Radio Advertising

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

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Radio Advertising

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

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

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Radio Advertising

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

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

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

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

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

"you are listening to 91. The first radio broadcasts occurred in 1906 or so. encodes it onto a sine wave and transmits it with radio waves.535 kilohertz to 1. He built the first station in 1939.7 megahertz FM radio . 6 . Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. This band of the radio spectrum is used for no other purpose but fm radio broadcasts.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. When you listen to a radio station and the announcer says.000 cycles per second. Common frequency band includes the following… • • AM radio . data for a radio modem or whatever).500. hence the relatively low frequencies for AM radio. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz. Both the transmitter and receiver use antennas to radiate and capture the radio signal." so "91. In the 1920s. but FM did not become really popular until the 1960s.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. radio and electronic capabilities were fairly limited. pictures for a TV set. 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 91.88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible.5 megahertz. and frequency allocation for AM radio occurred during the 1920s. Megahertz means "millions of cycles per second.

1. 100 per hour.500 to Rs. 250 per hour of needle time. salaries and other expenses.Minutes have been set aside for advertising.000 per hour.500 per hour (as against Rs.of the licensee fee to AIR. Cost . so the question of royalties is relevant. In other words. The IPRS claims royalty for the original composers and authors of music. 1. Studio hiring costs are between Rs. considering the limited range and listenership supposing a 30 . 500 . The total expenses are thus Rs. 13. 12. 9000/. 6. 7 . Besides the tariff card should be modest. An hour long show thus costs Rs. PPL is demanding a royalty of Rs. advertising time available for sale is 9 . The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd.. at which they are supplying music to AIR). 18 advertisements each of 30 seconds can be accommodate in an hour. This is the high target.500.000/-. 100 per hour.for the technology. Add Rs.000/.minutes.Rs. One minute is reserved out of 10 .Radio Advertising Royalties FM is primarily a music channel. 6. Add Rs. 10 . 1000 an hour. the total revenue generated is Rs.for the music.500/. Thus. (PPL) are supposed to hold all the rights of royalties.seconder costs Rs. Add Rs.per hour. Another estimate puts the production cost of an hour long programme around Rs. 500 at prime time for 18 such spots. The IPRS is demanding Rs. They are demanding Rs.Aspect A Licencee pays Rs. 3.minutes for social awareness advertising. 10.000/. 6000/. the actual duration of a piece of music.

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

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

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

5 million from each of 10 broadcast companies . which focused mainly on the smaller towns. The first round of bidding . The government got the highest bids . a Zee Group company. each for Rs 77.for stations in Mumbai. FM coverage in India is restricted to just 17% of the country. the bids for Hyderabad and Nagpur came next. New Media Broadcasting.Radio Advertising The government collected close to Rs 4. Interestingly. garnered close to Rs 3.2 million and Rs 74 million.6 billion as license fee for the privately run FM radio channels in 40 cities.2 million each Radio is expected to follow the growth of the Television industry. which grew rapidly following the entry of private players Currently.Rs 97. respectively. 11 . compared to 89% of All India Radio (AIR). won the largest number of bids.for 76 channels in 26 cities. while the bids for Delhi were Rs 71.5 billion.

00 1.00 17. Cuttack. Calcutta Delhi.87 20. Coimbatore.Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Bid amount for first years license (Rs. Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July. 12 .Sun TV Vertex Broadcasting 3 9. Bangalore.50 Incidentally.37 Sumangali Publications .17 Delhi. Mumbai. Vishakapatnam 4 2. Indore. Chennai 12 Hitz FM India FM Living Media Mid Day Broadcasting Millennium Broadcasting Music Broadcasting 1 1 3 3 1. Chennai 3 20. crore) 43. Ahmedabad. Nagpur. Mumbai. Pune Calcutta Calcutta Delhi. Patna.17 Delhi. Calcutta. Bhubaneshwar. Mumbai. Bhopal.90 Udaya TV . Jabalpur. Indore. Mumbai. Hyderabad. Mumbai. Lucknow Chennai.87 Calcutta.Sun TV Vishakapatnam 1 0. Tirunalveli 6 41.87 Entertainment Network [India] Delhi. Lucknow. Chennai.

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

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

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

the large number of the audience in India is fragmented in various remote places. and therefore it is difficult to differentiate between the programmes of the different channels. This is the situation that every radio channel is facing. Research is the main base to attract client and get more revenue. And therefore. Short commercials Opportunities: • Getting copyright licenses from the government for running mega events which are aired on the AIR radio station and have been restricted to be aired on other private stations. • • • Launching a radio station with 24-hour news channel Tie-ups with BEST or railway authority for playing the FM in train and in bus. • No proper research available . And like its radio message creates a fleeting impression that is often gone in an instant. Many stations are conducting their own research which can be biased. • Fragmented Audience .Radio Advertising Weakness: • One of the major weaknesses of Radio is that there is very less differentiation in the programmes that are aired. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. in India there is no proper research is available. • Radio-only nature of radio communication is a tremendous creative compromise.research is very important for any advertising segment. But. • • Increase in listenership numbers but no increase in ad revenue. the percentage of listener tuned to anyone station is likely very small. The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium 16 . Most of the stations plays much of the music that is played consist of Hindi Film songs. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio.

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

is 0. as a percentage of GDP. the nominal GDP growth rate.Radio Advertising Advertising in India India has been among the fastest growing economies in the world. and is expected to grow at 14.34%.94% over the last 10 years (1995-2005). There is a correlation between the economic growth rates of a country i.2% to reach Rs. 127 billion by fiscal 2006 18 . The nominal GDP for fiscal 2005 was Rs. 30.9%. which lags behind other developed and developing countries During fiscal 2005.e.636 billion. the gross advertising spend in India is estimated at Rs 111 billion. with a nominal GDP CAGR of 9. and growth rates of the advertising industry The Indian advertising spends. According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10.

Radio Advertising Segmentation in advertising The five key industry segments comprise print.9% 0.9% 2.6% 46.0% Internet 0.3% Media Spends as % of Total Ad Spend TV Radio Cinema 39. resulting in growing ad spends on this medium.7% 0. especially since 1991.4% 0.4% 7.4% 0.6% Outdoor 8. television. the television broadcasting business.3% 0. This growth was also aided by the economic liberalization program of the Government.0% 43. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49. 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.5% 7.7% 2.4% 0. Thus. and outdoor.9% 43. which started off as a single government controlled television channel.9% 2.4% 47.0% 6.5% 2.0% 48.7% 0. which saw the beginning of satellite broadcasting in India.2% 46.3% 40. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry.5% 6.4% 0. radio.7% 2. now has over 300 channels covering the Indian footprint.6% 41.5% 0. 19 .3% The Indian television industry has grown rapidly. cinema.

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

that most advertising is aimed at adults. in revenue terms.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. concerts Vague/ not relevant: This includes memories of ads for local garages. like a food chain that is opening an outlet in Mumbai.they feel. and the print medium is too expensive. Because radio is a real-time intrusive medium. to Rs 808. However. and once audiences can be targeted. & Rs.g. probably quite correctly. This makes sense if the advertiser. Revenue from commercials on AIR. There was evidence of three sorts of memories: Relevant : This includes Ads which mentioned areas or names of specific interest. including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990. In such cases.4 million in 2000. Consumer opinions The evidence from the qualitative research is that young people feel their local FM station is aimed at people like them. representing a growth of about 7.5 per cent per annum. all of that went to ALL INDIA RADIO. A clear advantage that radio has is that it can easily target city-based audiences. it does not make much sense to advertise on TV. Here.9 per cent of the money spent by advertisers goes to radio.Radio Advertising but don't have anybody who knows how radio works. and up till now. outlets selling favoured brands. 600 crores in 2002. it has tremendous potential to eat into local mediums. e. only about 2. films. but the advertising is not . 21 . Radio is the best bet for such small-scale promotions. It is also aptly suited for local promotions. wants to target a specific audience. cars and insurance companies . money from advertising has gone up. they have to sit through the full length of any ads which are for irrelevant products.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

12. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price. while the client’s goal is to move product. As all radio stations are perceived to be same it is important to build value into the radio station by offering credible benefits that produced results and solutions for prospective clients.7. 3.6. . After the salesperson has a firm grasp of the advertising problem. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product.12.m. c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers.00 a.m. breakfast audience.00 a. talk shows Elements of good radio commercial 36 . 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.m.m. b) The salesperson must move from the general advantages of radio to the advantages of specific station. radio prime time and same as morning drive time News. . interested chiefly in news Daytime. .m. 10. music.m.00 p. . the next step is to prepare a proposal. Dayparts 6 a.10. program characteristics of station.m. music. Radio salesperson must begin with the client’s needs and marketing goals.m. 7. Often the job of the radio sales person must be conducted on a number of levels. The successful ones begins with the clients problem and sales objectives an move systematically to a solution. drive time .00 a.00 p. Characteristics Drive time. The radio salesperson must be aware that everyone involved in the transaction is looking for different results.3. .00 p.Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps. talk shows Music. talk .00 a. or all-news Afternoon.00 a.00 p. The media buyer is looking for efficient cost per point.m.m.

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

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

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

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 . for example: . 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.  Secondly. if you are testing a number of media strategies simultaneously. Whatever your research objectives. balanced research “cell” for each media-variable.  Lastly. If you do intend to test a particular media strategy there are three important considerations to note.there are specific tools available for measuring sales effects for example. bear in mind that you will still be judging the effects in terms of the overall campaign objectives.Effectiveness of different spot lengths .  Firstly. 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. as a secondary aim you might also be trying to test and evaluate the effects of using different media strategies.Burst versus continuous activity . when testing different media strategies. you must gear the campaign so that you can test the particular media strategy in which you are interested.Use of different day part strategies.Radio Advertising  . Media Planning Issues: . and most obviously.

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

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

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

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

it is possible to see whether creative treatment has successfully linked the message to the brand.g. playing the radio ads to consumers – as this is the best “memory jogger” of all. When playing the radio commercials in order to measure commercial recognition.e. A fairly straightforward questionnaire will take around 10-15 minutes to run through – much longer and respondents will begin to lose interest and concentration! 45 . attitudes to the advertising/feelings about the proposition). ⇒ Branded . whilst giving a true measure of ad recognition. two different approaches can be taken: blind or branded. 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.this allows prompting for brand-specific data. (e.Radio Advertising Commercial recognition is a valuable technique – i. ⇒ Blind By bleeping out all brand references in each execution and asking whether the commercial has been heard before and then asking for the brand name.

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

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

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

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

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

100 90 80 70 60 Radio Advertising Female 42% 50 40 30 20 10 0 AIR FM1 AIR FM2 Vividh Bharati Radio Mirchi Radio City M ale 58% BBC AIR Primary WIN 94.6 Go 92.5 SLBC World Space VOA At the country level: % mentioning Total awareness of radio stations Gender of radio audience Female 42% MALE 58% 51 .

11.6.30 .7am .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. 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. Being 52 .00 pm B 14% 7pm .30 am 20% 18% D/E 45% A 12% Radio Advertising 16% 14% 12% D/E 10% 45% 11.

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. on the other and the 11-2 slot has the women segment listening while the nights are more concentrated on teens. Various shows are held by the radio stations. Radio is very popular with the sec D/E market due to its cheap cost.Radio Advertising the only service provider it was able to penetrate deep into the Indian market.50 which make it very affordable. Radios are now available at prices below Rs. 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. 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 . In order to meet the requirements of its listeners and its corporate audiences. While the sec A. As the 7. B have a wider variety of entertainment available to them radio is not widely used. Which is why the new entrants are vying for their share of the pie and encouraging the government to release more airwaves for them.30 to 11 slot is the most important slot because many listeners are tuned in the shows are generally family oriented as everyone mostly listens to them and news programs on government owned stations. The private fm players mainly having license for big cities and towns although are gaining awareness in cities and towns they are still in their growth stage and for them to be known everywhere they have to diversify geographically and reach the rural population where the radio is a very important medium of entertainment. giving the advertisers a vast array to meet their specific target markets. specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium.

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

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

recommending a suitable positioning for AIR Channels. which is on in Patna. Kolkata and Delhi at different numbers. AIR as the radio network that communicates with people in their language broadcasting in 24 languages and 146 dialects contributes to the enrichment of Indian classical music and broadcast fast and accurate. The service. RADIO CITY [91FM] Radio City. Chat shows. It will promote and publicize sports events covered by AIR besides popularizing existing services like Radio on Demand and News on Phone. The company has received the license to set up radio stations 56 . was launched on 21st May 2002. will also cash in on phone bulletins. a venture promoted by Star and Music Broadcast Private Ltd (MBPL). AIR planned and developed special packages for the North East and J&K. Prasar Bharati is set to launch a major campaign aimed at repositioning and total branding of the two FM Channels of All India Radio (AIR). The ad agencies have been asked by the Prasar Bharati to make a strategy presentation.Radio Advertising AIR. 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. development of infrastructure and the changing scenario in the state. will be launched across the country with a four-digit common number. MBPL is a company backed by P.Hindi Music. Prasar Bharati is also planning to fill the vacancies in regional stations. Western Music. especially in North East and J&K. which produces more than 300 bulletins daily. a marketing plan and publicity plan with suitable media mix.K.Mittal. Helplines etc. family and Associates. focusing on the rich cultural heritage. Prasar Bharati is positioning AIR FM Rainbow as a channel offering a buffet fare . and for this it is launching a campaign in select cities. setting up radio clubs and maximizing AIR revenue. Hyderabad. The entire publicity campaign of AIR is being designed by Prasar Bharati's ad agencies.

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

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

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

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

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

friendly. The ‘take aways’ are plenty – everything that the station says and does is of relevance to its listeners. For corporates and retailers: the airtime Place: Intensive in Mumbai and selective all over the country because it has other stations in Delhi and Kolkatta.5FM] “Red is in your Head”. the 24-hour FM radio channel from the Living Media stable. They changes everything in terms of how we play music and the RJs we have according to this target group The 4 P’s Product: For listeners: The programming mix has non-stop music interspersed with Red FM’s ‘crisp’ and ‘entertaining’ updates on traffic. followed by Delhi and Kolkata. The much-awaited Red FM on 93. 62 . Target Audience 93. RED FM has spent close to Rs 17. weather. An additional Rs 20 crores has been invested on infrastructure etc in these three cities. uncomplicated and honest. as a bright.87 crores as license fees for the three centers of Delhi. city-specific events and the latest buzz on everything current. warm.Radio Advertising RED [93. Mumbai and Kolkata for the first year. reliable. And in the second phase. Because it is more a mature audience. Red FM may not be modest but it is certainly witty. energetic and passionate Apparently.5 Red FM caters to 25-plus age group. Described. 2002. screams the advertisement of Red FM.5 MHz hit the airwaves in Mumbai first on June 26.

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

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

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

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

non prime time and the likes.Radio Advertising Advertising Radio Mirchi charges the highest rate of Rs 2. In most cases. they offer ten minutes per hour on Radio Mirchi. stations offer discounts on what is on their rate cards.000 and Rs 1. the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000.500 for a 10-second slot. Today it is fashionable to be on radio. Most of the national advertisers on radio mirchi today want to buy all the stations on air. But in Mumbai it is at 10%. There is huge inventory pressure on them and therefore they had to increase the ad rates. Currently. 67 . In Ahmedabad and Pune it is probably about 25 to 40% of the business. Currently radio mirchi has hiked their prices because they know that Radio Mirchi today is one of the best radio channels and they offer value to the advertisers who spend on their station. The 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. the rest of the FM channels charge anything between Rs 1. While all the other stations offer more slots and run ads for over 15 minutes. There is very little retail advertising on radio. Clients buy effective rates and they buy a combination of spots like prime time. on an average. there are 125 to 175 brands advertising on Radio Mirchi. across the five stations. In Indore more than half of Mirchi revenue comes from retail. Radio Mirchi gives 45 lakhs weekly listeners as per Radar study. So they have package deals for them also. Radio mirchi sells independently and does not offer any print package deal even though they belong to Times Group – they are an independent company.000 for a 10-second slot. There are about more than 300 advertisers on Mirchi. There is an average listenership of 45 minutes per day on the station. On an average.

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

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

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

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

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

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

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Radio Advertising

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

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

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

City Mumbai Delhi Kolkotta

Prime 1800 1800 1200

NPT/ROS 1200 1200 600

Super Prime Time:
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⇒ Morning 7:00 a.m. to 8:00 a.m. ⇒ Morning 10:00 a.m. to 11:00 a.m. ⇒ Evenings 5:00 p.m. to 6:00 p.m. ⇒ Evenings 8:00 p.m. to 9:00 p.m.

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Radio mirchi rate card
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5.000 Rs.m – 12 a.000 Rs.000 Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday 76 . jingle length would be counted in multiples of 5 seconds.m 8 a.5 p.10.Radio Advertising Day Parts 7 a. Over 10 seconds.m – 8 a. 7. E.m Housewife / 260 Traders / Youth 5 p.000 Rs.g. 5.10.000 Rs. 7.000 Rs.m .m Time Band Delhi Mumbai Chennai Kolkata Ahmedabad Pune Family Family /Drive 500 850 500 650 250 220 260 145 220 260 145 170 215 130 170 215 130 12 a.m 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 10 p.m – 10 p. A 23 second jingle would be billed as 25 seconds Jingle production charges Centres Mumbai Delhi Chennai Kolkata Ahmedabad Pune Jingle cost Rs.m – 7 a.

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

com www.Radio Advertising However to support the same I have done some most of the research work from the following text books: The advertising handbook by Dell Dennison Direct Marketing Management by Mary Lou Robert and Paul Berger.timesofindia.star.uk www.com www.agencyfaqs.com www.in www.indiatoday.com www.com www.com www.rab.economicstimes.go925fm.hinduonnet.radiomirchi.com            78 .org www. www.exchange4media.allindiaradio.co.   Newspapers and Magazines Times of India Economics Times Business Standard Financial Express     Various websites were also visited such as.co.com www.

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