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Advertising in general expresses the positioning. Powerful advertising is the result of powerful planning. Great ideas and great ad campaigns don’t just pop out from no where, they are built on the key communication points that motivate sales. Radio is entirely a medium of sound, which evokes smells, sensations and visual images which brings the listeners imaginations into play. Radio advertising is one of the tools of advertising which is effectively used for communication and positioning. It is one of the foundations for effective and successful advertising. Radio can be used effectively for advertisement since it can target the large audience because of its high reach. Radio is good at increasing awareness about the brand and business and helping in building the brand image. But all this was only for pure academic purpose. With the advent of television radio lost its popularity and thus its purpose with the marketers. This led to sharp declines in the proportion of advertisement spending on radio as compared to other media. But then came the governments order on liberalization and privatization. This brought about loads of changes in the world of radio broadcasting in India. Prominent and established companies entered the business of FM Broadcasting. FM broadcasting has breathed a new life into the medium of Radio in the past few months. Could radio now think this as a new phase of its life or a re-birth? Of course yes, people are today talking only Radio---- Radio Mirchi, Radio City, RED, Go and WIN. One will find people with radio sets of different shapes and sizes listening to their favourite music on roads, in hotels, even the bidi shops aired on any of the music channels. The radio channels are now vying against each other to provide their best to the listeners
However one can see that although radio is an excellent medium it has been used to its full potential and various efforts should be taken to improve it as with proper direction radio can reach heights as it is the cheapest and a very good medium.
Through this project my objective has been to understand the following • • • • • To find out about the current scenario of the radio industry. The reasons for a stunted growth of the industry The various steps in radio advertisement Realizing the needs and wants of consumers and fulfilling them What the various radio stations have to offer the masses.
Through this project I have made an effort to understand the advertisng tool called radio advertising which is being increasingly recognized by marketers as a powerful tool that helps in finding new customers and retaining the existing ones at a much lesser cost.
The aim of primary research was to understand radio advertising as it is seen in the corporate world. To understand this I have taken two interview from different fields. Mr. Madhav Joshi who is currently working in Leo Burnett who helped me understand what all goes into the making of a radio advertisement. The mode of interview used was an informal one where he answered my questions on one to one basis. Also Mr. Sudarshan Sahe the senior marketing manager of Radio City gave me an interview and helped me in trying to understand as to how the station works and looks after the needs of its consumers
The aim of secondary research was to understand as to why radio advertising has been able to grow at a considerable rate as compared to the other media.also the fall out of radio in the last decade . It was also undertaken to understand how radio advertising is done and what re the current players in the market. Secondary data collection method: desk research Secondary data collection sources: internet, books, newspaper articles
But thanks to technology radio is making a comeback. Vis a Vis television or print media. Not so long ago radio had been written off as fuddy-duddy. Ad revenues will also not be easy to come by. in its new avatar-fm-radio is all set too become the hippest. 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 . That should open up a vast new market of consumers-100 million Indian households own an estimated 150 million radios. innovative and grab away eyeballs from TV sets and make them tune into their radio sets. The geographical area covered by radio in India in India is as high as 98 percent and the penetration level is approximately 97 percent. The involvement of listeners to radio is low. radio has a 5 % to 12 % 4 . down market and not so cool. In fact.Radio Advertising Introduction Old media don’t’ die! They just bounce back in new avatars. Media owners dealing with new markets will virtually have to draw up their strategies as they go along. FM radio is a new entity altogether and has to deal with new market dynamics. create programming that is new. outnumbering television sets 3:1. The other challenge for radio in attracting advertisers is the nature of the medium-radio has always considered being a reminder medium. It’s a whole new challenge and competition is never far away. coolest and most with -it medium. But FM presently covers only 17 percent of the area and 21 % of the population of India through transmitters. much like satellite channels did to the quantum of television advertising in the country. Globally depending on each country. Currently radio has just 2 percent of the 9000 crore Indian advertising market according to an Arthur Anderson’s survey. Television and later “new media” were touted to being the media of the future. as advertisers will expect media players to put their money where their speakers are before they commit large sums of money towards radio advertising.
50/. is not just making a comeback but is being reincarnated into a new avatar.5 percent to 5 % in five years. 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. 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.1%.Radio Advertising of the advertising cake. Also advertising of certain product seems to work very well while some might not. radio will become a push and pull medium. While TV is a family medium. As said earlier. Canada with 12. They have also forecasted that revenues from radio advertising in India will be Rs. On the higher side are countries like the United States with 13 %. FM station executives are not forthcoming on multi-platform strategies as yet. and the emergence of lifestyle advertising. Given that radio has penetrated into 100 million homes and a FM set costs around Rs. radio is personalized. as the car population is much bigger.FICCI estimates FM’s share up from the present 1. With the coming of more channels. 5 . For example. 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. Thus the potential if FM is better is bigger town. This would be the key when evaluating the medium.
hence the relatively low frequencies for AM radio. Common frequency band includes the following… • • AM radio .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. radio and electronic capabilities were fairly limited.5 megahertz. Both the transmitter and receiver use antennas to radiate and capture the radio signal.000 cycles per second. but FM did not become really popular until the 1960s.5 megahertz" means that the transmitter at the radio station is operating at a frequency of 91. In the 1920s. He built the first station in 1939. "you are listening to 91. The receiver receives the radio waves and decodes the message from the sine wave it receives." so "91. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz.7 megahertz FM radio . Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible.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. The first radio broadcasts occurred in 1906 or so. and frequency allocation for AM radio occurred during the 1920s.500. Megahertz means "millions of cycles per second.88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio. data for a radio modem or whatever). encodes it onto a sine wave and transmits it with radio waves. 6 .535 kilohertz to 1. When you listen to a radio station and the announcer says. This band of the radio spectrum is used for no other purpose but fm radio broadcasts. pictures for a TV set.
for the music. 1.of the licensee fee to AIR.000/-. Add Rs. The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd. The total expenses are thus Rs. Another estimate puts the production cost of an hour long programme around Rs.Rs. An hour long show thus costs Rs. 18 advertisements each of 30 seconds can be accommodate in an hour.Aspect A Licencee pays Rs. 10. at which they are supplying music to AIR). In other words.000 per hour.Radio Advertising Royalties FM is primarily a music channel.per hour. salaries and other expenses. 1000 an hour. One minute is reserved out of 10 .500 to Rs. This is the high target.minutes. the actual duration of a piece of music. 12. so the question of royalties is relevant.500. (PPL) are supposed to hold all the rights of royalties. 250 per hour of needle time. 100 per hour.for the technology. Add Rs.500/. They are demanding Rs.000/. the total revenue generated is Rs. 100 per hour. Cost . 500 at prime time for 18 such spots. considering the limited range and listenership supposing a 30 .minutes for social awareness advertising.seconder costs Rs. 9000/. advertising time available for sale is 9 .500 per hour (as against Rs. The IPRS claims royalty for the original composers and authors of music. 3. 13. 500 . Thus. 1. 7 . 6000/.000/. PPL is demanding a royalty of Rs.. 10 . 6. 6. Besides the tariff card should be modest. Add Rs. Studio hiring costs are between Rs.Minutes have been set aside for advertising. The IPRS is demanding Rs.
drama. People in households would gather around the radio to listen to their favorite programs much as they do today with TV. a Queens based Real Estate Company. However Radio has not just survived repeated predictions of its demise but grown tremendously. News. It took quite a while before Reginald Fessenden developed the first radio receiver in 1913. This saw the beginning of what was later looked on as the 'Golden Age of Radio'. Then in the 1950s TV began to catch the public's attention. It was way back in 1895. experts give a lot of credit to David Sarnoff who actually conceived what is called as the "radio music box".Radio Advertising Advent of Format Radio The arrival of 'Moving Pictures' with sound and then 'Television' were expected to be the death knell for 'Radio'.. This era was characterized with 'block programming' wherein radio offered something to everyone. sports. Audiences were charmed by the audiovisual experience of TV. Radio became the first medium delivering entertainment to the masses in their homes.. that Guglielmo Marconi invented an antenna to send and receive radio signals. It was Sarnoff who suggested that radio should be mass-produced for public consumption. The 1st paid announcement on radio was a 10-minute capsule from Howthorne Court. as the radio industry was also losing a large number of talented staff to TV. 8 . A large number of popular shows moved from radio to TV. However. live musical recordings would be presented in 30 or 60-minute programs. His persistence paid off in 1919 when such sets were available for general purchase. What allowed Radio to accomplish this feat? Read on for the long journey the Radio industry has covered thus far. That was not all. It has benefited listeners and advertisers alike and earned the status of a 'Constant Companion'. A network soap opera could be followed by a 15-minute newscast followed by one hour of a concert. Early 1920s saw the launch of commercial radio.
They realized that radio was the only medium that could be used while doing other things. cooking a meal. it could update you about your world throughout the day while providing you with the entertainment you like all the time. In fact.From this insight emerged the "Top 40" format or the "Contemporary Hit Radio (CHR)" format were the most popular hits would be played on a higher rotation. The shows therefore had to be reflective of various day parts in the life of the listener. radio experts discovered an opportunity that only radio could provide. It also led to a shift in the way radio programs were scheduled. Sales people shifted from selling programs to selling commercials. This era also spawned two of radio's greatest strengths: immediacy and local service. Irrespective of the form it came in. Radio turned 'local' and moved to what is known in the industry as 'Format' programming. traveling to office. there are radio sets in about 105 million households in the country. As the story goes. Being the only medium that could be carried and used wherever you are.at that time a radio receiver used to be a status symbol in this country. which had a jukebox. format radio definitely made radio not just survive the onslaught of TV but also made it grow tremendously. throughout the day. studying and more. the staff serving these people would end up playing just the same songs even when the shop was closed. The total number of radio sets at the time of independence in 1947 was a mere 275000. This led to a change in the way radio time was being sold. like getting dressed for work. Radio became "The Constant Companion". But today its possession is taken for granted. it had to be relevant to the listener at every point of time in the day. Format radio strategy was based on providing the same kind of entertainment to a selected audience. over and over again. 9 . They observed that the customers would usually come and play the same songs that they liked. Storz and McClendon used to frequent a local malt shop. According to estimates. seven days a week.Radio Advertising At this point in time. As radio was being used as a background medium of entertainment.
In response to the Government's offer. Others dropped out saying the business was not viable. Then. (1997-98). the Government allowed private FM operators to 'buy' blocks (chunks) on All India Radio.Not surprisingly. Expecting to collect Rs 800 million from auctioning 108 licenses. 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 .Radio Advertising History of Indian Radio For more than 4 decades. the FM Radio advertising and sponsorship business grew to Rs. Then history changed its course. there are roughly 10 players who will operate approximately in 37 cities across the country. the Government of India did not permit private radio stations to broadcast in India. book commercials from advertisers and broadcast the whole lot. Today. through its electronic media regulatory body Prasar Bharti. Many gave up. But the going was not so easy. 10 .75 crore. many companies bid for the licenses to operate in key markets. decided not to renew contracts of private FM operators. In 1993. the competition shrank. players consolidated and the Government extended its deadline. 93 crores with Times of India's Times FM & Mid-Day Group's Radio Mid-Day becoming the main players. Within 4 years. For instance. in effect. unable to shell out the high license fee. the bidding price for the Mumbai license was reportedly to the tune of Rs 9. the Government gave the green light to privatize radio in India. July 6. the Government auctioned licenses for private FM channels to bolster the revenue. And the focus on metros was evident in the bidding. in June 1998 the Government. A handful of serious bidders chose to remain. prepare programming content. And in 2000. the government had to actually face mass withdrawal of bidders because of the huge license fee. So.
The government got the highest bids . 11 . while the bids for Delhi were Rs 71.Rs 97. won the largest number of bids. a Zee Group company. The first round of bidding .5 billion. Interestingly.Radio Advertising The government collected close to Rs 4.for 76 channels in 26 cities. which focused mainly on the smaller towns. New Media Broadcasting.6 billion as license fee for the privately run FM radio channels in 40 cities.2 million each Radio is expected to follow the growth of the Television industry. FM coverage in India is restricted to just 17% of the country. compared to 89% of All India Radio (AIR).5 million from each of 10 broadcast companies . each for Rs 77. garnered close to Rs 3. the bids for Hyderabad and Nagpur came next. which grew rapidly following the entry of private players Currently.2 million and Rs 74 million. respectively.for stations in Mumbai.
crore) 43. Mumbai. Bhopal.50 Incidentally. Bhubaneshwar. Mumbai.87 Calcutta. Chennai. Mumbai. Vishakapatnam 4 2.Sun TV Vertex Broadcasting 3 9.37 Sumangali Publications . Chennai 3 20. Mumbai. Tirunalveli 6 41. Lucknow. Calcutta Delhi.Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Bid amount for first years license (Rs. 12 .00 1.Sun TV Vishakapatnam 1 0. Jabalpur.17 Delhi. Patna. Ahmedabad. Indore.00 17. Cuttack.90 Udaya TV .87 Entertainment Network [India] Delhi. Nagpur. Pune Calcutta Calcutta Delhi. Bangalore. Chennai 12 Hitz FM India FM Living Media Mid Day Broadcasting Millennium Broadcasting Music Broadcasting 1 1 3 3 1. Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July.87 20. Mumbai. Coimbatore. Lucknow Chennai. Indore. Hyderabad. Calcutta.17 Delhi.
the number of FM radio stations targeted is around 300 to 400. The objective is to “make FM radio a success story”. 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. Private FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years.5 per cent. the panel has fixed it at 4 per cent. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. which go up by 15 per cent every year. Setting up new radio stations After the second round of privatization. However. 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 figure is quite low at around 4 %. While the private FM players had sought revenue-sharing in the band of 2-2. it is firm on revenue-sharing now.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. Future of Radio Industry 13 . FM players pay annual licence fees. revenue-sharing also exists in the media sector.
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. The new India deserves an active private FM radio sector. for advertisers. employment & career options. It is on the basis of these key drivers of growth.also government allowing foreign players to enter he Indian market it will help the industry grow. it is being predicted that radio's share in the total advertising pie will see an increase in the medium term.000 crore Indian advertising market. community announcements and public service messages provide a real value-added service. There are an estimated 150 million radio sets across the country. 14 . each radio station is reeling under the brutal financial impact of high costs. though radio has only a 2 per cent share in the Rs 6.2 billion by 2007.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand. With more players in the fray the FM radio industry would grow and also enhance the government’s yield from licensing radio naturally. Providing free-to-air local broadcasts of music and entertainment.Radio Advertising FM Radio can play its part in building a stronger business future for India. 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. The Rs 1. with revenue rising at 23 per cent annually. It can provide a level playing field with benefits for listeners. helpful information traffic advisories. Spearhead the government objective of growing the FM radio business in India. Also. advertising spending is expected to amount to Rs 500 crore this year. But at current levels of advertising support. Virgin group has already started exploring the Indian market for suitable partners.
radio anytime and anywhere they want. publications. They can’t afford a TV set. other media or the high. the government has agreed upon revenue-sharing model. brochures Radio is considered as a background medium. which is 4 % for the growth of the radio stations.Radio Advertising SWOT Analysis Strengths: • Recently. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. • • Radio is considered as a medium where the “Proximity to purchase” is very Radio is a complement to another media. • Radio is the least cost medium and it helps to reach mass audience with various backgrounds. not only are listeners tuning into it more often but also sticking to radio for longer hours everyday. are welcoming the opportunity. because people can listen to 90% of India has access to radio which is unmatched by any other media. Radio also reaches to uneducated village folk who do not read print or ads in local supplements of newspapers. Therefore radio is more popular. 15 . At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. So that they can develop themselves well because this industry is still in an introduction stage. Therefore. and reveals that radio listenership habits have changed considerably. • • • • The advertisers. pamphlets. • The success of private FM stations. It is also a free medium. who would depend on word-of-mouth. advertisers or agency can use this medium for brand recall.
And like its radio message creates a fleeting impression that is often gone in an instant. • Radio-only nature of radio communication is a tremendous creative compromise. Most of the stations plays much of the music that is played consist of Hindi Film songs. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium 16 . Research is the main base to attract client and get more revenue. • No proper research available . This is the situation that every radio channel is facing. and therefore it is difficult to differentiate between the programmes of the different channels.the large number of the audience in India is fragmented in various remote places.Radio Advertising Weakness: • One of the major weaknesses of Radio is that there is very less differentiation in the programmes that are aired. Many stations are conducting their own research which can be biased. • • • 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. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. But. in India there is no proper research is available. • Fragmented Audience . And therefore. 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. the percentage of listener tuned to anyone station is likely very small. • • Increase in listenership numbers but no increase in ad revenue.research is very important for any advertising segment.
if some station is targeting the health conscious people then their programming strategy will vary accordingly. there is a fear of losing its brand loyalty. • Leaves huge scope for innovation in local market Threats: • The biggest threat to private radio industry players is ALL INDIA RADIO. 17 . This is one of the biggest threats it faces. and that is the challenge. low charges. • With the coming of the many more new players in the radio industry each channels can position themselves quite different from others. like. government channel etc… • Because of the new government policies there will be more number of stations and then competition will also increase. • • Allowing private FM players to start news and current affairs programmes. With no particular differentiation in the music. At the same time. So. and gung-ho about this whole enterprise. AIR is the biggest player in India because of its reach.Radio Advertising • The new radio stations which will come in future they can have venture with the college or university campuses. we are very bullish. And then it is easier for the advertisers also to decide on which channel to advertise. And can play their station which will exclusively provide with the information relating to that university/college campus. One has to constantly innovate. Brand building is thus much more difficult.
127 billion by fiscal 2006 18 .636 billion.94% over the last 10 years (1995-2005). the gross advertising spend in India is estimated at Rs 111 billion.e. and growth rates of the advertising industry The Indian advertising spends. is 0. as a percentage of GDP.34%. According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10. and is expected to grow at 14. The nominal GDP for fiscal 2005 was Rs. the nominal GDP growth rate.9%.Radio Advertising Advertising in India India has been among the fastest growing economies in the world. which lags behind other developed and developing countries During fiscal 2005.2% to reach Rs. There is a correlation between the economic growth rates of a country i. with a nominal GDP CAGR of 9. 30.
and outdoor. which saw the beginning of satellite broadcasting in India. now has over 300 channels covering the Indian footprint.7% 2.9% 43.6% Outdoor 8.4% 7.3% The Indian television industry has grown rapidly.5% 0.6% 41.7% 2. 19 .9% 2.3% 40.7% 0.0% 6.6% 46. Thus.3% 0. This growth was also aided by the economic liberalization program of the Government. television.7% 0.5% 2.4% 0.5% 6. resulting in growing ad spends on this medium.3% Media Spends as % of Total Ad Spend TV Radio Cinema 39.4% 0.4% 0.2% 46. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry.0% Internet 0. cinema.0% 43.5% 7.9% 0.4% 0.9% 2. radio. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49.Radio Advertising Segmentation in advertising The five key industry segments comprise print.0% 48. especially since 1991. the television broadcasting business.4% 47. 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. which started off as a single government controlled television channel.
with 12. The best way for a new band to get heard by the public and record label executions is over the airwaves. But national advertisers are also operational in the local market. Britannia. On top of that. Santro. radio has a 5 per cent to 12 per cent share of the advertising cake.5 or Radio City.1 per cent. be it Radio Mirchi. new product or services to new fans and taking a local market to a national level. it is undeniable that radio can be integral in exposing a new artist.Radio Advertising Radio Ad1vertising Radio is still the king when it comes to getting your music. radio currently has only a 2. implying that it is as important to them as it is to a retail advertiser. Parle. 70 per cent of the advertising comes from big-budget. On the higher side are countries like the United States. Putting it bluntly. Go 92. Globally. Accordingly. Advertising agencies that control the national picture will be slow to move on to radio for creative reasons. 20 . They have people who love to make television commercials. Castrol. Nevertheless. depending on country. Canada. it is extremely difficult to obtain meaningful airplay.9 per cent share of the total advertising pie in India. Radio promotion is an art that demands a certain style you may simply neither have nor desire to cultivate. with 13 per cent. Amul. Today.7 per cent and Spain. Companies that advertise on FM channels today such as Hindustan Lever (HLL). it can take a great deal of time to make all the contacts and connections that are required for successful radio promotion. with 9. Paradoxically. national advertisers and the balance 30 per cent comes from retail. successful radio promotion revolves around making and managing relationships. 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. Dr Morepen.5 Red 93. DSP Merrill Lynch etc are dominating the advertising on each one of the FM channels.
5 per cent per annum.Radio Advertising but don't have anybody who knows how radio works.9 per cent of the money spent by advertisers goes to radio. wants to target a specific audience. representing a growth of about 7. money from advertising has gone up. Here. it has tremendous potential to eat into local mediums. 600 crores in 2002.they feel. to Rs 808. only about 2. Because radio is a real-time intrusive medium. 21 . it does not make much sense to advertise on TV. and up till now.little or no specific detail remembered Sonic Brand Triggers: Much evidence of children's ability to pick up on musical Sonic brand Triggers (SBT’s) and sing them out loud. It is also aptly suited for local promotions. Radio is the best bet for such small-scale promotions. in revenue terms. Revenue from commercials on AIR. However. 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. all of that went to ALL INDIA RADIO. like a food chain that is opening an outlet in Mumbai. outlets selling favoured brands. concerts Vague/ not relevant: This includes memories of ads for local garages. and the print medium is too expensive. they have to sit through the full length of any ads which are for irrelevant products. that most advertising is aimed at adults. probably quite correctly.4 million in 2000. Consumer opinions The evidence from the qualitative research is that young people feel their local FM station is aimed at people like them. This makes sense if the advertiser. and once audiences can be targeted. but the advertising is not . cars and insurance companies .g. In such cases. e. films. including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990. & Rs.
Radio Advertising Pros and Cons of Radio Advertising Every medium has special strengths and weaknesses that makes it more or less suited to special marketing problems of specific advertising. Radio has a number of characteristics that makes it an ideal vehicle for numerous advertisers as either a primary or secondary medium. Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enable advertisers to select the market they want to reach. Advantages of Radio 1. Radio also reaches to uneducated village folk who do not read print publications. Also. Largest Reach and Frequency Radio offers an excellent combination of reach and frequency. 2. employment category. 22 . There is no one medium which is ideal for advertisers or every situation. income group. 90% of India has access to radio which is unmatched by any other media. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the rural masses. ethnic or religious background. there are certain disadvantages of this media which need to be considered. The average adult listens more than 3 hours a day. Therefore radio is more popular. educational level or special interest with a format that adds even greater dimensions to its already strong personal communication environment. From a marketing perspective. radio builds a large audience quickly and a normal advertising schedule easily allows repeated impact on listener. radio has the ability to reach prospects by sex. They can’t afford a TV set. age group.
advertisers are able to adapt commercials to the various stations then buy. popular songs. radio ads can be produced very quickly. 23 . Radio also offers timeless. immediacy. it can still have powerful creative impact. Also. 4. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive.Radio Advertising Radio’s high overall reach and its ability to provide numerous formats make it a multifaceted medium. combined with its flexibility and creativity. makes radio the choice for numerous product categories. Radio has been described as the theatre of the mind. National spots can be produced for about one tenth the cost of a TV commercial. 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. a strategy that would normally be prohibitively in television. The personal nature of radio. Copy changes can also be made very quickly. While radio may be one-dimensional in sensory stimulation. 3. Creativity and Flexibility Radio is the most flexible medium because of very short closing periods for submitting an ad. Because of the relatively low cost of production. local relevance and creative flexibility. The musical formats that attract audiences to radio stations can also attract attention to radio ads. This means an advertiser can wait until close to an air date before submitting an ad. and local stations often produce local spots for free. Audiences that favor certain music may be more prone to an ad that uses recognizable. Cost –Efficiency Radio is the least cost medium and it helps to reach mass audience with various backgrounds.
it is imperative that brands achieve consumer reinforcement as near as possible to the purchase decision. 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. and persuade them to respond.home audience gives the medium an advantage enjoyed by few other advertising vehicles. As a Complement to Another Media In some cases. Radio can be targeted by lifestyle formats and is more efficient than other media from a cost and production standpoint. Radio gives the advertisers the opportunity to take advantage of the right combination of words. Proximity to Purchase The mobility of radio and its huge out . evoke their emotions. music. 6. However for national advertisers and most large local and regional firms. 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. The radio industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary medium. 7. 24 . In the competitive environment facing most companies.Radio Advertising 5. radio is the primary medium for local advertisers. and sound effects to establish a unique “one-on-one” connection with prospects that lets you grab their attention. A personal medium The human voice is the most personal means of communication. voices. radio is most often used as complementary medium to extend the reach and frequency of primary vehicles in their advertising schedule. As a result many advertising agencies will move their budgets into radio.of .
If a large number of radio stations compete for the same audience. This could involve dozens of different negotiations and individual contracts. Poor Radio Attentiveness Just because radio reaches audiences almost everywhere does not mean that everyone is paying attention. in radio’s quest to continue to fine tune its reach. Fragmented Audiences The large number of stations that try to attract the same audience in a market has created tremendous fragmentation. it is difficult to gain effective reach and frequency without buying several radio stations and networks. 3. some advertisers wonder if radio is offering too many narrowly defined options. as it is audio as well as visual. 4. Chaotic buying procedures For an advertiser who wants to include radio as a part of national advertising program. an advertiser has to buy time in individual markets on a station-by-station basis. In television the chances of such misconception is less. When a consumer is listening while doing some work or traveling in a car. Since national networks and syndicated broad cast do not reach every geographic market. which may not be cost effective.Radio Advertising Disadvantages of Radio 1. 25 . For those product categories with broad appeal. However. advertisers who want to blanket the market have to buy multiple stations. the buying process can be sheer chaos. 2. Misunderstanding Sometimes there might be a misconception regarding the radio ad as it is only heard. he or she often switches stations when an ad comes and divides his or her attention between the radio and road.
Radio must compete with other activities for attentions. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad. Therefore. 8. 9. a drawback if the product must be seen to be understood. They can’t keep like a newspaper or a magazine ad. No proper research available In India. If the voice is irritating then there is a chance that the campaign may flop. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. 7. there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time. which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. there is no proper research has been available on the area of radio listening. Sometimes the voice really matters. 6. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. and it does not always succeed. 26 . Limitations of Sound Radio is heard but not seen. Some agencies think radio restricts their creative options.Radio Advertising 5. Only 20 % of time availability restricts the frequency of message exposure. Creative Limitations The audio-only nature of radio communication is a tremendous creative compromise.
of stations on a networks roster and the long lead times required to book time. RJ Mention/What’s On Mention Here the Radio Jockey [RJ] informs the audience the information given by advertiser about the new product launch. It involves the same procedure as national spots. 27 . 2. 4. exhibition going on at certain place etc. airtime. sale. Spot Radio Spot radio affords national’s advertiser’s great flexibility in their choice of markets. Sponsor Programme Here the advertiser sponsors the whole or part of the programme. The advantage is less paper work and lower cost per station. 5. Local Radio Local times denote radio spots purchased by a local advertiser for local market. nearly all radio commercials are pre recorded to reduce cost and maintain broadcast quality. Networks provide national and regional advertisers with simple administration and low effective net cost per station.Radio Advertising Types of Radio Advertising: 1. Disadvantage includes lack of flexibility in choosing affiliated stations the limited no. stations. 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. 3. and copy. 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. Radio advertising is either live or taped. The RJ informs the audience about the sponsored company throughout the programme. Most radio stations use recorded shows with live news in between .Likewise.
The exact divisions vary from station to station. an advertiser orders spots on a run of station (ROS) basis. which guarantees a certain percentage of spots in the better day parts if the advertiser buys a total package of time. 6 am -10 am 10 am – 3 pm 3pm – 7pm 7pm. similar to the ROP in newspaper advertising . so its great time for advertising coffee brands.Radio Advertising Radio Stations Divide Their Days And Their Rates. Radio stations divide their rate cards into dayparts . fresh cup of coffee.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. So most stations offer a total audience plan (TAP) package rate.However. this leaves total control of the spot placement up to the station. Heaviest radio use occurs during drive times (6-10 am and 3-7pm) during the week (Monday. This information is important to advertisers because usage and consumption vary for different products.Friday). 28 . For the lowest rate . For example. radios morning drive time coincides with most peoples desire for a steaming.
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. A 60 does allow you more variety in music.Radio Advertising Length of Spots The radio commercials in the test reels consisted of several different spot lengths. In theory. In General. and a. a: 30 costs the same as a: 60. the better it will be remembered or at least. The spots for advertisement can be for 10 sec. In other words. 30 sec and 60 sec. The cost of a: 30 is usually about 60% to 75%. and voice and can be useful for political message. 60 around 150 to 160 words. Obviously. 30 seconds sounds like an impossibly short time to get your message across. Those however are rare. unless very well written and well produced. 30 is usually 70 to 80 words long. you’ll see that quite a lot can be accomplished in a short time. you may find that 60s. Check the rate cards of the stations you are interested in. sometimes seem a bit too long. the more chance there it that it will be heard. Some stations no longer charge a separate rate for: 30s and: 60s. or other sports with a information/education content. 20 sec. The longest commercial played on the radio is 120 seconds. In fact. one could assume that the longer a spot. sound effects. the announcement of a new or little-understood service. or ask your sales rep. 29 . ranging from 15 to 60 seconds. this is one case where you might want to use a: 60 to take advantage of the “free” air time. Instead. 10 second spot should contain 25 words 20 second spot should contain 45 words 30 second spot should contain 65 words 60 second spot should contain 125 words If you’ve never written a spot. they charge a unit rate. But take a stop watch and time some spots on the air.
2. syndications. This information combined with programming formats. 30 . Advertisers generally invest most heavily in local placement. About 80% of annual radio advertising is placed locally. About 15% is allocated to national spot placement and only 5% is invested in network broadcasts. Advertising time can be purchased from networks.Radio Advertising Buying Radio Time 1. Buying specific dayparts This relates to the time period of purchase. or local radio stations. Drive-times dayparts attract a mostly male audience. Networks provide national and regional advertisers with simple administration and low effective net cost per station. guides an advertiser in a buying decision. Although the actual buying may be time consuming and expensive if many stations are involved. 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. this does not mean they are completely without structure. There are five basic dayparts on basis of which advertiser can choose. while daytime primarily female and nighttime is mostly teen. 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). The time period decision is based primarily on a demographic description of the advertisers target audience. the structure is actually quite straight forward. Station Rates While buying procedures to achieve national coverage may be chaotic. Many stations have local rates for Individual Business and National Rates for Agencies.
Wednesday. and fixed positions go for premium rates. If you buy an adjacency. Buying packages As with magazine buying.Radio Advertising Putting half your sports into drive time and half into midday is a very safe strategy. 31 . and Friday. You are associating your company name with a specific program. 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. Other fixed-position spots are also available. Sponsorships. spending less to achieve the same impact. Having your name associated with a particular show or event can do a lot to reinforce your positioning.ads that stations choose when to runcost less than ads scheduled during a specific dayparts. usually low-cost method. Weekend sports can also effectively reach teens. adjacencies. b). radio advertising time is purchased from rate cards issued by individual stations. For example. “……………. Stations will usually guarantee to divide your sports fairly between drive times and other dayparts. and these premium spots can be so powerful that you may be able to run far fewer spots than you otherwise would. The advertisers sponsor the whole or part of the programme. every Monday. 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. you may specify that you want your spot to run at 6:13 a. Run-of-stations ads. Total Audience Plan (TAP). Is brought to you by………” An adjacency is the next best thing to a sponsorship. Sponsorships on top-rated shows can cost up to twice as much as other spots in the same dayparts.m. Buying packages is an easy. c). your ad will run every day just before or just after (in other words. or Best Time Available( BTA). adjacent to) the program you specify. Marking a package buy is called buying Run of Station (ROS). Sponsorships or adjacencies A sponsorship is just what its name implies. The RJ informs the audience about the sponsored company throughout the programme.
and then tell you how many listeners each station had in each category. they’re only for people who are ready for a longterm commitment. and you can afford to buy drive time on the dominant news/talk station in the market. like most media. a minimum of 20 spots per week should be aired.”) A schedule is the long-term version of a flight. that may be all you need to succeed. To really learn who is listening to your spots. you should run on at least two or three stations. Flight and schedule are two words you may hear your radio sales representative use when you plan your advertising. requires repetition to have impact. There are scheduling strategies that help increase the impact of the spots you place. break the listening week down into segment. As a general rule. times when one station will suffice. A flight is a group of ads. There are. 3) Frequency Radio. you should also not run on too few stations. six months out of the year. however. But how many is enough?Generally. you may need to buy two or more stations with widely different formats.”) 4) How many stations do you need Just as you should never run too few spots. survey the local market.Radio Advertising Sponsorships are like marriages. but that varies depending on your audience and the number of competing stations in the market. If your audience is business 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 . These surveys break the audience down by age and sex. If your target and audience includes both younger and older people. (“I run a schedule of 20 ads a week.
and they often employ young. and it must not leave the listener wondering. but the combination of words. There are two good. low. It all begins with a good script. music. Stations are usually well. “whose spot was that. Production can be done in the station’s own studios or in an independent production house.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. and sound effects. and sound effects. Your spot can be clever or straightforward.equipped to produce spots. creative people whose fresh ideas will keep your spots from sounding like everywhere else’s. 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. 1) The Voice There are two factors concerning voice. music. First. and one higher. a) Using local radio talent 33 .cost options for achieving this. There are three basic elements to work with: the announcer’s voice. you should use a voice that is appropriate for your image. which means not just the words. It can also be simple and inexpensive.cost option: a) Using local radio talent b) Using an amateur voice c) Hiring professional voice talent. but it must grab the listener’s attention in about three seconds.
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. but only a small (but increasing) percentage of all broadcast sales presentations are made by women. one can have the midday announcer do the honors. Female announcers can also be used. the less the voice sounds like one of the regular announcers. Get the least familiar voice available. In fact. b) Using amateur voices One great thing about radio is that even an untrained voice can be very effective. 2). c) Get permission to use an existing recording by a known artist. the local community theater or. Music The power of music can’t be overemphasized. from a talent agency. A woman’s voice. There are several options for putting music into your commercials: a) Have original music produced. 34 . one of their on-air people risk having the voice be so familiar that the listener doesn’t pay attention. Studies have shown that women presenters are just as effective as men. Celebrity voices can sometimes be hired. a child’s. (But It’s difficult and expensive to obtain the rights). A word of caution: Amateurs can sound stiff and false. Listeners will be less likely to tune it out. or even your own can make listeners stop and pay attention simply because it’s not what they’re expecting to hear. the better. If the ad runs only in drive time. in larger markets. c) Using professional voice talent If a very sleek production value is needed hire voice talent from another station. b) Use free music from the station’s library.Radio Advertising If station produces the spot.
sensations. it’s time to record. Radio is entirely a medium of sound. You should also understand. and don’t expect a performance that could only come from someone reading your mind. music. and it can be a very worth while investment. When you use sound to evoke smells. 35 . the announcer will operate the equipment. 3). 4. 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. and visual images. At large stations and professional recording studios.Radio Advertising A lot of radio or TV advertising. are available at the local radio station. more involved with your spot. you bring the listener. A catchy jingle helps potential customers remember you more than almost anything else. will be more involved with your ideas. an engineer will record the spot while you and the announcer concentrate on the reading. ho ho ho. Be aware that the announcer may have slight interpretation of the reading than you do. and sound effects. voice. Sound Effects (SFX) various onomatopoeic sounds like eeek. ding dong. The tapping Session Once the decision is made about the script.600 to a few thousand rupees. The cost runs anywhere from Rs. whistle etc. At may be just you and the announcer in the studio. can be done having a jingle product.
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.6. The media buyer is looking for efficient cost per point.m. breakfast audience.00 a. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price.m. .m. program characteristics of station.3.00 a. 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.00 a. .12.m. radio prime time and same as morning drive time News. drive time . or all-news Afternoon. 12. . music. Dayparts 6 a.00 p.m. talk shows Music.m. 7. the next step is to prepare a proposal. 3.Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps. Radio salesperson must begin with the client’s needs and marketing goals.00 a.00 p. . c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers.m. talk .00 a.m.7. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product.10.00 p.00 p. .m. 10. music.m. Often the job of the radio sales person must be conducted on a number of levels. talk shows Elements of good radio commercial 36 . interested chiefly in news Daytime. b) The salesperson must move from the general advantages of radio to the advantages of specific station. Characteristics Drive time. while the client’s goal is to move product. The radio salesperson must be aware that everyone involved in the transaction is looking for different results. After the salesperson has a firm grasp of the advertising problem. The successful ones begins with the clients problem and sales objectives an move systematically to a solution.
Dare to be different 9. The central idea should be highlighted. Many clients keep tabs on their competition. The consumer should not be burdened with too much information. or mental exercises of a consumer during a radio spot help seed the memory and aid messages retention. emotional.Radio Advertising ⇒ Be single-minded. Production values are important 7. The effect of a commercial can be multiplied by achieving extension. Plan your production 8. ⇒ Research your product or service. Speak the listeners’ language 3. not what you read 6. Meaningful statistics can give substantial support to your massage. ⇒ Produce an immediate physical. ⇒ Use plain. a tug on the heartstrings. Prioritize the copy points. Laughter. Be a clear communicator Creative Radio Advertising These are some guidelines for producing creative radio advertisements:1. focused. Keep it simple 5. Judge what you hear. ⇒ Relate to the consumer. but they rarely related their features and benefits to factual data. Always relate the brand to customers wants and needs. or mental response. D ⇒ Generate extension. Engage and entertain the listener 4. Understand the environment 2. Take it seriously Steps in Radio Ad Production 37 . conversational English. A clever phrase or execution can have consumers asking other people if they have heard the spot.
The studio mixes music and sound with voices. If music is to be included. 7. if one is needed. 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. An agency or advertisers appoints a producer 2. 6. If necessary. the producer selects a musical director and chooses the music or selects stock music. The producer prepares cost estimation 3. With the aid of the casting director. 9. a rehearsal is held. The studio tapes music and sound separately 8. the producer casts the commercial. the producer selects a recording studio 4. The producer sees that the master tape is prepared for distribution on either tape or cassettes and shipped to stations. 5.
Brand names can be bleeped out of the commercial. This tendency to misattribute can be offset by using matched samples of listeners and non-listeners. playing the ads to consumers. what are you aiming to measure? In broad terms. 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:. the post-stage in the week after the campaign finishes. In other words.These vary widely and there can be often more than one objective set for a campaign. Commercial recognition is a valuable technique – i. Consumers tend to misattribute radio-advertising memories to other media.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. and avoids problems of trying to describe the ads. However cases where other media are to be included in the research it might be more appropriate to use face-to-face interviewing. if the increase in advertising awareness is greater among listeners than it is among non-listeners. This way. to test whether the campaign is linked to the brand. then the effect can be attributed to radio fairly confidently – even if the listeners think the advertising was in another medium. particularly TV. Below are some typical examples: 39 . It provides a more robust measure of whether they have heard the campaign.e. 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. 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. Radio research can successfully be done using telephone interviewing – ads can be played down the line.
In addition to tracking radio’s contribution to the success of a campaign. If you do intend to test a particular media strategy there are three important considerations to note.Burst versus continuous activity . for example: . Secondly. as a secondary aim you might also be trying to test and evaluate the effects of using different media strategies. Any other questions are of secondary importance 2) The Importance of Split Samples 40 . Whatever your research objectives. you must gear the campaign so that you can test the particular media strategy in which you are interested. you will need to be able to separate the effects of each using a separate. if you are testing a number of media strategies simultaneously. Lastly. Firstly. and most obviously.there are specific tools available for measuring sales effects for example. balanced research “cell” for each media-variable. when testing different media strategies.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 .Use of different day part strategies.Effectiveness of different spot lengths . once you have defined them make sure that they form the core of the questionnaire you use. bear in mind that you will still be judging the effects in terms of the overall campaign objectives. Media Planning Issues: .Radio Advertising .
attributed to television in the consumer’s mind. 41 . Local distribution levels for the brand will also be the same. If the only difference between the two samples is their radio listening. but who are the same as the listeners in all other respects). 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.Radio Advertising Misattribution of Advertising:When asked to consider advertising. However. with the result that campaigns in all other media are. as the medium with the most active expectations. Television. 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. Which Option Should You Choose:Neither of the two approaches above is necessarily better than the other. 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. the second method has the advantage of questioning people who will have the same history of exposure to the brand. to varying extents. 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.
In this way. the other in an area where no radio advertising ran. 42 . 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 . It is equally important to ensure weight of advertising for your brand in all other media is the same for both samples. as this could affect response.thus giving you a measure of radio’s effectiveness.g.Radio Advertising The key point is that the listener and non-listener samples must be matched as closely as possible in terms of demographics. This ensures that any differences can confidently be attributed to radio ad exposure. The two geographical areas should also be comparable – (or “typical”) in terms of media and product consumption as a whole. media consumption and weight of exposure to the brands’ advertising in other media. 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. It is important to match the media consumption of the samples (e. how much TV they watch etc) as well as their demographics.
43 . all of the research is done within the same area. One part of the sample will comprise people who do listen to the station(s) on your radio schedule. radio research is conducted in two stages . continuous radio research is impractical on grounds of cost unless it forms part of ongoing advertising tracking. Typically. however. Often. whilst the other part of the sample will comprise people who do not listen to any station on the schedule.a pre-campaign and a post campaign study. 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. 4) When to do the research The ideal research method is to monitor advertising activity on a continuous basis.Radio Advertising Test and Control Samples within the Same Area In this second approach.
it might be worth slotting in an additional research phase during a particularly long advertising campaign or sponsorship. However at some point. consider adding an additional stage of research some weeks after a campaign has ended in order. For example. 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. 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. say. Radio ads can successfully be played down the phone to respondents. 44 . 5) The research sample and sample sizes Sample Sizes Generally speaking. Face-to-face interviewing may also be preferable if respondents need to be shown visual ad material such as stills from TV ads. the larger the sample the better. In some instances one considers conducting more than two stages of research. Similarly. ⇒ 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. having done the post-research.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. to track decay in brand awareness.
playing the radio ads to consumers – as this is the best “memory jogger” of all. 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. it is possible to see whether creative treatment has successfully linked the message to the brand. attitudes to the advertising/feelings about the proposition). two different approaches can be taken: blind or branded. (e. 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 .g.Radio Advertising Commercial recognition is a valuable technique – i. whilst giving a true measure of ad recognition.e. ⇒ 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.this allows prompting for brand-specific data. ⇒ Branded .
a) Planning. radio can be used to reach light viewers. Reason enough for us to study the role of Radio vis-à-vis other key media. Radio with Television Characteristics of Television TV has traditionally been the most powerful and popular advertising medium for people in the media business. demonstration. 46 . radio can be used for regional or local exposure booster. image. radio can bring brands closer and speak to the consumer at their level. impact etc. either in the same period as the TV campaign or later to extend the campaign over time.coverage. the downside with TV is that the audience is now fragmented across many different channels. Traditionally a high-cost medium. This is mainly because it does most things well . What radio can add: In planning:Radio's main contribution is a dramatic increase in frequency of exposures. it extends TV messages to key times of day when TV audiences are lower or when product relevance is higher. 'what Radio can add' to each medium on three key parameters . frequency. In communication:Given that Radio is perceived as personal medium. production costs are extremely high and viewers are increasingly avoiding ad breaks. radio has a culture of response where listeners frequently interact with their station which they see as accessible. b) Communication and c) Detailing of communication points. persuasion. radio also allows tighter targeting against audiences thus reducing wastage.Radio Advertising Radio with other media Most brands tag radio to their existing communication plans.
it can bring to life ideas. which may seem flat on the page. radio can allow a fast turnaround for new initiatives. which has been successfully established on TV. As a print medium. Sonic Brand Triggers are sounds. low production costs mean multiple copy messages can be varied round the core TV communication Sonic Brand Triggers. radio also reaches non-readers so it can significantly increase coverage. Radio brings brand messages closer to the individual. Newspapers also have the authority of the written word. A sound. Radio with Newspapers Characteristics of Newspapers Newspaper brings 'immediacy' to a communication. in most sectors. radio allows brands to emphasize specific key times of day. which are absorbed at very low involvement levels. adding radio also means increased share of voice thus overcoming clutter In communication:Radio brings intrusiveness to a press campaign. and there is less ad avoidance.Radio Advertising In detail:Radio allows activity to be geographically varied. and this is real frequency in that exposures take place in real time. 47 . radio can more strongly convey the brand's tone. can be transferred on to radio. speaking in a more personal way than press. They leave a brand impression with even the most passive TV viewer or radio listener. What radio adds: In planning:Radio adds frequency. as they tend to rely on rhythm and music. which consumers recognize and associate with certain brands. the national press suffers from clutter and from the fact that the reader can and does edit ruthlessly to avoid advertising. and are good at presenting detail. Example of powerful SBTs: "Britannia Ting Ting Ting" They help to ensure that TV and radio advertising is well branded.
The weaknesses of outdoor advertising mainly stem from three issues: it has no editorial context. 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. 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 is better able to communicate the tone or character of a brand. it uses extremely simple. radio allows multiple copy. What radio adds: In planning:Radio adds real frequency. it also allows localized copy variation relating to a national poster execution.within time of day. radio brings brands closer.Radio Advertising In detail:Flexibility means radio allows geographical variation on top of a national press campaign. in a very public way. in the sense that additional exposures to the advertising are played in full rather than having the listener look away or ignore. radio also offers tighter timing . day of week or even week of month. In detail:Radio offers speed of production compared with the lengthy process of poster print deadlines.and it suffers from relatively expensive production. In communication:Radio allows more information to be conveyed. Like radio. posters also operate within time which people think of as free . radio offers far tighter targeting which means reducing wastage. 48 . which is useful for explaining or persuading.
radio also offers a greater share of voice for most categories. What radio adds: In planning:Radio adds frequency and also extends coverage well beyond the magazine readership. ⇒ Recall of advertising.time of day. 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. ⇒ Commercial recognition – playing the ads to respondents. Weaknesses of magazines include the fact that lead times can be very long depending on the title's frequency of publication. the high levels of clutter. which means overcoming clutter. and the reader's inclination to simply turn the page. ⇒ Thoughts on what the main message of the ads was 49 . and the opportunity for geographical variations. you will be seeking to detect spontaneous and prompted awareness. and there is less ad avoidance. 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. At the post-stage. day of week etc. In communication:Radio brings intrusiveness to a magazine campaign.Radio Advertising Radio with Magazines Characteristics of magazines Magazines are useful to advertisers because of the relationship they have with the readers.driving. cooking. It allows brands to speak to consumers close to certain activities . who consume them in a personal way. radio can more strongly convey the advertising tone of voice.
All the interviewers are informed of the above and a questionnaire is given. IMRB International decided to launch RADAR RADIO LISTENERSHIP SYSTEM . When the questionnaires are filled.600 individuals. they are complied and sent to the analysis department 50 . or on particular request by a company. The following is the standard procedure involved in calculating the listenership of a radio station. The findings have helped many radio stations to develop. The research can be undertaken by the research agency voluntarily to be sold later to companies. IRMB believes that time is ripe for a continuous Radio audience measurement system. • • • • • Then the analysis findings are forwarded to the research department and published A project is selected and a deadline is given. A sample size is decided which is spread all over the target city / town etc.000 households and 3.Radio Advertising Creating the right mix A fieldwork was conducted by IMRB(Indian Market Research Bureau) to know about the listeners which encompassed the entire Mumbai urban agglomeration through a random sampling of 6.the continuous radio audience measurement system in Mumbai. With the growing salience of Radio.
100 90 80 70 60 Radio Advertising Female 42% 50 40 30 20 10 0 AIR FM1 AIR FM2 Vividh Bharati Radio Mirchi Radio City M ale 58% BBC AIR Primary WIN 94.5 SLBC World Space VOA At the country level: % mentioning Total awareness of radio stations Gender of radio audience Female 42% MALE 58% 51 .6 Go 92.
7am .30 am 20% 18% D/E 45% A 12% Radio Advertising 16% 14% 12% D/E 10% 45% 11.6.30 .00 pm B 14% 7pm .11. Being 52 . 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.11pm A 12% 8% 6% 4% 2% 0% C 29% C 29% B 14% % liste n e r s Socio Economic Classification Listenership by time slots Analysis Analysis While the overall reach of radio in India is high it can be seen above that awareness of private radio channels is not much.
30 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. 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. Various shows are held by the radio stations. specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium.Radio Advertising the only service provider it was able to penetrate deep into the Indian market. giving the advertisers a vast array to meet their specific target markets. B have a wider variety of entertainment available to them radio is not widely used. Radios are now available at prices below Rs. on the other and the 11-2 slot has the women segment listening while the nights are more concentrated on teens. 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. 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. As the 7. While the sec A. Radio is very popular with the sec D/E market due to its cheap cost.50 which make it very affordable. 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 .
Radio Advertising All India Radio A.I. Sound broadcasting started in India in 1927 with the proliferation of two privately owned 54 .R. which is a national service planned. developed and operated by the Ministry of Information & Broadcasting under the Government of India.
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. educate and entertain the masses. Including North-Eastern Service at Shillong disseminates the vibrant and radiant cultural heritage of the Northeastern region of the country. newsreel. 50 high frequency (SW) transmitters and 87 FM transmitters. through its transmitters at Nagpur. music. 1988. For FM it has other ideas . and another 10 foreign languages in external services. namely.R. New initiatives by AIR Change is in the AIR.'s coverage exceeds 90% of India. The Regional Stations in different States form the middle tier of the broadcasting. Mogra and Delhi beaming from dusk to dawn. All India Radio is one of the largest radio networks in the world in terms of reach. With broadcasts in 24 languages and 146 dialects (home services). plays. reaching over 98% of the people in the largest democracy of the world. regional and local. It caters to the needs of the people. AIR has a three-tier system of broadcasting. Add FM radio and you have a formidable arsenal. to nearly 76% of the country's population fully reflecting the broad spectrum of national life. but on shortwave. A. national. 55 . It transmits centrally originated news bulletins in Hindi and English. 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.Radio Advertising transmitters in Bombay and Calcutta.classical music channels to start with in Bangalore and Lucknow and to be extended across the country later.I. sports. National channel of All India Radio started functioning on May 18. When India attained Independence in 1947. AIR had a network of six stations and a complement of 18 transmitters.
and for this it is launching a campaign in select cities. development of infrastructure and the changing scenario in the state.K. will be launched across the country with a four-digit common number. The company has received the license to set up radio stations 56 . a marketing plan and publicity plan with suitable media mix.Radio Advertising AIR. Helplines etc. The ad agencies have been asked by the Prasar Bharati to make a strategy presentation. family and Associates. AIR planned and developed special packages for the North East and J&K. It will promote and publicize sports events covered by AIR besides popularizing existing services like Radio on Demand and News on Phone. The service. Prasar Bharati is positioning AIR FM Rainbow as a channel offering a buffet fare . which produces more than 300 bulletins daily. Prasar Bharati is also planning to fill the vacancies in regional stations.Hindi Music. MBPL is a company backed by P. will also cash in on phone bulletins.Mittal. Chat shows. setting up radio clubs and maximizing AIR revenue. a venture promoted by Star and Music Broadcast Private Ltd (MBPL). was launched on 21st May 2002. RADIO CITY [91FM] Radio City. 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). The entire publicity campaign of AIR is being designed by Prasar Bharati's ad agencies. focusing on the rich cultural heritage. Western Music. especially in North East and J&K. recommending a suitable positioning for AIR Channels. Hyderabad. which is on in Patna. 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. Kolkata and Delhi at different numbers. 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.
The Mumbai license was secured for Rs 10 crores. 1. so as to enable more targeted programming in the future. The idea is to create the brand and then to move on to specific target programming. Delhi. Patna. information. in mix of Hindi and English For corporate and retailers: .Bangalore.The airtime.Bangalore. teamed up with professional. a portfolio of entertainment programming 24 a day. Mumbai. STAR India’s radio division would provide or take charge of advertisement sales. the channel undertook huge promotion campaign in the initial stages of its launch. Place: Intensive (all over Bombay) also. Mumbai. This is thanks to its promotions. Radio City’s market strategy is backed up by six months of intensive research in Bangalore. The channel is into sponsoring events especially college festival around Bombay city.Radio Advertising across the country in six cities . 2. Selective in the sense that it has set up radio stations across the country in six cities . The 4 P’s Product: For listeners . Nagpur and Lucknow. marketing and programming. Hoardings all over the city. Patna. vivacious RJ’s. The Television “fun ka doze har roz” ad campaign. Nagpur and Lucknow. On the promotion front. Target audience Radio City is not looking at any particular segment to target. a perfect blend of English and Hindi music. Radio City aims to reach out to listeners across demographic barriers. Delhi. Price: Advertisement rates Promotion: Radio city is one of the top 3 stations in the city.Music. and is trying to create a brand name. hours 57 . Intensive research is being carried out to ascertain demographic profiles of radio listeners.
the success rate with national advertisers is a lot higher than in the case of retail advertisers. Radio City will have a four-hour slot in its 24-hour broadcast for advertisement. breaking to a 10-minute projection in every hour's programmed. The retail market. 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. Hence. involves one-on-one sales and education as to how advertising will help the brand. probably create a radio spot. National advertisers are all familiar with the concept of advertising. sales and marketing support. Radio City has managed to attract advertisements.Radio Advertising Advertising with Radio City Radio City also hopes to provide an effective advertisement medium.5FM] 58 . 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. The process is pretty lengthy. IBM and HLL. Star India is in-charge of providing the content. and of breaking new ground whereas with national advertisers. make them listen to it. 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. from small local stores as well as big brands like Tanishq. GO [92. So they talk to them about radio. tell them this is how the brand will sound when on radio. besides advertising. on the other hand. 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.
For corporate and retailers: The airtime 59 . along with sports.5 FM targets the upscale Mumbaikars. Not to say that big Indian artists with big fame do not feature in their mix. to get an edge. “The Sound of Mumbai” from Mid Day multimedia limited.5 FM. entertainment and business. Target Audience: Mid-Day's Go 92. the channel targets the age group of 15 to 45 year old. Therefore. educated. The 4 P’s Product: For listeners: the station is focusing on music of course. trailblazing media company.5 FM now targets only the socio economic category (SEC) A and B1. Providing an attractive blend of 50:50 Hindi & English programmes. They are clear on their strategy and have already started catering to a certain set of audience that is mature. It does not only concentrate on Hindi or English but emphasizes on the attractive blend of both the world.Radio Advertising GO 92. belting out the best hits non stop 24 hours a day.5fm as a part of their communication programme. Radio Midday seem to have found a niche for themselves and clearly positioned themselves as 'the English Channel with a local/Indian image'. Corporate aiming to serve the cream class of Mumbai can select go92. white-collar and upwardly mobile. white collar executive whose needs are clearly English music and programming. with a heavy local flavor. target audience is young. 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. and more westernized. It primarily plays English music. a focus on international artists popular in India.5 FM was launched on 10th May’2002 by mid day group. The wonderful world of Go 92. Go92.
90% of their advertisers are the large tickets. They have retailers also. especially with the coming in of the 11-2 afternoon slot. they can have consumer durables on the channel. there are many new clients that will come in. There are two effects of this kind of the new programming. it is a double positive impact on advertisers. Second.5. So. Then they figure out how do they juggle it. how they’ll fit it in and this programming mantra helps them in that.5FM GO 92. That ways they try to be the preferred destination when an existing client wants to sponsor an event or a radio property. Not just a LG CDMA but a LG refrigerator and AC can also be advertised.Radio Advertising Place: Intensive in Bombay and exclusive because it does not have a presence in any other city. indulge in experimental big stuff. when the client presents the germ of an idea. At that time. That is by virtue of the audience profile that Go are bringing.5 has in fact re-christened itself as Mumbai’s College Radio station. which was presented by Colgate Fresh Energy Gel. First. the station had also launched a 13-week College Radio hunt some time back. their immediate reaction is ‘yes’. They have a classified section on 60 . Advertisements with GO 92. Wherein auditions would be held for potential talent and the finalists would then be exposed to in house training sessions. displays at traffic signals etc. In complete tandem with the festivities. 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. which would equip them with the capabilities of hosting radio programmes of their own. Price: Advertisement rates (Refer to annexures) Promotion: its presence is made known through hoardings.
There has been a sizeable increase in channel spends on Go 92. Star World. Max New York Life. The station is seeing a 50-60 per cent quarter on quarter growth. Cadbury. the station has garnered total revenues of Rs 1. Discovery. The top advertisers on Go 92. Tata AIG. Zee English. Sony Entertainment TV.36 crore. Colgate. But those are basically the advertisers who are very keen to be on the station. 61 . Other advertisers are Tata Motors. Zee TV and Tata Indicom.5 in September 2003 were Coca Cola. Kellogg’s. STAR network that is star world and movies. Timex watches. McDonald. Bazee. Orange. Asian Paints. A few big Hindi properties such as Awaaz and Jeena Isi Ka Naam Hain have been promoted extensively as well. Alitalia airways. During the first half of 2003-04.Radio Advertising the station called Mumbai bazaar.com. Go does not plan to hike rates because they are looking at consolidating at the current rates and also trying to minimize the discounts they give to our clients on the rate card.5 and they have had the majority of the revenue coming in from niche English channels such as Star Movies. Zee MGM. HLL. BPL Mobile. AXN and Discovery.
2002.5 Red FM caters to 25-plus age group. Mumbai and Kolkata for the first year. RED FM has spent close to Rs 17. 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. city-specific events and the latest buzz on everything current. An additional Rs 20 crores has been invested on infrastructure etc in these three cities. The much-awaited Red FM on 93. The ‘take aways’ are plenty – everything that the station says and does is of relevance to its listeners.5FM] “Red is in your Head”. reliable. screams the advertisement of Red FM. weather. Target Audience 93. as a bright. the 24-hour FM radio channel from the Living Media stable. uncomplicated and honest. energetic and passionate Apparently. And in the second phase. Because it is more a mature audience.87 crores as license fees for the three centers of Delhi. friendly.5 MHz hit the airwaves in Mumbai first on June 26. 62 . warm. followed by Delhi and Kolkata.Radio Advertising RED [93. 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. Red FM may not be modest but it is certainly witty. Described.
Based on the need of the advertiser. Red is also focusing. they suggest the best ways of achieving the objective. Recently. Every committee hosts its own festival and Red has been in touch with committees from Jai Hind. Red’s current advertisers profile includes both retail clients and corporates. but is a total experience. Endorsing advertising on RED is not just about buying spots. they carried a DJ live on turntables from their studios. which promote the station. trains etc have also been adopted. Also it has a tie up with shopping malls like crossroads and ‘Groove’ a music store. for the first time in India. They have other high profiled clients like Sony 63 . they form a healthy percentage of advertisers. With in a few days of launching. play a 10 second spot through the day. (Refer to annexures) Promotion: Red Fm is affiliated with some clubs and pubs. tailored to the customer’s needs. their job is to suggest that instead of a 30 second spot. this is an important task in terms of helping the advertiser. towards the influence of one station with the other. HR and nearly every other college in North Mumbai. They have 100 hoardings all over Mumbai city. Advertisement Red Fm does not go to sell radio spots but works like a consultant with the client. 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. KC. innovative methods like painting Double Decker buses. So if a retailer wants to announce his sale and he does not have a big budget. they went on air live from a night club like Velocity and received a huge response from the listeners. Moreover. use their strengths and improve co-ordination between the three stations.Radio Advertising Price: advertisement rates.
then the client has to pay substantial amount of money to radio station because if they produce a jingle that is their assets. 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. Idea. 64 . And from the nonaccredited ad agency. However. They normally charge around Rs. face-to-face conversation. 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. similarly. The do give some discounts to the accredited ad agency. Hutch. they would advise the drive time hours or the late night show. none of them have refused to consider them in their media plan. and therefore they faced a major drawback in terms of losing out on a number of corporates. There are several questions that RED FM identifies before making a time-band suggestion.000/. State Bank of India. Red FM was launched six months late. the shortcoming is only in terms of delay. if there were a cookery show. Is it a women’s product? Is it male-oriented? Is it a retailer? If it is a retailer.and the rates might increase or decrease depending upon the need of the advertisers. ICICI Prudential. 4. Metlife. length of the commercial. there would be food-related brands advertising on it. background conversation. For male dominated products. Their revenue only from Bombay is more than two crore. If there were a programme on beauty tips. we would advise a cosmetics brand to advertise on that programme. music. HT. They take 100 % money in advance from the direct client.Radio Advertising Entertainment. 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. Coke. surveys reveal that a number of men like tuning in to radio just before sleeping. as they had already freezeed their media budget for the year. Zee.
9 crores annual fees for Mumbai).they are a contemporary hit radio station. 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. the Radio Mirchi private FM station. As the punch line says. debuted in Mumbai. Chennai and Kolkata. 'it is hot. 2002. on 98.Radio Advertising RADIO MIRCHI [98.3 FM. 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.SEC A and B and in that too mainly youth and housewives.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. Indore and Pune. This segment addresses about 12 lakh listeners 65 . owned by Entertainment Network (India) Ltd.' They have a very clearly defined position . a wholly-owned subsidiary of The Times Group. Mumbai. On April 23. and their Target is around 18 to 35 .
For corporates and retailers: the airtime Place: intensive in Mumbai and selective all over the country since it is established in cities like Kolkatta.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. plug Radio Mirchi through the other media that The Times Group owns. 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”. Since radio is a free to air medium. 66 . retail showrooms. However the slogan by itself was incomplete without the voices that accompanied it. Price: The advertisement rates. (Refer to annexure) Promotion: The marketing strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi. RM later made a conscious decision to go Hindi. pubs for continuous advertisement of their channel to make people aware of the temptations given by the channels to them. which reaches the lower end of the audience spectrum. Connect with the growing Radio listening population in Mumbai. Chennai.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.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. Hence it quickly became a mass channel with Hinglish being its prime lingo and having a wide audience appeal. Delhi. 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..
the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. there are 125 to 175 brands advertising on Radio Mirchi.000 for a 10-second slot. There is very little retail advertising on radio.000 and Rs 1. There are about more than 300 advertisers on Mirchi. In Indore more than half of Mirchi revenue comes from retail. 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. the rest of the FM channels charge anything between Rs 1. Today it is fashionable to be on radio. Clients buy effective rates and they buy a combination of spots like prime time. 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. Currently. While all the other stations offer more slots and run ads for over 15 minutes. So they have package deals for them also. non prime time and the likes. across the five stations. Radio Mirchi gives 45 lakhs weekly listeners as per Radar study. In most cases. 67 .Radio Advertising Advertising Radio Mirchi charges the highest rate of Rs 2. on an average. In Ahmedabad and Pune it is probably about 25 to 40% of the business. Radio mirchi sells independently and does not offer any print package deal even though they belong to Times Group – they are an independent company. Most of the national advertisers on radio mirchi today want to buy all the stations on air. But in Mumbai it is at 10%. On an average.500 for a 10-second slot. stations offer discounts on what is on their rate cards. There is an average listenership of 45 minutes per day on the station. they offer ten minutes per hour on Radio Mirchi. There is huge inventory pressure on them and therefore they had to increase the ad rates.
Ludhiana. Lucknow and Kanpur. Radio Mirchi delivers highest number in terms of listenership among the Radio Listening student population. 1 channel and delivers high numbers with Daily listenership at 24.63 lacs. which means going into the smaller towns. Future Plans:Radio Mirchi is looking radio Industry from the long term point of view. But this country can have 5. Bangalore. That will still take us to about 15 frequencies. Chandigarh. So when the advertisers wants to advertise on radio. accordingly. Hyderabad.000 radio stations. they have implemented the changes in the time slots of the different shows on air. 68 . definitely Coimbatore.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. Mirchi would eventually look at having a presence in every nook and corner of this country. Hence. Radio Mirchi emerges up as the No. They are interested in some of the bigger cities for instance. 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.
With increasing competition airtel is now going in for more of radio advertising as against the television . 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. India’s leading cellular operator in the private sector. Airtel is creating an attitude of being people friendly and thus gaining huge share in the market. Its major competitors are orange and R.Radio Advertising Case Study On Airtel Airtel. Mirchi Movie of the Month. 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.the Asli Batliboi and Ding Dong . To avail this innovative tie-up. the reason being the huge radio boom with the large number of customers tuning into radio more often than ever. Devdas .Mona Sing a Song. Operating in more than 23 cities it has been able to attain a high number of customer and is now regarded as one of the best cellular services being provided in India. Mr. Airtel saw this as an opportunity to grab the most number of customers through radio and their started spending more on radio than ever before. Bappi-da Da Gyan. the users need to dial 646 from their Airtel enabled mobile handsets.M and various other providers. The radio channel in question happens to be Radio Mirchi.I. Hotpot Crackpot. They can then listen to some popular programmes of the channel like. 69 .
AAISI AZADI AUR KAHAN. CHARGE HUA ZINDAGI.” 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. KABHI AAREY ROAD . users can listen to songs. KABHI LINKING ROAD . For this. there has been an increasing demand of listening to FM channels through mobile handsets. Airtel . radios have offered services to its users free of cost. Among CDMA service providers. 70 . And would also be convenient for its customers to recharge their mobile phones in these centers. users have to pay a Value Added Service (VAS) rate of Rs. DESH BHAR MAIN RE-CHARGE KAHIN BHI. With regard to this particular trend. Nokia first introduced FM enabled phones.6 per minute. Airtel's tie-up allows users to listen to one channel only. Recently. through the R World of Reliance handsets. KABHI PEDDAR ROAD . where users can listen to any FM channel through their handsets.6 per minute with no extra subscription charges. For a long time now.Radio Advertising Pre-paid and post-paid customers of AirTel can access this service.radio ad jingles “TUM KO DEKH TE HIN . KABHI MEERA ROAD . it does become quite doubtful as to how long Airtel's 'mirchi effect' will last with the charge rates as high as Rs. This all shows about their care for their customers.
The basic problem in the Radio space in India is the excessive Government control and regulation.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. But with the government citing national security as the reason for not doing so leaves little hope of this happening. go in for a system more prevalent worldwide . atleast in the near future. In order to let the industry to grow the government needs to give it some space. They should in fact. The government charged a very heavy license fee for entering the market. The Government should review its ban on private stations airing news and current affairs. The consumer will also benefit as the industry can now tap into a larger basket (the foreign players) for greater variety. 71 . 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. This could attract potential listeners on the move who want their daily share of the happenings around the world. 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. stations will pay the government a certain % of their gross revenue every year. nothing much changed as regards to government control. as recommended by the TRAI. did not allow broadcast of news and current events nor was there a scope of a foreign player entering the Indian market. currently a monopoly with All India Radio. 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. Under this system.
despite All India Radio's enormous reach (97 per cent of the population). 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. Mid Day etc. ad recall and message retention.Radio Advertising Conclusion Radio has many natural advantages that make it an excellent choice for an advertising medium. greater reach may not necessarily translate into a marketing advantage. Bennett Coleman & Co. its revenues have declined. In such a scenario. However. the private FM players have a huge opportunity in grabbing a bigger chunk of the radio advertising pie as. superior target ability. Yet advertisers spend 55% of their money on eye media (print) and only 45% of their money on ear media such as Radio and television. In fact. It would be just plain old quality of programming and the 72 . 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. The opening of the FM market is a new phenomenon and the maturing of the market will take its own evolutionary path. what will spell out the difference between success and failure will be neither size nor niche. Interestingly. and much more which can be attributed to the ‘low cost of ownership’ feature of RADIO as a medium. such as Radio. Living Media. but spend only 15% of their time with such eye-oriented media as newspapers and magazines. Consumers spend 85% of their time with ear-oriented media. with an expected growth rate of about 10 to 12 per cent every year. superior listener loyalty. Ultimately content and packaging will be the king. These advantages include high amount of time spent listening. the fortunes of radio advertising are likely to change with the advent of private players like Star India.
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.
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…
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:
⇒ Mornings 8:00 a.m. to 10:00 a.m. ⇒ Evenings 6:00 p.m. to 8:00 p.m.
⇒ Morning 7:00 a.m. to 8:00 a.m. ⇒ Morning 10:00 a.m. to 11:00 a.m. ⇒ Evenings 5:00 p.m. to 6:00 p.m. ⇒ Evenings 8:00 p.m. to 9:00 p.m.
Super Prime Time + 25 % premium
Radio mirchi rate card
5 p.10.Radio Advertising Day Parts 7 a. jingle length would be counted in multiples of 5 seconds.m . E.m – 12 a.m 8 a.g.m – 8 a. 7.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.000 Rs. 5.m – 7 a.000 Rs. Over 10 seconds.000 Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday 76 .000 Rs.000 Rs. A 23 second jingle would be billed as 25 seconds Jingle production charges Centres Mumbai Delhi Chennai Kolkata Ahmedabad Pune Jingle cost Rs.m – 10 p.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. 5.m 10 p. 7.m Housewife / 260 Traders / Youth 5 p.10.
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 .
star.com www.com www.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.com www.indiatoday.rab.org www.com www. www.com www.agencyfaqs.timesofindia. Newspapers and Magazines Times of India Economics Times Business Standard Financial Express Various websites were also visited such as.economicstimes.com 78 .in www.com www.allindiaradio.co.co.uk www.hinduonnet.exchange4media.radiomirchi.go925fm.