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


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.

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.


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


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

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

The receiver receives the radio waves and decodes the message from the sine wave it receives.5 megahertz" means that the transmitter at the radio station is operating at a frequency of 91.000 cycles per second. The first radio broadcasts occurred in 1906 or so. Both the transmitter and receiver use antennas to radiate and capture the radio signal. Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station.7 megahertz FM radio . encodes it onto a sine wave and transmits it with radio waves. In the 1920s.5 megahertz. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz. pictures for a TV set. hence the relatively low frequencies for AM radio.Radio Advertising Some Basic Technical Knowledge Any radio setup has two parts: • • The transmitter The receiver The transmitter takes some sort of message (it could be the sound of someone's voice. 6 . radio and electronic capabilities were fairly limited. He built the first station in 1939.5 fm “what the announcer means is that you are listening to a radio station broadcasting an fm radio signal at a frequency of 91.88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio. but FM did not become really popular until the 1960s." so "91.500. data for a radio modem or whatever).535 kilohertz to 1. When you listen to a radio station and the announcer says. "you are listening to 91. Common frequency band includes the following… • • AM radio . Megahertz means "millions of cycles per second. This band of the radio spectrum is used for no other purpose but fm radio broadcasts. and frequency allocation for AM radio occurred during the 1920s.

500 . advertising time available for sale is 9 . 250 per hour of needle time.. The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd.500 to Rs. Add Rs. so the question of royalties is relevant.minutes for social awareness advertising. 12. An hour long show thus costs Rs. 6. 100 per hour.for the music.000/. 1.for the technology.Rs. 6000/. Thus. the total revenue generated is Rs.minutes. the actual duration of a piece of music.Minutes have been set aside for advertising. 10. The IPRS claims royalty for the original composers and authors of music.Radio Advertising Royalties FM is primarily a music channel.000 per hour. 6.500 per hour (as against Rs.000/-. PPL is demanding a royalty of Rs. Cost .of the licensee fee to AIR. Add Rs. 100 per hour. The total expenses are thus Rs. 13.500/. 1. (PPL) are supposed to hold all the rights of royalties. Studio hiring costs are between Rs.500. 9000/. In other words. 18 advertisements each of 30 seconds can be accommodate in an hour. The IPRS is demanding Rs. Add Rs. 10 .per hour. 3.Aspect A Licencee pays Rs. 500 at prime time for 18 such spots.000/. Besides the tariff card should be modest. considering the limited range and listenership supposing a 30 . 1000 an hour. One minute is reserved out of 10 . Another estimate puts the production cost of an hour long programme around Rs. This is the high target. They are demanding Rs. 7 . salaries and other expenses. at which they are supplying music to AIR).seconder costs Rs.

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

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

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

New Media Broadcasting. respectively.for 76 channels in 26 cities.5 billion. each for Rs 77.Radio Advertising The government collected close to Rs 4. the bids for Hyderabad and Nagpur came next. a Zee Group company.for stations in Mumbai. while the bids for Delhi were Rs 71.2 million and Rs 74 million. which grew rapidly following the entry of private players Currently.6 billion as license fee for the privately run FM radio channels in 40 cities. The government got the highest bids . won the largest number of bids. Interestingly. which focused mainly on the smaller towns. garnered close to Rs 3. 11 .2 million each Radio is expected to follow the growth of the Television industry. The first round of bidding . FM coverage in India is restricted to just 17% of the country. compared to 89% of All India Radio (AIR).Rs 97.5 million from each of 10 broadcast companies .

00 1.87 20.87 Entertainment Network [India] Delhi. Ahmedabad.17 Delhi.00 17. Calcutta.87 Calcutta. Bhopal. Indore.Sun TV Vishakapatnam 1 0. Bhubaneshwar. Chennai 12 Hitz FM India FM Living Media Mid Day Broadcasting Millennium Broadcasting Music Broadcasting 1 1 3 3 1.37 Sumangali Publications . Vishakapatnam 4 2.Sun TV Vertex Broadcasting 3 9. crore) 43. Lucknow. Chennai 3 20. Jabalpur.17 Delhi. Cuttack. Mumbai. Mumbai. Lucknow Chennai. Chennai. Nagpur. Indore.Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Bid amount for first years license (Rs. Calcutta Delhi. Coimbatore.50 Incidentally. Patna. Tirunalveli 6 41. 12 . Bangalore. Pune Calcutta Calcutta Delhi.90 Udaya TV . Mumbai. Hyderabad. Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July. Mumbai. Mumbai.

FM players pay annual licence fees. Future of Radio Industry 13 . Revenue-sharing figure is quite low at around 4 %. 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 also exists in the media sector. While the private FM players had sought revenue-sharing in the band of 2-2. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years. the number of FM radio stations targeted is around 300 to 400. Private FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. it is firm on revenue-sharing now. Setting up new radio stations After the second round of privatization. which go up by 15 per cent every year.Radio Advertising Licence Fee and revenue sharing model Currently.5 per cent. the panel has fixed it at 4 per cent. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. The objective is to “make FM radio a success story”. However.

000 crore Indian advertising market. community announcements and public service messages provide a real value-added service. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand. The Rs 1. 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. each radio station is reeling under the brutal financial impact of high costs. 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.2 billion by 2007. It can provide a level playing field with benefits for listeners. The new India deserves an active private FM radio sector. for advertisers.Radio Advertising FM Radio can play its part in building a stronger business future for India. But at current levels of advertising support.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6. With more players in the fray the FM radio industry would grow and also enhance the government’s yield from licensing radio naturally. It is on the basis of these key drivers of growth. Also. There are an estimated 150 million radio sets across the country.also government allowing foreign players to enter he Indian market it will help the industry grow. Virgin group has already started exploring the Indian market for suitable partners. Providing free-to-air local broadcasts of music and entertainment. With the government ready to reduce the license fees it will help in attractingnew palyers like reliance which had earlier backed out only due to the entry fees. though radio has only a 2 per cent share in the Rs 6. Spearhead the government objective of growing the FM radio business in India. 14 . advertising spending is expected to amount to Rs 500 crore this year. employment & career options. with revenue rising at 23 per cent annually.

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

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

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

as a percentage of GDP. There is a correlation between the economic growth rates of a country i. 127 billion by fiscal 2006 18 . According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10.2% to reach Rs. 30. the gross advertising spend in India is estimated at Rs 111 billion.94% over the last 10 years (1995-2005).9%.e. the nominal GDP growth rate. and is expected to grow at 14. The nominal GDP for fiscal 2005 was Rs.34%.636 billion.Radio Advertising Advertising in India India has been among the fastest growing economies in the world. which lags behind other developed and developing countries During fiscal 2005. is 0. with a nominal GDP CAGR of 9. and growth rates of the advertising industry The Indian advertising spends.

resulting in growing ad spends on this medium. television.4% 0.2% 46. radio.5% 7. 19 .5% 2.4% 0.3% The Indian television industry has grown rapidly.5% 0.7% 0.0% 48.3% 0.0% Internet 0.0% 43. Thus.3% Media Spends as % of Total Ad Spend TV Radio Cinema 39.4% 47.5% 6.Radio Advertising Segmentation in advertising The five key industry segments comprise print.7% 2. the television broadcasting business. and outdoor.4% 0.3% 40.9% 0. now has over 300 channels covering the Indian footprint. 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.6% Outdoor 8.7% 0.6% 46.7% 2. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry.0% 6. cinema.6% 41. which started off as a single government controlled television channel. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49. This growth was also aided by the economic liberalization program of the Government.9% 2. especially since 1991.4% 7.9% 43.4% 0.9% 2. which saw the beginning of satellite broadcasting in India.

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

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

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

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

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

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

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

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

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

unless very well written and well produced. 30 seconds sounds like an impossibly short time to get your message across. the better it will be remembered or at least. A 60 does allow you more variety in music. they charge a unit rate. In theory. Those however are rare. you may find that 60s. But take a stop watch and time some spots on the air. 60 around 150 to 160 words. one could assume that the longer a spot. 30 is usually 70 to 80 words long. The longest commercial played on the radio is 120 seconds. and voice and can be useful for political message. In fact. this is one case where you might want to use a: 60 to take advantage of the “free” air time. and a. 10 second spot should contain 25 words 20 second spot should contain 45 words 30 second spot should contain 65 words 60 second spot should contain 125 words If you’ve never written a spot. In General. you’ll see that quite a lot can be accomplished in a short time. 29 . sometimes seem a bit too long. or ask your sales rep. The cost of a: 30 is usually about 60% to 75%. the announcement of a new or little-understood service. 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. Check the rate cards of the stations you are interested in. In other words. or other sports with a information/education content.Radio Advertising Length of Spots The radio commercials in the test reels consisted of several different spot lengths. 30 sec and 60 sec. 20 sec. a: 30 costs the same as a: 60. The spots for advertisement can be for 10 sec. Instead. ranging from 15 to 60 seconds. Some stations no longer charge a separate rate for: 30s and: 60s. sound effects. the more chance there it that it will be heard. Obviously.

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

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

As a general rule. you may need to buy two or more stations with widely different formats. If your target and audience includes both younger and older people. survey the local market. To really learn who is listening to your spots. requires repetition to have impact. There are scheduling strategies that help increase the impact of the spots you place. These surveys break the audience down by age and sex. But how many is enough?Generally. There are. (“I run a schedule of 20 ads a week.”) 4) How many stations do you need Just as you should never run too few spots. break the listening week down into segment. a minimum of 20 spots per week should be aired. however.Radio Advertising Sponsorships are like marriages. times when one station will suffice. but that varies depending on your audience and the number of competing stations in the market. you should run on at least two or three stations. If your audience is business people. six months out of the year. 3) Frequency Radio. and then tell you how many listeners each station had in each category. like most media. that may be all you need to succeed. they’re only for people who are ready for a longterm commitment. and you can afford to buy drive time on the dominant news/talk station in the market. 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.”) A schedule is the long-term version of a flight. Similar survey on listenership has been conducted by IMRB (Indian Market Research Bureau) 32 . A flight is a group of ads. (“I’m running a flight of 80 ads this month.

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

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

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

00 p. Often the job of the radio sales person must be conducted on a number of levels.12. The media buyer is looking for efficient cost per point. drive time . or all-news Afternoon.m. 12.m.m. c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers. 3. 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. . while the client’s goal is to move product. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price. . interested chiefly in news Daytime. Characteristics Drive time.Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps. breakfast audience.m. 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. radio prime time and same as morning drive time News.m. music.3.00 p. talk . .10.00 p. . The radio salesperson must be aware that everyone involved in the transaction is looking for different results. talk shows Elements of good radio commercial 36 .m.m. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product.00 a. the next step is to prepare a proposal.m. The successful ones begins with the clients problem and sales objectives an move systematically to a solution.00 p. music.6. .m. 10. After the salesperson has a firm grasp of the advertising problem.7.00 a. program characteristics of station. Dayparts 6 a. 7. Radio salesperson must begin with the client’s needs and marketing goals. b) The salesperson must move from the general advantages of radio to the advantages of specific station.m.00 a.00 a.00 a. talk shows Music.

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

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

then the effect can be attributed to radio fairly confidently – even if the listeners think the advertising was in another medium. playing the ads to consumers.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.e. In other words. the post-stage in the week after the campaign finishes. radio advertising research aims can be categorised into two types: ⇒ Marketing issues – to what extent has radio helped to achieve the campaign aims? ⇒ Media planning issues – what effect do different media strategies have on the performance of the campaign? Marketing Issues:. Consumers tend to misattribute radio-advertising memories to other media. Below are some typical examples: 39 . what are you aiming to measure? In broad terms. Brand names can be bleeped out of the commercial. 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. Radio research can successfully be done using telephone interviewing – ads can be played down the line. It provides a more robust measure of whether they have heard the campaign. particularly TV. if the increase in advertising awareness is greater among listeners than it is among non-listeners. This tendency to misattribute can be offset by using matched samples of listeners and non-listeners.These vary widely and there can be often more than one objective set for a campaign. to test whether the campaign is linked to the brand. This is particularly likely to happen where there is a strong executional link between the two media and/or where there is an history of TV advertising for the brand. This way. Commercial recognition is a valuable technique – i. However cases where other media are to be included in the research it might be more appropriate to use face-to-face interviewing.

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

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

This ensures that any differences can confidently be attributed to radio ad exposure. 42 . media consumption and weight of exposure to the brands’ advertising in other media.g. it will be possible to compare the results among those who have been exposed to the campaign with the results among those who have not .thus giving you a measure of radio’s effectiveness.Radio Advertising The key point is that the listener and non-listener samples must be matched as closely as possible in terms of demographics. It is equally important to ensure weight of advertising for your brand in all other media is the same for both samples. The two geographical areas should also be comparable – (or “typical”) in terms of media and product consumption as a whole. how much TV they watch etc) as well as their demographics. 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. the other in an area where no radio advertising ran. as this could affect response. It is important to match the media consumption of the samples (e. In this way.

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

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

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

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

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

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

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

The following is the standard procedure involved in calculating the listenership of a radio station. All the interviewers are informed of the above and a questionnaire is given. IRMB believes that time is ripe for a continuous Radio audience measurement system.600 individuals.000 households and 3. • • • • • Then the analysis findings are forwarded to the research department and published A project is selected and a deadline is given.the continuous radio audience measurement system in Mumbai. A sample size is decided which is spread all over the target city / town etc. IMRB International decided to launch RADAR RADIO LISTENERSHIP SYSTEM . With the growing salience of Radio.Radio Advertising Creating the right mix A fieldwork was conducted by IMRB(Indian Market Research Bureau) to know about the listeners which encompassed the entire Mumbai urban agglomeration through a random sampling of 6. When the questionnaires are filled. they are complied and sent to the analysis department 50 . 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. or on particular request by a company.

5 SLBC World Space VOA At the country level: % mentioning Total awareness of radio stations Gender of radio audience Female 42% MALE 58% 51 .100 90 80 70 60 Radio Advertising Female 42% 50 40 30 20 10 0 AIR FM1 AIR FM2 Vividh Bharati Radio Mirchi Radio City M ale 58% BBC AIR Primary WIN 94.6 Go 92.

30 am 20% 18% D/E 45% A 12% Radio Advertising 16% 14% 12% D/E 10% 45% 11.00 pm B 14% 7pm .11pm A 12% 8% 6% 4% 2% 0% C 29% C 29% B 14% % liste n e r s Socio Economic Classification Listenership by time slots Analysis Analysis While the overall reach of radio in India is high it can be seen above that awareness of private radio channels is not much. 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.7am .6.30 .

In order to meet the requirements of its listeners and its corporate audiences.50 which make it very affordable. For marketers it then becomes necessary to identify the audience they want to target and respectively book their airtime so as to reach the right audience with the right mix at the right time 53 . While the sec A.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. on the other and the 11-2 slot has the women segment listening while the nights are more concentrated on teens. Radio is very popular with the sec D/E market due to its cheap cost. As the 7. Which is why the new entrants are vying for their share of the pie and encouraging the government to release more airwaves for them. B have a wider variety of entertainment available to them radio is not widely used. specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium. giving the advertisers a vast array to meet their specific target markets. The private fm players mainly having license for big cities and towns although are gaining awareness in cities and towns they are still in their growth stage and for them to be known everywhere they have to diversify geographically and reach the rural population where the radio is a very important medium of entertainment. Radios are now available at prices below Rs. Various shows are held by the radio stations. However with new players entering the market and providing them with the content they want the trend is now changing more people are switching on their radio sets even in these categories.Radio Advertising the only service provider it was able to penetrate deep into the Indian market. 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.

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

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

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

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

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

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

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

Alitalia airways. Zee MGM. Timex watches.5 in September 2003 were Coca Cola.5 and they have had the majority of the revenue coming in from niche English channels such as Star Movies. During the first half of 2003-04. the station has garnered total revenues of Rs 1. A few big Hindi properties such as Awaaz and Jeena Isi Ka Naam Hain have been promoted extensively as well. Asian Paints.Radio Advertising the station called Mumbai bazaar. But those are basically the advertisers who are very keen to be on the station. HLL. STAR network that is star world and movies. Discovery. Kellogg’s. Go does not plan to hike rates because they are looking at consolidating at the current rates and also trying to minimize the discounts they give to our clients on the rate card. BPL Mobile. Colgate. 61 . The station is seeing a 50-60 per cent quarter on quarter growth. Star World. Bazee. Zee TV and Tata Indicom. Max New York Life. AXN and Discovery. Sony Entertainment TV. Tata Cadbury. Other advertisers are Tata Motors. Zee English. There has been a sizeable increase in channel spends on Go 92. McDonald.36 crore. Orange. The top advertisers on Go 92.

RED FM has spent close to Rs 17. 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. Mumbai and Kolkata for the first year.5FM] “Red is in your Head”. weather. Because it is more a mature audience. warm. energetic and passionate Apparently. as a bright. Target Audience 93. Red FM may not be modest but it is certainly witty. The ‘take aways’ are plenty – everything that the station says and does is of relevance to its listeners.5 Red FM caters to 25-plus age group. friendly. 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. screams the advertisement of Red FM. 62 .87 crores as license fees for the three centers of Delhi. the 24-hour FM radio channel from the Living Media stable. An additional Rs 20 crores has been invested on infrastructure etc in these three cities. city-specific events and the latest buzz on everything current. Described.Radio Advertising RED [93. reliable. followed by Delhi and Kolkata. uncomplicated and honest. The much-awaited Red FM on 93. And in the second phase. 2002.5 MHz hit the airwaves in Mumbai first on June 26.

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

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

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

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

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

they have implemented the changes in the time slots of the different shows on air. But this country can have 5.  Radio Mirchi emerges up as the No.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. Future Plans:Radio Mirchi is looking radio Industry from the long term point of view.63 lacs. definitely Coimbatore. They are interested in some of the bigger cities for instance. Hyderabad. Chandigarh. Bangalore. Mirchi would eventually look at having a presence in every nook and corner of this country. 68 . That will still take us to about 15 frequencies. 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. Hence. Ludhiana. 1 channel and delivers high numbers with Daily listenership at 24.000 radio stations. which means going into the smaller towns. accordingly.  Radio Mirchi delivers highest number in terms of listenership among the Radio Listening student population. Lucknow and Kanpur.

To avail this innovative tie-up.I. Mirchi Movie of the Month. However it has a long way to go as no one is ever safe in this market and one has to keep up its good work going.the Asli Batliboi and Ding Dong . Mr. Devdas . 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. India’s leading cellular operator in the private sector. Airtel is creating an attitude of being people friendly and thus gaining huge share in the market. the reason being the huge radio boom with the large number of customers tuning into radio more often than ever. Hotpot Crackpot.Radio Advertising Case Study On Airtel Airtel.M and various other providers. They can then listen to some popular programmes of the channel like. 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. The radio channel in question happens to be Radio Mirchi. 69 . the users need to dial 646 from their Airtel enabled mobile handsets. 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.Mona Sing a Song. Bappi-da Da Gyan. With increasing competition airtel is now going in for more of radio advertising as against the television . Its major competitors are orange and R.

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

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

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

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.


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…


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

City Mumbai Delhi Kolkotta

Prime 1800 1800 1200

NPT/ROS 1200 1200 600

Super Prime Time:
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5. 7.10.m . jingle length would be counted in multiples of 5 seconds.m Drive BPO’s / Youth / Drive 550 260 400 250 220 145 220 145 170 130 170 130 Minimum jingle length   The minimum jingle duration will be considered as 10 sec.m Housewife / 260 Traders / Youth 5 p.g.m 8 a.m – 12 a. A 23 second jingle would be billed as 25 seconds Jingle production charges Centres Mumbai Delhi Chennai Kolkata Ahmedabad Pune Jingle cost Rs. E.000 Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday 76 .10.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.000 Rs. 7.000 Rs.000 Rs. Over 10 seconds. 5.000 Rs.Radio Advertising Day Parts 7 a.000 Rs.m – 7 a.m – 10 p.m – 8 a.m 10 p.5 p.

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. www. www.go925fm.allindiaradio.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            78 .com www.rab.indiatoday.economicstimes.   Newspapers and Magazines Times of India Economics Times Business Standard Financial Express     Various websites were also visited such as.

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