Radio Advertising

Executive Summary
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

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Radio Advertising

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.

Objective
Through this project my objective has been to understand the following • • • • • To find out about the current scenario of the radio industry. The reasons for a stunted growth of the industry The various steps in radio advertisement Realizing the needs and wants of consumers and fulfilling them What the various radio stations have to offer the masses.

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Radio Advertising

Research Methodology
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.

Primary Research:
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

Secondary Research
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

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Radio Advertising Introduction Old media don’t’ die! They just bounce back in new avatars. The geographical area covered by radio in India in India is as high as 98 percent and the penetration level is approximately 97 percent. Currently radio has just 2 percent of the 9000 crore Indian advertising market according to an Arthur Anderson’s survey. Not so long ago radio had been written off as fuddy-duddy. in its new avatar-fm-radio is all set too become the hippest. The involvement of listeners to radio is low. coolest and most with -it 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 . innovative and grab away eyeballs from TV sets and make them tune into their radio sets. Globally depending on each country. Ad revenues will also not be easy to come by. much like satellite channels did to the quantum of television advertising in the country. In fact. radio has a 5 % to 12 % 4 . Media owners dealing with new markets will virtually have to draw up their strategies as they go along. down market and not so cool. outnumbering television sets 3:1. create programming that is new. It’s a whole new challenge and competition is never far away. Television and later “new media” were touted to being the media of the future. But FM presently covers only 17 percent of the area and 21 % of the population of India through transmitters. But thanks to technology radio is making a comeback. That should open up a vast new market of consumers-100 million Indian households own an estimated 150 million radios. as advertisers will expect media players to put their money where their speakers are before they commit large sums of money towards radio advertising. The other challenge for radio in attracting advertisers is the nature of the medium-radio has always considered being a reminder medium. FM radio is a new entity altogether and has to deal with new market dynamics. Vis a Vis television or print media.

They have also forecasted that revenues from radio advertising in India will be Rs. 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. On the higher side are countries like the United States with 13 %. Canada with 12. FM station executives are not forthcoming on multi-platform strategies as yet. 50/. is not just making a comeback but is being reincarnated into a new avatar.1%. This would be the key when evaluating the medium. For example. radio will become a push and pull medium. With the coming of more channels. as the car population is much bigger. radio is personalized. Thus the potential if FM is better is bigger town. As said earlier. Given that radio has penetrated into 100 million homes and a FM set costs around Rs. 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. Rs.Radio Advertising of the advertising cake. 5 . While TV is a family medium. and the emergence of lifestyle advertising. Also one must not forgot that radio continues to be a medium that has tremendous reach among the poor and marginalized sections of society.7% and Spain with 9.FICCI estimates FM’s share up from the present 1.5 percent to 5 % in five years. Also advertising of certain product seems to work very well while some might not.

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. Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. pictures for a TV set. 6 . This band of the radio spectrum is used for no other purpose but fm radio broadcasts. data for a radio modem or whatever). In the 1920s. He built the first station in 1939.535 kilohertz to 1.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.7 megahertz FM radio . "you are listening to 91. radio and electronic capabilities were fairly limited. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz. encodes it onto a sine wave and transmits it with radio waves.500. When you listen to a radio station and the announcer says. Both the transmitter and receiver use antennas to radiate and capture the radio signal. Common frequency band includes the following… • • AM radio . FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible.5 megahertz" means that the transmitter at the radio station is operating at a frequency of 91. hence the relatively low frequencies for AM radio.88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio. The first radio broadcasts occurred in 1906 or so. Megahertz means "millions of cycles per second.000 cycles per second. and frequency allocation for AM radio occurred during the 1920s. The receiver receives the radio waves and decodes the message from the sine wave it receives. but FM did not become really popular until the 1960s." so "91.5 megahertz.

The IPRS is demanding Rs. An hour long show thus costs Rs. 10.for the technology. The total expenses are thus Rs.500/. Add Rs. advertising time available for sale is 9 .000/-.of the licensee fee to AIR.500 per hour (as against Rs. 100 per hour. the actual duration of a piece of music. 18 advertisements each of 30 seconds can be accommodate in an hour.Radio Advertising Royalties FM is primarily a music channel.. 6. considering the limited range and listenership supposing a 30 . One minute is reserved out of 10 . 3. 9000/. 12. Add Rs. This is the high target. The IPRS claims royalty for the original composers and authors of music. 13. 100 per hour. 6000/.minutes.for the music. 250 per hour of needle time.minutes for social awareness advertising. the total revenue generated is Rs. (PPL) are supposed to hold all the rights of royalties. 6.000 per hour. at which they are supplying music to AIR). 1000 an hour.Rs. 1. Cost . so the question of royalties is relevant. Thus.seconder costs Rs.Aspect A Licencee pays Rs. salaries and other expenses.500. 7 . Another estimate puts the production cost of an hour long programme around Rs. In other words. The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd. 500 . Besides the tariff card should be modest.000/.500 to Rs. 1. Add Rs. Studio hiring costs are between Rs. PPL is demanding a royalty of Rs.000/. They are demanding Rs.Minutes have been set aside for advertising. 500 at prime time for 18 such spots. 10 .per hour.

that Guglielmo Marconi invented an antenna to send and receive radio signals. 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. This era was characterized with 'block programming' wherein radio offered something to everyone. sports. a Queens based Real Estate Company. live musical recordings would be presented in 30 or 60-minute programs. It took quite a while before Reginald Fessenden developed the first radio receiver in 1913. A large number of popular shows moved from radio to TV. That was not all. The 1st paid announcement on radio was a 10-minute capsule from Howthorne Court. drama. However. People in households would gather around the radio to listen to their favorite programs much as they do today with TV. It was Sarnoff who suggested that radio should be mass-produced for public consumption. His persistence paid off in 1919 when such sets were available for general purchase. experts give a lot of credit to David Sarnoff who actually conceived what is called as the "radio music box". 8 .. Then in the 1950s TV began to catch the public's attention. Radio became the first medium delivering entertainment to the masses in their homes. It has benefited listeners and advertisers alike and earned the status of a 'Constant Companion'. What allowed Radio to accomplish this feat? Read on for the long journey the Radio industry has covered thus far. as the radio industry was also losing a large number of talented staff to TV. A network soap opera could be followed by a 15-minute newscast followed by one hour of a concert. News. This saw the beginning of what was later looked on as the 'Golden Age of Radio'. It was way back in 1895.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'.

They observed that the customers would usually come and play the same songs that they liked. like getting dressed for work. As the story goes. Radio became "The Constant Companion". Radio turned 'local' and moved to what is known in the industry as 'Format' programming. They realized that radio was the only medium that could be used while doing other things.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. studying and more. traveling to office. In fact. the staff serving these people would end up playing just the same songs even when the shop was closed. over and over again. As radio was being used as a background medium of entertainment. format radio definitely made radio not just survive the onslaught of TV but also made it grow tremendously. This led to a change in the way radio time was being sold.Radio Advertising At this point in time. it could update you about your world throughout the day while providing you with the entertainment you like all the time. This era also spawned two of radio's greatest strengths: immediacy and local service. According to estimates. cooking a meal. it had to be relevant to the listener at every point of time in the day. Sales people shifted from selling programs to selling commercials. throughout the day. The shows therefore had to be reflective of various day parts in the life of the listener. there are radio sets in about 105 million households in the country. Storz and McClendon used to frequent a local malt shop. It also led to a shift in the way radio programs were scheduled. 9 . Irrespective of the form it came in. Being the only medium that could be carried and used wherever you are. seven days a week. radio experts discovered an opportunity that only radio could provide. Format radio strategy was based on providing the same kind of entertainment to a selected audience.at that time a radio receiver used to be a status symbol in this country. which had a jukebox. The total number of radio sets at the time of independence in 1947 was a mere 275000. But today its possession is taken for granted.

book commercials from advertisers and broadcast the whole lot. there are roughly 10 players who will operate approximately in 37 cities across the country. through its electronic media regulatory body Prasar Bharti. Today. the Government gave the green light to privatize radio in India. A handful of serious bidders chose to remain. But the going was not so easy. players consolidated and the Government extended its deadline. the competition shrank. And in 2000. decided not to renew contracts of private FM operators. 93 crores with Times of India's Times FM & Mid-Day Group's Radio Mid-Day becoming the main players. unable to shell out the high license fee. the advertising revenue fell by 50% within a year! This time. 1999 was the historic day when the Government announced that 150 new FM channels would be licensed across 40 cities .75 crore. In response to the Government's offer. the Government of India did not permit private radio stations to broadcast in India. (1997-98). And the focus on metros was evident in the bidding. in effect. Many gave up.Not surprisingly. in June 1998 the Government. For instance. Others dropped out saying the business was not viable. prepare programming content. Then. many companies bid for the licenses to operate in key markets. the FM Radio advertising and sponsorship business grew to Rs. the Government allowed private FM operators to 'buy' blocks (chunks) on All India Radio. 10 . the Government auctioned licenses for private FM channels to bolster the revenue. Within 4 years. Then history changed its course. the government had to actually face mass withdrawal of bidders because of the huge license fee. So.Radio Advertising History of Indian Radio For more than 4 decades. the bidding price for the Mumbai license was reportedly to the tune of Rs 9. In 1993. July 6. Expecting to collect Rs 800 million from auctioning 108 licenses.

compared to 89% of All India Radio (AIR).5 million from each of 10 broadcast companies . which focused mainly on the smaller towns.for stations in Mumbai. each for Rs 77. the bids for Hyderabad and Nagpur came next. won the largest number of bids.2 million each Radio is expected to follow the growth of the Television industry. The government got the highest bids .Rs 97.2 million and Rs 74 million.5 billion. FM coverage in India is restricted to just 17% of the country. which grew rapidly following the entry of private players Currently. The first round of bidding . 11 . respectively. Interestingly. a Zee Group company. while the bids for Delhi were Rs 71. garnered close to Rs 3.Radio Advertising The government collected close to Rs 4.for 76 channels in 26 cities. New Media Broadcasting.6 billion as license fee for the privately run FM radio channels in 40 cities.

Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Bid amount for first years license (Rs.17 Delhi. crore) 43.87 Calcutta. Tirunalveli 6 41. Indore. Pune Calcutta Calcutta Delhi. Coimbatore. Chennai 12 Hitz FM India FM Living Media Mid Day Broadcasting Millennium Broadcasting Music Broadcasting 1 1 3 3 1.00 17. Cuttack. Chennai 3 20.Sun TV Vishakapatnam 1 0. Jabalpur. Bhubaneshwar. Vishakapatnam 4 2. Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July.Sun TV Vertex Broadcasting 3 9.17 Delhi. Nagpur. Calcutta Delhi.87 Entertainment Network [India] Delhi. Chennai.50 Incidentally. Ahmedabad. Calcutta. Lucknow Chennai.87 20. 12 . Mumbai. Bhopal. Hyderabad. Mumbai.37 Sumangali Publications .00 1. Bangalore. Lucknow.90 Udaya TV . Mumbai. Patna. Mumbai. Indore. Mumbai.

While the private FM players had sought revenue-sharing in the band of 2-2. Future of Radio Industry 13 . 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. 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. revenue-sharing also exists in the media sector. the panel has fixed it at 4 per cent. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years. Private FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. it is firm on revenue-sharing now. However. The objective is to “make FM radio a success story”.Radio Advertising Licence Fee and revenue sharing model Currently. It’s better to keep the revenue-sharing figure low than to have a failed project. FM players pay annual licence fees. Setting up new radio stations After the second round of privatization. which go up by 15 per cent every year. Revenue-sharing figure is quite low at around 4 %.5 per cent. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding.

community announcements and public service messages provide a real value-added service. Providing free-to-air local broadcasts of music and entertainment. 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. Virgin group has already started exploring the Indian market for suitable partners. each radio station is reeling under the brutal financial impact of high costs.Radio Advertising FM Radio can play its part in building a stronger business future for India. 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.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6. It is on the basis of these key drivers of growth. employment & career options.2 billion by 2007. helpful information traffic advisories. With more players in the fray the FM radio industry would grow and also enhance the government’s yield from licensing radio naturally. The Rs 1. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand. Also. Spearhead the government objective of growing the FM radio business in India. advertising spending is expected to amount to Rs 500 crore this year.also government allowing foreign players to enter he Indian market it will help the industry grow. though radio has only a 2 per cent share in the Rs 6. It can provide a level playing field with benefits for listeners. for advertisers. 14 . There are an estimated 150 million radio sets across the country. 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. But at current levels of advertising support. The new India deserves an active private FM radio sector.000 crore Indian advertising market.

who would depend on word-of-mouth. 15 . It is also a free medium. • • Radio is considered as a medium where the “Proximity to purchase” is very Radio is a complement to another media. advertisers or agency can use this medium for brand recall. So that they can develop themselves well because this industry is still in an introduction stage. Therefore. • Radio is the least cost medium and it helps to reach mass audience with various backgrounds. • The success of private FM stations. They can’t afford a TV set. which is 4 % for the growth of the radio stations. are welcoming the opportunity. Radio also reaches to uneducated village folk who do not read print or ads in local supplements of newspapers. publications. • • • • The advertisers. not only are listeners tuning into it more often but also sticking to radio for longer hours everyday. because people can listen to 90% of India has access to radio which is unmatched by any other media. other media or the high. Therefore radio is more popular. radio anytime and anywhere they want. 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.Radio Advertising SWOT Analysis Strengths: • Recently. and reveals that radio listenership habits have changed considerably. the government has agreed upon revenue-sharing model. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. pamphlets.

Radio Advertising Weakness: • One of the major weaknesses of Radio is that there is very less differentiation in the programmes that are aired. • Fragmented Audience . • Radio-only nature of radio communication is a tremendous creative compromise. the percentage of listener tuned to anyone station is likely very small. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. and therefore it is difficult to differentiate between the programmes of the different channels. in India there is no proper research is available.the large number of the audience in India is fragmented in various remote places. • No proper research available . Research is the main base to attract client and get more revenue. The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium 16 . 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. Most of the stations plays much of the music that is played consist of Hindi Film songs.research is very important for any advertising segment. • • • 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. And like its radio message creates a fleeting impression that is often gone in an instant. And therefore. Many stations are conducting their own research which can be biased. • • Increase in listenership numbers but no increase in ad revenue. This is the situation that every radio channel is facing. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. But.

• Leaves huge scope for innovation in local market Threats: • The biggest threat to private radio industry players is ALL INDIA RADIO. With no particular differentiation in the music. AIR is the biggest player in India because of its reach. government channel etc… • Because of the new government policies there will be more number of stations and then competition will also increase. This is one of the biggest threats it faces. One has to constantly innovate. and gung-ho about this whole enterprise. like. Brand building is thus much more difficult. At the same time. • • Allowing private FM players to start news and current affairs programmes. • With the coming of the many more new players in the radio industry each channels can position themselves quite different from others. And can play their station which will exclusively provide with the information relating to that university/college campus.Radio Advertising • The new radio stations which will come in future they can have venture with the college or university campuses. and that is the challenge. And then it is easier for the advertisers also to decide on which channel to advertise. if some station is targeting the health conscious people then their programming strategy will vary accordingly. we are very bullish. 17 . there is a fear of losing its brand loyalty. low charges. So.

According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10. which lags behind other developed and developing countries During fiscal 2005. the gross advertising spend in India is estimated at Rs 111 billion. as a percentage of GDP.34%.9%. 30.Radio Advertising Advertising in India India has been among the fastest growing economies in the world. There is a correlation between the economic growth rates of a country i. and growth rates of the advertising industry The Indian advertising spends.e.636 billion. with a nominal GDP CAGR of 9. is 0.94% over the last 10 years (1995-2005). the nominal GDP growth rate. and is expected to grow at 14. The nominal GDP for fiscal 2005 was Rs. 127 billion by fiscal 2006 18 .2% to reach Rs.

6% 41.4% 0.0% Internet 0. 19 .5% 0.4% 0.4% 0. resulting in growing ad spends on this medium. especially since 1991. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49.5% 2. radio.3% Media Spends as % of Total Ad Spend TV Radio Cinema 39.4% 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. This growth was also aided by the economic liberalization program of the Government.5% 7.9% 2. the television broadcasting business.4% 47.7% 2.4% 7.6% 46.9% 2.3% 0. now has over 300 channels covering the Indian footprint.9% 43.0% 6.6% Outdoor 8.7% 0. television.9% 0.7% 2. Thus.0% 48.3% 40.5% 6.2% 46. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry.3% The Indian television industry has grown rapidly.7% 0. cinema. and outdoor.0% 43. which saw the beginning of satellite broadcasting in India. which started off as a single government controlled television channel.Radio Advertising Segmentation in advertising The five key industry segments comprise print.

Advertising agencies that control the national picture will be slow to move on to radio for creative reasons. successful radio promotion revolves around making and managing relationships. implying that it is as important to them as it is to a retail advertiser. Amul. 70 per cent of the advertising comes from big-budget.1 per cent. with 9. On top of that.7 per cent and Spain.5 or Radio City.5 Red 93. Britannia.9 per cent share of the total advertising pie in India. national advertisers and the balance 30 per cent comes from retail. Putting it bluntly. On the higher side are countries like the United States. They have people who love to make television commercials. Castrol. Dr Morepen. Go 92.Radio Advertising Radio Ad1vertising Radio is still the king when it comes to getting your music. Paradoxically. DSP Merrill Lynch etc are dominating the advertising on each one of the FM channels. it can take a great deal of time to make all the contacts and connections that are required for successful radio promotion. if not more. It is a known fact that retail advertising will grow because radio presents the perfect advertising medium for local businesses in a local environment. depending on country. Santro. Companies that advertise on FM channels today such as Hindustan Lever (HLL). Globally. Accordingly. Parle. Today. Canada. radio has a 5 per cent to 12 per cent share of the advertising cake. it is extremely difficult to obtain meaningful airplay. 20 . with 12. But national advertisers are also operational in the local market. it is undeniable that radio can be integral in exposing a new artist. Radio promotion is an art that demands a certain style you may simply neither have nor desire to cultivate. Nevertheless. be it Radio Mirchi. 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. with 13 per cent. radio currently has only a 2.

Radio is the best bet for such small-scale promotions. However.4 million in 2000. films. 21 . It is also aptly suited for local promotions.9 per cent of the money spent by advertisers goes to radio.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. all of that went to ALL INDIA RADIO. including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990. concerts Vague/ not relevant: This includes memories of ads for local garages. probably quite correctly. A clear advantage that radio has is that it can easily target city-based audiences. There was evidence of three sorts of memories: Relevant : This includes Ads which mentioned areas or names of specific interest. to Rs 808.g. Here. they have to sit through the full length of any ads which are for irrelevant products. money from advertising has gone up. Consumer opinions The evidence from the qualitative research is that young people feel their local FM station is aimed at people like them. wants to target a specific audience.5 per cent per annum. representing a growth of about 7. This makes sense if the advertiser. Because radio is a real-time intrusive medium. and up till now. but the advertising is not . In such cases.Radio Advertising but don't have anybody who knows how radio works. like a food chain that is opening an outlet in Mumbai. only about 2. and once audiences can be targeted. outlets selling favoured brands. & Rs. Revenue from commercials on AIR. 600 crores in 2002. cars and insurance companies . in revenue terms. e. that most advertising is aimed at adults. it has tremendous potential to eat into local mediums. and the print medium is too expensive. it does not make much sense to advertise on TV.they feel.

90% of India has access to radio which is unmatched by any other media. Radio has a number of characteristics that makes it an ideal vehicle for numerous advertisers as either a primary or secondary medium. radio builds a large audience quickly and a normal advertising schedule easily allows repeated impact on listener. income group. Advantages of Radio 1. From a marketing perspective. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. educational level or special interest with a format that adds even greater dimensions to its already strong personal communication environment. Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the rural masses. Also. there are certain disadvantages of this media which need to be considered. There is no one medium which is ideal for advertisers or every situation. 2. Radio also reaches to uneducated village folk who do not read print publications. They can’t afford a TV set.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. 22 . The average adult listens more than 3 hours a day. ethnic or religious background. radio has the ability to reach prospects by sex. Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enable advertisers to select the market they want to reach. Therefore radio is more popular. age group. Largest Reach and Frequency Radio offers an excellent combination of reach and frequency. employment category.

Because of the relatively low cost of production. The personal nature of radio. Creativity and Flexibility Radio is the most flexible medium because of very short closing periods for submitting an ad. a strategy that would normally be prohibitively in television. radio ads can be produced very quickly. This means an advertiser can wait until close to an air date before submitting an ad. advertisers are able to adapt commercials to the various stations then buy. While radio may be one-dimensional in sensory stimulation. National spots can be produced for about one tenth the cost of a TV commercial.Radio Advertising Radio’s high overall reach and its ability to provide numerous formats make it a multifaceted medium. it can still have powerful creative impact. Cost –Efficiency Radio is the least cost medium and it helps to reach mass audience with various backgrounds. The musical formats that attract audiences to radio stations can also attract attention to radio ads. and local stations often produce local spots for free. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. Radio also offers timeless. local relevance and creative flexibility. popular songs. 4. 3. Audiences that favor certain music may be more prone to an ad that uses recognizable. 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. combined with its flexibility and creativity. Copy changes can also be made very quickly. Also. makes radio the choice for numerous product categories. 23 . Radio has been described as the theatre of the mind. immediacy.

Radio gives the advertisers the opportunity to take advantage of the right combination of words. The radio industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary medium. 24 . Radio can be targeted by lifestyle formats and is more efficient than other media from a cost and production standpoint. However for national advertisers and most large local and regional firms. 7. As a result many advertising agencies will move their budgets into radio. music. 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. radio is most often used as complementary medium to extend the reach and frequency of primary vehicles in their advertising schedule. and persuade them to respond. and sound effects to establish a unique “one-on-one” connection with prospects that lets you grab their attention. 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. In the competitive environment facing most companies. Proximity to Purchase The mobility of radio and its huge out . As a Complement to Another Media In some cases. voices. radio is the primary medium for local advertisers. 6. it is imperative that brands achieve consumer reinforcement as near as possible to the purchase decision.home audience gives the medium an advantage enjoyed by few other advertising vehicles.Radio Advertising 5. evoke their emotions.of .

Radio Advertising Disadvantages of Radio 1. Chaotic buying procedures For an advertiser who wants to include radio as a part of national advertising program. This could involve dozens of different negotiations and individual contracts. In television the chances of such misconception is less. 25 . 2. 3. the buying process can be sheer chaos. Poor Radio Attentiveness Just because radio reaches audiences almost everywhere does not mean that everyone is paying attention. 4. in radio’s quest to continue to fine tune its reach. When a consumer is listening while doing some work or traveling in a car. he or she often switches stations when an ad comes and divides his or her attention between the radio and road. which may not be cost effective. some advertisers wonder if radio is offering too many narrowly defined options. as it is audio as well as visual. However. an advertiser has to buy time in individual markets on a station-by-station basis. Fragmented Audiences The large number of stations that try to attract the same audience in a market has created tremendous fragmentation. For those product categories with broad appeal. Since national networks and syndicated broad cast do not reach every geographic market. it is difficult to gain effective reach and frequency without buying several radio stations and networks. Misunderstanding Sometimes there might be a misconception regarding the radio ad as it is only heard. advertisers who want to blanket the market have to buy multiple stations. If a large number of radio stations compete for the same audience.

Sometimes the voice really matters. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. 6. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. 8. If the voice is irritating then there is a chance that the campaign may flop. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad. Radio must compete with other activities for attentions. a drawback if the product must be seen to be understood. there is no proper research has been available on the area of radio listening. 9. Creative Limitations The audio-only nature of radio communication is a tremendous creative compromise. there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time.Radio Advertising 5. They can’t keep like a newspaper or a magazine ad. Therefore. Only 20 % of time availability restricts the frequency of message exposure. Limitations of Sound Radio is heard but not seen. No proper research available In India. 7. and it does not always succeed. 26 . 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.

The RJ informs the audience about the sponsored company throughout the programme. airtime.Radio Advertising Types of Radio Advertising: 1. 27 . Radio advertising is either live or taped. Networks provide national and regional advertisers with simple administration and low effective net cost per station. Local Radio Local times denote radio spots purchased by a local advertiser for local market. Disadvantage includes lack of flexibility in choosing affiliated stations the limited no. It involves the same procedure as national spots. 5. and copy. nearly all radio commercials are pre recorded to reduce cost and maintain broadcast quality. 4. sale. Spot Radio Spot radio affords national’s advertiser’s great flexibility in their choice of markets.Likewise. of stations on a networks roster and the long lead times required to book time. 2. 3. 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. 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. Most radio stations use recorded shows with live news in between . exhibition going on at certain place etc. stations. Sponsor Programme Here the advertiser sponsors the whole or part of the programme. The advantage is less paper work and lower cost per station. RJ Mention/What’s On Mention Here the Radio Jockey [RJ] informs the audience the information given by advertiser about the new product launch.

28 .However. fresh cup of coffee. For the lowest rate . Heaviest radio use occurs during drive times (6-10 am and 3-7pm) during the week (Monday. an advertiser orders spots on a run of station (ROS) basis. Radio stations divide their rate cards into dayparts . This information is important to advertisers because usage and consumption vary for different products. this leaves total control of the spot placement up to the station. For example. radios morning drive time coincides with most peoples desire for a steaming.The exact divisions vary from station to station. so its great time for advertising coffee brands. 6 am -10 am 10 am – 3 pm 3pm – 7pm 7pm. similar to the ROP in newspaper advertising . 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.Friday).Radio Advertising Radio Stations Divide Their Days And Their Rates.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.

30 sec and 60 sec. The longest commercial played on the radio is 120 seconds. the announcement of a new or little-understood service. you’ll see that quite a lot can be accomplished in a short time. the better it will be remembered or at least. 60 around 150 to 160 words. you may find that 60s. unless very well written and well produced.Radio Advertising Length of Spots The radio commercials in the test reels consisted of several different spot lengths. In theory. A 60 does allow you more variety in music. 20 sec. 30 is usually 70 to 80 words long. Check the rate cards of the stations you are interested in. But take a stop watch and time some spots on the air. In fact. a: 30 costs the same as a: 60. or ask your sales rep. In General. they charge a unit rate. Those however are rare. In other words. 29 . Instead. ranging from 15 to 60 seconds. one could assume that the longer a spot. Some stations no longer charge a separate rate for: 30s and: 60s. sometimes seem a bit too long. and a. 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. The spots for advertisement can be for 10 sec. and voice and can be useful for political message. this is one case where you might want to use a: 60 to take advantage of the “free” air time. The cost of a: 30 is usually about 60% to 75%. Obviously. the more chance there it that it will be heard. 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. 30 seconds sounds like an impossibly short time to get your message across. sound effects. or other sports with a information/education content.

The time period decision is based primarily on a demographic description of the advertisers target audience. There are five basic dayparts on basis of which advertiser can choose. Advertisers generally invest most heavily in local placement. or local radio stations. 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). Networks provide national and regional advertisers with simple administration and low effective net cost per station. guides an advertiser in a buying decision. syndications. Although the actual buying may be time consuming and expensive if many stations are involved. 2. Advertising time can be purchased from networks. This information combined with programming formats.Radio Advertising Buying Radio Time 1. About 15% is allocated to national spot placement and only 5% is invested in network broadcasts. Station Rates While buying procedures to achieve national coverage may be chaotic. 30 . Buying specific dayparts This relates to the time period of purchase. About 80% of annual radio advertising is placed locally. Many stations have local rates for Individual Business and National Rates for Agencies. 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. Drive-times dayparts attract a mostly male audience. while daytime primarily female and nighttime is mostly teen. the structure is actually quite straight forward. this does not mean they are completely without structure.

Sponsorships or adjacencies A sponsorship is just what its name implies. your ad will run every day just before or just after (in other words. Buying packages is an easy. c).m. you may specify that you want your spot to run at 6:13 a. Is brought to you by………” An adjacency is the next best thing to a sponsorship. Total Audience Plan (TAP). 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. and Friday. The advertisers sponsor the whole or part of the programme. Sponsorships on top-rated shows can cost up to twice as much as other spots in the same dayparts. adjacencies.ads that stations choose when to runcost less than ads scheduled during a specific dayparts. Weekend sports can also effectively reach teens. radio advertising time is purchased from rate cards issued by individual stations. Stations will usually guarantee to divide your sports fairly between drive times and other dayparts. or Best Time Available( BTA). Run-of-stations ads. Buying packages As with magazine buying. Sponsorships. 31 . Wednesday. every Monday. For example. b). Marking a package buy is called buying Run of Station (ROS). usually low-cost method. You are associating your company name with a specific program.Radio Advertising Putting half your sports into drive time and half into midday is a very safe strategy. The RJ informs the audience about the sponsored company throughout the programme. If you buy an adjacency. spending less to achieve the same impact. Other fixed-position spots are also available. 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. Having your name associated with a particular show or event can do a lot to reinforce your positioning. “……………. and fixed positions go for premium rates. and these premium spots can be so powerful that you may be able to run far fewer spots than you otherwise would.

Flight and schedule are two words you may hear your radio sales representative use when you plan your advertising. you may need to buy two or more stations with widely different formats. and you can afford to buy drive time on the dominant news/talk station in the market. But how many is enough?Generally. a minimum of 20 spots per week should be aired. times when one station will suffice.”) 4) How many stations do you need Just as you should never run too few spots. six months out of the year. 3) Frequency Radio. survey the local market. If your audience is business people. like most media. A flight is a group of ads. but that varies depending on your audience and the number of competing stations in the market. There are.Radio Advertising Sponsorships are like marriages. There are scheduling strategies that help increase the impact of the spots you place.”) A schedule is the long-term version of a flight. and then tell you how many listeners each station had in each category. (“I run a schedule of 20 ads a week. that may be all you need to succeed. These surveys break the audience down by age and sex. you should run on at least two or three stations. they’re only for people who are ready for a longterm commitment. To really learn who is listening to your spots. If your target and audience includes both younger and older people. (“I’m running a flight of 80 ads this month. Similar survey on listenership has been conducted by IMRB (Indian Market Research Bureau) 32 . however. break the listening week down into segment. requires repetition to have impact. you should also not run on too few stations. As a general rule.

which means not just the words. but it must grab the listener’s attention in about three seconds. Production can be done in the station’s own studios or in an independent production house. There are two good. creative people whose fresh ideas will keep your spots from sounding like everywhere else’s. “whose spot was that. low. and sound effects. It can also be simple and inexpensive. It all begins with a good script. There are three basic elements to work with: the announcer’s voice. 1) The Voice There are two factors concerning voice. music. a) Using local radio talent 33 . music. and they often employ young. Stations are usually well. Your spot can be clever or straightforward. and sound effects. but the combination of words.cost options for achieving this.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.equipped to produce spots. anyways?” The following are some of the factors you should have in mind from the first moment you sit down to plan your spot. All these are part of the script. you should use a voice that is appropriate for your image. and one higher. and it must not leave the listener wondering. First.cost option: a) Using local radio talent b) Using an amateur voice c) Hiring professional voice talent.

but only a small (but increasing) percentage of all broadcast sales presentations are made by women. If the ad runs only in drive time. In fact. There are several options for putting music into your commercials: a) Have original music produced. b) Use free music from the station’s library. one can have the midday announcer do the honors. (But It’s difficult and expensive to obtain the rights). in larger markets. Female announcers can also be used. the better. Celebrity voices can sometimes be hired. a child’s. Get the least familiar voice available. or even your own can make listeners stop and pay attention simply because it’s not what they’re expecting to hear. 2). 34 . one of their on-air people risk having the voice be so familiar that the listener doesn’t pay attention. Listeners will be less likely to tune it out.Radio Advertising If station produces the spot. the less the voice sounds like one of the regular announcers. 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. Music The power of music can’t be overemphasized. Studies have shown that women presenters are just as effective as men. the local community theater or. from a talent agency. A word of caution: Amateurs can sound stiff and false. b) Using amateur voices One great thing about radio is that even an untrained voice can be very effective. c) Get permission to use an existing recording by a known artist. A woman’s voice. c) Using professional voice talent If a very sleek production value is needed hire voice talent from another station.

3). Sound Effects (SFX) various onomatopoeic sounds like eeek. can be done having a jingle product. ding dong. 35 . Be aware that the announcer may have slight interpretation of the reading than you do. whistle etc. an engineer will record the spot while you and the announcer concentrate on the reading. At large stations and professional recording studios. 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. The tapping Session Once the decision is made about the script. You should also understand. the announcer will operate the equipment. When you use sound to evoke smells. sensations. more involved with your spot. music. voice. will be more involved with your ideas. and visual images. A catchy jingle helps potential customers remember you more than almost anything else. you bring the listener. At may be just you and the announcer in the studio. and sound effects. and don’t expect a performance that could only come from someone reading your mind.Radio Advertising A lot of radio or TV advertising. 4. and it can be a very worth while investment.600 to a few thousand rupees. ho ho ho. it’s time to record. The cost runs anywhere from Rs. Radio is entirely a medium of sound. are available at the local radio station.

00 a. interested chiefly in news Daytime. the next step is to prepare a proposal.10. .00 a. 10. talk shows Music. radio prime time and same as morning drive time News.m.12.6.00 a.m. talk .7. or all-news Afternoon. .3.m. music. The radio salesperson must be aware that everyone involved in the transaction is looking for different results. 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.00 p.00 p. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product. c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers. The successful ones begins with the clients problem and sales objectives an move systematically to a solution. After the salesperson has a firm grasp of the advertising problem. . The media buyer is looking for efficient cost per point. . .m.00 a. program characteristics of station. 7.m.00 a. 3. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price.m. while the client’s goal is to move product.m. talk shows Elements of good radio commercial 36 .Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps. Dayparts 6 a. 12.00 p.m.m. Characteristics Drive time. Radio salesperson must begin with the client’s needs and marketing goals. music. breakfast audience.m. 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. b) The salesperson must move from the general advantages of radio to the advantages of specific station. Often the job of the radio sales person must be conducted on a number of levels.00 p. drive time .

⇒ Research your product or service. Keep it simple 5. Meaningful statistics can give substantial support to your massage. a tug on the heartstrings. A clever phrase or execution can have consumers asking other people if they have heard the spot. ⇒ Produce an immediate physical.Radio Advertising ⇒ Be single-minded. Many clients keep tabs on their competition. ⇒ Relate to the consumer. conversational English. Engage and entertain the listener 4. Judge what you hear. or mental response. Take it seriously Steps in Radio Ad Production 37 . Always relate the brand to customers wants and needs. focused. Laughter. Prioritize the copy points. The effect of a commercial can be multiplied by achieving extension. Understand the environment 2. or mental exercises of a consumer during a radio spot help seed the memory and aid messages retention. not what you read 6. Speak the listeners’ language 3. Plan your production 8. Be a clear communicator Creative Radio Advertising These are some guidelines for producing creative radio advertisements:1. The consumer should not be burdened with too much information. emotional. Production values are important 7. The central idea should be highlighted. but they rarely related their features and benefits to factual data. D ⇒ Generate extension. ⇒ Use plain. Dare to be different 9.

a rehearsal is held. The producer prepares cost estimation 3. The producer sees that the master tape is prepared for distribution on either tape or cassettes and shipped to stations. If music is to be included. the producer casts the commercial. if one is needed. 6. The studio mixes music and sound with voices. With the aid of the casting director. 9. If necessary. 5. 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 .Radio Advertising 1. the producer selects a musical director and chooses the music or selects stock music. The studio tapes music and sound separately 8. 7. the producer selects a recording studio 4. An agency or advertisers appoints a producer 2.

It provides a more robust measure of whether they have heard the campaign. playing the ads to consumers. Commercial recognition is a valuable technique – i.These vary widely and there can be often more than one objective set for a campaign. if the increase in advertising awareness is greater among listeners than it is among non-listeners. what are you aiming to measure? In broad terms. the post-stage in the week after the campaign finishes. 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:. Below are some typical examples: 39 . Radio research can successfully be done using telephone interviewing – ads can be played down the line. Consumers tend to misattribute radio-advertising memories to other media. Brand names can be bleeped out of the commercial. 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. In other words. then the effect can be attributed to radio fairly confidently – even if the listeners think the advertising was in another medium. to test whether the campaign is linked to the brand.e.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. This tendency to misattribute can be offset by using matched samples of listeners and non-listeners. and avoids problems of trying to describe the ads. particularly TV. 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. However cases where other media are to be included in the research it might be more appropriate to use face-to-face interviewing. This way.

Use of different day part strategies.  Secondly. when testing different media strategies.Radio Advertising  . If you do intend to test a particular media strategy there are three important considerations to note. balanced research “cell” for each media-variable.  Firstly. you must gear the campaign so that you can test the particular media strategy in which you are interested.Effectiveness of different spot lengths .there are specific tools available for measuring sales effects for example. if you are testing a number of media strategies simultaneously.In addition to tracking radio’s contribution to the success of a campaign. for example: . Any other questions are of secondary importance 2) The Importance of Split Samples 40 . bear in mind that you will still be judging the effects in terms of the overall campaign objectives.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 . Whatever your research objectives. once you have defined them make sure that they form the core of the questionnaire you use. you will need to be able to separate the effects of each using a separate.  Lastly. Media Planning Issues: . and most obviously. as a secondary aim you might also be trying to test and evaluate the effects of using different media strategies.Burst versus continuous activity .

with the result that campaigns in all other media are. Which Option Should You Choose:Neither of the two approaches above is necessarily better than the other. Television.Radio Advertising Misattribution of Advertising:When asked to consider advertising. 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. to varying extents. However. attributed to television in the consumer’s mind. consumers will turn their thoughts to the most salient source they can think of – this tends to mean TV. 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. tends to dominate memories of advertising. 41 . 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. the second method has the advantage of questioning people who will have the same history of exposure to the brand. If the only difference between the two samples is their radio listening. as the medium with the most active expectations. but who are the same as the listeners in all other respects). Local distribution levels for the brand will also be the same. 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.

It is important to match the media consumption of the samples (e. It is equally important to ensure weight of advertising for your brand in all other media is the same for both samples. In this way. 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.Radio Advertising The key point is that the listener and non-listener samples must be matched as closely as possible in terms of demographics. 42 . media consumption and weight of exposure to the brands’ advertising in other media.thus giving you a measure of radio’s effectiveness. This ensures that any differences can confidently be attributed to radio ad exposure. the other in an area where no radio advertising ran. as this could affect response. how much TV they watch etc) as well as their demographics.g. 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 .

Often. One part of the sample will comprise people who do listen to the station(s) on your radio schedule. radio research is conducted in two stages . 4) When to do the research The ideal research method is to monitor advertising activity on a continuous basis. Typically.Radio Advertising Test and Control Samples within the Same Area In this second approach. continuous radio research is impractical on grounds of cost unless it forms part of ongoing advertising tracking. whilst the other part of the sample will comprise people who do not listen to any station on the schedule. 43 . 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. since this allows movements in advertising response to be compared directly to current advertising activity. however. all of the research is done within the same area.a pre-campaign and a post campaign study.

5) The research sample and sample sizes Sample Sizes Generally speaking. 44 . This will establish the base levels of whatever is being measured (eg brand awareness). the cost of an increased sample size becomes cost prohibitive and contributes little extra to statistical robustness. say. it might be worth slotting in an additional research phase during a particularly long advertising campaign or sponsorship. having done the post-research. ⇒ 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. to track decay in brand awareness. Face-to-face interviewing may also be preferable if respondents need to be shown visual ad material such as stills from TV ads. 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. For example. However at some point. Similarly. In some instances one considers conducting more than two stages of research. consider adding an additional stage of research some weeks after a campaign has ended in order.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. the larger the sample the better. Radio ads can successfully be played down the phone to respondents.

this allows prompting for brand-specific data.Radio Advertising Commercial recognition is a valuable technique – i. ⇒ 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. When playing the radio commercials in order to measure commercial recognition. ⇒ Branded . it is possible to see whether creative treatment has successfully linked the message to the brand. 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. playing the radio ads to consumers – as this is the best “memory jogger” of all. (e. attitudes to the advertising/feelings about the proposition). two different approaches can be taken: blind or branded.e. 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.g.

demonstration. b) Communication and c) Detailing of communication points. 'what Radio can add' to each medium on three key parameters . radio also allows tighter targeting against audiences thus reducing wastage. What radio can add: In planning:Radio's main contribution is a dramatic increase in frequency of exposures. radio can bring brands closer and speak to the consumer at their level. radio can be used for regional or local exposure booster. This is mainly because it does most things well . persuasion. radio can be used to reach light viewers. radio has a culture of response where listeners frequently interact with their station which they see as accessible.coverage. 46 . frequency. impact etc. Radio with Television Characteristics of Television TV has traditionally been the most powerful and popular advertising medium for people in the media business. Reason enough for us to study the role of Radio vis-à-vis other key media. production costs are extremely high and viewers are increasingly avoiding ad breaks. Traditionally a high-cost medium. either in the same period as the TV campaign or later to extend the campaign over time. image.a) Planning. the downside with TV is that the audience is now fragmented across many different channels. In communication:Given that Radio is perceived as personal medium.Radio Advertising Radio with other media Most brands tag radio to their existing communication plans. it extends TV messages to key times of day when TV audiences are lower or when product relevance is higher.

47 . Radio with Newspapers Characteristics of Newspapers Newspaper brings 'immediacy' to a communication. which may seem flat on the page. which has been successfully established on TV. which consumers recognize and associate with certain brands. radio can allow a fast turnaround for new initiatives. and there is less ad avoidance. Example of powerful SBTs: "Britannia Ting Ting Ting" They help to ensure that TV and radio advertising is well branded. as they tend to rely on rhythm and music. They leave a brand impression with even the most passive TV viewer or radio listener. Sonic Brand Triggers are sounds. Newspapers also have the authority of the written word. Radio brings brand messages closer to the individual. in most sectors. As a print medium. the national press suffers from clutter and from the fact that the reader can and does edit ruthlessly to avoid advertising. radio allows brands to emphasize specific key times of day. which are absorbed at very low involvement levels. A sound. speaking in a more personal way than press.Radio Advertising In detail:Radio allows activity to be geographically varied. What radio adds: In planning:Radio adds frequency. it can bring to life ideas. and this is real frequency in that exposures take place in real time. radio also reaches non-readers so it can significantly increase coverage. can be transferred on to radio. and are good at presenting detail. adding radio also means increased share of voice thus overcoming clutter In communication:Radio brings intrusiveness to a press campaign. low production costs mean multiple copy messages can be varied round the core TV communication Sonic Brand Triggers. radio can more strongly convey the brand's tone.

in a very public way. as listeners identify with their radio station and see it as aimed at people like them. striking ideas to be effective.typically travelling time. radio brings brands closer.and it suffers from relatively expensive production. The weaknesses of outdoor advertising mainly stem from three issues: it has no editorial context. radio also offers tighter timing . In communication:Radio allows more information to be conveyed. in the sense that additional exposures to the advertising are played in full rather than having the listener look away or ignore. 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 is better able to communicate the tone or character of a brand. Like radio.within time of day. radio allows multiple copy. it also allows localized copy variation relating to a national poster execution. 48 . posters also operate within time which people think of as free . it uses extremely simple.Radio Advertising In detail:Flexibility means radio allows geographical variation on top of a national press campaign. What radio adds: In planning:Radio adds real frequency. radio offers far tighter targeting which means reducing wastage. In detail:Radio offers speed of production compared with the lengthy process of poster print deadlines. day of week or even week of month. which is useful for explaining or persuading.

Weaknesses of magazines include the fact that lead times can be very long depending on the title's frequency of publication. ⇒ Commercial recognition – playing the ads to respondents. which means overcoming clutter. cooking. radio also offers a greater share of voice for most categories. In communication:Radio brings intrusiveness to a magazine campaign. you will be seeking to detect spontaneous and prompted awareness. day of week etc.time of day. It allows brands to speak to consumers close to certain activities . ⇒ Thoughts on what the main message of the ads was 49 .driving. and the opportunity for geographical variations. radio can more strongly convey the advertising tone of voice.Radio Advertising Radio with Magazines Characteristics of magazines Magazines are useful to advertisers because of the relationship they have with the readers. and there is less ad avoidance. What radio adds: In planning:Radio adds frequency and also extends coverage well beyond the magazine readership. In many magazines the ads are seen as part of the magazine experience. radio can bring to life ideas which might seem flat on the page. ⇒ Recall of advertising. the high levels of clutter. and the reader's inclination to simply turn the page. housework etc In detail”:Radio offers fast turnaround within the long copy deadlines of magazines. radio allows tighter timing . They allow targeting by lifestyle and interest group. At the post-stage. who consume them in a personal way.

With the growing salience of Radio. or on particular request by a company.600 individuals. IRMB believes that time is ripe for a continuous Radio audience measurement system. IMRB International decided to launch RADAR RADIO LISTENERSHIP SYSTEM . The findings have helped many radio stations to develop.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. When the questionnaires are filled. A sample size is decided which is spread all over the target city / town etc.000 households and 3. • • • • • Then the analysis findings are forwarded to the research department and published A project is selected and a deadline is given. The research can be undertaken by the research agency voluntarily to be sold later to companies.the continuous radio audience measurement system in Mumbai. All the interviewers are informed of the above and a questionnaire is given. The following is the standard procedure involved in calculating the listenership of a radio station. they are complied and sent to the analysis department 50 .

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 94.6 Go 92.5 SLBC World Space VOA At the country level: % mentioning Total awareness of radio stations Gender of radio audience Female 42% MALE 58% 51 .

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.00 pm B 14% 7pm .7am .30 am 20% 18% D/E 45% A 12% Radio Advertising 16% 14% 12% D/E 10% 45% 11.6. 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 .11. Being 52 .

While the sec A. As the 7. 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 . 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. 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. on the other and the 11-2 slot has the women segment listening while the nights are more concentrated on teens. Various shows are held by the radio stations. B have a wider variety of entertainment available to them radio is not widely used.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. 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.50 which make it very affordable. Radios are now available at prices below Rs. In order to meet the requirements of its listeners and its corporate audiences. Which is why the new entrants are vying for their share of the pie and encouraging the government to release more airwaves for them. Radio is very popular with the sec D/E market due to its cheap cost.Radio Advertising the only service provider it was able to penetrate deep into the Indian market. specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium. giving the advertisers a vast array to meet their specific target markets.

which is a national service planned.I.R. Sound broadcasting started in India in 1927 with the proliferation of two privately owned 54 .Radio Advertising All India Radio A. developed and operated by the Ministry of Information & Broadcasting under the Government of India.

A. New initiatives by AIR Change is in the AIR.classical music channels to start with in Bangalore and Lucknow and to be extended across the country later. educate and entertain the masses. It caters to the needs of the people. With broadcasts in 24 languages and 146 dialects (home services). Prasar Bharati now plans a 24-hour news radio station not on FM. All India Radio has a network of 283 broadcasting centers with 146 medium frequency (MW) transmitters. regional and local. 55 . The Regional Stations in different States form the middle tier of the broadcasting.Radio Advertising transmitters in Bombay and Calcutta.I. 1988. AIR has a three-tier system of broadcasting.'s coverage exceeds 90% of India. sports. It transmits centrally originated news bulletins in Hindi and English. and another 10 foreign languages in external services. plays. Including North-Eastern Service at Shillong disseminates the vibrant and radiant cultural heritage of the Northeastern region of the country. to nearly 76% of the country's population fully reflecting the broad spectrum of national life. newsreel. through its transmitters at Nagpur. When India attained Independence in 1947. It was changed to All India Radio in 1936 and it came to be known as Akashwani since 1957 to inform. spoken word and other topical programs. namely. AIR had a network of six stations and a complement of 18 transmitters. National channel of All India Radio started functioning on May 18. national. 50 high frequency (SW) transmitters and 87 FM transmitters. For FM it has other ideas . All India Radio is one of the largest radio networks in the world in terms of reach. Mogra and Delhi beaming from dusk to dawn. reaching over 98% of the people in the largest democracy of the world. music.R. Add FM radio and you have a formidable arsenal. but on shortwave.

It will promote and publicize sports events covered by AIR besides popularizing existing services like Radio on Demand and News on Phone. Western Music. Kolkata and Delhi at different numbers.K. will be launched across the country with a four-digit common number. 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. The entire publicity campaign of AIR is being designed by Prasar Bharati's ad agencies. a marketing plan and publicity plan with suitable media mix.Mittal. The company has received the license to set up radio stations 56 . was launched on 21st May 2002. especially in North East and J&K. AIR planned and developed special packages for the North East and J&K.Radio Advertising AIR. recommending a suitable positioning for AIR Channels. family and Associates. which produces more than 300 bulletins daily. Chat shows. 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). Hyderabad. The service. will also cash in on phone bulletins. development of infrastructure and the changing scenario in the state.Hindi Music. Prasar Bharati is also planning to fill the vacancies in regional stations. setting up radio clubs and maximizing AIR revenue. The ad agencies have been asked by the Prasar Bharati to make a strategy presentation. 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. Helplines etc. a venture promoted by Star and Music Broadcast Private Ltd (MBPL). and for this it is launching a campaign in select cities. MBPL is a company backed by P. Prasar Bharati is positioning AIR FM Rainbow as a channel offering a buffet fare . focusing on the rich cultural heritage. RADIO CITY [91FM] Radio City. which is on in Patna.

The airtime. Intensive research is being carried out to ascertain demographic profiles of radio listeners. 2. hours 57 . Nagpur and Lucknow. so as to enable more targeted programming in the future.Radio Advertising across the country in six cities . Price: Advertisement rates Promotion: Radio city is one of the top 3 stations in the city. Target audience Radio City is not looking at any particular segment to target. 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 . marketing and programming. The idea is to create the brand and then to move on to specific target programming. This is thanks to its promotions. a portfolio of entertainment programming 24 a day. Delhi. vivacious RJ’s. Radio City’s market strategy is backed up by six months of intensive research in Bangalore. teamed up with professional. a perfect blend of English and Hindi music. The Television “fun ka doze har roz” ad campaign.Bangalore. in mix of Hindi and English For corporate and retailers: . Place: Intensive (all over Bombay) also. Hoardings all over the city. information.Bangalore. Delhi. Mumbai. STAR India’s radio division would provide or take charge of advertisement sales. and is trying to create a brand name. Radio City aims to reach out to listeners across demographic barriers. The channel is into sponsoring events especially college festival around Bombay city. The 4 P’s Product: For listeners . Nagpur and Lucknow. On the promotion front. Mumbai. Patna. 1. the channel undertook huge promotion campaign in the initial stages of its launch.Music. Patna.

the success rate with national advertisers is a lot higher than in the case of retail advertisers. 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. Hence.Radio Advertising Advertising with Radio City Radio City also hopes to provide an effective advertisement medium. Star India is in-charge of providing the content. National advertisers are all familiar with the concept of advertising. besides advertising. from small local stores as well as big brands like Tanishq.5FM] 58 . sales and marketing support. The retail market. The process is pretty lengthy. GO [92. 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. probably create a radio spot. on the other hand. IBM and HLL. breaking to a 10-minute projection in every hour's programmed. Radio City will have a four-hour slot in its 24-hour broadcast for advertisement. 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. and of breaking new ground whereas with national advertisers. Radio City has managed to attract advertisements. make them listen to it. tell them this is how the brand will sound when on radio. 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. involves one-on-one sales and education as to how advertising will help the brand. So they talk to them about radio.

a focus on international artists popular in India. It does not only concentrate on Hindi or English but emphasizes on the attractive blend of both the world. the channel targets the age group of 15 to 45 year old. belting out the best hits non stop 24 hours a day. with a heavy local flavor. 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. Radio Midday seem to have found a niche for themselves and clearly positioned themselves as 'the English Channel with a local/Indian image'.5 FM targets the upscale Mumbaikars. educated. white collar executive whose needs are clearly English music and programming.5 FM now targets only the socio economic category (SEC) A and B1. Corporate aiming to serve the cream class of Mumbai can select go92.5fm as a part of their communication programme. Therefore. and more westernized. along with sports. target audience is young. Not to say that big Indian artists with big fame do not feature in their mix. “The Sound of Mumbai” from Mid Day multimedia limited. entertainment and business. to get an edge.5 FM. It primarily plays English music.5 FM was launched on 10th May’2002 by mid day group. white-collar and upwardly mobile.Radio Advertising GO 92. Go92. The 4 P’s Product: For listeners: the station is focusing on music of course. The wonderful world of Go 92. Target Audience: Mid-Day's Go 92. Providing an attractive blend of 50:50 Hindi & English programmes. For corporate and retailers: The airtime 59 . They are clear on their strategy and have already started catering to a certain set of audience that is mature. trailblazing media company.

They have retailers also. So. Price: Advertisement rates (Refer to annexures) Promotion: its presence is made known through hoardings. displays at traffic signals etc. At that time. the station had also launched a 13-week College Radio hunt some time back.5. especially with the coming in of the 11-2 afternoon slot.5FM GO 92.5 has in fact re-christened itself as Mumbai’s College Radio station. when the client presents the germ of an idea. which would equip them with the capabilities of hosting radio programmes of their own. their immediate reaction is ‘yes’. 90% of their advertisers are the large tickets. which was presented by Colgate Fresh Energy Gel. how they’ll fit it in and this programming mantra helps them in that. In complete tandem with the festivities. they can have consumer durables on the channel. There are two effects of this kind of the new programming. Wherein auditions would be held for potential talent and the finalists would then be exposed to in house training sessions. it is a double positive impact on advertisers. 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. Not just a LG CDMA but a LG refrigerator and AC can also be advertised. That is by virtue of the audience profile that Go are bringing. there are many new clients that will come in. That ways they try to be the preferred destination when an existing client wants to sponsor an event or a radio property. indulge in experimental big stuff. First.Radio Advertising Place: Intensive in Bombay and exclusive because it does not have a presence in any other city. Second. Then they figure out how do they juggle it. Advertisements with GO 92. They have a classified section on 60 .

the station has garnered total revenues of Rs 1. But those are basically the advertisers who are very keen to be on the station. STAR network that is star world and movies. The station is seeing a 50-60 per cent quarter on quarter growth. Kellogg’s. Zee MGM. McDonald. Cadbury.36 crore. During the first half of 2003-04. Orange. Bazee. 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. BPL Mobile.Radio Advertising the station called Mumbai bazaar. Sony Entertainment TV. Alitalia airways. HLL. Max New York Life. Zee TV and Tata Indicom. Other advertisers are Tata Motors. Timex watches. 61 .5 and they have had the majority of the revenue coming in from niche English channels such as Star Movies. Tata AIG. Discovery. The top advertisers on Go 92. Colgate. A few big Hindi properties such as Awaaz and Jeena Isi Ka Naam Hain have been promoted extensively as well.5 in September 2003 were Coca Cola.com. There has been a sizeable increase in channel spends on Go 92. Star World. Zee English. Asian Paints. AXN and Discovery.

Red FM may not be modest but it is certainly witty. 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.5FM] “Red is in your Head”. followed by Delhi and Kolkata. RED FM has spent close to Rs 17. An additional Rs 20 crores has been invested on infrastructure etc in these three cities. And in the second phase. Because it is more a mature audience.87 crores as license fees for the three centers of Delhi. 2002. Target Audience 93. friendly. screams the advertisement of Red FM. Described. The ‘take aways’ are plenty – everything that the station says and does is of relevance to its listeners. 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. weather. reliable. 62 . city-specific events and the latest buzz on everything current. The much-awaited Red FM on 93. as a bright.Radio Advertising RED [93.5 Red FM caters to 25-plus age group. energetic and passionate Apparently. the 24-hour FM radio channel from the Living Media stable. warm. Mumbai and Kolkata for the first year. uncomplicated and honest.5 MHz hit the airwaves in Mumbai first on June 26.

innovative methods like painting Double Decker buses. but is a total experience. their job is to suggest that instead of a 30 second spot. Recently. They have 100 hoardings all over Mumbai city. towards the influence of one station with the other. With in a few days of launching. KC. Every committee hosts its own festival and Red has been in touch with committees from Jai Hind. Also it has a tie up with shopping malls like crossroads and ‘Groove’ a music store. So if a retailer wants to announce his sale and he does not have a big budget. trains etc have also been adopted. Moreover. this is an important task in terms of helping the advertiser.Radio Advertising Price: advertisement rates. which promote the station. Endorsing advertising on RED is not just about buying spots. play a 10 second spot through the day. (Refer to annexures) Promotion: Red Fm is affiliated with some clubs and pubs. Red’s current advertisers profile includes both retail clients and corporates. They have other high profiled clients like Sony 63 . tailored to the customer’s needs. Advertisement Red Fm does not go to sell radio spots but works like a consultant with the client. HR and nearly every other college in North Mumbai. 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. they form a healthy percentage of advertisers. they went on air live from a night club like Velocity and received a huge response from the listeners. Red is also focusing. use their strengths and improve co-ordination between the three stations. Based on the need of the advertiser. they suggest the best ways of achieving the objective. for the first time in India. they carried a DJ live on turntables from their studios.

For male dominated products. if there were a cookery show. there would be food-related brands advertising on it. The do give some discounts to the accredited ad agency. Coke.and the rates might increase or decrease depending upon the need of the advertisers. Zee.000/. 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. 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. 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. then the client has to pay substantial amount of money to radio station because if they produce a jingle that is their assets. face-to-face conversation. Hutch. Red FM was launched six months late. Is it a women’s product? Is it male-oriented? Is it a retailer? If it is a retailer. ICICI Prudential. If there were a programme on beauty tips. the shortcoming is only in terms of delay. Kotak Mahindra and Dabur among others. The normal jingle length is 10 seconds and again here rates will differ on the basis of the sound effects. LG. 64 .Radio Advertising Entertainment. State Bank of India. There are several questions that RED FM identifies before making a time-band suggestion. Metlife. Their revenue only from Bombay is more than two crore. and therefore they faced a major drawback in terms of losing out on a number of corporates. similarly. They normally charge around Rs. 4. background conversation. they would advise the drive time hours or the late night show. music. we would advise a cosmetics brand to advertise on that programme. HT. And from the nonaccredited ad agency. They take 100 % money in advance from the direct client. length of the commercial. Idea. However. as they had already freezeed their media budget for the year.

Chennai and Kolkata. 9 crores annual fees for Mumbai). 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. owned by Entertainment Network (India) Ltd. 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. they are also the only private FM radio broadcaster in the cities of Ahmedabad.they are a contemporary hit radio station. and their Target is around 18 to 35 . Indore and Pune. a wholly-owned subsidiary of The Times Group. 'it is hot.' They have a very clearly defined position . 2002.SEC A and B and in that too mainly youth and housewives. On April 23. As the punch line says. on 98. the Radio Mirchi private FM station.Radio Advertising RADIO MIRCHI [98.3 FM.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. Mumbai. This segment addresses about 12 lakh listeners 65 . debuted in Mumbai.

For corporates and retailers: the airtime Place: intensive in Mumbai and selective all over the country since it is established in cities like Kolkatta. plug Radio Mirchi through the other media that The Times Group owns. However the slogan by itself was incomplete without the voices that accompanied it. Delhi. which reaches the lower end of the audience spectrum. retail showrooms. Price: The advertisement rates. Connect with the growing Radio listening population in Mumbai. Chennai. Since radio is a free to air medium.Radio Advertising 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. 66 .it also does a lot of tie-ups and contests for the consumers Marketing strategies Radio mirchi has also tied up with various shopping malls. pubs for continuous advertisement of their channel to make people aware of the temptations given by the channels to them. (Refer to annexure) Promotion: The marketing strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi.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 has two main objectives behind doing an extensive marketing which are• • To create the Top of the Mind recall in the relevant Target Audience. Hence it quickly became a mass channel with Hinglish being its prime lingo and having a wide audience appeal. CELEBRITIES and film stars that repeated every so often “hi I’m -------. A very large factor that contributed towards the establishing the brand of RADIO MIRCHI was its catchy slogan “it’s hot”.. RM later made a conscious decision to go Hindi.

67 . There is huge inventory pressure on them and therefore they had to increase the ad rates. stations offer discounts on what is on their rate cards. 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.000 and Rs 1.000 for a 10-second slot. they offer ten minutes per hour on Radio Mirchi. on an average. across the five stations. There are about more than 300 advertisers on Mirchi. Most of the national advertisers on radio mirchi today want to buy all the stations on air. Clients buy effective rates and they buy a combination of spots like prime time. So they have package deals for them also.Radio Advertising Advertising Radio Mirchi charges the highest rate of Rs 2. On an average. Radio mirchi sells independently and does not offer any print package deal even though they belong to Times Group – they are an independent company. the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. Currently. non prime time and the likes. There is very little retail advertising on radio. In Ahmedabad and Pune it is probably about 25 to 40% of the business. In Indore more than half of Mirchi revenue comes from retail. In most cases. There is an average listenership of 45 minutes per day on the station.500 for a 10-second slot. Today it is fashionable to be on radio. Radio Mirchi gives 45 lakhs weekly listeners as per Radar study. While all the other stations offer more slots and run ads for over 15 minutes. But in Mumbai it is at 10%. there are 125 to 175 brands advertising on Radio Mirchi. the rest of the FM channels charge anything between Rs 1. 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.

Ludhiana. That will still take us to about 15 frequencies. So when the advertisers wants to advertise on radio.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. Chandigarh. definitely Coimbatore. Future Plans:Radio Mirchi is looking radio Industry from the long term point of view. 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. they have implemented the changes in the time slots of the different shows on air. which means going into the smaller towns. Bangalore.63 lacs. They are interested in some of the bigger cities for instance. 68 . Lucknow and Kanpur. Hyderabad. But this country can have 5.  Radio Mirchi emerges up as the No. 1 channel and delivers high numbers with Daily listenership at 24. Mirchi would eventually look at having a presence in every nook and corner of this country. accordingly.000 radio stations.  Radio Mirchi delivers highest number in terms of listenership among the Radio Listening student population. Hence.

Devdas . They can then listen to some popular programmes of the channel like. The radio channel in question happens to be Radio Mirchi.I. Mr. 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. Mirchi Movie of the Month.Radio Advertising Case Study On Airtel Airtel. the users need to dial 646 from their Airtel enabled mobile handsets. Airtel is creating an attitude of being people friendly and thus gaining huge share in the market. Bappi-da Da Gyan. 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.the Asli Batliboi and Ding Dong .M and various other providers. India’s leading cellular operator in the private sector. With increasing competition airtel is now going in for more of radio advertising as against the television .Mona Sing a Song. 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. Its major competitors are orange and R. 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. 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. 69 . Hotpot Crackpot.

radios have offered services to its users free of cost.” 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.6 per minute with no extra subscription charges. KABHI PEDDAR ROAD . where users can listen to any FM channel through their handsets.radio ad jingles “TUM KO DEKH TE HIN . KABHI LINKING ROAD . And would also be convenient for its customers to recharge their mobile phones in these centers. KABHI MEERA ROAD . Recently. through the R World of Reliance handsets. it does become quite doubtful as to how long Airtel's 'mirchi effect' will last with the charge rates as high as Rs. there has been an increasing demand of listening to FM channels through mobile handsets. Airtel . With regard to this particular trend. DESH BHAR MAIN RE-CHARGE KAHIN BHI. CHARGE HUA ZINDAGI. For a long time now. Among CDMA service providers. users have to pay a Value Added Service (VAS) rate of Rs.6 per minute. Airtel's tie-up allows users to listen to one channel only. KABHI AAREY ROAD . Nokia first introduced FM enabled phones.Radio Advertising Pre-paid and post-paid customers of AirTel can access this service. This all shows about their care for their customers. For this. 70 . users can listen to songs. AAISI AZADI AUR KAHAN.

Under this system. The consumer will also benefit as the industry can now tap into a larger basket (the foreign players) for greater variety. nothing much changed as regards to government control. atleast in the near future. stations will pay the government a certain % of their gross revenue every year. 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. as recommended by the TRAI. 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.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. go in for a system more prevalent worldwide . In order to let the industry to grow the government needs to give it some space. 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. 71 . The government charged a very heavy license fee for entering the market. 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.revenue sharing. The Government should review its ban on private stations airing news and current affairs. The basic problem in the Radio space in India is the excessive Government control and regulation. currently a monopoly with All India Radio. They should in fact. But with the government citing national security as the reason for not doing so leaves little hope of this happening.

but spend only 15% of their time with such eye-oriented media as newspapers and magazines. In such a scenario. greater reach may not necessarily translate into a marketing advantage. Consumers spend 85% of their time with ear-oriented media. However. and much more which can be attributed to the ‘low cost of ownership’ feature of RADIO as a medium. 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. Bennett Coleman & Co. what will spell out the difference between success and failure will be neither size nor niche. 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. It would be just plain old quality of programming and the 72 . 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. the private FM players have a huge opportunity in grabbing a bigger chunk of the radio advertising pie as. superior listener loyalty. In fact. Living Media. such as Radio.Radio Advertising Conclusion Radio has many natural advantages that make it an excellent choice for an advertising medium. Ultimately content and packaging will be the king. the fortunes of radio advertising are likely to change with the advent of private players like Star India. despite All India Radio's enormous reach (97 per cent of the population). The opening of the FM market is a new phenomenon and the maturing of the market will take its own evolutionary path. ad recall and message retention. These advantages include high amount of time spent listening. its revenues have declined. Interestingly. Mid Day etc. superior target ability. with an expected growth rate of about 10 to 12 per cent every year.

Radio Advertising explosion of contests and sweepstakes offered by the Radio Stations currently. One aping the other is an honest testimonial to justify this statement. 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. Conversely, broadcasters need to develop the market by being more responsive to the advertiser's needs. This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium.

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Radio Advertising

Annexures Radio City - National Rate Card
30 Secs spot buy rates (in Rs.) Programme category 07:00 - 11:00 Radio active 17:00 - 20:00 11:00 - 17:00 20:00 - 22:00 22:00 - 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. ⇒ In case any programme, which is being offered in this package, gets discontinued, the advertiser will move the spots to the programme replacing the discontinued programme in the same rate category. ⇒ To ensure proper and timely release of the spots, release orders should be given to MBPL through Star India Pvt. Ltd. At least 2 weeks prior to the date of airing of the first spot. ⇒ All bookings are subject to availability at the time of booking. The agency/advertiser must provide DATS at least fifteen days prior to first spot airing date. The sponsorship material must be sent four weeks prior to start date of the sponsorship of any programme. ⇒ All invoices should be settled by the advertisers/agency within 30 days from the date of the receipt of invoice. ⇒ Others…

RED FM
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Radio Advertising Red fm is currently operating in Mumbai, Delhi and Kolkotta, under the brand name 93.5 RED FM, Asli Masti. 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:
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Radio mirchi rate card
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Radio Advertising Day Parts 7 a.000 Rs.m . jingle length would be counted in multiples of 5 seconds.5 p. 5.m – 7 a.10.000 Rs. E. Over 10 seconds. 7. A 23 second jingle would be billed as 25 seconds Jingle production charges Centres Mumbai Delhi Chennai Kolkata Ahmedabad Pune Jingle cost Rs. 5.m – 12 a.g.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.m 8 a.000 Rs.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 10 p.000 Rs.10.000 Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday 76 .m Housewife / 260 Traders / Youth 5 p. 7.m – 8 a.m – 10 p.000 Rs.

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. Bibliography While working on this project I visited some of the radio stations and they gave me some information 77 .

com www.Radio Advertising 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.org www.co.com www.hinduonnet.in www.co.exchange4media.star.   Newspapers and Magazines Times of India Economics Times Business Standard Financial Express     Various websites were also visited such as.allindiaradio.agencyfaqs.com            78 .com www.com www.com www. www.uk www.com www.rab.timesofindia.economicstimes.com www.go925fm.indiatoday.radiomirchi.

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