of communication. Radio gives theadvertisers the opportunity to take advantage of the right combination of words, voices,music, and sound effects to establish a unique “one-on-one” connection with prospectsthat lets you grab their attention, evoke their emotions, and persuade them to respond. 25 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  26. 26. Radio Advertising Radio can be targeted by lifestyle formats and is more efficient than other mediafrom a cost and production standpoint. As a result many advertising agencies will movetheir budgets into radio.Disadvantages of Radio1. Misunderstanding Sometimes there might be a misconception regarding the radio ad as it is onlyheard. In television the chances of such misconception is less, as it is audio as well asvisual.2. Poor Radio Attentiveness Just because radio reaches audiences almost everywhere does not mean thateveryone is paying attention. When a consumer is listening while doing some work ortraveling in a car, he or she often switches stations when an ad comes and divides his orher attention between the radio and road.3. Fragmented Audiences The large number of stations that try to attract the same audience in a market hascreated tremendous fragmentation. If a large number of radio stations compete for thesame audience, advertisers who want to blanket the market have to buy multiple stations,which may not be cost effective. However, in radio’s quest to continue to fine tune itsreach, some advertisers wonder if radio is offering too many narrowly defined options.For those product categories with broad appeal, it is difficult to gain effective reach andfrequency without buying several radio stations and networks.4. Chaotic buying procedures 26 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  27. 27. Radio Advertising For an advertiser who wants to include radio as a part of national advertisingprogram, the buying process can be sheer chaos. Since national networks and syndicatedbroad cast do not reach every geographic market, an advertiser has to buy time inindividual markets on a station-by-station basis. This could involve dozens of differentnegotiations and individual contracts.5. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. They can’t keep like a newspaper or amagazine ad. Radio must compete with other activities for attentions, and it does notalways succeed. Only 20 % of time availability restricts the frequency of messageexposure.6. Creative Limitations The audio-only nature of radio communication is a tremendous creativecompromise. An advertiser whose product depends on demonstration or visual impact isat a loss when it comes to radio. Many advertisers think that without strong visual brandidentification the medium can play little or no role in their advertising plans.7. Limitations of Sound Radio is heard but not seen, a drawback if the product must be seen to beunderstood. Some agencies think radio restricts their creative options.8. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad.Sometimes the voice really matters. If the voice is irritating then there is a chance that thecampaign may flop.9. No proper research available 27 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  28. 28. Radio Advertising In India, there is no proper research has been available on the area of radiolistening, which will be very helpful for the advertisers to decide them on advertisingplan and budget and other matter. Therefore, there could be a problem for the marketersin the sense that they might advertise on wrong channel at a wrong time. Types of Radio Advertising:1. Network Advertiser may use one of the national radio networks to carry their messages tothe entire national markets simultaneously via stations that subscribe to the networksprograms. Networks provide national and regional advertisers with simple administrationand low effective net cost per station. The advantage is less paper work and lower costper station. Disadvantage includes lack of flexibility in choosing affiliated stations thelimited no. of stations on a networks roster and the long lead times required to book time.2. Spot Radio Spot radio affords national’s advertiser’s great flexibility in their choice ofmarkets, stations, airtime, and copy. They can tailor commercials to the local market andput them on the air quickly – some stations will run a commercial with as little as 20minutes lead time.3. Local Radio Local times denote radio spots purchased by a local advertiser for local market. Itinvolves the same procedure as national spots. Radio advertising is either live or taped.Most radio stations use recorded shows with live news in between .Likewise, nearly allradio commercials are pre recorded to reduce cost and maintain broadcast quality.4. Sponsor Programme 28 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  29. 29. Radio Advertising Here the advertiser sponsors the whole or part of the programme. The RJinforms the audience about the sponsored company throughout the programme.5. RJ Mention/What’s On Mention Here the Radio Jockey [RJ] informs the audience the information given byadvertiser about the new product launch, sale, exhibition going on at certain place etc. Radio Stations Divide Their Days And Their Rates.Radio stations divide their rate cards into dayparts .The exact divisions vary from stationto station. 6 am -10 am Morning drive 10 am – 3 pm Daytime 3pm – 7pm Afternoon drive 7pm- 12am Nighttime 12am – 6 am All night Rating services measures audiences for only the first four day parts because allnight listening is very limited and not highly competitive. Heaviest radio use occursduring drive times (6-10 am and 3-7pm) during the week (Monday- Friday). This information is important to advertisers because usage and consumption varyfor different products. For example, radios morning drive time coincides with mostpeoples desire for a steaming, fresh cup of coffee, so its great time for advertising coffeebrands. For the lowest rate , an advertiser orders spots on a run of station (ROS) basis,similar to the ROP in newspaper advertising .However, this leaves total control of thespot placement up to the station. So most stations offer a total audience plan (TAP)package rate, which guarantees a certain percentage of spots in the better day parts if theadvertiser buys a total package of time. 29 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  30. 30. Radio Advertising Length of Spots The radio commercials in the test reels consisted of several different spot lengths,ranging from 15 to 60 seconds. The longest commercial played on the radio is 120seconds. Those however are rare. In theory, one could assume that the longer a spot, thebetter it will be remembered or at least, the more chance there it that it will be heard.Research on television commercials proved that this theory holds true for the mediumtelevision: a doubling or tripling in spot seconds results in duplication in recall. The spots for advertisement can be for 10 sec, 20 sec, 30 sec and 60 sec. InGeneral, 10 second spot should contain 25 words 20 second spot should contain 45 words 30 second spot should contain 65 words 60 second spot should contain 125 words If you’ve never written a spot, 30 seconds sounds like an impossibly short timeto get your message across. But take a stop watch and time some spots on the air; you’llsee that quite a lot can be accomplished in a short time. In fact, you may find that 60s,unless very well written and well produced, sometimes seem a bit too long. 30 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  31. 31. Radio Advertising A 60 does allow you more variety in music, sound effects, and voice and can beuseful for political message, the announcement of a new or little-understood service, orother sports with a information/education content. 30 is usually 70 to 80 words long, and a; 60 around 150 to 160 words. The cost ofa: 30 is usually about 60% to 75%. Some stations no longer charge a separate rate for: 30s and: 60s. Instead, theycharge a unit rate. In other words, a: 30 costs the same as a: 60. Obviously, this is onecase where you might want to use a: 60 to take advantage of the “free” air time. Checkthe rate cards of the stations you are interested in, or ask your sales rep. Buying Radio Time1. Station Rates While buying procedures to achieve national coverage may be chaotic, this does notmean they are completely without structure. Although the actual buying may be timeconsuming and expensive if many stations are involved, the structure is actually quitestraight forward. Advertising time can be purchased from networks, syndications, or localradio stations. Advertisers generally invest most heavily in local placement. About 80%of annual radio advertising is placed locally. About 15% is allocated to national spotplacement and only 5% is invested in network broadcasts. Many stations have local ratesfor Individual Business and National Rates for Agencies. Advertiser may use one of the national radio networks to carry their messages tothe entire national markets simultaneously via stations that subscribe to the networksprograms. Networks provide national and regional advertisers with simple administrationand low effective net cost per station.2. Your Dayparts Buying Options 31 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  32. 32. Radio AdvertisingMost stations offer several options for buying air time: a) Buying by specific dayparts b) Buying packages c) Buying sponsorships or adjacenciesa). Buying specific dayparts This relates to the time period of purchase. There are five basic dayparts on basisof which advertiser can choose. The time period decision is based primarily on ademographic description of the advertisers target audience. Drive-times dayparts attract amostly male audience, while daytime primarily female and nighttime is mostly teen. Thisinformation combined with programming formats, guides an advertiser in a buyingdecision. Putting half your sports into drive time and half into midday is a very safestrategy. Weekend sports can also effectively reach teens.b). Buying packages As with magazine buying, radio advertising time is purchased from rate cardsissued by individual stations. Run-of-stations ads- ads that stations choose when to run-cost less than ads scheduled during a specific dayparts. The price can also increase if anadvertiser wants the ad read live on the air by a popular local radio personality hosting ashow during a day part. Buying packages is an easy, usually low-cost method. Marking a package buy iscalled buying Run of Station (ROS), Total Audience Plan (TAP), or Best TimeAvailable( BTA). This means simply that you pay to buy a package of sports at a flat rateand the station decides (within certain specified limits) when the sports will run. Stationswill usually guarantee to divide your sports fairly between drive times and other dayparts.c). Sponsorships or adjacencies A sponsorship is just what its name implies. You are associating your companyname with a specific program. The advertisers sponsor the whole or part of the 32 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  33. 33. Radio Advertisingprogramme. The RJ informs the audience about the sponsored company throughout theprogramme. “……………. Is brought to you by………” An adjacency is the next best thing to a sponsorship. If you buy an adjacency,your ad will run every day just before or just after (in other words, adjacent to) theprogram you specify. Other fixed-position spots are also available. For example, you may specify thatyou want your spot to run at 6:13 a.m. every Monday, Wednesday, and Friday. Sponsorships, adjacencies, and fixed positions go for premium rates.Sponsorships on top-rated shows can cost up to twice as much as other spots in the samedayparts. Having your name associated with a particular show or event can do a lot toreinforce your positioning, and these premium spots can be so powerful that you may beable to run far fewer spots than you otherwise would, spending less to achieve the sameimpact. Sponsorships are like marriages; they’re only for people who are ready for a long-term commitment.3) Frequency Radio, like most media, requires repetition to have impact. As a general rule, aminimum of 20 spots per week should be aired. There are scheduling strategies that helpincrease the impact of the spots you place. Flight and schedule are two words you may hear your radio sales representative usewhen you plan your advertising. A flight is a group of ads. (“I’m running a flight of 80ads this month.”) A schedule is the long-term version of a flight. (“I run a schedule of 20ads a week, six months out of the year.”)4) How many stations do you need Just as you should never run too few spots, you should also not run on too fewstations. But how many is enough?Generally, you should run on at least two or three 33 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  34. 34. Radio Advertisingstations, but that varies depending on your audience and the number of competingstations in the market. If your target and audience includes both younger and older people, you may needto buy two or more stations with widely different formats. There are, however, times when one station will suffice. If your audience isbusiness people, and you can afford to buy drive time on the dominant news/talk stationin the market, that may be all you need to succeed. To really learn who is listening to your spots, survey the local market. Thesesurveys break the audience down by age and sex, break the listening week down intosegment, and then tell you how many listeners each station had in each category. Similarsurvey on listenership has been conducted by IMRB (Indian Market Research Bureau) 34 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  35. 35. Radio Advertising Producing Radio Commercial Producing a radio spot can be a lot of fun advertisers often say it’sthe most fun they ever have in advertising. It can also be simple and inexpensive. There are three basic elements to work with: the announcer’s voice, music, andsound effects. Production can be done in the station’s own studios or in an independentproduction house. Stations are usually well- equipped to produce spots, and they oftenemploy young, creative people whose fresh ideas will keep your spots from sounding likeeverywhere else’s. It all begins with a good script, which means not just the words, but thecombination of words, music, and sound effects. All these are part of the script. Yourspot can be clever or straightforward, but it must grab the listener’s attention in aboutthree seconds, and it must not leave the listener wondering, “whose spot was that,anyways?” The following are some of the factors you should have in mind from the firstmoment you sit down to plan your spot. 1) The Voice There are two factors concerning voice. First, you should use a voice that isappropriate for your image. There are two good, low- cost options for achieving this, and one higher- costoption: a) Using local radio talent b) Using an amateur voice c) Hiring professional voice talent. a) Using local radio talent 35 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  36. 36. Radio Advertising If station produces the spot, one of their on-air people risk having the voice be so familiar that the listener doesn’t pay attention. If the ad runs only in drive time, one can have the midday announcer do the honors. Get the least familiar voice available. Listeners will be less likely to tune it out. Female announcers can also be used. Studies have shown that women presenters are just as effective as men; but only a small (but increasing) percentage of all broadcast sales presentations are made by women. b) Using amateur voices One great thing about radio is that even an untrained voice can be very effective. In fact, the less the voice sounds like one of the regular announcers, the better. A woman’s voice, a child’s, or even your own can make listeners stop and pay attention simply because it’s not what they’re expecting to hear. A word of caution: Amateurs can sound stiff and false. c) Using professional voice talent If a very sleek production value is needed hire voice talent from another station, the local community theater or, in larger markets, from a talent agency. Celebrity voices can sometimes be hired. 2). Music The power of music can’t be overemphasized. There are several options forputting music into your commercials: a) Have original music produced. b) Use free music from the station’s library. c) Get permission to use an existing recording by a known artist. (But It’s difficult and expensive to obtain the rights). d) Buy canned music (sound alike) in the style of many popular composers in all large markets who supply such productions for a modest charge. 36 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  37. 37. Radio Advertising A lot of radio or TV advertising, can be done having a jingle product. The cost runsanywhere from Rs.600 to a few thousand rupees, and it can be a very worth whileinvestment. A catchy jingle helps potential customers remember you more than almostanything else.3). Sound Effects (SFX) various onomatopoeic sounds like eeek, ho ho ho, ding dong, whistle etc. areavailable at the local radio station. The sound of waves on the shore can help sell yourvacation package and bird song can put people in the mood for your spring sale. Radio is entirely a medium of sound. When you use sound to evoke smells,sensations, and visual images, you bring the listener, more involved with your spot, willbe more involved with your ideas. 4. The tapping Session Once the decision is made about the script, voice, music, and sound effects, it’stime to record. At may be just you and the announcer in the studio; the announcer willoperate the equipment. At large stations and professional recording studios, an engineerwill record the spot while you and the announcer concentrate on the reading. You should also understand. Be aware that the announcer may have slightinterpretation of the reading than you do, and don’t expect a performance that could onlycome from someone reading your mind. 37 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  38. 38. Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps. The radio salesperson mustbe aware that everyone involved in the transaction is looking for different results. Themedia buyer is looking for efficient cost per point, while the client’s goal is to moveproduct. As all radio stations are perceived to be same it is important to build value intothe radio station by offering credible benefits that produced results and solutions forprospective clients. Radio salesperson must begin with the client’s needs and marketing goals. Thefirst step in the process is to meet the client to gain as much information as possible aboutthe client and his or her business. After the salesperson has a firm grasp of the advertisingproblem, the next step is to prepare a proposal. The successful ones begins with theclients problem and sales objectives an move systematically to a solution. Often the job of the radio sales person must be conducted on a number of levels. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product. b) The salesperson must move from the general advantages of radio to the advantages of specific station. c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers.Radio advertising faces challenges both from within the industry and from other media asit competes for advertising price. Dayparts Characteristics 6 a.m. - 10.00 a.m. Drive time, breakfast audience, interested chiefly in news10.00 a.m. - 3.00 p.m. Daytime, program characteristics of station, talk , music, or all-news3.00 p.m. - 7.00 p.m. Afternoon, drive time ; radio prime time and same as morning drive time7.00 p.m. - 12.00 a.m. News, music, talk shows12.00 a.m. - 6.00 a.m. Music, talk shows Elements of good radio commercial 38 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  39. 39. Radio Advertising⇒ Be single-minded, focused. The consumer should not be burdened with too much information. Prioritize the copy points. The central idea should be highlighted.⇒ Research your product or service. Many clients keep tabs on their competition, but they rarely related their features and benefits to factual data. Meaningful statistics can give substantial support to your massage.⇒ Relate to the consumer, Always relate the brand to customers wants and needs. D⇒ Generate extension. The effect of a commercial can be multiplied by achieving extension. A clever phrase or execution can have consumers asking other people if they have heard the spot.⇒ Produce an immediate physical, emotional, or mental response. Laughter, a tug on the heartstrings, or mental exercises of a consumer during a radio spot help seed the memory and aid messages retention.⇒ Use plain, conversational English. Be a clear communicator Creative Radio Advertising These are some guidelines for producing creative radio advertisements:-1. Understand the environment2. Speak the listeners’ language3. Engage and entertain the listener4. Keep it simple5. Judge what you hear, not what you read6. Production values are important7. Plan your production8. Dare to be different9. Take it seriously 39 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  40. 40. Radio AdvertisingSteps in Radio Ad Production 1. An agency or advertisers appoints a producer 2. The producer prepares cost estimation 3. the producer selects a recording studio 4. With the aid of the casting director, if one is needed, the producer casts the commercial. 5. If music is to be included, the producer selects a musical director and chooses the music or selects stock music. 6. If necessary, a rehearsal is held. 7. The studio tapes music and sound separately 8. The studio mixes music and sound with voices. 9. The producer sees that the master tape is prepared for distribution on either tape or cassettes and shipped to stations. You are on the air! 40 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  41. 41. Radio Advertising Measuring the radio’s effect Effectiveness research requires clarity of objectives – what are the agreedobjectives of the overall campaign and of the radio campaign within this? Radioeffectiveness can be measured either using continuous research or in stages (“pre &post”) – the pre-stage is normally the week before the campaign, the post-stage in theweek after the campaign finishes. Consumers tend to misattribute radio-advertising memories to other media,particularly TV. This is particularly likely to happen where there is a strong executionallink between the two media and/or where there is an history of TV advertising for thebrand. This tendency to misattribute can be offset by using matched samples oflisteners and non-listeners. This way, if the increase in advertising awareness is greateramong listeners than it is among non-listeners, then the effect can be attributed to radiofairly confidently – even if the listeners think the advertising was in another medium. Radio research can successfully be done using telephone interviewing – ads canbe played down the line. However cases where other media are to be included in theresearch it might be more appropriate to use face-to-face interviewing. Commercial recognition is a valuable technique – i.e. playing the ads toconsumers. It provides a more robust measure of whether they have heard the campaign,and avoids problems of trying to describe the ads. Brand names can be bleeped out of thecommercial, to test whether the campaign is linked to the brand. 1) Defining the research objectivesThe key to any successful research is to have a clear understanding of why the research isbeing conducted in the first place. In other words, what are you aiming to measure?In broad terms, radio advertising research aims can be categorised into two types: 41 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  42. 42. Radio Advertising ⇒ Marketing issues – to what extent has radio helped to achieve the campaign aims? ⇒ Media planning issues – what effect do different media strategies have on the performance of the campaign?Marketing Issues:- These vary widely and there can be often more than one objective setfor a campaign. Below are some typical examples:  .Increase sales  Increase footfall / store traffic  Increase brand awareness  Change consumers’ perceptions about a brand  Broaden consumer appealNot all of these aims are best evaluated with consumer survey research - there arespecific tools available for measuring sales effects for example.Media Planning Issues: - In addition to tracking radio’s contribution to the success of acampaign, as a secondary aim you might also be trying to test and evaluate the effects ofusing different media strategies, for example:- Effectiveness of different spot lengths- Burst versus continuous activity- Use of different day part strategies. If you do intend to test a particular media strategy there are three importantconsiderations to note.  Firstly, and most obviously, you must gear the campaign so that you can test the particular media strategy in which you are interested.  Secondly, if you are testing a number of media strategies simultaneously, you will need to be able to separate the effects of each using a separate, balanced research “cell” for each media-variable. 42 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  43. 43. Radio Advertising  Lastly, when testing different media strategies, bear in mind that you will still be judging the effects in terms of the overall campaign objectives.Whatever your research objectives, once you have defined them make sure that they formthe core of the questionnaire you use. Any other questions are of secondary importance 2) The Importance of Split SamplesMisattribution of Advertising:- When asked to consider advertising, consumers will turn their thoughts to themost salient source they can think of – this tends to mean TV. Television, as the mediumwith the most active expectations, tends to dominate memories of advertising, with theresult that campaigns in all other media are, to varying extents, attributed to television inthe consumer’s mind. This misattribution is disproportionately likely to happen with radio and is stillmore likely to happen when radio campaigns are creatively synergistic with TVexecutions.Avoiding Misattribution: Using Split Samples:- The simplest solution to the problem of measuring true radio awareness is to splityour sample into two parts: listeners (target consumers who have been listening to theradio stations which carried the advertising) and non-listeners (people who do not listento those stations, but who are the same as the listeners in all otherrespects). If the only difference between the two samples is their radio listening, then anydifferences in their awareness or attitudes to the advertised brand can be reasonablyattributed to radio – regardless of where they think they have seen or heard theadvertising. 43 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  44. 44. Radio Advertising It is particularly important to use split samples where radio is part of a mixedmedia schedule in order to gauge the true radio effect.Which Option Should You Choose:- Neither of the two approaches above is necessarily better than the other. However,the second method has the advantage of questioning people who will have the samehistory of exposure to the brand. Local distribution levels for the brand will also be thesame. The key point is that the listener and non-listener samples must be matched asclosely as possible in terms of demographics, media consumption and weight of exposureto the brands’ advertising in other media. This ensures that any differences canconfidently be attributed to radio ad exposure. 3) Where to do the researchTest And Control Samples In Different Areas:- This involves taking two matched samples of respondents in differentgeographical areas and comparing their advertising responses – one sample will live inthe advertised area, the other in an area where no radio advertising ran. In this way, it will be possible to compare the results among those who have beenexposed to the campaign with the results among those who have not - thus giving you ameasure of radio’s effectiveness. It is important to match the media consumption of the samples (e.g. how muchTV they watch etc) as well as their demographics, as this could affect response. It isequally important to ensure weight of advertising for your brand in all other media is thesame for both samples. 44 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  45. 45. Radio Advertising The two geographical areas should also be comparable – (or “typical”) in terms ofmedia and product consumption as a whole.Test and Control Samples within the Same Area In this second approach, all of the research is done within the same area. One part of the sample will comprise people who do listen to the station(s) onyour radio schedule, whilst the other part of the sample will comprise people who do notlisten to any station on the schedule. In this way it will be possible to compare the resultsof those who have been exposed to the campaign to those who have not giving you ameasure of radio’s effectiveness. 4) When to do the research The ideal research method is to monitor advertising activity on a continuous basis,since this allows movements in advertising response to be compared directly to current 45 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  46. 46. Radio Advertisingadvertising activity. Often, however, continuous radio research is impractical on groundsof cost unless it forms part of ongoing advertising tracking.Typically, radio research is conducted in two stages - a pre-campaign and a postcampaign study. ⇒ The pre-campaign study should be conducted as close to the start of the radio campaign as possible – preferably during the week immediately preceding the radio campaign. This will establish the base levels of whatever is being measured (eg brand awareness). ⇒ The post campaign study should be conducted as soon as possible after the radio campaign has ended – ideally during the first week after the campaign has come off air. In some instances one considers conducting more than two stages of research. Forexample, it might be worth slotting in an additional research phase during a particularlylong advertising campaign or sponsorship. Similarly, having done the post-research,consider adding an additional stage of research some weeks after a campaign has endedin order, say, to track decay in brand awareness. 5) The research sample and sample sizesSample SizesGenerally speaking, the larger the sample the better. However at some point, the cost ofan increased sample size becomes cost prohibitive and contributes little extra to statisticalrobustness.6) Method and questionnaire 46 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  47. 47. Radio AdvertisingTelephone research is often used for assessing the effect of radio campaigns: the methodis adaptable and can often be cheaper than face-to-face interviewing. Radio ads cansuccessfully be played down the phone to respondents.Face-to-face interviewing may also be preferable if respondents need to be shown visualad material such as stills from TV ads.Commercial recognition is a valuable technique – i.e. playing the radio ads toconsumers – as this is the best “memory jogger” of all. It also delivers a larger sample ofpeople who are identifiable as having definitely heard the campaign: this is useful whenanalyzing them for their attitudes to the brand.When playing the radio commercials in order to measure commercial recognition, twodifferent approaches can be taken: blind or branded. ⇒ Blind By bleeping out all brand references in each execution and asking whether the commercial has been heard before and then asking for the brand name, it is possible to see whether creative treatment has successfully linked the message to the brand. ⇒ Branded - this allows prompting for brand-specific data, (e.g. attitudes to the advertising/feelings about the proposition), whilst giving a true measure of ad recognition.A fairly straightforward questionnaire will take around 10-15 minutes to runthrough – much longer and respondents will begin to lose interest andconcentration! 47 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  48. 48. Radio Advertising Radio with other media Most brands tag radio to their existing communication plans. Reason enough forus to study the role of Radio vis-à-vis other key media. what Radio can add to each medium on three key parameters - a) Planning, b)Communication and c) Detailing of communication points. Radio with TelevisionCharacteristics of Television TV has traditionally been the most powerful and popular advertising medium forpeople in the media business. This is mainly because it does most things well - coverage,frequency, image, persuasion, demonstration, impact etc. Traditionally a high-cost medium, the downside with TV is that the audience isnow fragmented across many different channels, production costs are extremely high andviewers are increasingly avoiding ad breaks.What radio can add:In planning:- Radios main contribution is a dramatic increase in frequency of exposures, eitherin the same period as the TV campaign or later to extend the campaign over time; radiocan be used for regional or local exposure booster; radio can be used to reach light 48 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  49. 49. Radio Advertisingviewers; it extends TV messages to key times of day when TV audiences are lower orwhen product relevance is higher; radio also allows tighter targeting against audiencesthus reducing wastage.In communication:- Given that Radio is perceived as personal medium, radio can bring brands closerand speak to the consumer at their level; radio has a culture of response where listenersfrequently interact with their station which they see as accessible.In detail:- Radio allows activity to be geographically varied; radio can allow a fastturnaround for new initiatives; low production costs mean multiple copy messages can bevaried round the core TV communication Sonic Brand Triggers. Sonic Brand Triggersare sounds, which consumers recognize and associate with certain brands.Example of powerful SBTs: "Britannia Ting Ting Ting" They help to ensure that TV and radio advertising is well branded. They leave abrand impression with even the most passive TV viewer or radio listener, as they tend torely on rhythm and music, which are absorbed at very low involvement levels. A sound,which has been successfully established on TV, can be transferred on to radio. Radio with NewspapersCharacteristics of Newspapers Newspaper brings immediacy to a communication. Newspapers also have theauthority of the written word, and are good at presenting detail. As a print medium, thenational press suffers from clutter and from the fact that the reader can and does editruthlessly to avoid advertising.What radio adds:In planning:- 49 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  50. 50. Radio Advertising Radio adds frequency, and this is real frequency in that exposures take place inreal time; radio also reaches non-readers so it can significantly increase coverage; in mostsectors, adding radio also means increased share of voice thus overcoming clutterIn communication:- Radio brings intrusiveness to a press campaign, and there is less ad avoidance; itcan bring to life ideas, which may seem flat on the page; radio can more strongly conveythe brands tone. Radio brings brand messages closer to the individual, speaking in amore personal way than press; radio allows brands to emphasize specific key times ofday.In detail:- Flexibility means radio allows geographical variation on top of a national presscampaign. Radio with OutdoorCharacteristics of Outdoor The strength of outdoor advertising lies in its ability to suddenly confront theconsumer with an idea or a challenge, in a very public way. Like radio, posters alsooperate within time which people think of as free - typically travelling time. The weaknesses of outdoor advertising mainly stem from three issues: it has noeditorial context, it uses extremely simple, striking ideas to be effective,and it suffersfrom relatively expensive production.What radio adds:In planning:- Radio adds real frequency, in the sense that additional exposures to theadvertising are played in full rather than having the listener look away or ignore; radiooffers far tighter targeting which means reducing wastage; radio also offers tighter timing- within time of day, day of week or even week of month. 50 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  51. 51. Radio AdvertisingIn communication:- Radio allows more information to be conveyed, which is useful for explaining orpersuading; radio allows multiple copy; radio brings brands closer, as listeners identifywith their radio station and see it as aimed at people like them; radio is better able tocommunicate the tone or character of a brand.In detail:- Radio offers speed of production compared with the lengthy process of posterprint deadlines; it also allows localized copy variation relating to a national posterexecution. Radio with MagazinesCharacteristics of magazines Magazines are useful to advertisers because of the relationship they have with thereaders, who consume them in a personal way. They allow targeting by lifestyle andinterest group. In many magazines the ads are seen as part of the magazine experience. Weaknesses of magazines include the fact that lead times can be very longdepending on the titles frequency of publication, the high levels of clutter, and thereaders inclination to simply turn the page.What radio adds:In planning:- Radio adds frequency and also extends coverage well beyond the magazinereadership; radio allows tighter timing - time of day, day of week etc; radio also offers agreater share of voice for most categories, which means overcoming clutter.In communication:- Radio brings intrusiveness to a magazine campaign, and there is less adavoidance; radio can bring to life ideas which might seem flat on the page; radio can 51 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  52. 52. Radio Advertisingmore strongly convey the advertising tone of voice. It allows brands to speak toconsumers close to certain activities - driving, cooking, housework etcIn detail”:- Radio offers fast turnaround within the long copy deadlines of magazines, and theopportunity for geographical variations. ⇒ Recall of advertising. At the post-stage, you will be seeking to detect spontaneous and prompted awareness. ⇒ Commercial recognition – playing the ads to respondents. ⇒ Thoughts on what the main message of the ads was 52 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  53. 53. Radio Advertising Creating the right mix A fieldwork was conducted by IMRB(Indian Market Research Bureau) to knowabout the listeners which encompassed the entire Mumbai urban agglomeration through arandom sampling of 6,000 households and 3,600 individuals. With the growing salience of Radio, IRMB believes that time is ripe for acontinuous Radio audience measurement system. IMRB International decided to launchRADAR RADIO LISTENERSHIP SYSTEM - the continuous radio audiencemeasurement system in Mumbai. The findings have helped many radio stations to develop. The following is thestandard procedure involved in calculating the listenership of a radio station. The research can be undertaken by the research agency voluntarily to be sold laterto companies, or on particular request by a company. • A project is selected and a deadline is given. • All the interviewers are informed of the above and a questionnaire is given. • A sample size is decided which is spread all over the target city / town etc. • When the questionnaires are filled, they are complied and sent to the analysis department •Then the analysis findings are forwarded to the research department and published 53 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  54. 54. 100 90 80 70 Radio Advertising 60 50Female 42% 40 30 20 10 Male 58% 0 VOA AIR FM1 AIR FM2 BBC Radio Mirchi SLBC WIN 94.6 Go 92.5 Vividh Bharati AIR Primary World Space Radio City % mentioning At the country level: Total awareness of radio stations Gender of radio audience Female 42% MALE 58% 54 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR
  55. 55. 7am - 11.30 am A 12% Radio Advertising20%18%16% B 14% D/E 11.30 - 6.00 pm 7pm - 11pm14% 45%12%10% A D/E 12% 8% 45% 6% C 29% B 4% 14% 2% 0% C 29% % listeners Socio Economic Classification Listenership by time slots Analysis Analysis While the overall reach of radio in India is high it can be seen above that awareness of private radio channels is not much. Prasar Bharti(AIR) has the highest 55 R.A.D.A.V COLLEGE BHANDUP AVANTIKA SENGAR