Radio Advertising

RADIO
ADVERTISING

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Radio Advertising PROJECT REPORT ON ( RADIO ADVERTISING ) SUBMITTED TO THE UNIVERSITY OF MUMBAI IN THE PARTIAL FULLFILLMENT FOR THE DEGREE OF BACHLOR OF MANAGEMENT STUDIES (B.M.S.) BY SWAPNIL DILIP RAUT A / 703 , SHREENATH RESIDENCY JAIDEEP NAGAR, H.D. KOPARKAR MARG, MULUND - WEST MUMBAI 400080 TO PROJECT GUIDE HEMANT KOMBRABAIL UNIVERSITY OF MUMBAI BACHELOR OF MANAGEMENT STUDIES BHARTIYA VIDYA BHAVAN’S HAZARIMAL SOMANI COLLEGE OF ARTS & SCIENCE SHRI MANUBHAI MANEKLAL SHETH JR.COLLEGE OF ARTS & SCIENCE AND JAYARAMDAS PATEL COLLEGE OF COMMERCE & MANAGEMENT STUDIES KULPATIK K.M. MUNSHI MARG, MUMBAI-400 007

DATE OF SUBMISSON:

DECLARATION

I SWAPNIL DILIP RAUT OF BHAVAN’S HAZARIMAL SOMANI COLLEGE OF ARTS AND SCIENCE, SHRI MANUBHAI MANEKLAL SHETH JR. COLLEGE OF ARTS AND SCIENCE AND JAYARAMDAS PATEL COLLEGE OF COMMERCE AND MANAGEMENT STUDIES OF T.Y.BMS HEREBY DECLARE THAT I HAVE

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Radio Advertising COMPLETED THIS PROJECT ON “ RADIO ADVERTISING” ORIGINAL TO THE BEST OF MY KNOWLEDGE. DURING THE

ACADEMIC YEAR 2007–2008. THE INFORMATION SUBMITTED IS TRUE AND

DATE: PLACE: MUMBAI

SIGNATURE OF THE STUDENT

CERTIFICATE
I, PROF. HEMANT KOMBRABAIL, HEREBY CERTIFY THAT SWAPNIL DILIP RAUT OF BHAVANS HAZARIMAL SOMANI COLLEGE OF ARTS AND SCIENCE, SHRI MANUBHAI MANEKLAL SHETH JR. COLLEGE OF COMMERCE AND MANAGEMET STUDIES OF T.Y.BMS HEREBY DECLARE THAT HE HAS COMPLETED THIS PROJECT ON “RADIO ADVERTISING” DURING THE ACADEMIC YEAR 2007– 2008. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.

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Working on the project on radio advertising has been an incredible experience for me.Radio Advertising PROF. However. Firstly. I feel this is the best way to express my appreciation for everyone concerned. For this very wonderful experience i would like to thank a lot of people without whose co-operation and support working on this marketing project would not have been so pleasurable and interesting. I would sincerely like to thank Mr. Ritu Rajpal the frequency 104Rj for taking out some of their valuable time from 4 .Sudarshan Sahe the marketing manager of radio city and MS. HEMANT KOBRABAIL SIGNATURE OF THE CO ORDINATOR PROF SUSY KURIAKOSE SIGNATURE THE PRINCIPAL OF THE COLLEGE Acknowledgements Written words have an unfortunate tendency to convert genuine gratitude into stilted formality.

they were a great help and a goldmine of information. These acknowledgements are one way where I can actually thank the people who have been instrumental in the making of this project. Without their help and guidance it would be a very difficult task for me to try and plan this project and actually make it. this project would never have been possible and I would have been deprived of a vast treasure of knowledge. I would also like to thank Prof. If it was not for their encouragement and support. Powerful advertising is the result of powerful planning. they are built on the key communication points that motivate sales. They were very supportive and patient. which evokes smells. Radio is entirely a medium of sound. Hemant Kobrabail for this guidance and help. Great ideas and great ad campaigns don’t just pop out from no where. It is one of the foundations for effective and successful advertising.Radio Advertising their busy schedule to answer my queries regarding the project. Thus. Radio can be used effectively for advertisement since it can target the large audience because of its high reach. Radio advertising is one of the tools of advertising which is effectively used for communication and positioning. SWAPNIL DILIP RAUT Executive Summary Advertising in general expresses the positioning. 5 . Radio is good at increasing awareness about the brand and business and helping in building the brand image. sensations and visual images which brings the listeners imaginations into play.

even the bidi shops aired on any of the music channels. 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---. RED. Radio City. Prominent and established companies entered the business of FM Broadcasting. One will find people with radio sets of different shapes and sizes listening to their favourite music on roads. But then came the governments order on liberalization and privatization.Radio Mirchi. With the advent of television radio lost its popularity and thus its purpose with the marketers. Go and WIN.Radio Advertising But all this was only for pure academic purpose. The radio channels are now vying against each other to provide their best to the listeners However one can see that although radio is an excellent medium it has been used to its full potential and various efforts should be taken to improve it as with proper direction radio can reach heights as it is the cheapest and a very good medium. 6 . This led to sharp declines in the proportion of advertisement spending on radio as compared to other media. in hotels. The reasons for a stunted growth of the industry The various steps in radio advertisement What the various radio stations have to offer the masses. FM broadcasting has breathed a new life into the medium of Radio in the past few months. Objective Through this project my objective has been to understand the following • • • • To find out about the current scenario of the radio industry. This brought about loads of changes in the world of radio broadcasting in India.

Radio Advertising INDEX  RADIO ADVERTISING INTRODUCTION HISTORY TECHNICAL KNOWLEDGE ROYLTIES COST-ASPECT PLAYERS IN DIFFERENT SECTOR SWOT ANALYSIS FUTURE OF RADIO INDUSTRY  RADIO ADVERTISING ABOUT RADIO ADVERTISING PROS AND CONS 7 .

Radio Advertising  TYPES OF RADIO ADVERTISING  RADIO ADVERTISING CHARGES BUYING RADIO TIME PRODUCING RADIO COMMERCIAL SELLING RADIO COMMERCIAL STEPS IN RADIO ADVERTISEMENT MEASURING RADIO EFFECT  RADIO ADVERTISING RADIO WITH OTHER MEDIA  SURVEY FIELD ANALYSIS SUMMARY OF THE ANALYSIS  ALL INDIA RADIO  RADIO ADVERTISING ADVERTISING WITH CHANNELS  RADIO ADVERTISING CASE STUDY RECOMMENDATION ANNEXURES  CONCLUSION  BIBILOGRAPHY 8 .

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. Mr. Ritu Rajpal who is currently working in fewer 104 channel who helped me understand what all goes into the making of a radio advertisement. It was also undertaken to understand how radio advertising is done and what are the current players in the market. books. 9 . To understand this I have taken two interview from different fields. Also Mr.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. 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. Primary Research: The aim of primary research was to understand radio advertising as it is seen in the corporate world. Secondary data collection method: desk research Secondary data collection sources: internet.also the fall out of radio in the last decade . The mode of interview used was an informal one where he answered my questions on one to one basis. newspaper articles.

in its new avatar-fm-radio is all set too become the hippest.1%.Radio Advertising Introduction Old media don’t’ die! They just bounce back in new avatars. But thanks to technology radio is making a comeback. as advertisers will expect media players to put their money where their speakers are before they commit large sums of money towards radio advertising. Currently radio has just 2 percent of the 9000 crore Indian advertising market according to an Arthur Anderson’s survey. Television and later “new media” were touted to being the media of the future. coolest and most with -it medium. FM station executives are not forthcoming on multi-platform strategies as yet. Ad revenues will also not be easy to come by.7% and Spain with 9. The other challenge for radio in attracting advertisers is the nature of the medium-radio has always considered being a reminder medium. The geographical area covered by radio in India in India is as high as 98 percent and the penetration level is approximately 97 percent. Media owners dealing with new markets will virtually have to draw up their strategies as they go along. It’s a whole new challenge and competition is never far away. FM radio is a new entity altogether and has to deal with new market dynamics. create programming that is new. However in spite of the various challenges the emergence of private FM stations is certain to increase the quantum of radio advertising in the country . Globally depending on each country. Given that radio has penetrated into 100 million homes 10 . In fact. On the higher side are countries like the United States with 13 %. radio has a 5 % to 12 % of the advertising cake. much like satellite channels did to the quantum of television advertising in the country. Vis a Vis television or print media. That should open up a vast new market of consumers-100 million Indian households own an estimated 150 million radios. Canada with 12. innovative and grab away eyeballs from TV sets and make them tune into their radio sets. The involvement of listeners to radio is low. Not so long ago radio had been written off as fuddy-duddy. outnumbering television sets 3:1. down market and not so cool. But FM presently covers only 17 percent of the area and 21 % of the population of India through transmitters.

as the car population is much bigger. and the emergence of lifestyle advertising. Rs. 11 . Thus the potential if FM is better is bigger town. 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. This would be the key when evaluating the medium. While TV is a family medium. As said earlier. Also one must not forgot that radio continues to be a medium that has tremendous reach among the poor and marginalized sections of society. Also advertising of certain product seems to work very well while some might not.Radio Advertising and a FM set costs around Rs.5 percent to 5 % in five years. For example. With the coming of more channels. radio is personalized. They have also forecasted that revenues from radio advertising in India will be Rs. 50/. radio will become a push and pull medium. 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.FICCI estimates FM’s share up from the present 1. is not just making a comeback but is being reincarnated into a new avatar.

which focused mainly on the smaller towns. the competition shrank. Many gave up. (1997-98). 1999 was the historic day when the Government announced that 150 new FM channels would be licensed across 4 0 cities. there are roughly 10 players who will operate approximately in 37 cities across the country.Radio Advertising History of Indian Radio For more than 4 decades. So. But the going was not so easy. a Zee Group company. And the focus on metros was evident in the bidding. the government had to actually face mass withdrawal of bidders because of the huge license fee. New Media Broadcasting. In response to the Government's offer. prepare programming content. the Government allowed private FM operators to 'buy' blocks (chunks) on All India Radio. the Government of India did not permit private radio stations to broadcast in India. 93 crores with Times of India's Times FM & Mid-Day Group's Radio Mid-Day becoming the main players. Then. the FM Radio advertising and sponsorship business grew to Rs. unable to shell out the high license fee.75 crore. 12 . And in 2000. For instance. through its electronic media regulatory body Prasar Bharti. Others dropped out saying the business was not viable. book commercials from advertisers and broadcast the whole lot.6 billion as license fee for the privately run FM radio channels in 40 cities. the Government gave the green light to privatize radio in India. the advertising revenue fell by 50% within a year! This time. The government collected close to Rs 4. Within 4 years. the Government auctioned licenses for private FM channels to bolster the revenue. in effect. Then history changed its course.Not surprisingly. players consolidated and the Government extended its deadline. Today. many companies bid for the licenses to operate in key markets. t h e bi d d i n g price for the Mumbai license was reportedly to the tune of Rs 9. in June 1998 the Government. A handful of serious bidders chose to remain. decided not to renew contracts of private FM operators. won the largest number of bids. July 6. In 1993. Expecting to collect Rs 800 million from auctioning 108 licenses.

which grew rapidly following the entry of private players Currently. FM coverage in India is restricted to just 17% of the country.Radio Advertising The first round of bidding . The government got the highest bids . the bids for Hyderabad and Nagpur came next.2 million each Radio is expected to follow the growth of the Television industry.2 million and Rs 74 million.Rs 97.for stations in Mumbai. each for Rs 77. Interestingly.5 billion. while the bids for Delhi were Rs 71. 13 . compared to 89% of All India Radio (AIR).5 million from each of 10 broadcast companies . respectively.for 76 channels in 26 cities. garnered close to Rs 3.

Megahertz means "millions of cycles per second. encodes it onto a sine wave and transmits it with radio waves.535 kilohertz to 1. Both the transmitter and receiver use antennas to radiate and capture the radio signal. Common frequency band includes the following… • • AM radio .88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio.000 cycles per second. Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. data for a radio modem or whatever)." so "91.7 megahertz FM radio . but FM did not become really popular until the 1960s.5 fm “what the announcer means is that you are listening to a radio station broadcasting an fm radio signal at a frequency of 91.5 megahertz. 14 . He built the first station in 1939. hence the relatively low frequencies for AM radio. and frequency allocation for AM radio occurred during the 1920s.500. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible. radio and electronic capabilities were fairly limited. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz. "you are listening to 91. When you listen to a radio station and the announcer says. pictures for a TV set. In the 1920s. The receiver receives the radio waves and decodes the message from the sine wave it receives. The first radio broadcasts occurred in 1906 or so.5 megahertz" means that the transmitter at the radio station is operating at a frequency of 91. This band of the radio spectrum is used for no other purpose but fm radio broadcasts.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.

Aspect A Licencee pays Rs. (PPL) are supposed to hold all the rights of royalties.800 to Rs.800/. 11. Add Rs. at which they are supplying music to AIR).of the licensee fee to AIR.500 per hour. 12. 100 per hour. 6500/-. Add Rs.Minutes have been set aside for advertising.seconder costs Rs. 800 at prime time for 18 such spots. considering the limited range and listenership supposing a 30 . The IPRS is demanding Rs. 3.for the technology. the actual duration of a piece of music. 7000/. Cost . In other words.000/. 10 .Radio Advertising Royalties FM is primarily a music channel.500/. 800 . Add Rs.minutes for social awareness advertising. costs 15 .000. the total revenue generated is Rs. 1. 13.Rs. salaries and other expenses. Studio hiring costs are between Rs. PPL is demanding a royalty of Rs.minutes. The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd. The total expenses are thus Rs.per hour.for the music.. 9500/. Besides the tariff card should be modest. An hour long show thus Rs. One minute is reserved out of 10 . advertising time available for sale is 9 .500 per hour (as against Rs. Another estimate puts the production cost of an hour long programme around Rs. 1. Thus. The IPRS claims royalty for the original composers and authors of music. 18 advertisements each of 30 seconds can be accommodate in an hour. 1000 an hour. 100 per hour. They are demanding Rs. so the question of royalties is relevant. 7. This is the high target. 250 per hour of needle time.

Ahmedabad. Vishakapatnam 3 9.00 17. Chennai 3 20. Bhubaneshwar.87 20. Millennium Broadcasting Music Broadcasting Delhi.90 Udaya TV . Pune Hitz FM India FM Living Media Mid Day Broadcasting Calcutta Calcutta Delhi. Lucknow 6 41. Indore. Calcutta. Mumbai. Patna.87 (Rs. Lucknow. Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July. Tirunalveli Calcutta. Mumbai. Chennai 1 1 3 3 1. Indore. Mumbai. Calcutta Delhi.Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Entertainment Network [India] Delhi.50 Incidentally.Sun TV Vishakapatnam 1 0. Mumbai.00 1. 16 .Sun TV Vertex Broadcasting Chennai.87 4 2. Cuttack.37 Sumangali Publications . Bhopal. Mumbai. Chennai. Nagpur. Bangalore. Coimbatore.17 12 Bid amount for first years license crore) 43.17 Delhi. Hyderabad. Jabalpur.

revenue-sharing also exists in the media sector. It’s better to keep the revenue-sharing figure low than to have a failed project. FM players pay annual licence fees. it is firm on revenue-sharing now. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years. However. the number of FM radio stations targeted is around 300 to 400.5 per cent. The objective is to “make FM radio a success story”. The panel also suggested that players wanting to enter the sector in the second round of licensing need to have a technical viability clearance by a financial institution on the financial viability of the project. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. While the private FM players had sought revenue-sharing in the band of 2-2. which go up by 15 per cent every year. 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. Setting up new radio stations After the second round of privatization. Private FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. the panel has fixed it at 4 per cent. Revenue-sharing figure is quite low at around 4 %. Future of Radio Industry 17 .Radio Advertising Licence Fee and revenue sharing model Currently.

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. each radio station is reeling under the brutal financial impact of high costs. it is being predicted that radio's share in the total advertising pie will see an increase in the medium term. The Rs 1. Spearhead the government objective of growing the FM radio business in India. With the government ready to reduce the license fees it will help in attractingnew palyers like reliance which had earlier backed out only due to the entry fees. It can provide a level playing field with benefits for listeners. It is on the basis of these key drivers of growth. There are an estimated 150 million radio sets across the country.000 crore Indian advertising market. helpful information . But at current levels of advertising support.traffic advisories. Virgin group has already started exploring the Indian market for suitable partners. community announcements and public service messages provide a real value-added service.Radio Advertising FM Radio can play its part in building a stronger business future for India. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6. employment & career options. advertising spending is expected to amount to Rs 500 crore this year. With more players in the fray the FM radio industry would grow and also enhance the government’s yield from licensing radio naturally. The new India deserves an active private FM radio sector. SWOT Analysis 18 .2 billion by 2007.also government allowing foreign players to enter he Indian market it will help the industry grow. Providing free-to-air local broadcasts of music and entertainment. for advertisers. Also. though radio has only a 2 per cent share in the Rs 6. with revenue rising at 23 per cent annually.

• The success of private FM stations. So that they can develop themselves well because this industry is still in an introduction stage. Therefore. because people can listen to radio anytime and 90% of India has access to radio which is unmatched by any other media. Radio also reaches to uneducated village folk who do not read print publications. Most of the stations plays much of the music that is played consist of Hindi Film 19 . the government has agreed upon revenue-sharing model. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive.Radio Advertising Strengths: • Recently. Radio is a complement to another media. anywhere they want. They can’t afford a TV set. • Radio is the least cost medium and it helps to reach mass audience with various backgrounds. and reveals that radio listenership habits have changed considerably. not only are listeners tuning into it more often but also sticking to radio for longer hours everyday. brochures or ads in local Radio is considered as a background medium. Therefore radio is more popular. At the supplements of newspapers. pamphlets. who would depend on word-of-mouth. Weakness: • One of the major weaknesses of Radio is that there is very less differentiation in the programmes that are aired. • • • The advertisers. It is also a free medium. • • Radio is considered as a medium where the “Proximity to purchase” is very high. other media or the advertisers or agency can use this medium for brand recall. • places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. which is 4 % for the growth of the radio stations. are welcoming the opportunity.

Launching a radio station with 24-hour news channel Tie-ups with BEST or railway authority for playing the FM in train and in bus. and therefore it is difficult to differentiate between the programmes of the different channels. the percentage of listener tuned to anyone station is likely very small. Brand building is thus much more difficult. At the same time. • • Increase in listenership numbers but no increase in ad revenue. • Radio-only nature of radio communication is a tremendous creative compromise.research is very important for any advertising segment. This is the situation that every radio channel is facing. • Allowing private FM players to start news and current affairs programmes. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. Research is the main base to attract client and get more revenue. And therefore. But. And like its radio message creates a fleeting impression that is often gone in an instant. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. Many stations are conducting their own research which can be biased. 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. we are very bullish.the large number of the audience in India is fragmented in various remote places. • With the coming of the many more new players in the radio industry each channels can position themselves quite different from others. • • Fragmented Audience . and that is the challenge. if some station is targeting the health conscious people then their programming strategy will vary accordingly. The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium The new radio stations which will come in future they can have venture with the college or university campuses. One has to constantly innovate. • Leaves huge scope for innovation in local market • 20 . And can play their station which will exclusively provide with the information relating to that university/college campus. And then it is easier for the advertisers also to decide on which channel to advertise. like. No proper research available . and gung-ho about this whole enterprise. in India there is no proper research is available.Radio Advertising songs.

The nominal GDP for fiscal 2005 was Rs. This is one of the biggest threats it faces.Radio Advertising Threats: • • The biggest threat to private radio industry players is ALL INDIA RADIO. 21 . there is a fear of losing its brand loyalty. low charges. government channel etc… Because of the new government policies there will be more number of stations and then competition will also increase. 30.636 billion. AIR is the biggest player in India because of its reach. So.94% over the last 10 years (1995-2005). Advertising in India India has been among the fastest growing economies in the world. With no particular differentiation in the music. with a nominal GDP CAGR of 9.

9%. and growth rates of the advertising industry The Indian advertising spends. as a percentage of GDP. and is expected to grow at 14. 127 billion by fiscal 2007 Segmentation in advertising 22 . the nominal GDP growth rate.2% to reach Rs.34%. There is a correlation between the economic growth rates of a country i. the gross advertising spend in India is estimated at Rs 111 billion.Radio Advertising According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10.e. which lags behind other developed and developing countries During fiscal 2006. is 0.

3% Media Spends as % of Total Ad Spend TV Radio Cinema 39. television.7% 0. Radio Advertising Radio is still the king when it comes to getting your music. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49. the television broadcasting business.9% 2.7% 2.7% 2.6% 41. On the higher side are countries like the United States. now has over 300 channels covering the Indian footprint. Thus.4% 0. Paradoxically. 23 .0% 43.2% 46. radio.3% The Indian television industry has grown rapidly. with 13 per cent. with 12. especially since 1991. Castrol.5% 6.6% Outdoor 8. Santro. and outdoor.9 per cent share of the total advertising pie in India.4% 0. resulting in growing ad spends on this medium. DSP Merrill Lynch etc are dominating the advertising on each one of the FM channels.Radio Advertising The five key industry segments comprise print. depending on country. 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. Companies that advertise on FM channels today such as Hindustan Lever (HLL).0% Internet 0. Parle. with 9. This growth was also aided by the economic liberalization program of the Government. Go 92.0% 6.5% 7.5 Red 93.7 per cent and Spain. Dr Morepen. Globally. radio currently has only a 2. which started off as a single government controlled television channel.3% 40.5% 0.5% 2.4% 47.3% 0. Amul.4% 0. Canada.9% 0.6% 46. radio has a 5 per cent to 12 per cent share of the advertising cake.7% 0. Britannia. which saw the beginning of satellite broadcasting in India.9% 43. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry.5 or Radio City.9% 2.1 per cent.4% 7. The best way for a new band to get heard by the public and record label executions is over the airwaves. cinema.4% 0.0% 48. be it Radio Mirchi.

like a food chain that is opening an outlet in Mumbai. representing a growth of about 7. Consumer opinions 24 . This makes sense if the advertiser. On top of that. Revenue from commercials on AIR. it is extremely difficult to obtain meaningful airplay. it has tremendous potential to eat into local mediums. and up till now.4 million in 2000. In such cases. Accordingly. including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990. new product or services to new fans and taking a local market to a national level. it is undeniable that radio can be integral in exposing a new artist. national advertisers and the balance 30 per cent comes from retail. in revenue terms. implying that it is as important to them as it is to a retail advertiser. A clear advantage that radio has is that it can easily target city-based audiences.9 per cent of the money spent by advertisers goes to radio. 600 crores in 2002. & Rs. It is a known fact that retail advertising will grow because radio presents the perfect advertising medium for local businesses in a local environment. It is also aptly suited for local promotions. to Rs 808. However. but don't have anybody who knows how radio works. and once audiences can be targeted. wants to target a specific audience. 70 per cent of the advertising comes from big-budget. Advertising agencies that control the national picture will be slow to move on to radio for creative reasons. But national advertisers are also operational in the local market. only about 2. Radio promotion is an art that demands a certain style you may simply neither have nor desire to cultivate.Radio Advertising Today.5 per cent per annum. Nevertheless. it does not make much sense to advertise on TV. They have people who love to make television commercials. successful radio promotion revolves around making and managing relationships. Putting it bluntly. and the print medium is too expensive. it can take a great deal of time to make all the contacts and connections that are required for successful radio promotion. Here. Radio is the best bet for such small-scale promotions. if not more. money from advertising has gone up. all of that went to ALL INDIA RADIO.

outlets selling favoured brands. There was evidence of three sorts of memories: Relevant : This includes Ads which mentioned areas or names of specific interest. that most advertising is aimed at adults. 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. e. probably quite correctly. Radio has a number of characteristics that makes it an ideal vehicle for numerous advertisers as either a primary or secondary medium. There is no one medium which is ideal for advertisers or every situation. Largest Reach and Frequency Radio offers an excellent combination of reach and frequency. concerts Vague/ not relevant: This includes memories of ads for local garages. cars and companies . Because radio is a real-time intrusive medium. radio builds a large audience quickly and a normal advertising schedule easily allows 25 .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.g. Also. Advantages of Radio 1. but the advertising is not . The average adult listens more than 3 hours a day. insurance films.they feel.Radio Advertising The evidence from the qualitative research is that young people feel their local FM station is aimed at people like them. there are certain disadvantages of this media which need to be considered. they have to sit through the full length of any ads which are for irrelevant products.

local relevance and creative flexibility. This means an advertiser can wait until close to an air date before submitting an ad. 4. Cost –Efficiency Radio is the least cost medium and it helps to reach mass audience with various backgrounds. 2. Because of the relatively low cost of production. Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the rural masses. radio ads can be produced very quickly. Radio also reaches to uneducated village folk who do not read print publications. a strategy that would normally be prohibitively in television. age group. Copy changes can also be made very quickly. The personal nature of radio. 90% of India has access to radio which is unmatched by any other media. Creativity and Flexibility Radio is the most flexible medium because of very short closing periods for submitting an ad.Radio Advertising repeated impact on listener. radio has the ability to reach prospects by sex. National spots can be produced for about one tenth the cost of a TV commercial. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. advertisers are able to adapt commercials to the various stations then buy. Radio also offers timeless. Also. income group. and local stations often produce local spots for free. Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enable advertisers to select the market they want to reach. ethnic or religious background. With this flexibility of simple formats such as voice only can be created almost immediately to reflect changing market conditions or advertisers can take advantage of special events or unique competitive opportunities in a timely fashion. combined with its flexibility and creativity. immediacy. Therefore radio is more popular. employment category. Radio’s high overall reach and its ability to provide numerous formats make it a multifaceted medium. educational level or special interest with a format that adds even greater dimensions to its already strong personal communication environment. 3. They can’t afford a TV set. From a marketing perspective. makes radio the choice for numerous product categories. 26 . Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive.

Radio gives the advertisers the opportunity to take advantage of the right combination of words. However for national advertisers and most large local and regional firms. voices. radio is the primary medium for local advertisers. 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. it can still have powerful creative impact. and persuade them to respond. popular songs. 27 . As a Complement to Another Media In some cases. it is imperative that brands achieve consumer reinforcement as near as possible to the purchase decision. Audiences that favor certain music may be more prone to an ad that uses recognizable. music. Radio’s daily frequency offers scope for continued messages and hence the consumers are more likely to remember that product and consumer lend up buying that product.of . and sound effects to establish a unique “one-on-one” connection with prospects that lets you grab their attention.home audience gives the medium an advantage enjoyed by few other advertising vehicles. 7.Radio Advertising While radio may be one-dimensional in sensory stimulation. 6. A personal medium The human voice is the most personal means of communication. In the competitive environment facing most companies. Radio has been described as the theatre of the mind. Proximity to Purchase The mobility of radio and its huge out . evoke their emotions. radio is most often used as complementary medium to extend the reach and frequency of primary vehicles in their advertising schedule. 5. The musical formats that attract audiences to radio stations can also attract attention to radio ads. The radio industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary medium.

which may not be cost effective. the buying process can be sheer chaos. In television the chances of such misconception is less. advertisers who want to blanket the market have to buy multiple stations. as it is audio as well as visual. Disadvantages of Radio 1. As a result many advertising agencies will move their budgets into radio. Misunderstanding Sometimes there might be a misconception regarding the radio ad as it is only heard. Since national networks and syndicated broad cast do not reach every geographic market. 28 . 2. 3. in radio’s quest to continue to fine tune its reach. However. some advertisers wonder if radio is offering too many narrowly defined options. Chaotic buying procedures For an advertiser who wants to include radio as a part of national advertising program. an advertiser has to buy time in individual markets on a station-by-station basis. Poor Radio Attentiveness Just because radio reaches audiences almost everywhere does not mean that everyone is paying attention. 4.Radio Advertising Radio can be targeted by lifestyle formats and is more efficient than other media from a cost and production standpoint. If a large number of radio stations compete for the same audience. This could involve dozens of different negotiations and individual contracts. For those product categories with broad appeal. When a consumer is listening while doing some work or traveling in a car. Fragmented Audiences The large number of stations that try to attract the same audience in a market has created tremendous fragmentation. it is difficult to gain effective reach and frequency without buying several radio stations and networks. he or she often switches stations when an ad comes and divides his or her attention between the radio and road.

Only 20 % of time availability restricts the frequency of message exposure. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. Types of Radio Advertising: 1. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. No proper research available In India. Some agencies think radio restricts their creative options. there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time. a drawback if the product must be seen to be understood. Network 29 . 9. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad. which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. 8.Radio Advertising 5. 7. Limitations of Sound Radio is heard but not seen. Therefore. They can’t keep like a newspaper or a magazine ad. and it does not always succeed. Radio must compete with other activities for attentions. If the voice is irritating then there is a chance that the campaign may flop. Sometimes the voice really matters. Creative Limitations The audio-only nature of radio communication is a tremendous creative compromise. there is no proper research has been available on the area of radio listening. 6.

The advantage is less paper work and lower cost per station. Spot Radio Spot radio affords national’s advertiser’s great flexibility in their choice of markets. It involves the same procedure as national spots. airtime.The exact divisions vary from station to station. 3. Networks provide national and regional advertisers with simple administration and low effective net cost per station. exhibition going on at certain place etc. Most radio stations use recorded shows with live news in between . Sponsor Programme Here the advertiser sponsors the whole or part of the programme. stations.Radio Advertising 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. Radio advertising is either live or taped. RJ Mention/What’s On Mention Here the Radio Jockey [RJ] informs the audience the information given by advertiser about the new product launch. of stations on a networks roster and the long lead times required to book time. and copy. 4. 6 am -10 am Morning drive 30 . Radio stations divide their rate cards into dayparts . 2.Likewise. nearly all radio commercials are pre recorded to reduce cost and maintain broadcast quality. Disadvantage includes lack of flexibility in choosing affiliated stations the limited no. sale. Local Radio Local times denote radio spots purchased by a local advertiser for local market. 5. Radio Stations Divide Their Days And Their Rates. 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. The RJ informs the audience about the sponsored company throughout the programme.

20 sec. 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. 10 second spot should contain 25 words 20 second spot should contain 45 words 31 . This information is important to advertisers because usage and consumption vary for different products.However. For example. In theory. Those however are rare. The spots for advertisement can be for 10 sec. fresh cup of coffee. In General.12am 12am – 6 am 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. the more chance there it that it will be heard. So most stations offer a total audience plan (TAP) package rate. 30 sec and 60 sec.Friday). the better it will be remembered or at least. Length of Spots The radio commercials in the test reels consisted of several different spot lengths. The longest commercial played on the radio is 120 seconds. Heaviest radio use occurs during drive times (6-10 am and 37pm) during the week (Monday.Radio Advertising 10 am – 3 pm 3pm – 7pm 7pm. one could assume that the longer a spot. ranging from 15 to 60 seconds. an advertiser orders spots on a run of station (ROS) basis. so its great time for advertising coffee brands. which guarantees a certain percentage of spots in the better day parts if the advertiser buys a total package of time. this leaves total control of the spot placement up to the station. similar to the ROP in newspaper advertising . radios morning drive time coincides with most peoples desire for a steaming. For the lowest rate .

or local radio stations. Check the rate cards of the stations you are interested in. About 80% of annual radio advertising is placed locally. Advertising time can be purchased from networks. they charge a unit rate. Advertisers generally invest most heavily in local placement. Many stations have local rates for Individual Business and National Rates for Agencies. About 15% is allocated to national spot placement and only 5% is invested in network broadcasts.Radio Advertising 30 second spot should contain 65 words 60 second spot should contain 125 words If you’ve never written a spot. and voice and can be useful for political message. the structure is actually quite straight forward. or ask your sales rep. a: 30 costs the same as a: 60. this does not mean they are completely without structure. A 60 does allow you more variety in music. In other words. Some stations no longer charge a separate rate for: 30s and: 60s. But take a stop watch and time some spots on the air. Obviously. you may find that 60s. the announcement of a new or little-understood service. sometimes seem a bit too long. sound effects. syndications. this is one case where you might want to use a: 60 to take advantage of the “free” air time. 30 seconds sounds like an impossibly short time to get your message across. Instead. and a. or other sports with a information/education content. In fact. Although the actual buying may be time consuming and expensive if many stations are involved. Station Rates While buying procedures to achieve national coverage may be chaotic. you’ll see that quite a lot can be accomplished in a short time. 60 around 150 to 160 words. unless very well written and well produced. 30 is usually 70 to 80 words long. The cost of a: 30 is usually about 60% to 75%. Buying Radio Time 1. 32 .

You are associating your company name with a specific program. This means simply that you pay to buy a package of sports at a flat rate and the station decides (within certain specified limits) when the sports will run. Networks provide national and regional advertisers with simple administration and low effective net cost per station. This information combined with programming formats. Buying specific dayparts This relates to the time period of purchase. Putting half your sports into drive time and half into midday is a very safe strategy. Run-of-stations ads. Marking a package buy is called buying Run of Station (ROS). 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. or Best Time Available( BTA). Weekend sports can also effectively reach teens. Total Audience Plan (TAP).Radio Advertising 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. 2. radio advertising time is purchased from rate cards issued by individual stations. guides an advertiser in a buying decision. Drive-times dayparts attract a mostly male audience. while daytime primarily female and nighttime is mostly teen. The advertisers sponsor the whole or part of the programme. There are five basic dayparts on basis of which advertiser can choose. Buying packages is an easy. b). Sponsorships or adjacencies A sponsorship is just what its name implies. c). usually low-cost method.cost less than ads scheduled during a specific dayparts. Your Dayparts Buying Options Most stations offer several options for buying air time: a) Buying by specific dayparts b) Buying packages c) Buying sponsorships or adjacencies a). The time period decision is based primarily on a demographic description of the advertisers target audience. The RJ informs the 33 . Buying packages As with magazine buying. Stations will usually guarantee to divide your sports fairly between drive times and other dayparts.ads that stations choose when to run.

six months out of the year. your ad will run every day just before or just after (in other words. 3) Frequency Radio. Sponsorships. For example. There are scheduling strategies that help increase the impact of the spots you place. and fixed positions go for premium rates. 34 . As a general rule. “……………. however. times when one station will suffice.m. but that varies depending on your audience and the number of competing stations in the market. A flight is a group of ads. But how many is enough?Generally. you may specify that you want your spot to run at 6:13 a. Flight and schedule are two words you may hear your radio sales representative use when you plan your advertising. Sponsorships on top-rated shows can cost up to twice as much as other spots in the same dayparts. (“I’m running a flight of 80 ads this month. they’re only for people who are ready for a long-term commitment. If your audience is business people. like most media. Is brought to you by………” An adjacency is the next best thing to a sponsorship. Sponsorships are like marriages. every Monday. Other fixed-position spots are also available. that may be all you need to succeed. you should run on at least two or three stations. Wednesday.”) A schedule is the long-term version of a flight. and you can afford to buy drive time on the dominant news/talk station in the market. you may need to buy two or more stations with widely different formats. requires repetition to have impact. If your target and audience includes both younger and older people. Having your name associated with a particular show or event can do a lot to reinforce your positioning.Radio Advertising audience about the sponsored company throughout the programme. (“I run a schedule of 20 ads a week. spending less to achieve the same impact. There are. a minimum of 20 spots per week should be aired. If you buy an adjacency. and Friday. and these premium spots can be so powerful that you may be able to run far fewer spots than you otherwise would. you should also not run on too few stations. adjacencies. adjacent to) the program you specify.”) 4) How many stations do you need Just as you should never run too few spots.

Similar survey on listenership has been conducted by IMRB (Indian Market Research Bureau) 35 . These surveys break the audience down by age and sex. survey the local market.Radio Advertising To really learn who is listening to your spots. and then tell you how many listeners each station had in each category. break the listening week down into segment.

36 . a) Using local radio talent If station produces the spot. which means not just the words.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. low. It all begins with a good script. Your spot can be clever or straightforward. “whose spot was that. Production can be done in the station’s own studios or in an independent production house. If the ad runs only in drive time.equipped to produce spots. creative people whose fresh ideas will keep your spots from sounding like everywhere else’s. Studies have shown that women presenters are just as effective as men. music. 1) The Voice There are two factors concerning voice. Get the least familiar voice available. There are three basic elements to work with: the announcer’s voice. but the combination of words. and one higher. and sound effects. Listeners will be less likely to tune it out.cost options for achieving this. but only a small (but increasing) percentage of all broadcast sales presentations are made by women. anyways?” The following are some of the factors you should have in mind from the first moment you sit down to plan your spot. and they often employ young. you should use a voice that is appropriate for your image. Female announcers can also be used. Stations are usually well. but it must grab the listener’s attention in about three seconds. There are two good. and it must not leave the listener wondering. It can also be simple and inexpensive. one can have the midday announcer do the honors. All these are part of the script. music. and sound effects. First. one of their on-air people risk having the voice be so familiar that the listener doesn’t pay attention.

can be done having a jingle product. A word of caution: Amateurs can sound stiff and false. more involved with your spot. 3). 37 . sensations. Sound Effects (SFX) various onomatopoeic sounds like eeek. Music The power of music can’t be overemphasized. c) Get permission to use an existing recording by a known artist. the local community theater or. and it can be a very worth while investment. or even your own can make listeners stop and pay attention simply because it’s not what they’re expecting to hear. you bring the listener. 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. will be more involved with your ideas. A lot of radio or TV advertising. When you use sound to evoke smells. from a talent agency. whistle etc. A catchy jingle helps potential customers remember you more than almost anything else. The cost runs anywhere from Rs. the less the voice sounds like one of the regular announcers. and visual images.600 to a few thousand rupees. 2). are available at the local radio station. In fact. (But It’s difficult and expensive to obtain the rights). ding dong. A woman’s voice. ho ho ho. a child’s.Radio Advertising b) Using amateur voices One great thing about radio is that even an untrained voice can be very effective. c) Using professional voice talent If a very sleek production value is needed hire voice talent from another station. Celebrity voices can sometimes be hired. Radio is entirely a medium of sound. There are several options for putting music into your commercials: a) Have original music produced. b) Use free music from the station’s library. 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. the better. in larger markets.

it’s time to record. and sound effects. Be aware that the announcer may have slight interpretation of the reading than you do. voice. the announcer will operate the equipment. At may be just you and the announcer in the studio. music. and don’t expect a performance that could only come from someone reading your mind. You should also understand. an engineer will record the spot while you and the announcer concentrate on the reading. At large stations and professional recording studios. The tapping Session Once the decision is made about the script.Radio Advertising 4. 38 .

m. music. .00 a. breakfast audience. c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers.00 p. .10. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product. program characteristics of station. 12.00 p.00 p. 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.m.3.m. . drive time . or all-news Afternoon.Radio Advertising Selling Radio Commercial Selling radio advertising involves a number of steps.6.00 a.m. The successful ones begins with the clients problem and sales objectives an move systematically to a solution. 3.m. music.m. talk .7. The first step in the process is to meet the client to gain as much information as possible about the client and his or her business. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price.m.00 p.00 a. 7. The media buyer is looking for efficient cost per point. Characteristics Drive time. Dayparts 6 a. b) The salesperson must move from the general advantages of radio to the advantages of specific station.m. talk shows Music. radio prime time and same as morning drive time News.12. talk shows 39 . 10. After the salesperson has a firm grasp of the advertising problem. Often the job of the radio sales person must be conducted on a number of levels.00 a. Radio salesperson must begin with the client’s needs and marketing goals.m. while the client’s goal is to move product.m. The radio salesperson must be aware that everyone involved in the transaction is looking for different results. . . the next step is to prepare a proposal. interested chiefly in news Daytime.00 a.

emotional. but they rarely related their features and benefits to factual data. Judge what you hear. not what you read 6. a tug on the heartstrings. Take it seriously 40 . ⇒ Use plain. D ⇒ Generate extension.Radio Advertising Elements of good radio commercial ⇒ Be single-minded. Always relate the brand to customers wants and needs. Be a clear communicator Creative Radio Advertising These are some guidelines for producing creative radio advertisements:1. conversational English. The central idea should be highlighted. Understand the environment 2. or mental exercises of a consumer during a radio spot help seed the memory and aid messages retention. Keep it simple 5. focused. or mental response. Plan your production 8. ⇒ Research your product or service. Laughter. Dare to be different 9. Speak the listeners’ language 3. Many clients keep tabs on their competition. The effect of a commercial can be multiplied by achieving extension. Engage and entertain the listener 4. ⇒ Produce an immediate physical. Production values are important 7. Prioritize the copy points. ⇒ Relate to the consumer. Meaningful statistics can give substantial support to your massage. A clever phrase or execution can have consumers asking other people if they have heard the spot. The consumer should not be burdened with too much information.

9. 6. The studio mixes music and sound with voices. if one is needed. The producer sees that the master tape is prepared for distribution on either tape or cassettes and shipped to stations. the producer selects a recording studio 4. 7.Radio Advertising Steps in Radio Ad Production 1. a rehearsal is held. the producer casts the commercial. The studio tapes music and sound separately 8. With the aid of the casting director. the producer selects a musical director and chooses the music or selects stock music. 5. You are on the air! 41 . If necessary. The producer prepares cost estimation 3. If music is to be included. An agency or advertisers appoints a producer 2.

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. It provides a more robust measure of whether they have heard the campaign. playing the ads to consumers. In other words. This tendency to misattribute can be offset by using matched samples of listeners and nonlisteners. Commercial recognition is a valuable technique – i. Consumers tend to misattribute radio-advertising memories to other media. radio advertising research aims can be categorised into two types: ⇒ Marketing issues – to what extent has radio helped to achieve the campaign aims? 42 . 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. if the increase in advertising awareness is greater among listeners than it is among non-listeners. However cases where other media are to be included in the research it might be more appropriate to use face-to-face interviewing. then the effect can be attributed to radio fairly confidently – even if the listeners think the advertising was in another medium. the post-stage in the week after the campaign finishes. and avoids problems of trying to describe the ads.Radio Advertising 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 effectiveness can be measured either using continuous research or in stages (“pre & post”) – the pre-stage is normally the week before the campaign. Brand names can be bleeped out of the commercial. This way. to test whether the campaign is linked to the brand. particularly TV. what are you aiming to measure? In broad terms.e. Radio research can successfully be done using telephone interviewing – ads can be played down the line.

if you are testing a number of media strategies simultaneously. If you do intend to test a particular media strategy there are three important considerations to note. for example: .  Lastly.In addition to tracking radio’s contribution to the success of a campaign.These vary widely and there can be often more than one objective set for a campaign.Burst versus continuous activity .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 .Radio Advertising ⇒ Media planning issues – what effect do different media strategies have on the performance of the campaign? Marketing Issues:.Effectiveness of different spot lengths .there are specific tools available for measuring sales effects for example. balanced research “cell” for each media-variable.  Firstly.Use of different day part strategies. Media Planning Issues: . when testing different media strategies. 43 . you will need to be able to separate the effects of each using a separate. Below are some typical examples:  . you must gear the campaign so that you can test the particular media strategy in which you are interested. bear in mind that you will still be judging the effects in terms of the overall campaign objectives.  Secondly. as a secondary aim you might also be trying to test and evaluate the effects of using different media strategies. and most obviously.

as the medium with the most active expectations. If the only difference between the two samples is their radio listening. attributed to television in the consumer’s mind. but who are the same as the listeners in all other respects).Radio Advertising Whatever your research objectives. 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. with the result that campaigns in all other media are. once you have defined them make sure that they form the core of the questionnaire you use. Any other questions are of secondary importance 2) The Importance of Split Samples Misattribution of Advertising:When asked to consider advertising. 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. tends to dominate memories of advertising. Television. Avoiding Misattribution: Using Split Samples:The simplest solution to the problem of measuring true radio awareness is to split your sample into two parts: listeners (target consumers who have been listening to the radio stations which carried the advertising) and non-listeners (people who do not listen to those stations. Which Option Should You Choose:- 44 . 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. consumers will turn their thoughts to the most salient source they can think of – this tends to mean TV. to varying extents.

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. In this way. Local distribution levels for the brand will also be the same. as this could affect response. the second method has the advantage of questioning people who will have the same history of exposure to the brand.g. 45 .thus giving you a measure of radio’s effectiveness. it will be possible to compare the results among those who have been exposed to the campaign with the results among those who have not . This ensures that any differences can confidently be attributed to radio ad exposure. However. The key point is that the listener and non-listener samples must be matched as closely as possible in terms of demographics. media consumption and weight of exposure to the brands’ advertising in other media. how much TV they watch etc) as well as their demographics. The two geographical areas should also be comparable – (or “typical”) in terms of media and product consumption as a whole. the other in an area where no radio advertising ran.Radio Advertising Neither of the two approaches above is necessarily better than the other. It is important to match the media consumption of the samples (e. It is equally important to ensure weight of advertising for your brand in all other media is the same for both samples.

whilst the other part of the sample will comprise people who do not listen to any station on the schedule. all of the research is done within the same area. radio research is conducted in two stages . however.Radio Advertising Test and Control Samples within the Same Area In this second approach. 46 .a pre-campaign and a post campaign study. continuous radio research is impractical on grounds of cost unless it forms part of ongoing advertising tracking. 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. Typically. One part of the sample will comprise people who do listen to the station(s) on your radio schedule. since this allows movements in advertising response to be compared directly to current advertising activity. 4) When to do the research The ideal research method is to monitor advertising activity on a continuous basis. Often.

having done the post-research. Commercial recognition is a valuable technique – i. Radio ads can successfully be played down the phone to respondents. playing the radio ads to consumers – as this is the best “memory jogger” of all. Face-to-face interviewing may also be preferable if respondents need to be shown visual ad material such as stills from TV ads. consider adding an additional stage of research some weeks after a campaign has ended in order. Similarly. In some instances one considers conducting more than two stages of research. the larger the sample the better. This will establish the base levels of whatever is being measured (eg brand awareness). to track decay in brand awareness. However at some point.e. For example. 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. ⇒ 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. 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. the cost of an increased sample size becomes cost prohibitive and contributes little extra to statistical robustness. 47 . say.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. 5) The research sample and sample sizes Sample Sizes Generally speaking. it might be worth slotting in an additional research phase during a particularly long advertising campaign or sponsorship.

Radio with Television Characteristics of Television TV has traditionally been the most powerful and popular advertising medium for people in the media business. the downside with TV is that the audience is now fragmented across many different channels. ⇒ 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. demonstration. frequency. This is mainly because it does most things well .coverage. whilst giving a true measure of ad recognition. attitudes to the advertising/feelings about the proposition). Reason enough for us to study the role of Radio vis-à-vis other key media. What radio can add: 48 . ⇒ Branded . persuasion.a) Planning. Traditionally a high-cost medium. it is possible to see whether creative treatment has successfully linked the message to the brand. image.this allows prompting for brand-specific data.g. two different approaches can be taken: blind or branded.Radio Advertising When playing the radio commercials in order to measure commercial recognition. 'what Radio can add' to each medium on three key parameters . (e. production costs are extremely high and viewers are increasingly avoiding ad breaks. impact etc. A fairly straightforward questionnaire will take around 10-15 minutes to run through – much longer and respondents will begin to lose interest and concentration! Radio with other media Most brands tag radio to their existing communication plans. b) Communication and c) Detailing of communication points.

Example of powerful SBTs: "Britannia Ting Ting Ting" They help to ensure that TV and radio advertising is well branded. and are good at presenting detail. can be transferred on to radio. Newspapers also have the authority of the written word. low production costs mean multiple copy messages can be varied round the core TV communication Sonic Brand Triggers. Sonic Brand Triggers are sounds. A sound. which has been successfully established on TV. which consumers recognize and associate with certain brands. 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. which are absorbed at very low involvement levels. As a print medium. radio can allow a fast turnaround for new initiatives. radio also allows tighter targeting against audiences thus reducing wastage. it extends TV messages to key times of day when TV audiences are lower or when product relevance is higher. Radio with Newspapers Characteristics of Newspapers Newspaper brings 'immediacy' to a communication. either in the same period as the TV campaign or later to extend the campaign over time. What radio adds: In planning:- 49 . radio can be used to reach light viewers. In detail:Radio allows activity to be geographically varied. In communication:Given that Radio is perceived as personal medium. radio can bring brands closer and speak to the consumer at their level. radio has a culture of response where listeners frequently interact with their station which they see as accessible. They leave a brand impression with even the most passive TV viewer or radio listener. radio can be used for regional or local exposure booster.Radio Advertising In planning:Radio's main contribution is a dramatic increase in frequency of exposures.

radio allows brands to emphasize specific key times of day. Radio brings brand messages closer to the individual. radio can more strongly convey the brand's tone. 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.within time of day. in a very public way.Radio Advertising Radio adds frequency. radio offers far tighter targeting which means reducing wastage. What radio adds: In planning:Radio adds real frequency. In detail:Flexibility means radio allows geographical variation on top of a national press campaign. in the sense that additional exposures to the advertising are played in full rather than having the listener look away or ignore. day of week or even week of month. which may seem flat on the page. The weaknesses of outdoor advertising mainly stem from three issues: it has no editorial context. Like radio. and this is real frequency in that exposures take place in real time. it can bring to life ideas. In communication:- 50 .typically travelling time. it uses extremely simple. adding radio also means increased share of voice thus overcoming clutter In communication:Radio brings intrusiveness to a press campaign. posters also operate within time which people think of as free . striking ideas to be effective.and it suffers from relatively expensive production. speaking in a more personal way than press. radio also offers tighter timing . radio also reaches non-readers so it can significantly increase coverage. in most sectors. and there is less ad avoidance.

It allows brands to speak to consumers close to certain activities . housework etc In detail”:Radio offers fast turnaround within the long copy deadlines of magazines. which means overcoming clutter. Radio with Magazines Characteristics of magazines Magazines are useful to advertisers because of the relationship they have with the readers. and the reader's inclination to simply turn the page. radio allows tighter timing . cooking. Weaknesses of magazines include the fact that lead times can be very long depending on the title's frequency of publication. radio can more strongly convey the advertising tone of voice. radio allows multiple copy.driving. who consume them in a personal way. radio is better able to communicate the tone or character of a brand. as listeners identify with their radio station and see it as aimed at people like them. They allow targeting by lifestyle and interest group.time of day. and the opportunity for geographical variations. What radio adds: In planning:Radio adds frequency and also extends coverage well beyond the magazine readership. day of week etc. it also allows localized copy variation relating to a national poster execution.Radio Advertising Radio allows more information to be conveyed. In communication:Radio brings intrusiveness to a magazine campaign. radio can bring to life ideas which might seem flat on the page. 51 . In many magazines the ads are seen as part of the magazine experience. radio also offers a greater share of voice for most categories. the high levels of clutter. radio brings brands closer. In detail:Radio offers speed of production compared with the lengthy process of poster print deadlines. and there is less ad avoidance. which is useful for explaining or persuading.

At the post-stage.the continuous radio audience measurement system in Mumbai. A sample size is decided which is spread all over the target city / town etc. The following is the standard procedure involved in calculating the listenership of a radio station. ⇒ Commercial recognition – playing the ads to respondents. The research can be undertaken by the research agency voluntarily to be sold later to companies. or on particular request by a company. you will be seeking to detect spontaneous and prompted awareness. With the growing salience of Radio.Radio Advertising ⇒ Recall of advertising. IMRB International decided to launch RADAR RADIO LISTENERSHIP SYSTEM .000 households and 3. The findings have helped many radio stations to develop. All the interviewers are informed of the above and a questionnaire is given. they are complied and sent to the analysis department • 52 . When the questionnaires are filled.600 individuals. ⇒ Thoughts on what the main message of the ads was 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. IRMB believes that time is ripe for a continuous Radio audience measurement system. • • • A project is selected and a deadline is given.

20 18 16 A 12% Radio B 14% Advertising 45% 14 12 Female At theD / E level: 42% country10 8 Total awareness of radio stations 6 4 2 0 Vividh Bharati Radio Mirchi Radio City AIR Primary SLBC M ale 58% World Space Red Fm C 29% % mentioning Gender of radio audience Female 42% MALE 58% Socio Economic Classification D/E 45% A 12% B 14% 53 .

30 am 20% Advertising 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Listenership by time slots Analysis 11.11.7am . Being the only service provider it was able to penetrate deep into the Indian market. 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. 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.6.00 pm 7pm . Which is why the new entrants are vying for their share of the pie and encouraging the government to release more airwaves for them.11pm Radio C 29% % liste n e r s 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. 54 .30 .

Radio Advertising Radio is very popular with the sec D/E market due to its cheap cost. In order to meet the requirements of its listeners and its corporate audiences. giving the advertisers a vast array to meet their specific target markets. Various shows are held by the radio stations. 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. While the sec A. 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 = 55 . 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.50 which make it very affordable.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. As the 7. on the other and the 11-2 slot has the women segment listening while the nights are more concentrated on teens. B have a wider variety of entertainment available to them radio is not widely used. specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium. Radios are now available at prices below Rs.

Sound broadcasting started in India in 1927 with the proliferation of two privately owned transmitters in Bombay and Calcutta. A.I. 1988. national. The Regional Stations in different States form the middle tier of the broadcasting. reaching over 98% of the people in the largest democracy of the world. It was changed to All India Radio in 1936 and it came to be known as Akashwani since 1957 to inform. sports. through its transmitters at Nagpur. AIR had a network of six stations and a complement of 18 transmitters. developed and operated by the Ministry of Information & Broadcasting under the Government of India. It transmits centrally originated news bulletins in Hindi and English. National channel of All India Radio started functioning on May 18. namely. With broadcasts in 24 languages and 146 dialects (home services). All India Radio is one of the largest radio networks in the world in terms of reach. Including North-Eastern Service at Shillong disseminates the vibrant and radiant cultural heritage of the Northeastern region of the country. newsreel. regional and local. When India attained Independence in 1947. to nearly 76% of the country's population fully reflecting the broad spectrum of national life. and another 10 foreign languages in external services.R. 56 .Radio Advertising All India Radio A.R. It caters to the needs of the people. Add FM radio and you have a formidable arsenal. educate and entertain the masses. which is a national service planned. 50 high frequency (SW) transmitters and 87 FM transmitters.'s coverage exceeds 90% of India. Mogra and Delhi beaming from dusk to dawn.I. All India Radio has a network of 283 broadcasting centers with 146 medium frequency (MW) transmitters. spoken word and other topical programs. plays. AIR has a three-tier system of broadcasting. music.

setting up radio clubs and maximizing AIR revenue. 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. For FM it has other ideas . focusing on the rich cultural heritage. 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. Western Music.Hindi Music. but on shortwave. recommending a suitable positioning for AIR Channels. It will promote and publicize sports events covered by AIR besides popularizing existing services like Radio on Demand and News on Phone. which is on in Patna. Prasar Bharati now plans a 24-hour news radio station . Helplines etc. and for this it is launching a campaign in select cities. Prasar Bharati is set to launch a major campaign aimed at repositioning and total branding of the two FM Channels of All India Radio (AIR). Prasar Bharati is positioning AIR FM Rainbow as a channel offering a buffet fare . 57 . will also cash in on phone bulletins.Radio Advertising New initiatives by AIR Change is in the AIR.not on FM. The ad agencies have been asked by the Prasar Bharati to make a strategy presentation. Hyderabad. The service. Prasar Bharati is also planning to fill the vacancies in regional stations. especially in North East and J&K. which produces more than 300 bulletins daily. will be launched across the country with a four-digit common number. a marketing plan and publicity plan with suitable media mix. AIR planned and developed special packages for the North East and J&K. Chat shows. AIR. development of infrastructure and the changing scenario in the state. Kolkata and Delhi at different numbers. The entire publicity campaign of AIR is being designed by Prasar Bharati's ad agencies.classical music channels to start with in Bangalore and Lucknow and to be extended across the country later.

Radio City’s market strategy is backed up by six months of intensive research in Bangalore. The Mumbai license was secured for Rs 10 crores. vivacious RJ’s. the channel undertook huge promotion campaign in the initial stages of its launch.Bangalore. and is trying to create a brand name. a perfect blend of English and Hindi music. On the promotion front. was launched on 21 May 2002. a venture promoted by Star and Music Broadcast Private Ltd (MBPL). STAR India’s radio division would provide or take charge of advertisement sales. Intensive research is being carried out to ascertain demographic profiles of radio listeners. The 4 P’s Product: For listeners . teamed up with professional. Patna. Place: Intensive (all over Bombay) also. Price: Advertisement rates Promotion: Radio city is one of the top 3 stations in the city. information. 1. so as to enable more targeted programming in the future.Bangalore. hours a day. st Target audience Radio City is not looking at any particular segment to target.Music. The Television “fun ka doze har roz” ad campaign. a portfolio of entertainment programming 24 Hindi and English For corporate and retailers: . Radio City aims to reach out to listeners across demographic barriers.K. The channel is into sponsoring events especially college festival around Bombay city. Hoardings all over the city. This is thanks to its promotions. in mix of 58 .Mittal. Selective in the sense that it has set up radio stations across the country in six cities . The idea is to create the brand and then to move on to specific target programming. marketing and programming. 2. The company has received the license to set up radio stations across the country in six cities . Mumbai. Delhi. Nagpur and Lucknow. family and Associates.Radio Advertising RADIO CITY [91FM] Radio City. MBPL is a company backed by P. Mumbai. Patna.The airtime. Delhi. Nagpur and Lucknow.

breaking to a 10minute projection in every hour's programmed. The retail market. sales and marketing support. 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. So they talk to them about radio. 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. on the other hand. tell them this is how the brand will sound when on radio. Radio City has managed to attract advertisements. The process is pretty lengthy. involves one-on-one sales and education as to how advertising will help the brand. make them listen to it. the success rate with national advertisers is a lot higher than in the case of retail advertisers. it is a question of marketing a new medium and educating people about it rather than having to explain the concept of advertising per se. Hence. Because of this the strength of our retail sales team is three times that of our corporate sales team because in retail sales there is this job of exploration and education. and of breaking new ground whereas with national advertisers. from small local stores as well as big brands like Tanishq. probably create a radio spot. 59 . National advertisers are all familiar with the concept of advertising. Radio City will have a four-hour slot in its 24-hour broadcast for advertisement. IBM and HLL.Radio Advertising Advertising with Radio City Radio City also hopes to provide an effective advertisement medium. Star India is in-charge of providing the content. besides advertising.

60 . the channel targets the age group of 15 to 45 year old. Therefore.7 FM now targets only the socio economic category (SEC) A and B1. white collar executive whose needs are clearly English music and programming. belting out the best hits non stop 24 hours a day. educated. Radio Midday seem to have found a niche for themselves and clearly positioned themselves as 'the English Channel with a local/Indian image'.7 Fm as a part of their communication programme. and more westernized. It primarily plays English music.Radio Advertising Big [92.7 FM.7FM] Big 92. a focus on international artists popular in India. So if the advertiser wants to target a niche population with a fastidious ear for English music you know where to be! It delivers the best international chart topping hits and the most with – it bollywood sounds. Corporate aiming to serve the cream class of Mumbai can select Big 92. “The Sound of Mumbai” from Mid Day multimedia limited. They are clear on their strategy and have already started catering to a certain set of audience that is mature. Providing an attractive blend of 50:50 Hindi & English programmes. white-collar and upwardly mobile. trailblazing media company. It does not only concentrate on Hindi or English but emphasizes on the attractive blend of both the world. Not to say that big Indian artists with big fame do not feature in their mix. target audience is young.7 FM targets the upscale Mumbaikars. Target Audience: Mid-Day's Big 92. Big 92. The wonderful world of Big 92.7 FM was launched on 10th May’2002 by mid day group.

especially with the coming in of the 11-2 afternoon slot. with a heavy local flavor. displays at traffic signals etc. Price: Advertisement rates (Refer to annexures) Promotion: its presence is made known through hoardings. Then they figure out how do they juggle it. At that time. For corporate and retailers: The airtime Place: Intensive in Bombay and exclusive because it does not have a presence in any other city. which would equip them with the capabilities of hosting radio programmes of their own. the station had also launched a 13-week College Radio hunt some time back. indulge in experimental big stuff. Second. there are many new clients that will come in.7 FM Big 92. Not just a LG CDMA but a LG refrigerator and AC can also be advertised. First.7 has in fact re-christened itself as Mumbai’s College Radio station. they can have consumer durables on the channel. Wherein auditions would be held for potential talent and the finalists would then be exposed to in house training sessions. Advertisements with Big 92. entertainment and business. how they’ll fit it in and this programming mantra helps them in that. There are two effects of this kind of the new programming.Radio Advertising The 4 P’s Product: For listeners: the station is focusing on music of course. So. along with sports. That ways they try to be the preferred destination when an existing client wants to sponsor an event or a radio property. it is a double positive impact on advertisers. when the client presents the germ of an idea. their immediate reaction is ‘yes’. In complete tandem with the festivities. 61 .5. which was presented by Colgate Fresh Energy Gel. to get an edge. Go is a youth-centric station and they felt that better way to make their presence better to partner with college festivals Marketing initiatives Big 92.

7 and they have had the majority of the revenue coming in from niche English channels such as Star Movies. They have retailers also. Bazee. McDonald. They have a classified section on the station called Mumbai bazaar. STAR network that is star world and movies. During the first half of 2003-04.Radio Advertising 90% of their advertisers are the large tickets. Tata AIG. Kellogg’s. Discovery. 62 . Alitalia airways. The station is seeing a 5060 per cent quarter on quarter growth. But those are basically the advertisers who are very keen to be on the station. Timex watches. That is by virtue of the audience profile that Go are bringing. BPL Mobile. A few big Hindi properties such as Awaaz and Jeena Isi Ka Naam Hain have been promoted extensively as well. Asian Paints. Max New York Life. Zee MGM. AXN and Discovery. Orange. The top advertisers on Big 92. Other advertisers are Tata Motors. Colgate. Zee English. Sony Entertainment TV. the station has garnered total revenues of Rs 1. Star World.36 crore. There has been a sizeable increase in channel spends on Big 92.7 in September 2003 were Coca Cola. Cadbury. HLL.com. Zee TV and Tata Indicom. 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.

Mumbai and Kolkata for the first year. They have 100 hoardings all over Mumbai city. reliable. friendly. Red FM may not be modest but it is certainly witty. as a bright. Also it has a tie up with shopping malls like crossroads and ‘Groove’ a music store. 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. which promote the station. Described. (Refer to annexures) Promotion: Red Fm is affiliated with some clubs and pubs. additional Rs 20 crores has been invested on infrastructure etc in these cities. uncomplicated and honest. the hour FM radio channel from the Living Media stable. screams the advertisement of Red FM. The ‘take aways’ are plenty – everything that the station says and does is of license An three 24Red Target Audience 93. The much-awaited FM on 93.5FM] “Red is in your Head”. energetic and passionate Apparently. Because it is more a mature audience. city-specific events and the latest buzz on everything current. weather. And in the second phase. warm. 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. relevance to its listeners. RED FM has spent close to Rs 17.5 Red FM caters to 25-plus age group.Radio Advertising RED [93.5 MHz hit the airwaves in Mumbai first on June 26. Moreover. trains etc have also been adopted.87 crores as fees for the three centers of Delhi. innovative methods like painting Double Decker buses. 2002. followed by Delhi and Kolkata. 63 . Price: advertisement rates.

and the rates might increase or decrease depending upon the need of the advertisers. LG. they form a healthy percentage of advertisers. they went on air live from a night club like Velocity and received a huge response from the listeners. HT. Metlife.Radio Advertising 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. Based on the need of the advertiser. length of the commercial. With in a few days of launching. Recently. but is a total experience. Hutch. However. their job is to suggest that instead of a 30 second spot. Coke. Red is also focusing. Advertisement Red Fm does not go to sell radio spots but works like a consultant with the client. as they had already freezeed their media budget for the year. Kotak Mahindra and Dabur among others. So if a retailer wants to announce his sale and he does not have a big budget. Endorsing advertising on RED is not just about buying spots.000/. 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. They have other high profiled clients like Sony Entertainment. play a 10 second spot through the day. They normally charge around Rs. KC. 64 . Idea. ICICI Prudential. 4. Every committee hosts its own festival and Red has been in touch with committees from Jai Hind. HR and nearly every other college in North Mumbai. Zee. use their strengths and improve co-ordination between the three stations. Red’s current advertisers profile includes both retail clients and corporates. the shortcoming is only in terms of delay. for the first time in India. Red FM was launched six months late. they suggest the best ways of achieving the objective. tailored to the customer’s needs. they carried a DJ live on turntables from their studios. State Bank of India. towards the influence of one station with the other. this is an important task in terms of helping the advertiser.

Radio Advertising Their revenue only from Bombay is more than two crore. we would advise a cosmetics brand to advertise on that programme. They do produce jingles according to the advertisers and if the advertiser or the client wants to use that jingle somewhere else in some other media. There are several questions that RED FM identifies before making a time-band suggestion. Radio Mirchi 65 . The do give some discounts to the accredited ad agency. similarly. music. RADIO MIRCHI [98.3FM] 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. background conversation. If there were a programme on beauty tips. 9 crores annual fees for Mumbai). The normal jingle length is 10 seconds and again here rates will differ on the basis of the sound effects. And from the non-accredited ad agency. debuted in Mumbai. surveys reveal that a number of men like tuning in to radio just before sleeping. on 98. if there were a cookery show. then the client has to pay substantial amount of money to radio station because if they produce a jingle that is their assets. Is it a women’s product? Is it male-oriented? Is it a retailer? If it is a retailer. They take 100 % money in advance from the direct client. owned by Entertainment Network (India) Ltd. face-toface conversation. a wholly-owned subsidiary of The Times Group. 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. they would advise the drive time hours or the late night show.3 FM. 2002. the Radio Mirchi private FM station. 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. there would be food-related brands advertising on it. On April 23. For male dominated products.

Since radio is a free to air medium.SEC A and B and in that too mainly youth and housewives. Mumbai. RM later made a conscious decision to go Hindi. This segment addresses about 12 lakh listeners 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.they are a contemporary hit radio station. As the punch line says. Chennai and Kolkata. CELEBRITIES and film stars that repeated every so often “hi I’m -------.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.. 66 . retail showrooms. they are also the only private FM radio broadcaster in the cities of Ahmedabad. Connect with the growing Radio listening population in Mumbai. Hence it quickly became a mass channel with Hinglish being its prime lingo and having a wide audience appeal. Chennai.it also does a lot of tie-ups and contests for the consumers Marketing strategies Radio mirchi has also tied up with various shopping malls. pubs for continuous advertisement of their channel to make people aware of the temptations given by the channels to them. Price: The advertisement rates. However the slogan by itself was incomplete without the voices that accompanied it. which reaches the lower end of the audience spectrum.Radio Advertising is now present in seven Indian cities and is the only company with private FM radio stations in all four metropolitan cities of Delhi.' They have a very clearly defined position . 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. A very large factor that contributed towards the establishing the brand of RADIO MIRCHI was its catchy slogan “it’s hot”. plug Radio Mirchi through the other media that The Times Group owns. For corporates and retailers: the airtime Place: intensive in Mumbai and selective all over the country since it is established in cities like Kolkatta. Indore and Pune. 'it is hot. (Refer to annexure) Promotion: The marketing strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi. and their Target is around 18 to 35 . Delhi.

Most of the national advertisers on radio mirchi today want to buy all the stations on air. In Indore more than half of Mirchi revenue comes from retail. across the five stations. 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. non prime time and the likes. There is huge inventory pressure on them and therefore they had to increase the ad rates. Today it is fashionable to be on radio. Radio mirchi sells independently and does not offer any print package deal even though they belong to Times Group – they are an independent company. So when the advertisers wants to advertise on radio. Clients buy effective rates and they buy a combination of spots like prime time. stations offer discounts on what is on their rate cards. Currently radio mirchi has hiked their prices because they know that Radio Mirchi today is one of the best radio channels and they offer value to the advertisers who spend on their station. radio mirchi 67 . There is very little retail advertising on radio. Radio Mirchi gives 45 lakhs weekly listeners as per Radar study. the rest of the FM channels charge anything between Rs 1. On an average.000 and Rs 1. But in Mumbai it is at 10%. on an average. there are 125 to 175 brands advertising on Radio Mirchi. While all the other stations offer more slots and run ads for over 15 minutes. So they have package deals for them also.000 for a 10-second slot. Currently. Hence. In most cases. they offer ten minutes per hour on Radio Mirchi. The rates are so reasonable that advertisers can afford 10 or 15 spots a day and run the campaign for 15 days or three weeks at a fraction of the cost that you will incur in print or Television.Radio Advertising Advertising Radio Mirchi charges the highest rate of Rs 2.500 for a 10-second slot. There is an average listenership of 45 minutes per day on the station. In Ahmedabad and Pune it is probably about 25 to 40% of the business. the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. they have implemented the changes in the time slots of the different shows on air. There are about more than 300 advertisers on Mirchi. accordingly.

Chandigarh. 1 channel and delivers high numbers with Daily listenership at 24. 68 .000 radio stations.  Radio Mirchi emerges up as the No.Radio Advertising 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.63 lacs. But this country can have 5. Hyderabad. Future Plans:Radio Mirchi is looking radio Industry from the long term point of view. Ludhiana. They are interested in some of the bigger cities for instance. which means going into the smaller towns. Bangalore. Lucknow and Kanpur. 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. That will still take us to about 15 frequencies. definitely Coimbatore.

Recently.the Asli Batliboi and Ding Dong . With increasing competition airtel is now going in for more of radio advertising as against the television . Its major competitors are orange and R. India’s leading cellular operator in the private sector. Nokia first introduced FM enabled phones. 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.Mona Sing a Song. Mr. Bappi-da Da Gyan. The radio channel in question happens to be Radio Mirchi. Operating in more than 23 cities it has been able to attain a high number of customer and is now regarded as one of the best cellular services being provided in India. the reason being the huge radio boom with the large number of customers tuning into radio more often than ever. 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.6 per minute with no extra subscription charges. 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.I. where users can listen to any FM channel through 69 . To avail this innovative tie-up. They can then listen to some popular programmes of the channel like.Radio Advertising Case Study On Airtel Airtel. Pre-paid and post-paid customers of AirTel can access this service. Airtel is creating an attitude of being people friendly and thus gaining huge share in the market. Devdas . For this. users have to pay a Value Added Service (VAS) rate of Rs. Hotpot Crackpot.M and various other providers. Mirchi Movie of the Month. there has been an increasing demand of listening to FM channels through mobile handsets. the users need to dial 646 from their Airtel enabled mobile handsets.

6 per minute. Among CDMA service providers.radio ad jingles “TUM KO DEKH TE HIN . KABHI MEERA ROAD . DESH BHAR MAIN RE-CHARGE KAHIN BHI. And would also be convenient for its customers to recharge their mobile phones in these centers. KABHI LINKING ROAD . With regard to this particular trend. CHARGE HUA ZINDAGI. through the R World of Reliance handsets. This all shows about their care for their customers. AAISI AZADI AUR KAHAN. Airtel . it does become quite doubtful as to how long Airtel's 'mirchi effect' will last with the charge rates as high as Rs. KABHI PEDDAR ROAD . users can listen to songs. KABHI AAREY ROAD . 70 .” 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. Airtel's tie-up allows users to listen to one channel only. radios have offered services to its users free of cost. For a long time now.Radio Advertising their handsets.

The government charged a very heavy license fee for entering the market. Under this system. did not allow broadcast of news and current events nor was there a scope of a foreign player entering the Indian market. In order to let the industry to grow the government needs to give it some space. The Government should review its ban on private stations airing news and current affairs. as recommended by the TRAI. A llowing foreign players to enter the Indian market could also spell a boon for the Indian company gain from the expertise and superior technology of the foreign player. go in for a system more prevalent worldwide . stations will pay the government a certain % of their gross revenue every year. The basic problem in the Radio space in India is the excessive Government control and regulation. This could attract potential listeners on the move who want their daily share of the happenings around the world. But with the government citing national security as the reason for not doing so leaves little hope of this happening.revenue sharing. 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. 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. currently a monopoly with All India Radio. They should in fact. atleast in the near future. 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 71 .

) Programme category 07:00 .17:00 20:00 .Radio Advertising Annexures Radio City . The sponsorship material must be sent four weeks prior to start date of the sponsorship of any programme.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. ⇒ All bookings are subject to availability at the time of booking.22:00 22:00 .11:00 Radio active 17:00 . the advertiser will move the spots to the programme replacing the discontinued programme in the same rate category. gets discontinued. ⇒ Others… 72 .National Rate Card 30 Secs spot buy rates (in Rs. The agency/advertiser must provide DATS at least fifteen days prior to first spot airing date. At least 2 weeks prior to the date of airing of the first spot. ⇒ In case any programme. Ltd.20:00 11:00 . release orders should be given to MBPL through Star India Pvt. which is being offered in this package. ⇒ All invoices should be settled by the advertisers/agency within 30 days from the date of the receipt of invoice. ⇒ To ensure proper and timely release of the spots.

Radio Advertising

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

City Mumbai Delhi Kolkotta

Prime 1800 1800 1200

NPT/ROS 1200 1200 600

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

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

Sponsored Shows:
Super Prime Time + 25 % premium

73

Radio Advertising

Radio mirchi rate card

Day Parts 7 a.m – 8 a.m 8 a.m – 12 a.m 12 a.m - 5 p.m

Time Band Family Housewife / Traders / Youth

Delhi 500 260

Mumbai 500 650 250

Chennai 220 260 145

Kolkata 220 260 145

Ahmedabad 170 215 130

Pune 170 215 130

Family /Drive 850

5 p.m – 10 p.m 10 p.m – 7 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. Over 10 seconds, jingle length would be counted in multiples of 5 seconds. E.g. A 23 second jingle would be billed as 25 seconds

Jingle production charges

Centres Mumbai Delhi Chennai Kolkata Ahmedabad Pune

Jingle cost Rs.10,000 Rs.10,000 Rs. 7,000 74 Rs. 7,000 Rs. 5,000 Rs. 5,000

Radio Advertising

Big 92.7 FM Rate Card ( Effective on 1/ 4/ 2010 )

75

superior target ability. These advantages include high amount of time spent listening. Conclusion Radio has many natural advantages that make it an excellent choice for an advertising medium.Radio Advertising Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday Big Brunch 07001100 hrs Good Morning Mumbai (GMM) Lavanya Rate: 2500/(08001200 hrs) T-Man Rate: 1250/Sunday Midday 11001400 hrs Rate: 1500/The Midday Show Show (12001600 hrs) Ravi Rate: 1000/14001800 hrs 17001800 hrs College Radio Nadir Orange Request Hour Rate: 1250/Mumbai Matinee (16001800 hrs) Travel Guy Rate: 1000/Mumbai Top 20 18002100 hrs Horn Ok Please Malini Rate: 2000/(18002100 hrs) Annie Rate: 1250/Nineties on 21000000 hrs NightShift Glenn Rate: 1500/Bacardi Breezer Vivid Nights Malini Rate: 1500/925 Chris Rate: 1250/00000100 hrs Midnight Shift Rate: 750/Live DJ Set Sandy Rate: 750/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. superior listener 76 .

despite All India Radio's enormous reach (97 per cent of the population). In such a scenario. The opening of the FM market is a new phenomenon and the maturing of the market will take its own evolutionary path. Ultimately content and packaging will be the king. Living Media. the fortunes of radio advertising are likely to change with the advent of private players like Star India. However. with an expected growth rate of about 10 to 12 per cent every year. Mid Day etc. One aping the other is an honest testimonial to justify this statement. It would be just plain old quality of programming and the explosion of contests and sweepstakes offered by the Radio Stations currently. but spend only 15% of their time with such eye-oriented media as newspapers and magazines. 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. Bibliography 77 . Conversely. 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. Consumers spend 85% of their time with ear-oriented media. In fact. ad recall and message retention. greater reach may not necessarily translate into a marketing advantage. such as Radio. Yet advertisers spend 55% of their money on eye media (print) and only 45% of their money on ear media such as Radio and television. the private FM players have a huge opportunity in grabbing a bigger chunk of the radio advertising pie as. broadcasters need to develop the market by being more responsive to the advertiser's needs.Radio Advertising loyalty. This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium. Bennett Coleman & Co. Interestingly. 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. what will spell out the difference between success and failure will be neither size nor niche. its revenues have declined.

Radio Advertising While working on this project I visited some of the radio stations and they gave me some information 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 Newspapers and Magazines     Times of India Economics Times Business Standard Financial Express Various websites were also visited such as.agencyfaqs.com www.com www.com www.allindiaradio.uk www.go925fm.co.rab.org www.in www.            www.radiomirchi.indiatoday.com 78 .com www.timesofindia.economicstimes.com www.hinduonnet.star.exchange4media.co.com www.com www.

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