Radio Advertising

Executive Summary
Advertising in general expresses the positioning. Powerful advertising is the result of powerful planning. Great ideas and great ad campaigns don’t just pop out from no where, they are built on the key communication points that motivate sales. Radio is entirely a medium of sound, which evokes smells, sensations and visual images which brings the listeners imaginations into play. Radio advertising is one of the tools of advertising which is effectively used for communication and positioning. It is one of the foundations for effective and successful advertising. Radio can be used effectively for advertisement since it can target the large audience because of its high reach. Radio is good at increasing awareness about the brand and business and helping in building the brand image. But all this was only for pure academic purpose. With the advent of television radio lost its popularity and thus its purpose with the marketers. This led to sharp declines in the proportion of advertisement spending on radio as compared to other media. But then came the governments order on liberalization and privatization. This brought about loads of changes in the world of radio broadcasting in India. Prominent and established companies entered the business of FM Broadcasting. FM broadcasting has breathed a new life into the medium of Radio in the past few months. Could radio now think this as a new phase of its life or a re-birth? Of course yes, people are today talking only Radio---- Radio Mirchi, Radio City, RED, Go and WIN. One will find people with radio sets of different shapes and sizes listening to their favourite music on roads, in hotels, even the bidi shops aired on any of the music channels. The radio channels are now vying against each other to provide their best to the listeners

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Radio Advertising

However one can see that although radio is an excellent medium it has been used to its full potential and various efforts should be taken to improve it as with proper direction radio can reach heights as it is the cheapest and a very good medium.

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

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Radio Advertising

Research Methodology
Through this project I have made an effort to understand the advertisng tool called radio advertising which is being increasingly recognized by marketers as a powerful tool that helps in finding new customers and retaining the existing ones at a much lesser cost.

Primary Research:
The aim of primary research was to understand radio advertising as it is seen in the corporate world. To understand this I have taken two interview from different fields. Mr. Madhav Joshi who is currently working in Leo Burnett who helped me understand what all goes into the making of a radio advertisement. The mode of interview used was an informal one where he answered my questions on one to one basis. Also Mr. Sudarshan Sahe the senior marketing manager of Radio City gave me an interview and helped me in trying to understand as to how the station works and looks after the needs of its consumers

Secondary Research
The aim of secondary research was to understand as to why radio advertising has been able to grow at a considerable rate as compared to the other media.also the fall out of radio in the last decade . It was also undertaken to understand how radio advertising is done and what re the current players in the market. Secondary data collection method: desk research Secondary data collection sources: internet, books, newspaper articles

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

50/.1%. Also one must not forgot that radio continues to be a medium that has tremendous reach among the poor and marginalized sections of society.FICCI estimates FM’s share up from the present 1. Given that radio has penetrated into 100 million homes and a FM set costs around 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. as the car population is much bigger. and the emergence of lifestyle advertising. Rs.7% and Spain with 9. With the coming of more channels. This would be the key when evaluating the medium. 1200 crores by 2005 and Revenue of radio services is expected to rise to Rs 689 crore by 2008 at a CAGR of 30 per cent. As said earlier. They have also forecasted that revenues from radio advertising in India will be Rs. FM station executives are not forthcoming on multi-platform strategies as yet. radio is personalized. While TV is a family medium. radio will become a push and pull medium. For example. Also advertising of certain product seems to work very well while some might not. Thus the potential if FM is better is bigger town. is not just making a comeback but is being reincarnated into a new avatar. Canada with 12.Radio Advertising of the advertising cake.5 percent to 5 % in five years. 5 . On the higher side are countries like the United States with 13 %.

encodes it onto a sine wave and transmits it with radio waves. "you are listening to 91. but FM did not become really popular until the 1960s. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible. He built the first station in 1939. pictures for a TV set. 6 . In the 1920s. Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. and frequency allocation for AM radio occurred during the 1920s.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. The first radio broadcasts occurred in 1906 or so. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz.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.535 kilohertz to 1.7 megahertz FM radio .5 megahertz. This band of the radio spectrum is used for no other purpose but fm radio broadcasts. When you listen to a radio station and the announcer says. Megahertz means "millions of cycles per second. hence the relatively low frequencies for AM radio. The receiver receives the radio waves and decodes the message from the sine wave it receives." so "91.000 cycles per second.500.5 megahertz" means that the transmitter at the radio station is operating at a frequency of 91. Both the transmitter and receiver use antennas to radiate and capture the radio signal. radio and electronic capabilities were fairly limited. Common frequency band includes the following… • • AM radio . data for a radio modem or whatever).88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio.

of the licensee fee to AIR.per hour. salaries and other expenses. They are demanding Rs. 6.500 to Rs. Add Rs.500. Add Rs.000/. One minute is reserved out of 10 . 250 per hour of needle time. the actual duration of a piece of music. Thus. 10 . Add Rs.for the music. 12.seconder costs Rs. 100 per hour. 500 at prime time for 18 such spots. 500 . 7 .. 13.minutes for social awareness advertising. Studio hiring costs are between Rs. 100 per hour.Minutes have been set aside for advertising. An hour long show thus costs Rs. 1000 an hour. so the question of royalties is relevant.Rs. considering the limited range and listenership supposing a 30 . the total revenue generated is Rs. PPL is demanding a royalty of Rs. 1. The IPRS is demanding Rs. 6. advertising time available for sale is 9 . 18 advertisements each of 30 seconds can be accommodate in an hour. The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd.minutes.000/.000 per hour.500 per hour (as against Rs. In other words.500/. Besides the tariff card should be modest.Aspect A Licencee pays Rs. 3. 6000/. The IPRS claims royalty for the original composers and authors of music.for the technology. Cost . (PPL) are supposed to hold all the rights of royalties. The total expenses are thus Rs. This is the high target. 1. 10. at which they are supplying music to AIR).Radio Advertising Royalties FM is primarily a music channel. 9000/.000/-. Another estimate puts the production cost of an hour long programme around Rs.

sports. It was way back in 1895. The 1st paid announcement on radio was a 10-minute capsule from Howthorne Court. It has benefited listeners and advertisers alike and earned the status of a 'Constant Companion'. 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. as the radio industry was also losing a large number of talented staff to TV. His persistence paid off in 1919 when such sets were available for general purchase. A large number of popular shows moved from radio to TV. It was Sarnoff who suggested that radio should be mass-produced for public consumption. live musical recordings would be presented in 30 or 60-minute programs. However. News. that Guglielmo Marconi invented an antenna to send and receive radio signals. Then in the 1950s TV began to catch the public's attention. drama. What allowed Radio to accomplish this feat? Read on for the long journey the Radio industry has covered thus far. That was not all.. Audiences were charmed by the audiovisual experience of TV. Early 1920s saw the launch of commercial radio. Radio became the first medium delivering entertainment to the masses in their homes. a Queens based Real Estate Company. However Radio has not just survived repeated predictions of its demise but grown tremendously.. People in households would gather around the radio to listen to their favorite programs much as they do today with TV. This saw the beginning of what was later looked on as the 'Golden Age of Radio'. It took quite a while before Reginald Fessenden developed the first radio receiver in 1913. A network soap opera could be followed by a 15-minute newscast followed by one hour of a concert. 8 .

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

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

compared to 89% of All India Radio (AIR). won the largest number of bids. while the bids for Delhi were Rs 71. which grew rapidly following the entry of private players Currently. 11 .for stations in Mumbai. the bids for Hyderabad and Nagpur came next.Rs 97. a Zee Group company. garnered close to Rs 3.2 million and Rs 74 million.5 million from each of 10 broadcast companies .Radio Advertising The government collected close to Rs 4. which focused mainly on the smaller towns. each for Rs 77. Interestingly. The first round of bidding .for 76 channels in 26 cities. FM coverage in India is restricted to just 17% of the country.5 billion. New Media Broadcasting.6 billion as license fee for the privately run FM radio channels in 40 cities. respectively.2 million each Radio is expected to follow the growth of the Television industry. The government got the highest bids .

Chennai 3 20.00 17. Calcutta. Mumbai.Sun TV Vertex Broadcasting 3 9. Vishakapatnam 4 2. Mumbai. Lucknow.87 Entertainment Network [India] Delhi. Patna. Mumbai.87 Calcutta. 12 .87 20.17 Delhi. Jabalpur. Indore. Bangalore.50 Incidentally.17 Delhi. Tirunalveli 6 41. Ahmedabad.Sun TV Vishakapatnam 1 0. Bhopal. Nagpur.Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Bid amount for first years license (Rs. Lucknow Chennai. Calcutta Delhi. Chennai 12 Hitz FM India FM Living Media Mid Day Broadcasting Millennium Broadcasting Music Broadcasting 1 1 3 3 1.37 Sumangali Publications . Coimbatore. Mumbai. crore) 43. Hyderabad. Chennai. Mumbai. Bhubaneshwar.90 Udaya TV . Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July. Pune Calcutta Calcutta Delhi.00 1. Cuttack. Indore.

Private FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. revenue-sharing also exists in the media sector. the number of FM radio stations targeted is around 300 to 400.5 per cent. the panel has fixed it at 4 per cent. While the private FM players had sought revenue-sharing in the band of 2-2. FM players pay annual licence fees. Setting up new radio stations After the second round of privatization. Future of Radio Industry 13 . Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. 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. The panel also suggested that players wanting to enter the sector in the second round of licensing need to have a technical viability clearance by a financial institution on the financial viability of the project. It’s better to keep the revenue-sharing figure low than to have a failed project. Revenue-sharing figure is quite low at around 4 %. However. which go up by 15 per cent every year. The objective is to “make FM radio a success story”. it is firm on revenue-sharing now.Radio Advertising Licence Fee and revenue sharing model Currently. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years.

advertising spending is expected to amount to Rs 500 crore this year.also government allowing foreign players to enter he Indian market it will help the industry grow. The new India deserves an active private FM radio sector. The Rs 1. for advertisers. There are an estimated 150 million radio sets across the country. Spearhead the government objective of growing the FM radio business in India. 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.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6. Also. community announcements and public service messages provide a real value-added service.2 billion by 2007. It can provide a level playing field with benefits for listeners. 14 . 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. 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. It is on the basis of these key drivers of growth. though radio has only a 2 per cent share in the Rs 6. with revenue rising at 23 per cent annually. employment & career options. Virgin group has already started exploring the Indian market for suitable partners.000 crore Indian advertising market. But at current levels of advertising support. each radio station is reeling under the brutal financial impact of high costs. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand.Radio Advertising FM Radio can play its part in building a stronger business future for India. helpful information traffic advisories. it is being predicted that radio's share in the total advertising pie will see an increase in the medium term.

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

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

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

the gross advertising spend in India is estimated at Rs 111 billion. The nominal GDP for fiscal 2005 was Rs. There is a correlation between the economic growth rates of a country i.636 billion. with a nominal GDP CAGR of 9. as a percentage of GDP.e.Radio Advertising Advertising in India India has been among the fastest growing economies in the world. the nominal GDP growth rate.9%. 30. and growth rates of the advertising industry The Indian advertising spends. which lags behind other developed and developing countries During fiscal 2005. is 0. 127 billion by fiscal 2006 18 . and is expected to grow at 14.34%. According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10.94% over the last 10 years (1995-2005).2% to reach Rs.

4% 0.7% 0.5% 0.Radio Advertising Segmentation in advertising The five key industry segments comprise print. 19 . resulting in growing ad spends on this medium. and outdoor.4% 47.3% 0.4% 0. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49. television.7% 2. especially since 1991.4% 0. which saw the beginning of satellite broadcasting in India.6% Outdoor 8.3% 40.5% 7.6% 46. Thus.3% The Indian television industry has grown rapidly.6% 41. the television broadcasting business. 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.0% Internet 0.4% 0.9% 2.5% 6. cinema.9% 2. now has over 300 channels covering the Indian footprint. which started off as a single government controlled television channel. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry.7% 2.7% 0.2% 46.3% Media Spends as % of Total Ad Spend TV Radio Cinema 39.5% 2. This growth was also aided by the economic liberalization program of the Government.0% 6.9% 0.4% 7. radio.0% 48.9% 43.0% 43.

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

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

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

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

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

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

6. Only 20 % of time availability restricts the frequency of message exposure. and it does not always succeed. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad. a drawback if the product must be seen to be understood. Limitations of Sound Radio is heard but not seen. 7. 8. Radio must compete with other activities for attentions. 26 . there is no proper research has been available on the area of radio listening. Some agencies think radio restricts their creative options.Radio Advertising 5. Creative Limitations The audio-only nature of radio communication is a tremendous creative compromise. 9. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. No proper research available In India. Therefore. Sometimes the voice really matters. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time. If the voice is irritating then there is a chance that the campaign may flop. which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. They can’t keep like a newspaper or a magazine ad.

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

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

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

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

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

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

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

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

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

m. 12. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price. music. radio prime time and same as morning drive time News. Characteristics Drive time.12. Often the job of the radio sales person must be conducted on a number of levels. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product.m.00 p. 3.m. The media buyer is looking for efficient cost per point.m. while the client’s goal is to move product. The successful ones begins with the clients problem and sales objectives an move systematically to a solution. Dayparts 6 a.3. . 7.m.00 p. or all-news Afternoon. talk shows Music.6.00 a.00 a.m. 10. music.00 a. interested chiefly in news Daytime.00 a. Radio salesperson must begin with the client’s needs and marketing goals. talk . b) The salesperson must move from the general advantages of radio to the advantages of specific station. the next step is to prepare a proposal. program characteristics of station.m. The radio salesperson must be aware that everyone involved in the transaction is looking for different results.00 p.m. After the salesperson has a firm grasp of the advertising problem. talk shows Elements of good radio commercial 36 . .7. 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. c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers. breakfast audience.10.m. drive time . As all radio stations are perceived to be same it is important to build value into the radio station by offering credible benefits that produced results and solutions for prospective clients.00 a.m.Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps. .00 p. . .

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

The producer prepares cost estimation 3. if one is needed. the producer selects a recording studio 4. a rehearsal is held. The studio tapes music and sound separately 8. The producer sees that the master tape is prepared for distribution on either tape or cassettes and shipped to stations. 7. 6. The studio mixes music and sound with voices. With the aid of the casting director. If music is to be included. 5. You are on the air! Measuring the radio’s effect Effectiveness research requires clarity of objectives – what are the agreed objectives of the overall campaign and of the radio campaign within this? Radio 38 . An agency or advertisers appoints a producer 2. the producer selects a musical director and chooses the music or selects stock music. 9. If necessary.Radio Advertising 1. the producer casts the commercial.

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

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

to varying extents. as the medium with the most active expectations. 41 . tends to dominate memories of advertising. Avoiding Misattribution: Using Split Samples:The simplest solution to the problem of measuring true radio awareness is to split your sample into two parts: listeners (target consumers who have been listening to the radio stations which carried the advertising) and non-listeners (people who do not listen to those stations. the second method has the advantage of questioning people who will have the same history of exposure to the brand. However.Radio Advertising Misattribution of Advertising:When asked to consider advertising. consumers will turn their thoughts to the most salient source they can think of – this tends to mean TV. attributed to television in the consumer’s mind. 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. Television. 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. with the result that campaigns in all other media are. Local distribution levels for the brand will also be the same. If the only difference between the two samples is their radio listening. This misattribution is disproportionately likely to happen with radio and is still more likely to happen when radio campaigns are creatively synergistic with TV executions. Which Option Should You Choose:Neither of the two approaches above is necessarily better than the other.

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

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

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

two different approaches can be taken: blind or branded.this allows prompting for brand-specific data.Radio Advertising Commercial recognition is a valuable technique – i. playing the radio ads to consumers – as this is the best “memory jogger” of all.g. whilst giving a true measure of ad recognition. it is possible to see whether creative treatment has successfully linked the message to the brand. ⇒ Blind By bleeping out all brand references in each execution and asking whether the commercial has been heard before and then asking for the brand name. (e. attitudes to the advertising/feelings about the proposition). When playing the radio commercials in order to measure commercial recognition. 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. ⇒ 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 .

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

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

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

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

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

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 92.100 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.

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. Being 52 .11. 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.6.30 .00 pm B 14% 7pm .30 am 20% 18% D/E 45% A 12% Radio Advertising 16% 14% 12% D/E 10% 45% 11.7am .

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

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

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

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

The Mumbai license was secured for Rs 10 crores. Radio City aims to reach out to listeners across demographic barriers.Bangalore. Delhi. and is trying to create a brand name. 1. information. Patna.Radio Advertising across the country in six cities . Nagpur and Lucknow. Target audience Radio City is not looking at any particular segment to target. 2. Mumbai. marketing and programming. The 4 P’s Product: For listeners . in mix of Hindi and English For corporate and retailers: . Selective in the sense that it has set up radio stations across the country in six cities . Radio City’s market strategy is backed up by six months of intensive research in Bangalore.The airtime. Mumbai. Hoardings all over the city. a perfect blend of English and Hindi music. Place: Intensive (all over Bombay) also. The idea is to create the brand and then to move on to specific target programming.Music. Delhi. Nagpur and Lucknow. STAR India’s radio division would provide or take charge of advertisement sales. teamed up with professional. so as to enable more targeted programming in the future. On the promotion front. hours 57 . The Television “fun ka doze har roz” ad campaign. Price: Advertisement rates Promotion: Radio city is one of the top 3 stations in the city. the channel undertook huge promotion campaign in the initial stages of its launch. This is thanks to its promotions. Intensive research is being carried out to ascertain demographic profiles of radio listeners.Bangalore. The channel is into sponsoring events especially college festival around Bombay city. vivacious RJ’s. Patna. a portfolio of entertainment programming 24 a day.

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

5fm as a part of their communication programme. target audience is young. Providing an attractive blend of 50:50 Hindi & English programmes. It does not only concentrate on Hindi or English but emphasizes on the attractive blend of both the world.5 FM. white-collar and upwardly mobile. with a heavy local flavor.Radio Advertising GO 92.5 FM was launched on 10th May’2002 by mid day group. white collar executive whose needs are clearly English music and programming. They are clear on their strategy and have already started catering to a certain set of audience that is mature. belting out the best hits non stop 24 hours a day. 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. Corporate aiming to serve the cream class of Mumbai can select go92. “The Sound of Mumbai” from Mid Day multimedia limited. along with sports. The wonderful world of Go 92. The 4 P’s Product: For listeners: the station is focusing on music of course. trailblazing media company. entertainment and business. Target Audience: Mid-Day's Go 92. Therefore. It primarily plays English music. Go92. to get an edge.5 FM now targets only the socio economic category (SEC) A and B1. a focus on international artists popular in India. and more westernized. the channel targets the age group of 15 to 45 year old. Radio Midday seem to have found a niche for themselves and clearly positioned themselves as 'the English Channel with a local/Indian image'. educated. Not to say that big Indian artists with big fame do not feature in their mix.5 FM targets the upscale Mumbaikars. For corporate and retailers: The airtime 59 .

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

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

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

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

000/. State Bank of India. HT. 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. Is it a women’s product? Is it male-oriented? Is it a retailer? If it is a retailer. 64 . and therefore they faced a major drawback in terms of losing out on a number of corporates. none of them have refused to consider them in their media plan. For male dominated products. Zee. then the client has to pay substantial amount of money to radio station because if they produce a jingle that is their assets. Hutch. they would advise the drive time hours or the late night show. Metlife. The do give some discounts to the accredited ad agency. similarly. Idea. we would advise a cosmetics brand to advertise on that programme. face-to-face conversation. length of the commercial.Radio Advertising Entertainment. surveys reveal that a number of men like tuning in to radio just before sleeping. Coke. ICICI Prudential. the shortcoming is only in terms of delay. Kotak Mahindra and Dabur among others. And from the nonaccredited ad agency. background conversation. 4. If there were a programme on beauty tips. there would be food-related brands advertising on it. They take 100 % money in advance from the direct client. The normal jingle length is 10 seconds and again here rates will differ on the basis of the sound effects. 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. Their revenue only from Bombay is more than two crore. However. Red FM was launched six months late. as they had already freezeed their media budget for the year. They normally charge around Rs. There are several questions that RED FM identifies before making a time-band suggestion.and the rates might increase or decrease depending upon the need of the advertisers. if there were a cookery show. LG. music.

they are also the only private FM radio broadcaster in the cities of Ahmedabad. Chennai and Kolkata. This segment addresses about 12 lakh listeners 65 . Mumbai. As the punch line says. On April 23. on 98.' They have a very clearly defined position . 2002. 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. a wholly-owned subsidiary of The Times Group.Radio Advertising RADIO MIRCHI [98. owned by Entertainment Network (India) Ltd.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.3 FM. the Radio Mirchi private FM station. 9 crores annual fees for Mumbai). debuted in Mumbai. Indore and Pune.they are a contemporary hit radio station. and their Target is around 18 to 35 .SEC A and B and in that too mainly youth and housewives. 'it is hot. 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.

RM later made a conscious decision to go Hindi. 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. 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. Chennai. However the slogan by itself was incomplete without the voices that accompanied it. Since radio is a free to air medium. CELEBRITIES and film stars that repeated every so often “hi I’m -------. plug Radio Mirchi through the other media that The Times Group owns. Hence it quickly became a mass channel with Hinglish being its prime lingo and having a wide audience appeal.. pubs for continuous advertisement of their channel to make people aware of the temptations given by the channels to them. retail showrooms.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. (Refer to annexure) Promotion: The marketing strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi. which reaches the lower end of the audience spectrum. Connect with the growing Radio listening population in Mumbai. A very large factor that contributed towards the establishing the brand of RADIO MIRCHI was its catchy slogan “it’s hot”. Delhi.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. Price: The advertisement rates. 66 .

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

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

Mr. 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. Hotpot Crackpot. Its major competitors are orange and R. Bappi-da Da Gyan. Promotional strategies adopted by Airtel through radio: uff Uff Mirchi! Hai Hai Mirchi! Airtel is now the first GSM service provider to tie up with a radio channel for the users benefit. With increasing competition airtel is now going in for more of radio advertising as against the television . 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. Airtel is creating an attitude of being people friendly and thus gaining huge share in the market. They can then listen to some popular programmes of the channel like. India’s leading cellular operator in the private sector. 69 .I. Mirchi Movie of the Month. 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.M and various other providers.Radio Advertising Case Study On Airtel Airtel. To avail this innovative tie-up.the Asli Batliboi and Ding Dong . 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. the users need to dial 646 from their Airtel enabled mobile handsets. The radio channel in question happens to be Radio Mirchi.

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

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. The basic problem in the Radio space in India is the excessive Government control and regulation. This could attract potential listeners on the move who want their daily share of the happenings around the world. In order to let the industry to grow the government needs to give it some space.revenue sharing.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. nothing much changed as regards to government control. The government charged a very heavy license fee for entering the market. did not allow broadcast of news and current events nor was there a scope of a foreign player entering the Indian market. But with the government citing national security as the reason for not doing so leaves little hope of this happening. currently a monopoly with All India Radio. go in for a system more prevalent worldwide . The consumer will also benefit as the industry can now tap into a larger basket (the foreign players) for greater variety. 71 . stations will pay the government a certain % of their gross revenue every year. atleast in the near future. 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. They should in fact. The Government should review its ban on private stations airing news and current affairs. 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. Under this system. as recommended by the TRAI.

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

Radio Advertising explosion of contests and sweepstakes offered by the Radio Stations currently. One aping the other is an honest testimonial to justify this statement. In the end Radio offers tremendous opportunities for advertisers and media planners need to explore various options by which they can effectively use radio in their media mix. Conversely, broadcasters need to develop the market by being more responsive to the advertiser's needs. This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium.

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Radio Advertising

Annexures Radio City - National Rate Card
30 Secs spot buy rates (in Rs.) Programme category 07:00 - 11:00 Radio active 17:00 - 20:00 11:00 - 17:00 20:00 - 22:00 22:00 - 00:00 Round the clock Radio Mix Radio Master Blaster Radio Ga Ga Mumbai 8000 6000 6000 4000 Delhi 8000 6000 6000 4000 Banglore 5000 4500 4000 2500 Lucknow 4000 3000 3000 2000

Terms and conditions:⇒ Minimum acceptable radio spot/ commercial duration will be 10 seconds. ⇒ In case any programme, which is being offered in this package, gets discontinued, the advertiser will move the spots to the programme replacing the discontinued programme in the same rate category. ⇒ To ensure proper and timely release of the spots, release orders should be given to MBPL through Star India Pvt. Ltd. At least 2 weeks prior to the date of airing of the first spot. ⇒ All bookings are subject to availability at the time of booking. The agency/advertiser must provide DATS at least fifteen days prior to first spot airing date. The sponsorship material must be sent four weeks prior to start date of the sponsorship of any programme. ⇒ All invoices should be settled by the advertisers/agency within 30 days from the date of the receipt of invoice. ⇒ Others…

RED FM
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Radio Advertising Red fm is currently operating in Mumbai, Delhi and Kolkotta, under the brand name 93.5 RED FM, Asli Masti. Our rate card per 10 seconds(1 unit) of airtime is as listen as below: Individual City Rates SPT 2400 2400 1800

City Mumbai Delhi Kolkotta

Prime 1800 1800 1200

NPT/ROS 1200 1200 600

Super Prime Time:
⇒ Mornings 8:00 a.m. to 10:00 a.m. ⇒ Evenings 6:00 p.m. to 8:00 p.m.

Prime Time:
⇒ 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.

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Radio mirchi rate card
75

000 Rs.000 Rs. 7.m – 8 a. 5.m Housewife / 260 Traders / Youth 5 p.m – 10 p.000 Rs. E.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. jingle length would be counted in multiples of 5 seconds.5 p.Radio Advertising Day Parts 7 a.000 Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday 76 . Over 10 seconds. 7.m – 7 a.g.000 Rs.10.m 8 a.m – 12 a. 5.m . 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.10.000 Rs.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.

Bibliography While working on this project I visited some of the radio stations and they gave me some information 77 .Radio Advertising Big Brunch (08001200 hrs) T-Man Rate: 1250/Sunday Midday Show (12001600 hrs) Ravi Rate: 1000/Mumbai Matinee (16001800 hrs) Travel Guy Rate: 1000/Mumbai Top 20 (18002100 hrs) Annie Rate: 1250/Bacardi Breezer Vivid Nights Malini Rate: 1250/Live DJ Set Sandy Midnight Shift Rate: Rate: 750/750/Nineties on 925 Chris Rate: 1250/- 07001100 hrs Good Morning Mumbai (GMM) Jaggu & Taranna Rate: 1500/- 11001400 hrs The Midday Show Shruti Rate: 1000/- 14001800 hrs 17001800 hrs College Radio Nadir Orange Request Hour Rate: 1250/- 18002100 hrs Horn Ok Please Malini Rate: 1500/- 21000000 hrs NightShift Glenn Rate: 1250/- 00000100 hrs Midnight Shift Rate: 750/- *All rates are per 10 seconds of airtime Super Prime Time Band (0800hrs-1000hrs) and (1800hrs-2000hrs) *SPTB will attract a 50% premium on card rates.

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