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Advertising in general expresses the positioning. Powerful advertising is the result of powerful planning. Great ideas and great ad campaigns don’t just pop out from no where, they are built on the key communication points that motivate sales. Radio is entirely a medium of sound, which evokes smells, sensations and visual images which brings the listeners imaginations into play. Radio advertising is one of the tools of advertising which is effectively used for communication and positioning. It is one of the foundations for effective and successful advertising. Radio can be used effectively for advertisement since it can target the large audience because of its high reach. Radio is good at increasing awareness about the brand and business and helping in building the brand image. But all this was only for pure academic purpose. With the advent of television radio lost its popularity and thus its purpose with the marketers. This led to sharp declines in the proportion of advertisement spending on radio as compared to other media. But then came the governments order on liberalization and privatization. This brought about loads of changes in the world of radio broadcasting in India. Prominent and established companies entered the business of FM Broadcasting. FM broadcasting has breathed a new life into the medium of Radio in the past few months. 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 their favourite music on roads, in hotels, even the bidi shops aired on any of the music channels. The radio channels are now vying against each other to provide their best to the listeners
However one can see that although radio is an excellent medium it has been used to its full potential and various efforts should be taken to improve it as with proper direction radio can reach heights as it is the cheapest and a very good medium.
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.
Through this project I have made an effort to understand the advertisng tool called radio advertising which is being increasingly recognized by marketers as a powerful tool that helps in finding new customers and retaining the existing ones at a much lesser cost.
The aim of primary research was to understand radio advertising as it is seen in the 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 me understand what all goes into the making of a radio advertisement. The mode of interview used was an informal one where he answered my questions on one to one basis. Also Mr. Sudarshan Sahe the senior marketing manager of Radio City gave me an interview and helped me in trying to understand as to how the station works and looks after the needs of its consumers
The aim of secondary research was to understand as to why radio advertising has been able to grow at a considerable rate as compared to the other media.also the fall out of radio in the last decade . It was also undertaken to understand how radio advertising is done and what re the current players in the market. Secondary data collection method: desk research Secondary data collection sources: internet, books, newspaper articles
Media owners dealing with new markets will virtually have to draw up their strategies as they go along.Radio Advertising Introduction Old media don’t’ die! They just bounce back in new avatars. as advertisers will expect media players to put their money where their speakers are before they commit large sums of money towards radio advertising. Vis a Vis television or print media. innovative and grab away eyeballs from TV sets and make them tune into their radio sets. much like satellite channels did to the quantum of television advertising in the country. It’s a whole new challenge and competition is never far away. The geographical area covered by radio in India in India is as high as 98 percent and the penetration level is approximately 97 percent. Television and later “new media” were touted to being the media of the future. Not so long ago radio had been written off as fuddy-duddy. create programming that is new. Ad revenues will also not be easy to come by. FM radio is a new entity altogether and has to deal with new market dynamics. Globally depending on each country. That should open up a vast new market of consumers-100 million Indian households own an estimated 150 million radios. radio has a 5 % to 12 % 4 . In fact. outnumbering television sets 3:1. Currently radio has just 2 percent of the 9000 crore Indian advertising market according to an Arthur Anderson’s survey. The other challenge for radio in attracting advertisers is the nature of the medium-radio has always considered being a reminder medium. However in spite of the various challenges the emergence of private FM stations is certain to increase the quantum of radio advertising in the country . But thanks to technology radio is making a comeback. But FM presently covers only 17 percent of the area and 21 % of the population of India through transmitters. coolest and most with -it medium. in its new avatar-fm-radio is all set too become the hippest. down market and not so cool. The involvement of listeners to radio is low.
1%.7% and Spain with 9. Rs. While TV is a family medium. 1200 crores by 2005 and Revenue of radio services is expected to rise to Rs 689 crore by 2008 at a CAGR of 30 per cent. This would be the key when evaluating the medium. radio will become a push and pull medium. and the emergence of lifestyle advertising.Radio Advertising of the advertising cake. They have also forecasted that revenues from radio advertising in India will be Rs. For example.5 percent to 5 % in five years. 50/. FM station executives are not forthcoming on multi-platform strategies as yet. is not just making a comeback but is being reincarnated into a new avatar. With the coming of more channels. Given that radio has penetrated into 100 million homes and a FM set costs around Rs. as the car population is much bigger. On the higher side are countries like the United States with 13 %. Also advertising of certain product seems to work very well while some might not. cellular phone service or auto related products would have a good impact when advertised on radio is primarily known as a “drive time” medium most people who turn in are doing so while commuting. Also one must not forgot that radio continues to be a medium that has tremendous reach among the poor and marginalized sections of society. radio is personalized.FICCI estimates FM’s share up from the present 1. Canada with 12. 5 . As said earlier. Thus the potential if FM is better is bigger town.
535 kilohertz to 1.5 fm “what the announcer means is that you are listening to a radio station broadcasting an fm radio signal at a frequency of 91. 6 .5 megahertz" means that the transmitter at the radio station is operating at a frequency of 91. radio and electronic capabilities were fairly limited. hence the relatively low frequencies for AM radio. This band of the radio spectrum is used for no other purpose but fm radio broadcasts. Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. data for a radio modem or whatever). In the 1920s.88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio. "you are listening to 91. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible. and frequency allocation for AM radio occurred during the 1920s. pictures for a TV set. encodes it onto a sine wave and transmits it with radio waves. Both the transmitter and receiver use antennas to radiate and capture the radio signal. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz. but FM did not become really popular until the 1960s. Megahertz means "millions of cycles per second.500. Common frequency band includes the following… • • AM radio .Radio Advertising Some Basic Technical Knowledge Any radio setup has two parts: • • The transmitter The receiver The transmitter takes some sort of message (it could be the sound of someone's voice. He built the first station in 1939.000 cycles per second.7 megahertz FM radio .5 megahertz. When you listen to a radio station and the announcer says. The first radio broadcasts occurred in 1906 or so. The receiver receives the radio waves and decodes the message from the sine wave it receives." so "91.
Aspect A Licencee pays Rs.. In other words. 6.for the music. 500 at prime time for 18 such spots. the total revenue generated is Rs. The IPRS claims royalty for the original composers and authors of music. 250 per hour of needle time. Studio hiring costs are between Rs.Minutes have been set aside for advertising.500/. 12. 1.000/.for the technology. 6. PPL is demanding a royalty of Rs. 7 . 18 advertisements each of 30 seconds can be accommodate in an hour. 6000/.000 per hour. An hour long show thus costs Rs.seconder costs Rs. 10 .Rs. 3. The total expenses are thus Rs. 10. Add Rs. They are demanding Rs. Cost . 100 per hour. Add Rs.500 to Rs.500. The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd. 9000/.minutes. the actual duration of a piece of music. 13. 1000 an hour. Add Rs. at which they are supplying music to AIR). Besides the tariff card should be modest. Thus.Radio Advertising Royalties FM is primarily a music channel. considering the limited range and listenership supposing a 30 . Another estimate puts the production cost of an hour long programme around Rs.minutes for social awareness advertising.500 per hour (as against Rs. so the question of royalties is relevant. 500 . advertising time available for sale is 9 .of the licensee fee to AIR. One minute is reserved out of 10 .000/-.000/. (PPL) are supposed to hold all the rights of royalties. salaries and other expenses. The IPRS is demanding Rs. 1. This is the high target.per hour. 100 per hour.
A large number of popular shows moved from radio to TV. It took quite a while before Reginald Fessenden developed the first radio receiver in 1913. It has benefited listeners and advertisers alike and earned the status of a 'Constant Companion'. News.. People in households would gather around the radio to listen to their favorite programs much as they do today with TV. a Queens based Real Estate Company. What allowed Radio to accomplish this feat? Read on for the long journey the Radio industry has covered thus far. It was way back in 1895. as the radio industry was also losing a large number of talented staff to TV. that Guglielmo Marconi invented an antenna to send and receive radio signals. drama. experts give a lot of credit to David Sarnoff who actually conceived what is called as the "radio music box".Radio Advertising Advent of Format Radio The arrival of 'Moving Pictures' with sound and then 'Television' were expected to be the death knell for 'Radio'. This saw the beginning of what was later looked on as the 'Golden Age of Radio'. Early 1920s saw the launch of commercial radio. Audiences were charmed by the audiovisual experience of TV. However Radio has not just survived repeated predictions of its demise but grown tremendously. That was not all. However. The 1st paid announcement on radio was a 10-minute capsule from Howthorne Court. Then in the 1950s TV began to catch the public's attention. sports. live musical recordings would be presented in 30 or 60-minute programs. His persistence paid off in 1919 when such sets were available for general purchase.. A network soap opera could be followed by a 15-minute newscast followed by one hour of a concert. 8 . It was Sarnoff who suggested that radio should be mass-produced for public consumption. Radio became the first medium delivering entertainment to the masses in their homes. This era was characterized with 'block programming' wherein radio offered something to everyone.
Storz and McClendon used to frequent a local malt shop. over and over again. They observed that the customers would usually come and play the same songs that they liked. radio experts discovered an opportunity that only radio could provide. In fact.From this insight emerged the "Top 40" format or the "Contemporary Hit Radio (CHR)" format were the most popular hits would be played on a higher rotation. But today its possession is taken for granted. The shows therefore had to be reflective of various day parts in the life of the listener. The total number of radio sets at the time of independence in 1947 was a mere 275000. the staff serving these people would end up playing just the same songs even when the shop was closed. Radio turned 'local' and moved to what is known in the industry as 'Format' programming.at that time a radio receiver used to be a status symbol in this country. This led to a change in the way radio time was being sold. cooking a meal. format radio definitely made radio not just survive the onslaught of TV but also made it grow tremendously. This era also spawned two of radio's greatest strengths: immediacy and local service. it had to be relevant to the listener at every point of time in the day. It also led to a shift in the way radio programs were scheduled. studying and more. it could update you about your world throughout the day while providing you with the entertainment you like all the time. which had a jukebox. Being the only medium that could be carried and used wherever you are. there are radio sets in about 105 million households in the country. They realized that radio was the only medium that could be used while doing other things. throughout the day. As radio was being used as a background medium of entertainment.Radio Advertising At this point in time. seven days a week. As the story goes. According to estimates. Radio became "The Constant Companion". Sales people shifted from selling programs to selling commercials. Format radio strategy was based on providing the same kind of entertainment to a selected audience. 9 . traveling to office. Irrespective of the form it came in. like getting dressed for work.
in effect. And the focus on metros was evident in the bidding. In response to the Government's offer. many companies bid for the licenses to operate in key markets. Then. 93 crores with Times of India's Times FM & Mid-Day Group's Radio Mid-Day becoming the main players. the Government gave the green light to privatize radio in India. And in 2000. 10 . through its electronic media regulatory body Prasar Bharti. (1997-98). 1999 was the historic day when the Government announced that 150 new FM channels would be licensed across 40 cities . prepare programming content. the competition shrank. For instance. the bidding price for the Mumbai license was reportedly to the tune of Rs 9. In 1993. decided not to renew contracts of private FM operators. the FM Radio advertising and sponsorship business grew to Rs. Then history changed its course. in June 1998 the Government. players consolidated and the Government extended its deadline.Radio Advertising History of Indian Radio For more than 4 decades.75 crore. Today. unable to shell out the high license fee. there are roughly 10 players who will operate approximately in 37 cities across the country. So. A handful of serious bidders chose to remain. Others dropped out saying the business was not viable. July 6. Many gave up. the advertising revenue fell by 50% within a year! This time. But the going was not so easy. Within 4 years. the government had to actually face mass withdrawal of bidders because of the huge license fee. the Government auctioned licenses for private FM channels to bolster the revenue. the Government allowed private FM operators to 'buy' blocks (chunks) on All India Radio.Not surprisingly. book commercials from advertisers and broadcast the whole lot. Expecting to collect Rs 800 million from auctioning 108 licenses. the Government of India did not permit private radio stations to broadcast in India.
The first round of bidding .2 million each Radio is expected to follow the growth of the Television industry. FM coverage in India is restricted to just 17% of the country. The government got the highest bids .Radio Advertising The government collected close to Rs 4. New Media Broadcasting.5 million from each of 10 broadcast companies . garnered close to Rs 3. a Zee Group company. each for Rs 77.for 76 channels in 26 cities.2 million and Rs 74 million.Rs 97. which grew rapidly following the entry of private players Currently.6 billion as license fee for the privately run FM radio channels in 40 cities.5 billion. the bids for Hyderabad and Nagpur came next. Interestingly. compared to 89% of All India Radio (AIR).for stations in Mumbai. 11 . respectively. won the largest number of bids. while the bids for Delhi were Rs 71. which focused mainly on the smaller towns.
90 Udaya TV . Bhopal. Calcutta Delhi. Chennai 12 Hitz FM India FM Living Media Mid Day Broadcasting Millennium Broadcasting Music Broadcasting 1 1 3 3 1. Indore. Mumbai. Nagpur.Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Bid amount for first years license (Rs.87 20. Bangalore.50 Incidentally. Lucknow.00 17.87 Entertainment Network [India] Delhi. 12 . Mumbai.37 Sumangali Publications . Mumbai. Coimbatore.00 1. Chennai 3 20.87 Calcutta. Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July. Bhubaneshwar. Indore. Lucknow Chennai. Patna. Mumbai. Tirunalveli 6 41.Sun TV Vishakapatnam 1 0.17 Delhi. Ahmedabad. Jabalpur. Pune Calcutta Calcutta Delhi. Vishakapatnam 4 2. crore) 43. Chennai. Hyderabad. Mumbai. Cuttack. Calcutta.Sun TV Vertex Broadcasting 3 9.17 Delhi.
It’s better to keep the revenue-sharing figure low than to have a failed project. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. FM players pay annual licence fees. The objective is to “make FM radio a success story”. the panel has fixed it at 4 per cent.Radio Advertising Licence Fee and revenue sharing model Currently. which go up by 15 per cent every year. it is firm on revenue-sharing now. Private FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. It has also recommended to the government to release additional spectrum for the use of FM radio companies so that the number of companies operating in one centre can go up. Setting up new radio stations After the second round of privatization. However. Revenue-sharing figure is quite low at around 4 %. revenue-sharing also exists in the media sector. the number of FM radio stations targeted is around 300 to 400. The panel also suggested that players wanting to enter the sector in the second round of licensing need to have a technical viability clearance by a financial institution on the financial viability of the project.5 per cent. Future of Radio Industry 13 . There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years. While the private FM players had sought revenue-sharing in the band of 2-2.
Spearhead the government objective of growing the FM radio business in India. for advertisers. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand. helpful information traffic advisories. It can provide a level playing field with benefits for listeners.Radio Advertising FM Radio can play its part in building a stronger business future for India. Also.2 billion by 2007. The Rs 1. But at current levels of advertising support. Providing free-to-air local broadcasts of music and entertainment. advertising spending is expected to amount to Rs 500 crore this year. community announcements and public service messages provide a real value-added service. 14 .also government allowing foreign players to enter he Indian market it will help the industry grow. The new India deserves an active private FM radio sector. With the government ready to reduce the license fees it will help in attractingnew palyers like reliance which had earlier backed out only due to the entry fees. each radio station is reeling under the brutal financial impact of high costs. It is on the basis of these key drivers of growth. There are an estimated 150 million radio sets across the country.000 crore Indian advertising market. employment & career options.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6. Virgin group has already started exploring the Indian market for suitable partners. The future looks bright as the reach of radio is expected to raise post the increase in the number and quality of players in the industry. With more players in the fray the FM radio industry would grow and also enhance the government’s yield from licensing radio naturally. though radio has only a 2 per cent share in the Rs 6. with revenue rising at 23 per cent annually. it is being predicted that radio's share in the total advertising pie will see an increase in the medium term.
Therefore radio is more popular. • • Radio is considered as a medium where the “Proximity to purchase” is very Radio is a complement to another media. the government has agreed upon revenue-sharing model. advertisers or agency can use this medium for brand recall. other media or the high. 15 . Therefore. They can’t afford a TV set. and reveals that radio listenership habits have changed considerably. • • • • The advertisers. are welcoming the opportunity. which is 4 % for the growth of the radio stations. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. brochures Radio is considered as a background medium. • The success of private FM stations. It is also a free medium. publications. Radio also reaches to uneducated village folk who do not read print or ads in local supplements of newspapers. radio anytime and anywhere they want.Radio Advertising SWOT Analysis Strengths: • Recently. • Radio is the least cost medium and it helps to reach mass audience with various backgrounds. pamphlets. because people can listen to 90% of India has access to radio which is unmatched by any other media. So that they can develop themselves well because this industry is still in an introduction stage. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. not only are listeners tuning into it more often but also sticking to radio for longer hours everyday. who would depend on word-of-mouth.
the large number of the audience in India is fragmented in various remote places. • • • 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. • No proper research available . • Radio-only nature of radio communication is a tremendous creative compromise. • • Increase in listenership numbers but no increase in ad revenue. This is the situation that every radio channel is facing. And therefore.Radio Advertising Weakness: • One of the major weaknesses of Radio is that there is very less differentiation in the programmes that are aired. Short commercials Opportunities: • 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. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. the percentage of listener tuned to anyone station is likely very small. The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium 16 . Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. Most of the stations plays much of the music that is played consist of Hindi Film songs. And like its radio message creates a fleeting impression that is often gone in an instant. But. and therefore it is difficult to differentiate between the programmes of the different channels.research is very important for any advertising segment. in India there is no proper research is available. • Fragmented Audience . Many stations are conducting their own research which can be biased. Research is the main base to attract client and get more revenue.
and gung-ho about this whole enterprise. This is one of the biggest threats it faces. there is a fear of losing its brand loyalty. low charges. Brand building is thus much more difficult. we are very bullish. And then it is easier for the advertisers also to decide on which channel to advertise. So. • Leaves huge scope for innovation in local market Threats: • The biggest threat to private radio industry players is ALL INDIA RADIO. At the same time. • With the coming of the many more new players in the radio industry each channels can position themselves quite different from others. government channel etc… • Because of the new government policies there will be more number of stations and then competition will also increase. and that is the challenge. AIR is the biggest player in India because of its reach. And can play their station which will exclusively provide with the information relating to that university/college campus. if some station is targeting the health conscious people then their programming strategy will vary accordingly. • • Allowing private FM players to start news and current affairs programmes. like. 17 . One has to constantly innovate. With no particular differentiation in the music.Radio Advertising • The new radio stations which will come in future they can have venture with the college or university campuses.
the nominal GDP growth rate.2% to reach Rs. and is expected to grow at 14. which lags behind other developed and developing countries During fiscal 2005. with a nominal GDP CAGR of 9. The nominal GDP for fiscal 2005 was Rs. According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10. and growth rates of the advertising industry The Indian advertising spends.34%. 127 billion by fiscal 2006 18 . as a percentage of GDP. the gross advertising spend in India is estimated at Rs 111 billion.636 billion.94% over the last 10 years (1995-2005).Radio Advertising Advertising in India India has been among the fastest growing economies in the world.e.9%. is 0. There is a correlation between the economic growth rates of a country i. 30.
7% 0.2% 46. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry. Thus. which started off as a single government controlled television channel. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49.6% 41. which saw the beginning of satellite broadcasting in India.7% 2. now has over 300 channels covering the Indian footprint.3% Media Spends as % of Total Ad Spend TV Radio Cinema 39.9% 2. television.3% 40. This growth was also aided by the economic liberalization program of the Government. cinema.7% 0.9% 2.4% 0. the television broadcasting business.3% 0.3% The Indian television industry has grown rapidly.0% Internet 0.6% Outdoor 8. resulting in growing ad spends on this medium.4% 0.5% 0. The growth of the satellite television audience saw proliferation of a number of satellite television channels offering more choices to media buyers and consumers of entertainment.4% 47.5% 2.0% 6.4% 7. especially since 1991. 19 .Radio Advertising Segmentation in advertising The five key industry segments comprise print.5% 6.4% 0.9% 0. and outdoor.4% 0.0% 43.7% 2.0% 48.9% 43.6% 46.5% 7. radio.
But national advertisers are also operational in the local market. Amul. 20 . DSP Merrill Lynch etc are dominating the advertising on each one of the FM channels. with 12.1 per cent. Parle. Accordingly.5 or Radio City. Santro. Go 92. On the higher side are countries like the United States. Radio promotion is an art that demands a certain style you may simply neither have nor desire to cultivate. Paradoxically. it is undeniable that radio can be integral in exposing a new artist.5 Red 93. with 9. national advertisers and the balance 30 per cent comes from retail. depending on country.Radio Advertising Radio Advertising Radio is still the king when it comes to getting your music. On top of that. implying that it is as important to them as it is to a retail advertiser. Castrol. Advertising agencies that control the national picture will be slow to move on to radio for creative reasons. with 13 per cent. radio has a 5 per cent to 12 per cent share of the advertising cake. Canada. Putting it bluntly. it can take a great deal of time to make all the contacts and connections that are required for successful radio promotion.9 per cent share of the total advertising pie in India. successful radio promotion revolves around making and managing relationships. Today. They have people who love to make television commercials. Globally. it is extremely difficult to obtain meaningful airplay. The best way for a new band to get heard by the public and record label executions is over the airwaves. new product or services to new fans and taking a local market to a national level. radio currently has only a 2. Nevertheless. Companies that advertise on FM channels today such as Hindustan Lever (HLL).7 per cent and Spain. 70 per cent of the advertising comes from big-budget. It is a known fact that retail advertising will grow because radio presents the perfect advertising medium for local businesses in a local environment. Britannia. if not more. Dr Morepen. be it Radio Mirchi.
representing a growth of about 7. & Rs. concerts Vague/ not relevant: This includes memories of ads for local garages. e. films. like a food chain that is opening an outlet in Mumbai. and the print medium is too expensive. only about 2. It is also aptly suited for local promotions. 21 . Radio is the best bet for such small-scale promotions. it does not make much sense to advertise on TV.4 million in 2000. However. money from advertising has gone up. they have to sit through the full length of any ads which are for irrelevant products. in revenue terms. that most advertising is aimed at adults. it has tremendous potential to eat into local mediums. Consumer opinions The evidence from the qualitative research is that young people feel their local FM station is aimed at people like them.they feel.Radio Advertising but don't have anybody who knows how radio works. all of that went to ALL INDIA RADIO. and once audiences can be targeted. to Rs 808. probably quite correctly. cars and insurance companies . There was evidence of three sorts of memories: Relevant : This includes Ads which mentioned areas or names of specific interest. A clear advantage that radio has is that it can easily target city-based audiences.g. Because radio is a real-time intrusive medium. This makes sense if the advertiser.5 per cent per annum. Revenue from commercials on AIR. 600 crores in 2002. wants to target a specific audience. Here. In such cases. and up till now.little or no specific detail remembered Sonic Brand Triggers: Much evidence of children's ability to pick up on musical Sonic brand Triggers (SBT’s) and sing them out loud. outlets selling favoured brands. but the advertising is not .9 per cent of the money spent by advertisers goes to radio. including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990.
income group. there are certain disadvantages of this media which need to be considered.Radio Advertising Pros and Cons of Radio Advertising Every medium has special strengths and weaknesses that makes it more or less suited to special marketing problems of specific advertising. radio has the ability to reach prospects by sex. 22 . Radio also reaches to uneducated village folk who do not read print publications. ethnic or religious background. From a marketing perspective. employment category. 90% of India has access to radio which is unmatched by any other media. educational level or special interest with a format that adds even greater dimensions to its already strong personal communication environment. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. age group. Also. Radio has a number of characteristics that makes it an ideal vehicle for numerous advertisers as either a primary or secondary medium. There is no one medium which is ideal for advertisers or every situation. Advantages of Radio 1. Largest Reach and Frequency Radio offers an excellent combination of reach and frequency. Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the rural masses. 2. radio builds a large audience quickly and a normal advertising schedule easily allows repeated impact on listener. The average adult listens more than 3 hours a day. Therefore radio is more popular. They can’t afford a TV set. Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enable advertisers to select the market they want to reach.
Radio also offers timeless. advertisers are able to adapt commercials to the various stations then buy. The personal nature of radio. National spots can be produced for about one tenth the cost of a TV commercial. This means an advertiser can wait until close to an air date before submitting an ad. Creativity and Flexibility Radio is the most flexible medium because of very short closing periods for submitting an ad. radio ads can be produced very quickly. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. immediacy. and local stations often produce local spots for free.Radio Advertising Radio’s high overall reach and its ability to provide numerous formats make it a multifaceted medium. popular songs. Copy changes can also be made very quickly. With this flexibility of simple formats such as voice only can be created almost immediately to reflect changing market conditions or advertisers can take advantage of special events or unique competitive opportunities in a timely fashion. 3. Because of the relatively low cost of production. 4. a strategy that would normally be prohibitively in television. Audiences that favor certain music may be more prone to an ad that uses recognizable. makes radio the choice for numerous product categories. 23 . Cost –Efficiency Radio is the least cost medium and it helps to reach mass audience with various backgrounds. While radio may be one-dimensional in sensory stimulation. Also. it can still have powerful creative impact. Radio has been described as the theatre of the mind. The musical formats that attract audiences to radio stations can also attract attention to radio ads. local relevance and creative flexibility. combined with its flexibility and creativity.
Proximity to Purchase The mobility of radio and its huge out . 7. Radio gives the advertisers the opportunity to take advantage of the right combination of words. evoke their emotions. In the competitive environment facing most companies. Radio’s daily frequency offers scope for continued messages and hence the consumers are more likely to remember that product and consumer lend up buying that product. A personal medium The human voice is the most personal means of communication. it is imperative that brands achieve consumer reinforcement as near as possible to the purchase decision. and persuade them to respond. 6. music. As a result many advertising agencies will move their budgets into radio. The radio industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary medium. and sound effects to establish a unique “one-on-one” connection with prospects that lets you grab their attention. However for national advertisers and most large local and regional firms. radio is most often used as complementary medium to extend the reach and frequency of primary vehicles in their advertising schedule. Radio can be targeted by lifestyle formats and is more efficient than other media from a cost and production standpoint.Radio Advertising 5. As a Complement to Another Media In some cases. voices. 24 . radio is the primary medium for local advertisers. A fundamental marketing strategy for radio has been its ability to successfully work with other media to increase reach and frequency or to reach non-users and light users of other media.of .home audience gives the medium an advantage enjoyed by few other advertising vehicles.
he or she often switches stations when an ad comes and divides his or her attention between the radio and road. Since national networks and syndicated broad cast do not reach every geographic market. the buying process can be sheer chaos. For those product categories with broad appeal. advertisers who want to blanket the market have to buy multiple stations. When a consumer is listening while doing some work or traveling in a car. This could involve dozens of different negotiations and individual contracts.Radio Advertising Disadvantages of Radio 1. However. Chaotic buying procedures For an advertiser who wants to include radio as a part of national advertising program. 2. 25 . Fragmented Audiences The large number of stations that try to attract the same audience in a market has created tremendous fragmentation. If a large number of radio stations compete for the same audience. it is difficult to gain effective reach and frequency without buying several radio stations and networks. as it is audio as well as visual. 4. some advertisers wonder if radio is offering too many narrowly defined options. which may not be cost effective. in radio’s quest to continue to fine tune its reach. Misunderstanding Sometimes there might be a misconception regarding the radio ad as it is only heard. 3. Poor Radio Attentiveness Just because radio reaches audiences almost everywhere does not mean that everyone is paying attention. In television the chances of such misconception is less. an advertiser has to buy time in individual markets on a station-by-station basis.
7. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad. there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time. 26 . They can’t keep like a newspaper or a magazine ad. Therefore. Only 20 % of time availability restricts the frequency of message exposure. and it does not always succeed. there is no proper research has been available on the area of radio listening. Sometimes the voice really matters. Some agencies think radio restricts their creative options. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans.Radio Advertising 5. 8. which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. If the voice is irritating then there is a chance that the campaign may flop. Creative Limitations The audio-only nature of radio communication is a tremendous creative compromise. a drawback if the product must be seen to be understood. No proper research available In India. Radio must compete with other activities for attentions. 9. Limitations of Sound Radio is heard but not seen. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. 6.
of stations on a networks roster and the long lead times required to book time.Radio Advertising Types of Radio Advertising: 1. They can tailor commercials to the local market and put them on the air quickly – some stations will run a commercial with as little as 20 minutes lead time. exhibition going on at certain place etc. Disadvantage includes lack of flexibility in choosing affiliated stations the limited no. sale. RJ Mention/What’s On Mention Here the Radio Jockey [RJ] informs the audience the information given by advertiser about the new product launch. Sponsor Programme Here the advertiser sponsors the whole or part of the programme. The advantage is less paper work and lower cost per station. Networks provide national and regional advertisers with simple administration and low effective net cost per station. 5. The RJ informs the audience about the sponsored company throughout the programme. Network Advertiser may use one of the national radio networks to carry their messages to the entire national markets simultaneously via stations that subscribe to the networks programs. nearly all radio commercials are pre recorded to reduce cost and maintain broadcast quality. Spot Radio Spot radio affords national’s advertiser’s great flexibility in their choice of markets. It involves the same procedure as national spots. airtime. 2.Likewise. stations. Local Radio Local times denote radio spots purchased by a local advertiser for local market. 4. and copy. 27 . Radio advertising is either live or taped. 3. Most radio stations use recorded shows with live news in between .
so its great time for advertising coffee brands. For example.Friday). fresh cup of coffee. So most stations offer a total audience plan (TAP) package rate. which guarantees a certain percentage of spots in the better day parts if the advertiser buys a total package of time. similar to the ROP in newspaper advertising .The exact divisions vary from station to station.12am 12am – 6 am Morning drive Daytime Afternoon drive Nighttime All night Rating services measures audiences for only the first four day parts because all night listening is very limited and not highly competitive. This information is important to advertisers because usage and consumption vary for different products.Radio Advertising Radio Stations Divide Their Days And Their Rates. 28 . For the lowest rate . this leaves total control of the spot placement up to the station.However. radios morning drive time coincides with most peoples desire for a steaming. an advertiser orders spots on a run of station (ROS) basis. Radio stations divide their rate cards into dayparts . 6 am -10 am 10 am – 3 pm 3pm – 7pm 7pm. Heaviest radio use occurs during drive times (6-10 am and 3-7pm) during the week (Monday.
30 sec and 60 sec. 60 around 150 to 160 words. this is one case where you might want to use a: 60 to take advantage of the “free” air time. 20 sec. Check the rate cards of the stations you are interested in. you may find that 60s. 29 . and a. or ask your sales rep. one could assume that the longer a spot. unless very well written and well produced. Instead. a: 30 costs the same as a: 60. Obviously.Radio Advertising Length of Spots The radio commercials in the test reels consisted of several different spot lengths. Those however are rare. the more chance there it that it will be heard. ranging from 15 to 60 seconds. A 60 does allow you more variety in music. In other words. The spots for advertisement can be for 10 sec. you’ll see that quite a lot can be accomplished in a short time. In theory. 30 seconds sounds like an impossibly short time to get your message across. sound effects. 30 is usually 70 to 80 words long. The longest commercial played on the radio is 120 seconds. Research on television commercials proved that this theory holds true for the medium television: a doubling or tripling in spot seconds results in duplication in recall. Some stations no longer charge a separate rate for: 30s and: 60s. or other sports with a information/education content. In fact. But take a stop watch and time some spots on the air. the better it will be remembered or at least. 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. they charge a unit rate. sometimes seem a bit too long. and voice and can be useful for political message. In General. The cost of a: 30 is usually about 60% to 75%. the announcement of a new or little-understood service.
There are five basic dayparts on basis of which advertiser can choose. Advertisers generally invest most heavily in local placement. Your Dayparts Buying Options Most stations offer several options for buying air time: a) Buying by specific dayparts b) Buying packages c) Buying sponsorships or adjacencies a).Radio Advertising Buying Radio Time 1. About 80% of annual radio advertising is placed locally. 2. Advertiser may use one of the national radio networks to carry their messages to the entire national markets simultaneously via stations that subscribe to the networks programs. the structure is actually quite straight forward. Drive-times dayparts attract a mostly male audience. while daytime primarily female and nighttime is mostly teen. This information combined with programming formats. Although the actual buying may be time consuming and expensive if many stations are involved. guides an advertiser in a buying decision. About 15% is allocated to national spot placement and only 5% is invested in network broadcasts. syndications. this does not mean they are completely without structure. Advertising time can be purchased from networks. Station Rates While buying procedures to achieve national coverage may be chaotic. Buying specific dayparts This relates to the time period of purchase. Many stations have local rates for Individual Business and National Rates for Agencies. The time period decision is based primarily on a demographic description of the advertisers target audience. 30 . or local radio stations. Networks provide national and regional advertisers with simple administration and low effective net cost per station.
Marking a package buy is called buying Run of Station (ROS). The price can also increase if an advertiser wants the ad read live on the air by a popular local radio personality hosting a show during a day part. b). Stations will usually guarantee to divide your sports fairly between drive times and other dayparts. Weekend sports can also effectively reach teens. or Best Time Available( BTA). and Friday. You are associating your company name with a specific program. c). spending less to achieve the same impact. Other fixed-position spots are also available. adjacencies. your ad will run every day just before or just after (in other words. usually low-cost method. The RJ informs the audience about the sponsored company throughout the programme. Buying packages As with magazine buying. every Monday. Is brought to you by………” An adjacency is the next best thing to a sponsorship. 31 . Total Audience Plan (TAP). and fixed positions go for premium rates. Run-of-stations ads. Sponsorships or adjacencies A sponsorship is just what its name implies. and these premium spots can be so powerful that you may be able to run far fewer spots than you otherwise would. Sponsorships on top-rated shows can cost up to twice as much as other spots in the same dayparts.Radio Advertising Putting half your sports into drive time and half into midday is a very safe strategy. “……………. you may specify that you want your spot to run at 6:13 a. Having your name associated with a particular show or event can do a lot to reinforce your positioning. radio advertising time is purchased from rate cards issued by individual stations. This means simply that you pay to buy a package of sports at a flat rate and the station decides (within certain specified limits) when the sports will run. adjacent to) the program you specify. Sponsorships. Wednesday.ads that stations choose when to runcost less than ads scheduled during a specific dayparts. If you buy an adjacency. For example. The advertisers sponsor the whole or part of the programme.m. Buying packages is an easy.
you should run on at least two or three stations.”) A schedule is the long-term version of a flight. If your target and audience includes both younger and older people. 3) Frequency Radio. (“I’m running a flight of 80 ads this month. Flight and schedule are two words you may hear your radio sales representative use when you plan your advertising.Radio Advertising Sponsorships are like marriages. requires repetition to have impact. There are scheduling strategies that help increase the impact of the spots you place. you may need to buy two or more stations with widely different formats. they’re only for people who are ready for a longterm commitment. break the listening week down into segment. (“I run a schedule of 20 ads a week. you should also not run on too few stations. but that varies depending on your audience and the number of competing stations in the market. that may be all you need to succeed. If your audience is business people. like most media. Similar survey on listenership has been conducted by IMRB (Indian Market Research Bureau) 32 . and you can afford to buy drive time on the dominant news/talk station in the market. and then tell you how many listeners each station had in each category. But how many is enough?Generally. To really learn who is listening to your spots. There are. As a general rule. survey the local market. six months out of the year. however. These surveys break the audience down by age and sex.”) 4) How many stations do you need Just as you should never run too few spots. A flight is a group of ads. times when one station will suffice. a minimum of 20 spots per week should be aired.
There are three basic elements to work with: the announcer’s voice.cost option: a) Using local radio talent b) Using an amateur voice c) Hiring professional voice talent. All these are part of the script.cost options for achieving this. but the combination of words. 1) The Voice There are two factors concerning voice.Radio Advertising Producing Radio Commercial Producing a radio spot can be a lot of fun advertisers often say it’s the most fun they ever have in advertising. anyways?” The following are some of the factors you should have in mind from the first moment you sit down to plan your spot. music. and sound effects. and it must not leave the listener wondering. a) Using local radio talent 33 . but it must grab the listener’s attention in about three seconds. and they often employ young. Production can be done in the station’s own studios or in an independent production house.equipped to produce spots. It all begins with a good script. and sound effects. music. low. creative people whose fresh ideas will keep your spots from sounding like everywhere else’s. “whose spot was that. Stations are usually well. There are two good. Your spot can be clever or straightforward. which means not just the words. It can also be simple and inexpensive. First. and one higher. you should use a voice that is appropriate for your image.
c) Get permission to use an existing recording by a known artist. in larger markets. 2). one of their on-air people risk having the voice be so familiar that the listener doesn’t pay attention.Radio Advertising If station produces the spot. one can have the midday announcer do the honors. the less the voice sounds like one of the regular announcers. There are several options for putting music into your commercials: a) Have original music produced. from a talent agency. a child’s. Celebrity voices can sometimes be hired. In fact. A woman’s voice. Music The power of music can’t be overemphasized. the local community theater or. Get the least familiar voice available. If the ad runs only in drive time. Female announcers can also be used. Listeners will be less likely to tune it out. 34 . A word of caution: Amateurs can sound stiff and false. b) Use free music from the station’s library. (But It’s difficult and expensive to obtain the rights). Studies have shown that women presenters are just as effective as men. c) Using professional voice talent If a very sleek production value is needed hire voice talent from another station. b) Using amateur voices One great thing about radio is that even an untrained voice can be very effective. but only a small (but increasing) percentage of all broadcast sales presentations are made by women. the better. 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. or even your own can make listeners stop and pay attention simply because it’s not what they’re expecting to hear.
Be aware that the announcer may have slight interpretation of the reading than you do. Sound Effects (SFX) various onomatopoeic sounds like eeek. voice. At may be just you and the announcer in the studio. will be more involved with your ideas. 3). sensations. music. 35 . and sound effects. more involved with your spot. you bring the listener. When you use sound to evoke smells. and it can be a very worth while investment. A catchy jingle helps potential customers remember you more than almost anything else. The tapping Session Once the decision is made about the script. it’s time to record. The sound of waves on the shore can help sell your vacation package and bird song can put people in the mood for your spring sale. ding dong. an engineer will record the spot while you and the announcer concentrate on the reading. and don’t expect a performance that could only come from someone reading your mind. and visual images. are available at the local radio station. At large stations and professional recording studios. Radio is entirely a medium of sound.Radio Advertising A lot of radio or TV advertising.600 to a few thousand rupees. You should also understand. can be done having a jingle product. the announcer will operate the equipment. ho ho ho. whistle etc. The cost runs anywhere from Rs. 4.
interested chiefly in news Daytime.Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps.10. program characteristics of station. The first step in the process is to meet the client to gain as much information as possible about the client and his or her business. As all radio stations are perceived to be same it is important to build value into the radio station by offering credible benefits that produced results and solutions for prospective clients. The successful ones begins with the clients problem and sales objectives an move systematically to a solution. The radio salesperson must be aware that everyone involved in the transaction is looking for different results. 3. talk shows Music. .m. while the client’s goal is to move product. After the salesperson has a firm grasp of the advertising problem.00 p.00 a. .m.00 p. .m.00 a. radio prime time and same as morning drive time News. 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. The media buyer is looking for efficient cost per point. 12. or all-news Afternoon.m.00 a. music. talk shows Elements of good radio commercial 36 . Characteristics Drive time.00 p.m.m.m.00 a. Dayparts 6 a. talk . 10.12. drive time .3. music.6. Radio salesperson must begin with the client’s needs and marketing goals. the next step is to prepare a proposal. . a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product. Often the job of the radio sales person must be conducted on a number of levels. breakfast audience.00 p.7.00 a.m. .m. 7. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price.m.
The effect of a commercial can be multiplied by achieving extension. a tug on the heartstrings. Speak the listeners’ language 3. Dare to be different 9. The central idea should be highlighted. Be a clear communicator Creative Radio Advertising These are some guidelines for producing creative radio advertisements:1. Understand the environment 2. or mental response. conversational English. D ⇒ Generate extension. Many clients keep tabs on their competition. Judge what you hear. Laughter. Production values are important 7. ⇒ Produce an immediate physical. but they rarely related their features and benefits to factual data. Prioritize the copy points. focused. Meaningful statistics can give substantial support to your massage. The consumer should not be burdened with too much information. Plan your production 8. Always relate the brand to customers wants and needs. emotional.Radio Advertising ⇒ Be single-minded. ⇒ Relate to the consumer. ⇒ Research your product or service. Take it seriously Steps in Radio Ad Production 37 . not what you read 6. A clever phrase or execution can have consumers asking other people if they have heard the spot. Keep it simple 5. ⇒ Use plain. Engage and entertain the listener 4. or mental exercises of a consumer during a radio spot help seed the memory and aid messages retention.
the producer casts the commercial. the producer selects a recording studio 4. With the aid of the casting director. An agency or advertisers appoints a producer 2. If music is to be included. 7. the producer selects a musical director and chooses the music or selects stock music.Radio Advertising 1. 6. 9. if one is needed. 5. The studio mixes music and sound with voices. The studio tapes music and sound separately 8. The producer sees that the master tape is prepared for distribution on either tape or cassettes and shipped to stations. a rehearsal is held. If necessary. You are on the air! Measuring the radio’s effect Effectiveness research requires clarity of objectives – what are the agreed objectives of the overall campaign and of the radio campaign within this? Radio 38 . The producer prepares cost estimation 3.
e. to test whether the campaign is linked to the brand. This way. playing the ads to consumers. Radio research can successfully be done using telephone interviewing – ads can be played down the line. particularly TV. Consumers tend to misattribute radio-advertising memories to other media. It provides a more robust measure of whether they have heard the campaign. the post-stage in the week after the campaign finishes. In other words. Below are some typical examples: 39 . and avoids problems of trying to describe the ads. what are you aiming to measure? In broad terms. 1) Defining the research objectives The key to any successful research is to have a clear understanding of why the research is being conducted in the first place. if the increase in advertising awareness is greater among listeners than it is among non-listeners. However cases where other media are to be included in the research it might be more appropriate to use face-to-face interviewing.These vary widely and there can be often more than one objective set for a campaign.Radio Advertising effectiveness can be measured either using continuous research or in stages (“pre & post”) – the pre-stage is normally the week before the campaign. Brand names can be bleeped out of the commercial. radio advertising research aims can be categorised into two types: ⇒ 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:. then the effect can be attributed to radio fairly confidently – even if the listeners think the advertising was in another medium. Commercial recognition is a valuable technique – i. This is particularly likely to happen where there is a strong executional link between the two media and/or where there is an history of TV advertising for the brand. This tendency to misattribute can be offset by using matched samples of listeners and non-listeners.
there are specific tools available for measuring sales effects for example. bear in mind that you will still be judging the effects in terms of the overall campaign objectives. and most obviously. Firstly. you must gear the campaign so that you can test the particular media strategy in which you are interested. you will need to be able to separate the effects of each using a separate. if you are testing a number of media strategies simultaneously. for example: . Secondly. Any other questions are of secondary importance 2) The Importance of Split Samples 40 . as a secondary aim you might also be trying to test and evaluate the effects of using different media strategies.In addition to tracking radio’s contribution to the success of a campaign. once you have defined them make sure that they form the core of the questionnaire you use. Lastly. balanced research “cell” for each media-variable. Whatever your research objectives.Radio Advertising .Effectiveness of different spot lengths . when testing different media strategies.Burst versus continuous activity .Increase sales Increase footfall / store traffic Increase brand awareness Change consumers’ perceptions about a brand Broaden consumer appeal Not all of these aims are best evaluated with consumer survey research . Media Planning Issues: . If you do intend to test a particular media strategy there are three important considerations to note.Use of different day part strategies.
Radio Advertising Misattribution of Advertising:When asked to consider advertising. consumers will turn their thoughts to the most salient source they can think of – this tends to mean TV. However. tends to dominate memories of advertising. Avoiding Misattribution: Using Split Samples:The simplest solution to the problem of measuring true radio awareness is to split your sample into two parts: listeners (target consumers who have been listening to the radio stations which carried the advertising) and non-listeners (people who do not listen to those stations. the second method has the advantage of questioning people who will have the same history of exposure to the brand. but who are the same as the listeners in all other respects). as the medium with the most active expectations. then any differences in their awareness or attitudes to the advertised brand can be reasonably attributed to radio – regardless of where they think they have seen or heard the advertising. Television. to varying extents. Local distribution levels for the brand will also be the same. Which Option Should You Choose:Neither of the two approaches above is necessarily better than the other. If the only difference between the two samples is their radio listening. This misattribution is disproportionately likely to happen with radio and is still more likely to happen when radio campaigns are creatively synergistic with TV executions. 41 . attributed to television in the consumer’s mind. with the result that campaigns in all other media are. It is particularly important to use split samples where radio is part of a mixed media schedule in order to gauge the true radio effect.
This ensures that any differences can confidently be attributed to radio ad exposure. it will be possible to compare the results among those who have been exposed to the campaign with the results among those who have not . The two geographical areas should also be comparable – (or “typical”) in terms of media and product consumption as a whole. 3) Where to do the research Test And Control Samples In Different Areas:This involves taking two matched samples of respondents in different geographical areas and comparing their advertising responses – one sample will live in the advertised area. as this could affect response. the other in an area where no radio advertising ran. how much TV they watch etc) as well as their demographics. 42 . media consumption and weight of exposure to the brands’ advertising in other media. In this way. It is important to match the media consumption of the samples (e.Radio Advertising The key point is that the listener and non-listener samples must be matched as closely as possible in terms of demographics.thus giving you a measure of radio’s effectiveness. It is equally important to ensure weight of advertising for your brand in all other media is the same for both samples.g.
radio research is conducted in two stages . whilst the other part of the sample will comprise people who do not listen to any station on the schedule. Often. since this allows movements in advertising response to be compared directly to current advertising activity. Typically. In this way it will be possible to compare the results of those who have been exposed to the campaign to those who have not giving you a measure of radio’s effectiveness. One part of the sample will comprise people who do listen to the station(s) on your radio schedule. all of the research is done within the same area. continuous radio research is impractical on grounds of cost unless it forms part of ongoing advertising tracking. however. 43 .Radio Advertising Test and Control Samples within the Same Area In this second approach.a pre-campaign and a post campaign study. 4) When to do the research The ideal research method is to monitor advertising activity on a continuous basis.
5) The research sample and sample sizes Sample Sizes Generally speaking. it might be worth slotting in an additional research phase during a particularly long advertising campaign or sponsorship. In some instances one considers conducting more than two stages of research. However at some point.Radio Advertising ⇒ 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. Similarly. Face-to-face interviewing may also be preferable if respondents need to be shown visual ad material such as stills from TV ads. say. having done the post-research. This will establish the base levels of whatever is being measured (eg brand awareness). For example. consider adding an additional stage of research some weeks after a campaign has ended in order. to track decay in brand awareness. the larger the sample the better. ⇒ 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. 6) Method and questionnaire Telephone research is often used for assessing the effect of radio campaigns: the method is adaptable and can often be cheaper than face-to-face interviewing. the cost of an increased sample size becomes cost prohibitive and contributes little extra to statistical robustness. 44 . Radio ads can successfully be played down the phone to respondents.
A fairly straightforward questionnaire will take around 10-15 minutes to run through – much longer and respondents will begin to lose interest and concentration! 45 . whilst giving a true measure of ad recognition. two different approaches can be taken: blind or branded.Radio Advertising Commercial recognition is a valuable technique – i. It also delivers a larger sample of people who are identifiable as having definitely heard the campaign: this is useful when analyzing them for their attitudes to the brand. attitudes to the advertising/feelings about the proposition).e.g. When playing the radio commercials in order to measure commercial recognition. ⇒ Branded . playing the radio ads to consumers – as this is the best “memory jogger” of all. (e. it is possible to see whether creative treatment has successfully linked the message to the brand. ⇒ 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.this allows prompting for brand-specific data.
demonstration. Radio with Television Characteristics of Television TV has traditionally been the most powerful and popular advertising medium for people in the media business. What radio can add: In planning:Radio's main contribution is a dramatic increase in frequency of exposures. b) Communication and c) Detailing of communication points. image. persuasion. 'what Radio can add' to each medium on three key parameters . This is mainly because it does most things well . the downside with TV is that the audience is now fragmented across many different channels. radio also allows tighter targeting against audiences thus reducing wastage. radio can be used for regional or local exposure booster. Traditionally a high-cost medium. either in the same period as the TV campaign or later to extend the campaign over time. production costs are extremely high and viewers are increasingly avoiding ad breaks. 46 . In communication:Given that Radio is perceived as personal medium. Reason enough for us to study the role of Radio vis-à-vis other key media.Radio Advertising Radio with other media Most brands tag radio to their existing communication plans. impact etc. radio can bring brands closer and speak to the consumer at their level. it extends TV messages to key times of day when TV audiences are lower or when product relevance is higher. radio has a culture of response where listeners frequently interact with their station which they see as accessible.coverage. frequency.a) Planning. radio can be used to reach light viewers.
can be transferred on to radio. and this is real frequency in that exposures take place in real time. which may seem flat on the page. it can bring to life ideas. What radio adds: In planning:Radio adds frequency. which consumers recognize and associate with certain brands. As a print medium. which has been successfully established on TV. Newspapers also have the authority of the written word. as they tend to rely on rhythm and music. and are good at presenting detail. low production costs mean multiple copy messages can be varied round the core TV communication Sonic Brand Triggers. the national press suffers from clutter and from the fact that the reader can and does edit ruthlessly to avoid advertising. 47 . in most sectors. Radio brings brand messages closer to the individual.Radio Advertising In detail:Radio allows activity to be geographically varied. and there is less ad avoidance. Sonic Brand Triggers are sounds. speaking in a more personal way than press. radio can more strongly convey the brand's tone. which are absorbed at very low involvement levels. Radio with Newspapers Characteristics of Newspapers Newspaper brings 'immediacy' to a communication. adding radio also means increased share of voice thus overcoming clutter In communication:Radio brings intrusiveness to a press campaign. radio can allow a fast turnaround for new initiatives. radio also reaches non-readers so it can significantly increase coverage. They leave a brand impression with even the most passive TV viewer or radio listener. radio allows brands to emphasize specific key times of day. Example of powerful SBTs: "Britannia Ting Ting Ting" They help to ensure that TV and radio advertising is well branded. A sound.
in a very public way. striking ideas to be effective. which is useful for explaining or persuading. it uses extremely simple. posters also operate within time which people think of as free . Radio with Outdoor Characteristics of Outdoor The strength of outdoor advertising lies in its ability to suddenly confront the consumer with an idea or a challenge. radio also offers tighter timing . radio allows multiple copy. In communication:Radio allows more information to be conveyed. What radio adds: In planning:Radio adds real frequency. radio is better able to communicate the tone or character of a brand. radio brings brands closer. as listeners identify with their radio station and see it as aimed at people like them.typically travelling time. in the sense that additional exposures to the advertising are played in full rather than having the listener look away or ignore.Radio Advertising In detail:Flexibility means radio allows geographical variation on top of a national press campaign. In detail:Radio offers speed of production compared with the lengthy process of poster print deadlines. The weaknesses of outdoor advertising mainly stem from three issues: it has no editorial context. Like radio.within time of day.and it suffers from relatively expensive production. 48 . radio offers far tighter targeting which means reducing wastage. day of week or even week of month. it also allows localized copy variation relating to a national poster execution.
They allow targeting by lifestyle and interest group. which means overcoming clutter. radio can more strongly convey the advertising tone of voice. and there is less ad avoidance. What radio adds: In planning:Radio adds frequency and also extends coverage well beyond the magazine readership. who consume them in a personal way. In communication:Radio brings intrusiveness to a magazine campaign. and the reader's inclination to simply turn the page. In many magazines the ads are seen as part of the magazine experience. At the post-stage. housework etc In detail”:Radio offers fast turnaround within the long copy deadlines of magazines. and the opportunity for geographical variations. you will be seeking to detect spontaneous and prompted awareness.Radio Advertising Radio with Magazines Characteristics of magazines Magazines are useful to advertisers because of the relationship they have with the readers. ⇒ Recall of advertising. radio allows tighter timing . ⇒ Commercial recognition – playing the ads to respondents. day of week etc. ⇒ Thoughts on what the main message of the ads was 49 . Weaknesses of magazines include the fact that lead times can be very long depending on the title's frequency of publication. radio also offers a greater share of voice for most categories.time of day. the high levels of clutter.driving. It allows brands to speak to consumers close to certain activities . cooking. radio can bring to life ideas which might seem flat on the page.
With the growing salience of Radio.the continuous radio audience measurement system in Mumbai. they are complied and sent to the analysis department 50 . The findings have helped many radio stations to develop. IRMB believes that time is ripe for a continuous Radio audience measurement system. A sample size is decided which is spread all over the target city / town etc.Radio Advertising Creating the right mix A fieldwork was conducted by IMRB(Indian Market Research Bureau) to know about the listeners which encompassed the entire Mumbai urban agglomeration through a random sampling of 6. The research can be undertaken by the research agency voluntarily to be sold later to companies. When the questionnaires are filled. The following is the standard procedure involved in calculating the listenership of a radio station.000 households and 3. or on particular request by a company.600 individuals. IMRB International decided to launch RADAR RADIO LISTENERSHIP SYSTEM . • • • • • Then the analysis findings are forwarded to the research department and published A project is selected and a deadline is given. All the interviewers are informed of the above and a questionnaire is given.
100 90 80 70 60 Radio Advertising Female 42% 50 40 30 20 10 0 AIR FM1 AIR FM2 Vividh Bharati Radio Mirchi Radio City M ale 58% BBC AIR Primary WIN 94.5 SLBC World Space VOA At the country level: % mentioning Total awareness of radio stations Gender of radio audience Female 42% MALE 58% 51 .6 Go 92.
Prasar Bharti(AIR) has the highest awareness which is due to the fact that it is a government channel with a pan India coverage and enjoyed monopoly when the radio space was shut for private players.30 am 20% 18% D/E 45% A 12% Radio Advertising 16% 14% 12% D/E 10% 45% 11.6.00 pm B 14% 7pm .11pm A 12% 8% 6% 4% 2% 0% C 29% C 29% B 14% % liste n e r s 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.30 . Being 52 .7am .11.
specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium. As the 7.Radio Advertising the only service provider it was able to penetrate deep into the Indian market. However with new players entering the market and providing them with the content they want the trend is now changing more people are switching on their radio sets even in these categories. The private fm players mainly having license for big cities and towns although are gaining awareness in cities and towns they are still in their growth stage and for them to be known everywhere they have to diversify geographically and reach the rural population where the radio is a very important medium of entertainment. Radios are now available at prices below Rs. on the other and the 11-2 slot has the women segment listening while the nights are more concentrated on teens. B have a wider variety of entertainment available to them radio is not widely used. Radio is very popular with the sec D/E market due to its cheap cost.30 to 11 slot is the most important slot because many listeners are tuned in the shows are generally family oriented as everyone mostly listens to them and news programs on government owned stations. Which is why the new entrants are vying for their share of the pie and encouraging the government to release more airwaves for them. giving the advertisers a vast array to meet their specific target markets. In order to meet the requirements of its listeners and its corporate audiences. Based on these findings most of the radio stations have categorized their shows and advertisement rates to meet the needs of its audiences which can be seen in the various positions of the stations.50 which make it very affordable. Various shows are held by the radio stations. While the sec A. For marketers it then becomes necessary to identify the audience they want to target and respectively book their airtime so as to reach the right audience with the right mix at the right time 53 .
R. developed and operated by the Ministry of Information & Broadcasting under the Government of India.Radio Advertising All India Radio A.I. which is a national service planned. Sound broadcasting started in India in 1927 with the proliferation of two privately owned 54 .
All India Radio is one of the largest radio networks in the world in terms of reach. When India attained Independence in 1947. 50 high frequency (SW) transmitters and 87 FM transmitters. to nearly 76% of the country's population fully reflecting the broad spectrum of national life.'s coverage exceeds 90% of India. It transmits centrally originated news bulletins in Hindi and English. reaching over 98% of the people in the largest democracy of the world. It was changed to All India Radio in 1936 and it came to be known as Akashwani since 1957 to inform. Mogra and Delhi beaming from dusk to dawn. but on shortwave. regional and local. For FM it has other ideas . newsreel. AIR has a three-tier system of broadcasting. AIR had a network of six stations and a complement of 18 transmitters. A. and another 10 foreign languages in external services. Add FM radio and you have a formidable arsenal. Including North-Eastern Service at Shillong disseminates the vibrant and radiant cultural heritage of the Northeastern region of the country. music. educate and entertain the masses. national.Radio Advertising transmitters in Bombay and Calcutta. 1988.I. It caters to the needs of the people. spoken word and other topical programs. plays.R.classical music channels to start with in Bangalore and Lucknow and to be extended across the country later. sports. New initiatives by AIR Change is in the AIR. The Regional Stations in different States form the middle tier of the broadcasting. namely. 55 . through its transmitters at Nagpur. National channel of All India Radio started functioning on May 18. All India Radio has a network of 283 broadcasting centers with 146 medium frequency (MW) transmitters. Prasar Bharati now plans a 24-hour news radio station not on FM. With broadcasts in 24 languages and 146 dialects (home services).
Kolkata and Delhi at different numbers. will be launched across the country with a four-digit common number. Helplines etc. development of infrastructure and the changing scenario in the state. Chat shows.Mittal.Hindi Music. The ad agencies have been asked by the Prasar Bharati to make a strategy presentation. The entire publicity campaign of AIR is being designed by Prasar Bharati's ad agencies. It will promote and publicize sports events covered by AIR besides popularizing existing services like Radio on Demand and News on Phone. focusing on the rich cultural heritage. Prasar Bharati is set to launch a major campaign aimed at repositioning and total branding of the two FM Channels of All India Radio (AIR). AIR as the radio network that communicates with people in their language broadcasting in 24 languages and 146 dialects contributes to the enrichment of Indian classical music and broadcast fast and accurate. Prasar Bharati is positioning AIR FM Rainbow as a channel offering a buffet fare . and for this it is launching a campaign in select cities. especially in North East and J&K. which produces more than 300 bulletins daily. RADIO CITY [91FM] Radio City. which is on in Patna. will also cash in on phone bulletins.Radio Advertising AIR. setting up radio clubs and maximizing AIR revenue. Western Music. a marketing plan and publicity plan with suitable media mix. AIR planned and developed special packages for the North East and J&K.K. Prasar Bharati is also planning to fill the vacancies in regional stations. Hyderabad. The company has received the license to set up radio stations 56 . family and Associates. MBPL is a company backed by P. was launched on 21st May 2002. a venture promoted by Star and Music Broadcast Private Ltd (MBPL). The service. The publicity campaign of AIR is focused on projecting AIR as the world's oldest and largest radio network both in terms of geographical and population reach and the only source for news and entertainment for people in remote places. recommending a suitable positioning for AIR Channels.
The 4 P’s Product: For listeners . the channel undertook huge promotion campaign in the initial stages of its launch. 1.Music. Radio City’s market strategy is backed up by six months of intensive research in Bangalore. This is thanks to its promotions. vivacious RJ’s. teamed up with professional. so as to enable more targeted programming in the future. marketing and programming. 2. Target audience Radio City is not looking at any particular segment to target. Delhi.Bangalore. Mumbai. Mumbai. Patna. hours 57 . On the promotion front. Patna. Nagpur and Lucknow. a perfect blend of English and Hindi music.Radio Advertising across the country in six cities . in mix of Hindi and English For corporate and retailers: . Intensive research is being carried out to ascertain demographic profiles of radio listeners. Delhi. Nagpur and Lucknow. The channel is into sponsoring events especially college festival around Bombay city. and is trying to create a brand name. a portfolio of entertainment programming 24 a day. information. The Television “fun ka doze har roz” ad campaign.Bangalore. Place: Intensive (all over Bombay) also. Price: Advertisement rates Promotion: Radio city is one of the top 3 stations in the city. Radio City aims to reach out to listeners across demographic barriers.The airtime. Hoardings all over the city. The idea is to create the brand and then to move on to specific target programming. The Mumbai license was secured for Rs 10 crores. Selective in the sense that it has set up radio stations across the country in six cities . STAR India’s radio division would provide or take charge of advertisement sales.
So they talk to them about radio. GO [92. The retail market.Radio Advertising Advertising with Radio City Radio City also hopes to provide an effective advertisement medium. tell them this is how the brand will sound when on radio. on the other hand. and of breaking new ground whereas with national advertisers. from small local stores as well as big brands like Tanishq. Radio city is trying to drive the market by encouraging the ad spends on radio to increase from two per cent to the world average of 10 per cent. Radio City will have a four-hour slot in its 24-hour broadcast for advertisement. sales and marketing support. the success rate with national advertisers is a lot higher than in the case of retail advertisers. involves one-on-one sales and education as to how advertising will help the brand.5FM] 58 . IBM and HLL. make them listen to it. besides advertising. breaking to a 10-minute projection in every hour's programmed. it is a question of marketing a new medium and educating people about it rather than having to explain the concept of advertising per se. This is to fulfill the aspirations of national advertisers seeking vast local reach as well as to local advertisers to access an organized medium for projecting their products and services. Star India is in-charge of providing the content. National advertisers are all familiar with the concept of advertising. Hence. Because of this the strength of our retail sales team is three times that of our corporate sales team because in retail sales there is this job of exploration and education. Radio City has managed to attract advertisements. The process is pretty lengthy. probably create a radio spot.
Radio Advertising GO 92. along with sports. to get an edge. Not to say that big Indian artists with big fame do not feature in their mix. target audience is young. The 4 P’s Product: For listeners: the station is focusing on music of course. trailblazing media company. They are clear on their strategy and have already started catering to a certain set of audience that is mature.5 FM was launched on 10th May’2002 by mid day group. It does not only concentrate on Hindi or English but emphasizes on the attractive blend of both the world. “The Sound of Mumbai” from Mid Day multimedia limited. entertainment and business. So if the advertiser wants to target a niche population with a fastidious ear for English music you know where to be! It delivers the best international chart topping hits and the most with – it bollywood sounds. Therefore. Go92.5fm as a part of their communication programme. It primarily plays English music. The wonderful world of Go 92. the channel targets the age group of 15 to 45 year old. a focus on international artists popular in India. Target Audience: Mid-Day's Go 92. with a heavy local flavor.5 FM targets the upscale Mumbaikars.5 FM now targets only the socio economic category (SEC) A and B1. Radio Midday seem to have found a niche for themselves and clearly positioned themselves as 'the English Channel with a local/Indian image'. belting out the best hits non stop 24 hours a day. Corporate aiming to serve the cream class of Mumbai can select go92. white-collar and upwardly mobile. and more westernized.5 FM. educated. white collar executive whose needs are clearly English music and programming. Providing an attractive blend of 50:50 Hindi & English programmes. For corporate and retailers: The airtime 59 .
which would equip them with the capabilities of hosting radio programmes of their own. In complete tandem with the festivities. So. 90% of their advertisers are the large tickets. especially with the coming in of the 11-2 afternoon slot.5 has in fact re-christened itself as Mumbai’s College Radio station. That ways they try to be the preferred destination when an existing client wants to sponsor an event or a radio property. they can have consumer durables on the channel. That is by virtue of the audience profile that Go are bringing. the station had also launched a 13-week College Radio hunt some time back. their immediate reaction is ‘yes’. Not just a LG CDMA but a LG refrigerator and AC can also be advertised. Wherein auditions would be held for potential talent and the finalists would then be exposed to in house training sessions.5. Second. Price: Advertisement rates (Refer to annexures) Promotion: its presence is made known through hoardings. it is a double positive impact on advertisers. There are two effects of this kind of the new programming. when the client presents the germ of an idea. Then they figure out how do they juggle it. At that time. Advertisements with GO 92. how they’ll fit it in and this programming mantra helps them in that. there are many new clients that will come in. They have retailers also. which was presented by Colgate Fresh Energy Gel.5FM GO 92. displays at traffic signals etc.Radio Advertising Place: Intensive in Bombay and exclusive because it does not have a presence in any other city. They have a classified section on 60 . indulge in experimental big stuff. Go is a youth-centric station and they felt that better way to make their presence better to partner with college festivals Marketing initiatives Go 92. First.
Star World. McDonald. A few big Hindi properties such as Awaaz and Jeena Isi Ka Naam Hain have been promoted extensively as well. 61 . BPL Mobile. Colgate. HLL.5 in September 2003 were Coca Cola. Kellogg’s. Discovery. Zee TV and Tata Indicom.36 crore. AXN and Discovery. The top advertisers on Go 92. Alitalia airways. Cadbury. There has been a sizeable increase in channel spends on Go 92. Timex watches. Bazee. Tata AIG.Radio Advertising the station called Mumbai bazaar. But those are basically the advertisers who are very keen to be on the station. During the first half of 2003-04. STAR network that is star world and movies. Go does not plan to hike rates because they are looking at consolidating at the current rates and also trying to minimize the discounts they give to our clients on the rate card.5 and they have had the majority of the revenue coming in from niche English channels such as Star Movies. Zee English. the station has garnered total revenues of Rs 1.com. Max New York Life. Orange. The station is seeing a 50-60 per cent quarter on quarter growth. Zee MGM. Sony Entertainment TV. Other advertisers are Tata Motors. Asian Paints.
weather. And in the second phase. An additional Rs 20 crores has been invested on infrastructure etc in these three cities.Radio Advertising RED [93. Target Audience 93. Red FM may not be modest but it is certainly witty. Described. uncomplicated and honest. RED FM has spent close to Rs 17. Because it is more a mature audience.5 MHz hit the airwaves in Mumbai first on June 26. The much-awaited Red FM on 93.5FM] “Red is in your Head”.87 crores as license fees for the three centers of Delhi.5 Red FM caters to 25-plus age group. energetic and passionate Apparently. followed by Delhi and Kolkata. They changes everything in terms of how we play music and the RJs we have according to this target group The 4 P’s Product: For listeners: The programming mix has non-stop music interspersed with Red FM’s ‘crisp’ and ‘entertaining’ updates on traffic. For corporates and retailers: the airtime Place: Intensive in Mumbai and selective all over the country because it has other stations in Delhi and Kolkatta. The ‘take aways’ are plenty – everything that the station says and does is of relevance to its listeners. city-specific events and the latest buzz on everything current. as a bright. screams the advertisement of Red FM. 62 . warm. friendly. Mumbai and Kolkata for the first year. reliable. 2002. the 24-hour FM radio channel from the Living Media stable.
for the first time in India. innovative methods like painting Double Decker buses. towards the influence of one station with the other. they suggest the best ways of achieving the objective. (Refer to annexures) Promotion: Red Fm is affiliated with some clubs and pubs. Every committee hosts its own festival and Red has been in touch with committees from Jai Hind. Red’s current advertisers profile includes both retail clients and corporates. their job is to suggest that instead of a 30 second spot. They have other high profiled clients like Sony 63 . Also it has a tie up with shopping malls like crossroads and ‘Groove’ a music store. HR and nearly every other college in North Mumbai. use their strengths and improve co-ordination between the three stations. KC.Radio Advertising Price: advertisement rates. they form a healthy percentage of advertisers. Endorsing advertising on RED is not just about buying spots. So if a retailer wants to announce his sale and he does not have a big budget. but is a total experience. Marketing initiatives It stays connected with youth by being in touch with the committees of various colleges in order to collaborate with them on internal festivals. play a 10 second spot through the day. this is an important task in terms of helping the advertiser. Red is also focusing. Based on the need of the advertiser. With in a few days of launching. trains etc have also been adopted. they went on air live from a night club like Velocity and received a huge response from the listeners. which promote the station. Recently. tailored to the customer’s needs. Advertisement Red Fm does not go to sell radio spots but works like a consultant with the client. Moreover. They have 100 hoardings all over Mumbai city. they carried a DJ live on turntables from their studios.
we would advise a cosmetics brand to advertise on that programme. State Bank of India. Kotak Mahindra and Dabur among others. background conversation. similarly.Radio Advertising Entertainment. and therefore they faced a major drawback in terms of losing out on a number of corporates. And from the nonaccredited ad agency. Is it a women’s product? Is it male-oriented? Is it a retailer? If it is a retailer. Idea. Red FM was launched six months late. LG. ICICI Prudential. surveys reveal that a number of men like tuning in to radio just before sleeping. none of them have refused to consider them in their media plan. The normal jingle length is 10 seconds and again here rates will differ on the basis of the sound effects. they could slot it in the 11–6 time band when people are going to the market or when a housewife might be listening to the radio while cooking. The do give some discounts to the accredited ad agency. Hutch.000/. For male dominated products. music. They normally charge around Rs. They do produce jingles according to the advertisers and if the advertiser or the client wants to use that jingle somewhere else in some other media. 4. the shortcoming is only in terms of delay. as they had already freezeed their media budget for the year. Metlife. if there were a cookery show. they would advise the drive time hours or the late night show. There are several questions that RED FM identifies before making a time-band suggestion. Their revenue only from Bombay is more than two crore. Coke.and the rates might increase or decrease depending upon the need of the advertisers. Zee. there would be food-related brands advertising on it. 64 . If there were a programme on beauty tips. However. length of the commercial. face-to-face conversation. They take 100 % money in advance from the direct client. HT. then the client has to pay substantial amount of money to radio station because if they produce a jingle that is their assets.
RADIO MIRCHI [98.3FM]
Radio Mirchi belonging to the Times of India Group is in an enviable position to encash into a monopoly the 10-year license period for FM radio in the 12 cities it won. Radio Mirchi has landed this gift indirectly from Reliance and Zee who chickened out of the FM radio business after instigating a bidding war resulting in unviable and exorbitant license fees (Rs. 9 crores annual fees for Mumbai). On April 23, 2002, the Radio Mirchi private FM station, owned by Entertainment Network (India) Ltd, a wholly-owned subsidiary of The Times Group, debuted in Mumbai, on 98.3 FM. Radio Mirchi is now present in seven Indian cities and is the only company with private FM radio stations in all four metropolitan cities of Delhi, Mumbai, Chennai and Kolkata. they are also the only private FM radio broadcaster in the cities of Ahmedabad, Indore and Pune. As the punch line says, 'it is hot.' They have a very clearly defined position - they are a contemporary hit radio station, and their Target is around 18 to 35 - SEC A and B and in that too mainly youth and housewives. This segment addresses about 12 lakh listeners
The 4 P’s
Product: For listeners: 90% of the music played on RM is Hindi and contemporary English hits are played keeping in mind the tastes of their TG. Since radio is a free to air medium, which reaches the lower end of the audience spectrum, RM later made a conscious decision to go Hindi. Hence it quickly became a mass channel with Hinglish being its prime lingo and having a wide audience appeal.. For corporates and retailers: the airtime Place: intensive in Mumbai and selective all over the country since it is established in cities like Kolkatta, Delhi, Chennai. Price: The advertisement rates. (Refer to annexure) Promotion: The marketing strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi, plug Radio Mirchi through the other media that The Times Group owns.it also does a lot of tie-ups and contests for the consumers
Radio mirchi has also tied up with various shopping malls, retail showrooms, pubs for continuous advertisement of their channel to make people aware of the temptations given by the channels to them. Radio mirchi has two main objectives behind doing an extensive marketing which are• • To create the Top of the Mind recall in the relevant Target Audience. Connect with the growing Radio listening population in Mumbai. A very large factor that contributed towards the establishing the brand of RADIO MIRCHI was its catchy slogan “it’s hot”. However the slogan by itself was incomplete without the voices that accompanied it. CELEBRITIES and film stars that repeated every so often “hi I’m -------- I’m hot and I’m Radio Mirchi!!” big names that generated curiosity and excitement and compelled the listener to refrain from flipping the dial.
Radio Mirchi charges the highest rate of Rs 2,000 for a 10-second slot, the rest of the FM channels charge anything between Rs 1,000 and Rs 1,500 for a 10-second slot. Radio Mirchi gives 45 lakhs weekly listeners as per Radar study. There is an average listenership of 45 minutes per day on the station. The rates are so reasonable that advertisers can afford 10 or 15 spots a day and run the campaign for 15 days or three weeks at a fraction of the cost that you will incur in print or Television. There are about more than 300 advertisers on Mirchi. Today it is fashionable to be on radio. Radio mirchi sells independently and does not offer any print package deal even though they belong to Times Group – they are an independent company. Most of the national advertisers on radio mirchi today want to buy all the stations on air. So they have package deals for them also. There is very little retail advertising on radio. In Indore more than half of Mirchi revenue comes from retail. In Ahmedabad and Pune it is probably about 25 to 40% of the business. But in Mumbai it is at 10%. Currently radio mirchi has hiked their prices because they know that Radio Mirchi today is one of the best radio channels and they offer value to the advertisers who spend on their station. While all the other stations offer more slots and run ads for over 15 minutes, they offer ten minutes per hour on Radio Mirchi. There is huge inventory pressure on them and therefore they had to increase the ad rates. Currently, on an average, there are 125 to 175 brands advertising on Radio Mirchi. In most cases, stations offer discounts on what is on their rate cards. On an average, across the five stations, the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. Clients buy effective rates and they buy a combination of spots like prime time, non prime time and the likes.
Hence. So when the advertisers wants to advertise on radio. Hyderabad. radio mirchi can provide them with the more information and help them to decide on the time slots and frequency etc… According to the study conducted: Mirchi delivers highest number in terms of listenership among Housewives and working men. Mirchi would eventually look at having a presence in every nook and corner of this country. Bangalore. Future Plans:Radio Mirchi is looking radio Industry from the long term point of view. But this country can have 5.000 radio stations. Radio Mirchi delivers highest number in terms of listenership among the Radio Listening student population. accordingly.Radio Advertising IMRB conducts research for radio mirchi which is after every 15 days to know exactly what the listeners actually want to lend their ears to. 1 channel and delivers high numbers with Daily listenership at 24. definitely Coimbatore.63 lacs. 68 . They are interested in some of the bigger cities for instance. they have implemented the changes in the time slots of the different shows on air. Radio Mirchi emerges up as the No. which means going into the smaller towns. Chandigarh. Ludhiana. Lucknow and Kanpur. That will still take us to about 15 frequencies.
With increasing competition airtel is now going in for more of radio advertising as against the television . Mr. India’s leading cellular operator in the private sector. Airtel saw this as an opportunity to grab the most number of customers through radio and their started spending more on radio than ever before. Bappi-da Da Gyan. Promotional strategies adopted by Airtel through radio: uff Uff Mirchi! Hai Hai Mirchi! Airtel is now the first GSM service provider to tie up with a radio channel for the users benefit. However it has a long way to go as no one is ever safe in this market and one has to keep up its good work going.the Asli Batliboi and Ding Dong . They can then listen to some popular programmes of the channel like. 69 . the users need to dial 646 from their Airtel enabled mobile handsets. Its major competitors are orange and R. Mirchi Movie of the Month.Mona Sing a Song. Operating in more than 23 cities it has been able to attain a high number of customer and is now regarded as one of the best cellular services being provided in India. Airtel is creating an attitude of being people friendly and thus gaining huge share in the market. the reason being the huge radio boom with the large number of customers tuning into radio more often than ever. To avail this innovative tie-up.I. Devdas .M and various other providers. The radio channel in question happens to be Radio Mirchi. Hotpot Crackpot.Radio Advertising Case Study On Airtel Airtel.
6 per minute with no extra subscription charges. users can listen to songs. AAISI AZADI AUR KAHAN. Nokia first introduced FM enabled phones. KABHI LINKING ROAD . radios have offered services to its users free of cost. For this.radio ad jingles “TUM KO DEKH TE HIN . there has been an increasing demand of listening to FM channels through mobile handsets.Radio Advertising Pre-paid and post-paid customers of AirTel can access this service. through the R World of Reliance handsets. Airtel . Airtel's tie-up allows users to listen to one channel only.” Jingle made by airtel basically targets its own customers by saying that wherever they go they will be able to avail of airtel services anywhere. users have to pay a Value Added Service (VAS) rate of Rs. KABHI AAREY ROAD . KABHI PEDDAR ROAD . Among CDMA service providers. KABHI MEERA ROAD . For a long time now. DESH BHAR MAIN RE-CHARGE KAHIN BHI. 70 . This all shows about their care for their customers. And would also be convenient for its customers to recharge their mobile phones in these centers. it does become quite doubtful as to how long Airtel's 'mirchi effect' will last with the charge rates as high as Rs. CHARGE HUA ZINDAGI. With regard to this particular trend. where users can listen to any FM channel through their handsets. Recently.6 per minute.
A llowing foreign players to enter the Indian market could also spell a boon for the Indian company gain from the expertise and superior technology of the foreign player. One way to get over the license fee crisis in the radio broadcasting industry is for the government to drop the bidding-driven process for setting radio license fees because it is this system that leads to the viability crisis. as recommended by the TRAI. This could attract potential listeners on the move who want their daily share of the happenings around the world. did not allow broadcast of news and current events nor was there a scope of a foreign player entering the Indian market. In order to let the industry to grow the government needs to give it some space. atleast in the near future. The government charged a very heavy license fee for entering the market. But with the government citing national security as the reason for not doing so leaves little hope of this happening.revenue sharing. nothing much changed as regards to government control. go in for a system more prevalent worldwide . The basic problem in the Radio space in India is the excessive Government control and regulation. They should in fact. stations will pay the government a certain % of their gross revenue every year. The Government should review its ban on private stations airing news and current affairs. Under this system. Though the Supreme Court decision in 1995 declaring airwaves as public property led to the entry of a number entrants challenging the monopoly of All India Radio.Radio Advertising Recommendations The vibrant voices airing music shows on twenty odd private FM radio stations in major cities do not reflect the viability worries and restrictions that haunt this industry. The consumer will also benefit as the industry can now tap into a larger basket (the foreign players) for greater variety. currently a monopoly with All India Radio. 71 .
Radio's share in the total advertising budgets of companies is likely to grow from 2 per cent to 5 per cent in the next three years. where the cheapness of radio is likely to ensure that the bulk of radio advertisers are those that go for a one-city-local-audience strategy. and much more which can be attributed to the ‘low cost of ownership’ feature of RADIO as a medium. Interestingly. The opening of the FM market is a new phenomenon and the maturing of the market will take its own evolutionary path. Mid Day etc. the fortunes of radio advertising are likely to change with the advent of private players like Star India. superior target ability. Yet advertisers spend 55% of their money on eye media (print) and only 45% of their money on ear media such as Radio and television. In fact.Radio Advertising Conclusion Radio has many natural advantages that make it an excellent choice for an advertising medium. its revenues have declined. Living Media. such as Radio. superior listener loyalty. Consumers spend 85% of their time with ear-oriented media. despite All India Radio's enormous reach (97 per cent of the population). In such a scenario. Ultimately content and packaging will be the king. with an expected growth rate of about 10 to 12 per cent every year. greater reach may not necessarily translate into a marketing advantage. It would be just plain old quality of programming and the 72 . However. These advantages include high amount of time spent listening. ad recall and message retention. the private FM players have a huge opportunity in grabbing a bigger chunk of the radio advertising pie as. but spend only 15% of their time with such eye-oriented media as newspapers and magazines. what will spell out the difference between success and failure will be neither size nor niche. Bennett Coleman & Co.
Conversely.Radio Advertising explosion of contests and sweepstakes offered by the Radio Stations currently. In the end Radio offers tremendous opportunities for advertisers and media planners need to explore various options by which they can effectively use radio in their media mix. This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium. broadcasters need to develop the market by being more responsive to the advertiser's needs. 73 . One aping the other is an honest testimonial to justify this statement.
) Programme category 07:00 . ⇒ Others… RED FM 74 . which is being offered in this package.Radio Advertising Annexures Radio City . The agency/advertiser must provide DATS at least fifteen days prior to first spot airing date. gets discontinued.National Rate Card 30 Secs spot buy rates (in Rs. ⇒ In case any programme. The sponsorship material must be sent four weeks prior to start date of the sponsorship of any programme.20:00 11:00 . At least 2 weeks prior to the date of airing of the first spot.11:00 Radio active 17:00 .00:00 Round the clock Radio Mix Radio Master Blaster Radio Ga Ga Mumbai 8000 6000 6000 4000 Delhi 8000 6000 6000 4000 Banglore 5000 4500 4000 2500 Lucknow 4000 3000 3000 2000 Terms and conditions:⇒ Minimum acceptable radio spot/ commercial duration will be 10 seconds. ⇒ All bookings are subject to availability at the time of booking. the advertiser will move the spots to the programme replacing the discontinued programme in the same rate category. release orders should be given to MBPL through Star India Pvt. ⇒ All invoices should be settled by the advertisers/agency within 30 days from the date of the receipt of invoice. Ltd.17:00 20:00 . ⇒ To ensure proper and timely release of the spots.22:00 22:00 .
m.m. to 10:00 a. Our rate card per 10 seconds(1 unit) of airtime is as listen as below: Individual City Rates SPT 2400 2400 1800 City Mumbai Delhi Kolkotta Prime 1800 1800 1200 NPT/ROS 1200 1200 600 Super Prime Time: ⇒ Mornings 8:00 a. ⇒ Morning 10:00 a. Sponsored Shows: Super Prime Time + 25 % premium Radio mirchi rate card 75 .m. ⇒ Evenings 5:00 p. under the brand name 93.m. to 8:00 a. to 11:00 a. ⇒ Evenings 6:00 p.m.m. to 6:00 p.m. to 9:00 p.m. Delhi and Kolkotta.m. to 8:00 p. ⇒ Evenings 8:00 p.5 RED FM.m.Radio Advertising Red fm is currently operating in Mumbai.m.m. Prime Time: ⇒ Morning 7:00 a. Asli Masti.
m Housewife / 260 Traders / Youth 5 p.m Time Band Delhi Mumbai Chennai Kolkata Ahmedabad Pune Family Family /Drive 500 850 500 650 250 220 260 145 220 260 145 170 215 130 170 215 130 12 a.m .Radio Advertising Day Parts 7 a. 7. jingle length would be counted in multiples of 5 seconds. Over 10 seconds.m 8 a.5 p. A 23 second jingle would be billed as 25 seconds Jingle production charges Centres Mumbai Delhi Chennai Kolkata Ahmedabad Pune Jingle cost Rs. 5.000 Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday 76 .m 10 p. E. 5.m Drive BPO’s / Youth / Drive 550 260 400 250 220 145 220 145 170 130 170 130 Minimum jingle length The minimum jingle duration will be considered as 10 sec. 7.000 Rs.g.10.000 Rs.10.m – 8 a.000 Rs.000 Rs.000 Rs.m – 10 p.m – 12 a.m – 7 a.
Acknowledgements 77 .Radio Advertising Big Brunch (08001200 hrs) T-Man Rate: 1250/Sunday Midday Show (12001600 hrs) Ravi Rate: 1000/Mumbai Matinee (16001800 hrs) Travel Guy Rate: 1000/Mumbai Top 20 (18002100 hrs) Annie Rate: 1250/Bacardi Breezer Vivid Nights Malini Rate: 1250/Live DJ Set Sandy Midnight Shift Rate: Rate: 750/750/Nineties on 925 Chris Rate: 1250/- 07001100 hrs Good Morning Mumbai (GMM) Jaggu & Taranna Rate: 1500/- 11001400 hrs The Midday Show Shruti Rate: 1000/- 14001800 hrs 17001800 hrs College Radio Nadir Orange Request Hour Rate: 1250/- 18002100 hrs Horn Ok Please Malini Rate: 1500/- 21000000 hrs NightShift Glenn Rate: 1250/- 00000100 hrs Midnight Shift Rate: 750/- *All rates are per 10 seconds of airtime Super Prime Time Band (0800hrs-1000hrs) and (1800hrs-2000hrs) *SPTB will attract a 50% premium on card rates.
this project would never have been possible and I would have been deprived of a vast treasure of knowledge. I would sincerely like to thank Mr. Without their help and guidance it would be a very difficult task for me to try and plan this project and actually make it. Working on the project on radio advertising has been an incredible experience for me. Gehna Hingorani for this guidance and help. However. I feel this is the best way to express my appreciation for everyone concerned. For this very wonderful experience i would like to thank a lot of people without whose co-operation and support working on this marketing project would not have been so pleasurable and interesting. I would also like to thank Prof. If it was not for their encouragement and support. Firstly. And last but not least our Prof. Bibliography 78 . These acknowledgements are one way where I can actually thank the people who have been instrumental in the making of this project. They were very supportive and patient. they were a great help and a goldmine of information. Thus.Sudarshan Sahe the marketing manager of radio city and Mr. Aditya Bhat for their knowledge and expertise in this field.Radio Advertising Written words have an unfortunate tendency to convert genuine gratitude into stilted formality.Madhav Joshi of Leo Burnett for taking out some of their valuable time from their busy schedule to answer my queries regarding the project.
com www.radiomirchi.com www.agencyfaqs.co.indiatoday.com www.Radio Advertising While working on this project I visited some of the radio stations and they gave me some information However to support the same I have done some most of the research work from the following text books: The advertising handbook by Dell Dennison Direct Marketing Management by Mary Lou Robert and Paul Berger.timesofindia.rab.in www.allindiaradio.com www.co.exchange4media.star.hinduonnet.org www.com www.com 79 .uk www.com www.go925fm.economicstimes.com www. www. Newspapers and Magazines Times of India Economics Times Business Standard Financial Express Various websites were also visited such as.