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BHAVAN’S HAZARIMAL SOMANI COLLEGE OF COMMERCE AND ECONOMICS
Year of Submission: 2008-2009
UNIVERSITY OF MUMBAI PROJECT REPORT ON:
FARAAZ DHARAMSEY T.Y.B.M.S SEMESTER V ACADEMIC YEAR 2008-09
UNDER THE GUIDANCE OF
PROF. HEMANT KOMBRABAIL
This is to certify that the project titled “RADIO ADVERTISING” is the bonafide work of Mr.Faraaz Dharamsey, a student of Bhavan’s Hazarimal Somani College of Commerce and Economics as a part of curriculum for Bachelor of Management Studies, for the academic year 2008-2009, under the University of Mumbai. He had conducted the study under my guidance and information submitted is true and original to best of my knowledge.
--------------------------------------------------------------------PROF. HEMANT KOMBRABAIL MODI
Dr. SUZY. KURIAKOSE
I, Mr. Faraaz Dharamsey, a student of Bhavan’s College third year Bachelor of Management Studies, Semester V, hereby declare that I have completed the project report on ‘RADIO ADVERTISING’ in the academic year 2008-2009, under the guidance of Prof. Hemant Kombrabail The information submitted is true and original to the best of my knowledge.
Interdependence is a higher value than Independence. I am grateful to those who have relentlessly provided the necessary support, the right kind of information and the expertise required for achieving this mission. During the intervening period, I came across some wonderful people in the form of relatives, friends & acquaintances from which I have learnt immensely. While it is not possible to name them individually, I would like to express a deep sense of gratitude towards them. My sincere thanks are to my project guide Prof. Hemant Kombrabail who has contributed a lot towards the project. I would like to make specific mention of Ms.Prakriti, Ms. Shabnam & Ms. Medhavi who are directly involved in this project.
II Advent of format radio Radio industry in India Milestones 5 .I Entertainment Industry In India Introduction Some basic technical knowledge Royalties Cost radio advertising strategic role of radio advertising Pros and Cons of radio advertising types of radio advertising radio stations divide their dayparts and their rates length of spots buying radio Time Producing radio time selling radio commercial elements of good radio commercial creative radio advertising steps in radio ad production measuring radio’s effect radio with other media Barriers to radio advertising Module .Radio Advertising INDEX Module .
3 Fever 104 6 .Radio Advertising Players in Different Centers Issues in Radio Industry Suggestions for FM radio in India Future of Radio Industry SWOT analysis Module .7 Radio One 94.1 BIG 92.3 Radio Mirchi 98.III All India Radio Radio City 91.
The radio channels are now vying against each other to provide their best to the listeners 7 .Radio Advertising Executive Summary Advertising in general expresses the positioning. This led to sharp declines in the proportion of advertisement spending on radio as compared to other media. Radio One. This brought about loads of changes in the world of radio broadcasting in India. Radio advertising is one of the tools of advertising which is effectively used for communication and positioning. Powerful advertising is the result of powerful planning. One will find people with radio sets of different shapes and sizes listening to their favourite music on roads. With the advent of television radio lost its popularity and thus its purpose with the marketers. in hotels. which evokes smells. Fever and BIG. Radio is entirely a medium of sound. Prominent and established companies entered the business of FM Broadcasting. Radio is good at increasing awareness about the brand and business and helping in building the brand image. even the bidi shops aired on any of the music channels.Radio Mirchi. FM broadcasting has breathed a new life into the medium of Radio in the past few months. sensations and visual images which brings the listeners imaginations into play. But then came the governments order on liberalization and privatization. But all this was only for pure academic purpose. Could radio now think this as a new phase of its life or a re-birth? Of course yes. Great ideas and great ad campaigns don’t just pop out from no where. people are today talking only Radio---. they are built on the key communication points that motivate sales. It is one of the foundations for effective and successful advertising. RED. Radio can be used effectively for advertisement since it can target the large audience because of its high reach.
Objective Through this project my objective has been to understand the following • • • • • To find out about the current scenario of the radio industry. The reasons for a stunted growth of the industry The various steps in radio advertisement Realizing the needs and wants of consumers and fulfilling them What the various radio stations have to offer the masses.Radio Advertising However one can see that although radio is an excellent medium it has been used to its full potential and various efforts should be taken to improve it as with proper direction radio can reach heights as it is the cheapest and a very good medium. 8 .
Also Mr. It was also undertaken to understand how radio advertising is done and what re the current players in the market. newspaper articles 9 . The mode of interview used was an informal one where he answered my questions on one to one basis. books. Primary Research: The aim of primary research was to understand radio advertising as it is seen in the corporate world. Prakriti who is currently working in Radio Mirchi who helped me understand what all goes into the making of a radio advertisement.also the fall out of radio in the last decade . Secondary data collection method: desk research Secondary data collection sources: internet. Chetan Mahajan. gave me an interview and helped me in trying to understand as to how the station works and looks after the needs of its consumers Secondary Research The aim of secondary research was to understand as to why radio advertising has been able to grow at a considerable rate as compared to the other media.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. To understand this I have taken two interview from different fields. famous for voice over on radio. RJ.
innovative and grab away eyeballs from TV sets and make them tune into their radio sets. In fact. radio has a 5 % to 12 % 10 . FM radio is a new entity altogether and has to deal with new market dynamics. Not so long ago radio had been written off as fuddy-duddy. The other challenge for radio in attracting advertisers is the nature of the medium-radio has always considered being a reminder medium. Media owners dealing with new markets will virtually have to draw up their strategies as they go along. create programming that is new. But thanks to technology radio is making a comeback. in its new avatar-fm-radio is all set too become the hippest. Vis a Vis television or print media. But FM presently covers only 17 percent of the area and 21 % of the population of India through transmitters. The geographical area covered by radio in India in India is as high as 98 percent and the penetration level is approximately 97 percent. much like satellite channels did to the quantum of television advertising in the country. as advertisers will expect media players to put their money where their speakers are before they commit large sums of money towards radio advertising. It’s a whole new challenge and competition is never far away. Television and later “new media” were touted to being the media of the future. 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 . outnumbering television sets 3:1. The involvement of listeners to radio is low. Globally depending on each country.Radio Advertising Introduction Old media don’t’ die! They just bounce back in new avatars. coolest and most with -it medium. Ad revenues will also not be easy to come by. Currently radio has just 2 percent of the 9000 crore Indian advertising market according to an Arthur Anderson’s survey. down market and not so cool. That should open up a vast new market of consumers-100 million Indian households own an estimated 150 million radios.
Thus the potential if FM is better is bigger town. is not just making a comeback but is being reincarnated into a new avatar. Also one must not forgot that radio continues to be a medium that has tremendous reach among the poor and marginalized sections of society. On the higher side are countries like the United States with 13 %. This would be the key when evaluating the medium.7% and Spain with 9. With the coming of more channels. radio will become a push and pull medium. Rs. 11 . FM station executives are not forthcoming on multi-platform strategies as yet. Also advertising of certain product seems to work very well while some might not. While TV is a family medium. 1200 crores by 2005 and Revenue of radio services is expected to rise to Rs 689 crore by 2008 at a CAGR of 30 per cent. and the emergence of lifestyle advertising.1%. 50/. For example. As said earlier. cellular phone service or auto related products would have a good impact when advertised on radio is primarily known as a “drive time” medium most people who turn in are doing so while commuting. radio is personalized. Given that radio has penetrated into 100 million homes and a FM set costs around Rs. as the car population is much bigger.FICCI estimates FM’s share up from the present 1. Canada with 12.5 percent to 5 % in five years. They have also forecasted that revenues from radio advertising in India will be Rs.Radio Advertising of the advertising cake.
hence the relatively low frequencies for AM radio.Radio Advertising Some Basic Technical Knowledge Any radio setup has two parts: • • The transmitter The receiver The transmitter takes some sort of message (it could be the sound of someone's voice. Common frequency band includes the following… • • AM radio . When you listen to a radio station and the announcer says.000 cycles per second.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" means that the transmitter at the radio station is operating at a frequency of 91.500. Megahertz means "millions of cycles per second. data for a radio modem or whatever).535 kilohertz to 1. The first radio broadcasts occurred in 1906 or so. Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. 12 . pictures for a TV set. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz.7 megahertz FM radio . but FM did not become really popular until the 1960s. In the 1920s. encodes it onto a sine wave and transmits it with radio waves." so "91. Both the transmitter and receiver use antennas to radiate and capture the radio signal. This band of the radio spectrum is used for no other purpose but fm radio broadcasts. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible.88 megahertz to 108 megahertz AM radio has been around a lot longer than FM radio. He built the first station in 1939. and frequency allocation for AM radio occurred during the 1920s. The receiver receives the radio waves and decodes the message from the sine wave it receives. radio and electronic capabilities were fairly limited. "you are listening to 91.5 megahertz.
500 per hour (as against Rs.500 to Rs.per hour. Cost . 6.500/. so the question of royalties is relevant. 13. 1. PPL is demanding a royalty of Rs. Add Rs. considering the limited range and listenership supposing a 30 . 500 . 13 . Besides the tariff card should be modest. 10.of the licensee fee to AIR. advertising time available for sale is 9 . 12. An hour long show thus costs Rs. Add Rs.Aspect A Licencee pays Rs. 1000 an hour. Another estimate puts the production cost of an hour long programme around Rs. The IPRS is demanding Rs. 250 per hour of needle time. 6. 3.500.seconder costs Rs. Studio hiring costs are between Rs. 10 . 100 per hour.for the technology. 1. The total expenses are thus Rs.000/-. 9000/.Radio Advertising Royalties FM is primarily a music channel. at which they are supplying music to AIR). salaries and other expenses.. the total revenue generated is Rs.minutes.minutes for social awareness advertising. The IPRS claims royalty for the original composers and authors of music. 18 advertisements each of 30 seconds can be accommodate in an hour. Thus. The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd.000/. Add Rs. They are demanding Rs.Minutes have been set aside for advertising.Rs. the actual duration of a piece of music.000 per hour. This is the high target.000/. 100 per hour. One minute is reserved out of 10 .for the music. 500 at prime time for 18 such spots. (PPL) are supposed to hold all the rights of royalties. 6000/. In other words.
sports. experts give a lot of credit to David Sarnoff who actually conceived what is called as the "radio music box". The 1st paid announcement on radio was a 10-minute capsule from Howthorne Court. His persistence paid off in 1919 when such sets were available for general purchase. It was way back in 1895. It has benefited listeners and advertisers alike and earned the status of a 'Constant Companion'. A network soap opera could be followed by a 15-minute newscast followed by one hour of a concert. a Queens based Real Estate Company. Audiences were charmed by the audiovisual experience of TV. That was not all. Radio became the first medium delivering entertainment to the masses in their homes. However Radio has not just survived repeated predictions of its demise but grown tremendously. People in households would gather around the radio to listen to their favorite programs much as they do today with TV..Radio Advertising Advent of Format Radio The arrival of 'Moving Pictures' with sound and then 'Television' were expected to be the death knell for 'Radio'. It took quite a while before Reginald Fessenden developed the first radio receiver in 1913. that Guglielmo Marconi invented an antenna to send and receive radio signals. Then in the 1950s TV began to catch the public's attention. This saw the beginning of what was later looked on as the 'Golden Age of Radio'. It was Sarnoff who suggested that radio should be mass-produced for public consumption. 14 . News. What allowed Radio to accomplish this feat? Read on for the long journey the Radio industry has covered thus far.. A large number of popular shows moved from radio to TV. However. This era was characterized with 'block programming' wherein radio offered something to everyone. live musical recordings would be presented in 30 or 60-minute programs. as the radio industry was also losing a large number of talented staff to TV. drama. Early 1920s saw the launch of commercial radio.
Radio became "The Constant Companion". Being the only medium that could be carried and used wherever you are. throughout the day. Irrespective of the form it came in. According to estimates. As the story goes. This era also spawned two of radio's greatest strengths: immediacy and local service. there are radio sets in about 105 million households in the country.Radio Advertising At this point in time. Format radio strategy was based on providing the same kind of entertainment to a selected audience. traveling to office. which had a jukebox. format radio definitely made radio not just survive the onslaught of TV but also made it grow tremendously. The total number of radio sets at the time of independence in 1947 was a mere 275000. Storz and McClendon used to frequent a local malt shop.at that time a radio receiver used to be a status symbol in this country. Radio turned 'local' and moved to what is known in the industry as 'Format' programming. like getting dressed for work. This led to a change in the way radio time was being sold. it could update you about your world throughout the day while providing you with the entertainment you like all the time. radio experts discovered an opportunity that only radio could provide. The shows therefore had to be reflective of various day parts in the life of the listener. the staff serving these people would end up playing just the same songs even when the shop was closed. cooking a meal. It also led to a shift in the way radio programs were scheduled. Sales people shifted from selling programs to selling commercials.From this insight emerged the "Top 40" format or the "Contemporary Hit Radio (CHR)" format were the most popular hits would be played on a higher rotation. studying and more. In fact. They realized that radio was the only medium that could be used while doing other things. 15 . over and over again. seven days a week. it had to be relevant to the listener at every point of time in the day. As radio was being used as a background medium of entertainment. They observed that the customers would usually come and play the same songs that they liked. But today its possession is taken for granted.
July 6.75 crore. the Government of India did not permit private radio stations to broadcast in India. And in 2000. In response to the Government's offer. players consolidated and the Government extended its deadline. Many gave up. unable to shell out the high license fee. the Government gave the green light to privatize radio in India. Within 4 years. A handful of serious bidders chose to remain. So. through its electronic media regulatory body Prasar Bharti. Expecting to collect Rs 800 million from auctioning 108 licenses. (1997-98). in effect. And the focus on metros was evident in the bidding. the FM Radio advertising and sponsorship business grew to Rs. 93 crores with Times of India's Times FM & Mid-Day Group's Radio Mid-Day becoming the main players. the advertising revenue fell by 50% within a year! This time. book commercials from advertisers and broadcast the whole lot.Not surprisingly. Then history changed its course. For instance. the Government allowed private FM operators to 'buy' blocks (chunks) on All India Radio. the competition shrank. the Government auctioned licenses for private FM channels to bolster the revenue. many companies bid for the licenses to operate in key markets. Today. But the going was not so easy. In 1993. Then. there are roughly 10 players who will operate approximately in 37 cities across the country. the bidding price for the Mumbai license was reportedly to the tune of Rs 9. prepare programming content. decided not to renew contracts of private FM operators. Others dropped out saying the business was not viable. in June 1998 the Government. 16 . the government had to actually face mass withdrawal of bidders because of the huge license fee.Radio Advertising History of Indian Radio For more than 4 decades. 1999 was the historic day when the Government announced that 150 new FM channels would be licensed across 40 cities .
each for Rs 77.Rs 97. 17 . The government got the highest bids . Interestingly. FM coverage in India is restricted to just 17% of the country. while the bids for Delhi were Rs 71. which grew rapidly following the entry of private players Currently. The first round of bidding . New Media Broadcasting.2 million and Rs 74 million.for stations in Mumbai.6 billion as license fee for the privately run FM radio channels in 40 cities. compared to 89% of All India Radio (AIR).for 76 channels in 26 cities. garnered close to Rs 3. won the largest number of bids.5 billion. which focused mainly on the smaller towns. a Zee Group company.2 million each Radio is expected to follow the growth of the Television industry. respectively.Radio Advertising The government collected close to Rs 4.5 million from each of 10 broadcast companies . the bids for Hyderabad and Nagpur came next.
Coimbatore.87 Entertainment Network [India] Delhi. Lucknow.17 Delhi.00 1.Sun TV Vishakapatnam 1 0. Bhopal. Nagpur.90 Udaya TV . crore) 43. Calcutta Delhi. Mumbai. Patna. Bangalore. Calcutta. Indore. Cuttack. Tirunalveli 6 41.87 20. Ahmedabad.Sun TV Vertex Broadcasting 3 9. Chennai 3 20. Mumbai. Indore. Mumbai. 18 . Chennai. Mumbai. Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July.00 17.50 Incidentally. Mumbai. Jabalpur. Vishakapatnam 4 2.Radio Advertising Players in Different Centers Company Location of Centers Number of Centers Bid amount for first years license (Rs.87 Calcutta.37 Sumangali Publications . Lucknow Chennai. Chennai 12 Hitz FM India FM Living Media Mid Day Broadcasting Millennium Broadcasting Music Broadcasting 1 1 3 3 1.17 Delhi. Bhubaneshwar. Hyderabad. Pune Calcutta Calcutta Delhi.
The objective is to “make FM radio a success story”. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years. The panel also suggested that players wanting to enter the sector in the second round of licensing need to have a technical viability clearance by a financial institution on the financial viability of the project. It 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.Radio Advertising Licence Fee and revenue sharing model Currently. FM players pay annual licence fees. which go up by 15 per cent every year. While the private FM players had sought revenue-sharing in the band of 2-2. Future of Radio Industry 19 . It’s better to keep the revenue-sharing figure low than to have a failed project. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. the number of FM radio stations targeted is around 300 to 400.5 per cent. the panel has fixed it at 4 per cent. However. Revenue-sharing figure is quite low at around 4 %. it is firm on revenue-sharing now. revenue-sharing also exists in the media sector.
Spearhead the government objective of growing the FM radio business in India. community announcements and public service messages provide a real value-added service. The Rs 1. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand.2 billion by 2007.Radio Advertising FM Radio can play its part in building a stronger business future for India. it is being predicted that radio's share in the total advertising pie will see an increase in the medium term. Virgin group has already started exploring the Indian market for suitable partners. with revenue rising at 23 per cent annually. With more players in the fray the FM radio industry would grow and also enhance the government’s yield from licensing radio naturally. advertising spending is expected to amount to Rs 500 crore this year. employment & career options.also government allowing foreign players to enter he Indian market it will help the industry grow. 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. 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.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6. 20 . for advertisers. helpful information traffic advisories. Providing free-to-air local broadcasts of music and entertainment. though radio has only a 2 per cent share in the Rs 6. There are an estimated 150 million radio sets across the country. It can provide a level playing field with benefits for listeners. The new India deserves an active private FM radio sector. Also. It is on the basis of these key drivers of growth.000 crore Indian advertising market. But at current levels of advertising support.
advertisers or agency can use this medium for brand recall. brochures Radio is considered as a background medium. publications. not only are listeners tuning into it more often but also sticking to radio for longer hours everyday. which is 4 % for the growth of the radio stations. who would depend on word-of-mouth. So that they can develop themselves well because this industry is still in an introduction stage. Therefore radio is more popular. pamphlets. the government has agreed upon revenue-sharing model. 21 . Radio also reaches to uneducated village folk who do not read print or ads in local supplements of newspapers. because people can listen to 90% of India has access to radio which is unmatched by any other media. are welcoming the opportunity. and reveals that radio listenership habits have changed considerably. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive.Radio Advertising SWOT Analysis Strengths: • Recently. • • Radio is considered as a medium where the “Proximity to purchase” is very Radio is a complement to another media. other media or the high. radio anytime and anywhere they want. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. • The success of private FM stations. • • • • The advertisers. Therefore. They can’t afford a TV set. It is also a free medium. • Radio is the least cost medium and it helps to reach mass audience with various backgrounds.
• Radio-only nature of radio communication is a tremendous creative compromise.Radio Advertising Weakness: • One of the major weaknesses of Radio is that there is very less differentiation in the programmes that are aired. in India there is no proper research is available. But.research is very important for any advertising segment. The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium 22 . And therefore. • • • Launching a radio station with 24-hour news channel Tie-ups with BEST or railway authority for playing the FM in train and in bus. • • Increase in listenership numbers but no increase in ad revenue. This is the situation that every radio channel is facing. Many stations are conducting their own research which can be biased. And like its radio message creates a fleeting impression that is often gone in an instant. and therefore it is difficult to differentiate between the programmes of the different channels.the large number of the audience in India is fragmented in various remote places. • No proper research available . 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. Research is the main base to attract client and get more revenue. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. Most of the stations plays much of the music that is played consist of Hindi Film songs. the percentage of listener tuned to anyone station is likely very small. • Fragmented Audience . Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans.
and that is the challenge. • • Allowing private FM players to start news and current affairs programmes. if some station is targeting the health conscious people then their programming strategy will vary accordingly. like. At the same time. low charges. And can play their station which will exclusively provide with the information relating to that university/college campus. One has to constantly innovate. government channel etc… • Because of the new government policies there will be more number of stations and then competition will also increase. With no particular differentiation in the music.Radio Advertising • The new radio stations which will come in future they can have venture with the college or university campuses. So. This is one of the biggest threats it faces. there is a fear of losing its brand loyalty. And then it is easier for the advertisers also to decide on which channel to advertise. • Leaves huge scope for innovation in local market Threats: • The biggest threat to private radio industry players is ALL INDIA RADIO. • With the coming of the many more new players in the radio industry each channels can position themselves quite different from others. AIR is the biggest player in India because of its reach. we are very bullish. Brand building is thus much more difficult. and gung-ho about this whole enterprise. 23 .
34%. with a nominal GDP CAGR of 9. the gross advertising spend in India is estimated at Rs 111 billion. and is expected to grow at 14. as a percentage of GDP. There is a correlation between the economic growth rates of a country i.636 billion.2% to reach Rs. the nominal GDP growth rate. According to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10. is 0. and growth rates of the advertising industry The Indian advertising spends. which lags behind other developed and developing countries During fiscal 2005. The nominal GDP for fiscal 2005 was Rs. 30. 127 billion by fiscal 2006 24 .e.9%.Radio Advertising Advertising in India India has been among the fastest growing economies in the world.94% over the last 10 years (1995-2005).
3% Media Spends as % of Total Ad Spend TV Radio Cinema 39.4% 0. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry.7% 0.4% 7.9% 2. radio.Radio Advertising Segmentation in advertising The five key industry segments comprise print. especially since 1991. television.9% 0.2% 46.4% 0.0% Internet 0.9% 2. which started off as a single government controlled television channel.0% 48.7% 2. These different segments within the industry are at varying stages of growth and corporatization Year 2000 2001 2002 2003 2004 Print 49.5% 2.9% 43. 25 . This growth was also aided by the economic liberalization program of the Government.5% 0.0% 6.4% 0.4% 0.3% 0.6% 41. now has over 300 channels covering the Indian footprint.7% 2. the television broadcasting business.4% 47.5% 7. which saw the beginning of satellite broadcasting in India. Thus. 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. and outdoor.0% 43.6% Outdoor 8.6% 46.5% 6. resulting in growing ad spends on this medium.3% 40.7% 0.3% The Indian television industry has grown rapidly. cinema.
Globally. But national advertisers are also operational in the local market.5 or Radio City. Radio promotion is an art that demands a certain style you may simply neither have nor desire to cultivate. On top of that. if not more. Santro. be it Radio Mirchi. with 9. DSP Merrill Lynch etc are dominating the advertising on each one of the FM channels. Putting it bluntly. radio has a 5 per cent to 12 per cent share of the advertising cake. new product or services to new fans and taking a local market to a national level.7 per cent and Spain.Radio Advertising Radio Advertising Radio is still the king when it comes to getting your music. it is undeniable that radio can be integral in exposing a new artist. it is extremely difficult to obtain meaningful airplay. Amul. successful radio promotion revolves around making and managing relationships. 70 per cent of the advertising comes from big-budget. Go 92. It is a known fact that retail advertising will grow because radio presents the perfect advertising medium for local businesses in a local environment. national advertisers and the balance 30 per cent comes from retail. Britannia. depending on country. radio currently has only a 2. Dr Morepen.9 per cent share of the total advertising pie in India. Today. 26 . On the higher side are countries like the United States. Parle. They have people who love to make television commercials. implying that it is as important to them as it is to a retail advertiser. Advertising agencies that control the national picture will be slow to move on to radio for creative reasons. Castrol. with 12. Paradoxically. Companies that advertise on FM channels today such as Hindustan Lever (HLL). with 13 per cent. it can take a great deal of time to make all the contacts and connections that are required for successful radio promotion.5 Red 93. Accordingly. The best way for a new band to get heard by the public and record label executions is over the airwaves.1 per cent. Canada. Nevertheless.
Radio is the best bet for such small-scale promotions. Revenue from commercials on AIR. 600 crores in 2002.g. it has tremendous potential to eat into local mediums. representing a growth of about 7. 27 . in revenue terms. outlets selling favoured brands. and up till now. This makes sense if the advertiser. In such cases. Consumer opinions The evidence from the qualitative research is that young people feel their local FM station is aimed at people like them.5 per cent per annum. Here. probably quite correctly. but the advertising is not . cars and insurance companies .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. However. e. It is also aptly suited for local promotions. and the print medium is too expensive.Radio Advertising but don't have anybody who knows how radio works. films. it does not make much sense to advertise on TV. & Rs. There was evidence of three sorts of memories: Relevant : This includes Ads which mentioned areas or names of specific interest. only about 2.4 million in 2000. that most advertising is aimed at adults. all of that went to ALL INDIA RADIO. A clear advantage that radio has is that it can easily target city-based audiences. to Rs 808. money from advertising has gone up. wants to target a specific audience. including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990. concerts Vague/ not relevant: This includes memories of ads for local garages. and once audiences can be targeted. they have to sit through the full length of any ads which are for irrelevant products.they feel. Because radio is a real-time intrusive medium.9 per cent of the money spent by advertisers goes to radio. like a food chain that is opening an outlet in Mumbai.
2. radio builds a large audience quickly and a normal advertising schedule easily allows repeated impact on listener. From a marketing perspective. advertisers are 28 . The average adult listens more than 3 hours a day. employment category. Advantages of Radio 1. Radio has a number of characteristics that makes it an ideal vehicle for numerous advertisers as either a primary or secondary medium. 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. Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enable advertisers to select the market they want to reach. Therefore radio is more popular. Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the rural masses. there are certain disadvantages of this media which need to be considered. Radio also reaches to uneducated village folk who do not read print publications. ethnic or religious background. income group. age group. There is no one medium which is ideal for advertisers or every situation. They can’t afford a TV set. Largest Reach and Frequency Radio offers an excellent combination of reach and frequency.Radio Advertising Pros and Cons of Radio Advertising Every medium has special strengths and weaknesses that makes it more or less suited to special marketing problems of specific advertising. 90% of India has access to radio which is unmatched by any other media. radio has the ability to reach prospects by sex. Because of the relatively low cost of production. Also. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand.
radio ads can be produced very quickly. popular songs. The musical formats that attract audiences to radio stations can also attract attention to radio ads. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. 3. Also. makes radio the choice for numerous product categories. combined with its flexibility and creativity. and local stations often produce local spots for free. 5. This means an advertiser can wait until close to an air date before submitting an ad. immediacy. local relevance and creative flexibility. The personal nature of radio. National spots can be produced for about one tenth the cost of a TV commercial. Cost –Efficiency Radio is the least cost medium and it helps to reach mass audience with various backgrounds. 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. Proximity to Purchase 29 . While radio may be one-dimensional in sensory stimulation. it can still have powerful creative impact. a strategy that would normally be prohibitively in television. Copy changes can also be made very quickly. Radio has been described as the theatre of the mind. 4. Radio also offers timeless. Creativity and Flexibility Radio is the most flexible medium because of very short closing periods for submitting an ad. Audiences that favor certain music may be more prone to an ad that uses recognizable.Radio Advertising able to adapt commercials to the various stations then buy.
A personal medium The human voice is the most personal means of communication. 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.of . and persuade them to respond. it is imperative that brands achieve consumer reinforcement as near as possible to the purchase decision. Radio’s daily frequency offers scope for continued messages and hence the consumers are more likely to remember that product and consumer lend up buying that product.Radio Advertising The mobility of radio and its huge out . Radio gives the advertisers the opportunity to take advantage of the right combination of words. The radio industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary medium. Radio can be targeted by lifestyle formats and is more efficient than other media from a cost and production standpoint. voices.home audience gives the medium an advantage enjoyed by few other advertising vehicles. In the competitive environment facing most companies. music. 6. However for national advertisers and most large local and regional firms. radio is most often used as complementary medium to extend the reach and frequency of primary vehicles in their advertising schedule. Disadvantages of Radio 30 . As a Complement to Another Media In some cases. As a result many advertising agencies will move their budgets into radio. radio is the primary medium for local advertisers. evoke their emotions. and sound effects to establish a unique “one-on-one” connection with prospects that lets you grab their attention. 7.
However. he or she often switches stations when an ad comes and divides his or her attention between the radio and road. 5. Short Lived and Halfhearted Commercials 31 . In television the chances of such misconception is less. as it is audio as well as visual. 4. Since national networks and syndicated broad cast do not reach every geographic market. the buying process can be sheer chaos. Poor Radio Attentiveness Just because radio reaches audiences almost everywhere does not mean that everyone is paying attention. Misunderstanding Sometimes there might be a misconception regarding the radio ad as it is only heard. in radio’s quest to continue to fine tune its reach. For those product categories with broad appeal. 3. Chaotic buying procedures For an advertiser who wants to include radio as a part of national advertising program. 2. This could involve dozens of different negotiations and individual contracts. an advertiser has to buy time in individual markets on a station-by-station basis. it is difficult to gain effective reach and frequency without buying several radio stations and networks. which may not be cost effective.Radio Advertising 1. advertisers who want to blanket the market have to buy multiple stations. some advertisers wonder if radio is offering too many narrowly defined options. Fragmented Audiences The large number of stations that try to attract the same audience in a market has created tremendous fragmentation. If a large number of radio stations compete for the same audience. When a consumer is listening while doing some work or traveling in a car.
Types of Radio Advertising: 32 . 8. Sometimes the voice really matters. They can’t keep like a newspaper or a magazine ad. and it does not always succeed. Limitations of Sound Radio is heard but not seen. If the voice is irritating then there is a chance that the campaign may flop. Radio must compete with other activities for attentions. 7. there is no proper research has been available on the area of radio listening. Only 20 % of time availability restricts the frequency of message exposure. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad. there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time. which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. 6. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. Creative Limitations The audio-only nature of radio communication is a tremendous creative compromise. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio.Radio Advertising Radio commercials are brief and fleeting. Therefore. a drawback if the product must be seen to be understood. 9. Some agencies think radio restricts their creative options. No proper research available In India.
airtime. RJ Mention/What’s On Mention Here the Radio Jockey [RJ] informs the audience the information given by advertiser about the new product launch. Networks provide national and regional advertisers with simple administration and low effective net cost per station. 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. exhibition going on at certain place etc. sale. Spot Radio Spot radio affords national’s advertiser’s great flexibility in their choice of markets. Disadvantage includes lack of flexibility in choosing affiliated stations the limited no. 2. Local Radio Local times denote radio spots purchased by a local advertiser for local market. It involves the same procedure as national spots. 4. Most radio stations use recorded shows with live news in between . 33 . The advantage is less paper work and lower cost per station.Radio Advertising 1. Radio Stations Divide Their Days And Their Rates. 5. The RJ informs the audience about the sponsored company throughout the programme. Sponsor Programme Here the advertiser sponsors the whole or part of the programme. stations.Likewise. and copy. of stations on a networks roster and the long lead times required to book time. nearly all radio commercials are pre recorded to reduce cost and maintain broadcast quality. Radio advertising is either live or taped. 3. Network Advertiser may use one of the national radio networks to carry their messages to the entire national markets simultaneously via stations that subscribe to the networks programs.
Length of Spots 34 . For the lowest rate .Friday). Heaviest radio use occurs during drive times (6-10 am and 3-7pm) during the week (Monday. So most stations offer a total audience plan (TAP) package rate. an advertiser orders spots on a run of station (ROS) basis.However. radios morning drive time coincides with most peoples desire for a steaming. This information is important to advertisers because usage and consumption vary for different products. this leaves total control of the spot placement up to the station. fresh cup of coffee. For example.The exact divisions vary from station to station. 6 am -10 am 10 am – 3 pm 3pm – 7pm 7pm. which guarantees a certain percentage of spots in the better day parts if the advertiser buys a total package of time.Radio Advertising Radio stations divide their rate cards into dayparts .12am 12am – 6 am Morning drive Daytime Afternoon drive Nighttime All night Rating services measures audiences for only the first four day parts because all night listening is very limited and not highly competitive. so its great time for advertising coffee brands. similar to the ROP in newspaper advertising .
In theory. The spots for advertisement can be for 10 sec. In other words. sound effects. Obviously. and a. The cost of a: 30 is usually about 60% to 75%. Some stations no longer charge a separate rate for: 30s and: 60s. The longest commercial played on the radio is 120 seconds. the more chance there it that it will be heard. the announcement of a new or little-understood service.Radio Advertising The radio commercials in the test reels consisted of several different spot lengths. one could assume that the longer a spot. 20 sec. Instead. they charge a unit rate. 10 second spot should contain 25 words 20 second spot should contain 45 words 30 second spot should contain 65 words 60 second spot should contain 125 words If you’ve never written a spot. Check the rate cards of the stations you are interested in. or other sports with a information/education content. ranging from 15 to 60 seconds. Those however are rare. unless very well written and well produced. 30 seconds sounds like an impossibly short time to get your message across. you’ll see that quite a lot can be accomplished in a short time. Buying Radio Time 35 . 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. 30 is usually 70 to 80 words long. In fact. But take a stop watch and time some spots on the air. In General. sometimes seem a bit too long. and voice and can be useful for political message. this is one case where you might want to use a: 60 to take advantage of the “free” air time. 60 around 150 to 160 words. or ask your sales rep. the better it will be remembered or at least. 30 sec and 60 sec. a: 30 costs the same as a: 60. you may find that 60s. A 60 does allow you more variety in music.
About 15% is allocated to national spot placement and only 5% is invested in network broadcasts. Many stations have local rates for Individual Business and National Rates for Agencies. guides an advertiser in a buying decision. the structure is actually quite straight forward. Advertising time can be purchased from networks. Although the actual buying may be time consuming and expensive if many stations are involved. The time period decision is based primarily on a demographic description of the advertisers target audience. while daytime primarily female and nighttime is mostly teen. 2. Networks provide national and regional advertisers with simple administration and low effective net cost per station. Weekend sports can also effectively reach teens. or local radio stations. There are five basic dayparts on basis of which advertiser can choose. Advertisers generally invest most heavily in local placement. Your Dayparts Buying Options Most stations offer several options for buying air time: a) Buying by specific dayparts b) Buying packages c) Buying sponsorships or adjacencies a). Buying specific dayparts This relates to the time period of purchase. This information combined with programming formats. syndications. 36 . Station Rates While buying procedures to achieve national coverage may be chaotic.Radio Advertising 1. this does not mean they are completely without structure. Putting half your sports into drive time and half into midday is a very safe strategy. Drive-times dayparts attract a mostly male audience. About 80% of annual radio advertising is placed locally. 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.
b). Buying packages
As with magazine buying, radio advertising time is purchased from rate cards issued by individual stations. Run-of-stations ads- ads that stations choose when to runcost less than ads scheduled during a specific dayparts. The price can also increase if an advertiser wants the ad read live on the air by a popular local radio personality hosting a show during a day part. Buying packages is an easy, usually low-cost method. Marking a package buy is called buying Run of Station (ROS), Total Audience Plan (TAP), or Best Time Available( BTA). 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. Stations will usually guarantee to divide your sports fairly between drive times and other dayparts.
c). Sponsorships or adjacencies
A sponsorship is just what its name implies. You are associating your company name with a specific program. The advertisers sponsor the whole or part of the programme. The RJ informs the audience about the sponsored company throughout the programme. “……………. Is brought to you by………” An adjacency is the next best thing to a sponsorship. If you buy an adjacency, your ad will run every day just before or just after (in other words, adjacent to) the program you specify. Other fixed-position spots are also available. For example, you may specify that you want your spot to run at 6:13 a.m. every Monday, Wednesday, and Friday. Sponsorships, adjacencies, and fixed positions go for premium rates. Sponsorships on top-rated shows can cost up to twice as much as other spots in the same dayparts. Having your name associated with a particular show or event can do a lot to reinforce your positioning, and these premium spots can be so powerful that you may be able to run far fewer spots than you otherwise would, spending less to achieve the same impact. Sponsorships are like marriages; they’re only for people who are ready for a longterm commitment.
Radio Advertising Radio, like most media, requires repetition to have impact. As a general rule, a minimum of 20 spots per week should be aired. There are scheduling strategies that help increase the impact of the spots you place. Flight and schedule are two words you may hear your radio sales representative use when you plan your advertising. A flight is a group of ads. (“I’m running a flight of 80 ads this month.”) A schedule is the long-term version of a flight. (“I run a schedule of 20 ads a week, six months out of the year.”)
4) How many stations do you need
Just as you should never run too few spots, you should also not run on too few stations. But how many is enough?Generally, you should run on at least two or three stations, but that varies depending on your audience and the number of competing stations in the market. If your target and audience includes both younger and older people, you may need to buy two or more stations with widely different formats. There are, however, times when one station will suffice. If your audience is business people, and you can afford to buy drive time on the dominant news/talk station in the market, that may be all you need to succeed. To really learn who is listening to your spots, survey the local market. These surveys break the audience down by age and sex, break the listening week down into segment, and then tell you how many listeners each station had in each category. Similar survey on listenership has been conducted by IMRB (Indian Market Research Bureau)
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. It can also be simple and inexpensive. There are three basic elements to work with: the announcer’s voice, music, and sound effects. Production can be done in the station’s own studios or in an independent production house. Stations are usually well- equipped to produce spots, and they often employ young, creative people whose fresh ideas will keep your spots from sounding like everywhere else’s. It all begins with a good script, which means not just the words, but the combination of words, music, and sound effects. All these are part of the script. Your spot can be clever or straightforward, but it must grab the listener’s attention in about three seconds, and it must not leave the listener wondering, “whose spot was that, anyways?” The following are some of the factors you should have in mind from the first moment you sit down to plan your spot.
1) The Voice
There are two factors concerning voice. First, you should use a voice that is appropriate for your image. There are two good, low- cost options for achieving this, and one higher- cost option: a) Using local radio talent b) Using an amateur voice c) Hiring professional voice talent. a) Using local radio talent If station produces the spot, one of their on-air people risk having the voice be so familiar that the listener doesn’t pay attention. If the ad runs only in drive time, one 39
Radio Advertising can have the midday announcer do the honors. Get the least familiar voice available. Listeners will be less likely to tune it out. Female announcers can also be used. Studies have shown that women presenters are just as effective as men; but only a small (but increasing) percentage of all broadcast sales presentations are made by women.
b) Using amateur voices
One great thing about radio is that even an untrained voice can be very effective. In fact, the less the voice sounds like one of the regular announcers, the better. A woman’s voice, a child’s, or even your own can make listeners stop and pay attention simply because it’s not what they’re expecting to hear. A word of caution: Amateurs can sound stiff and false.
c) Using professional voice talent
If a very sleek production value is needed hire voice talent from another station, the local community theater or, in larger markets, from a talent agency. Celebrity voices can sometimes be hired.
The power of music can’t be overemphasized. There are several options for putting music into your commercials: a) Have original music produced. b) Use free music from the station’s library. c) Get permission to use an existing recording by a known artist. (But It’s difficult and expensive to obtain the rights). d) Buy canned music (sound alike) in the style of many popular composers in all large markets who supply such productions for a modest charge. A lot of radio or TV advertising, can be done having a jingle product. The cost runs anywhere from Rs.600 to a few thousand rupees, and it can be a very worth while
The tapping Session Once the decision is made about the script. and visual images. the announcer will operate the equipment. When you use sound to evoke smells.Radio Advertising investment. and sound effects. A catchy jingle helps potential customers remember you more than almost anything else. You should also understand. ho ho ho. whistle etc. 4. you bring the listener. 3). music. more involved with your spot. voice. The sound of waves on the shore can help sell your vacation package and bird song can put people in the mood for your spring sale. and don’t expect a performance that could only come from someone reading your mind. Sound Effects (SFX) various onomatopoeic sounds like eeek. it’s time to record. Selling Radio Commercial 41 . are available at the local radio station. ding dong. an engineer will record the spot while you and the announcer concentrate on the reading. will be more involved with your ideas. At large stations and professional recording studios. Be aware that the announcer may have slight interpretation of the reading than you do. sensations. Radio is entirely a medium of sound. At may be just you and the announcer in the studio.
00 a.10. The successful ones begins with the clients problem and sales objectives an move systematically to a solution. talk shows Elements of good radio commercial ⇒ Be single-minded. or all-news Afternoon. talk . interested chiefly in news Daytime. a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in general is for a particular product.00 p. .m.Radio Advertising Selling radio advertising involves a number of steps. Prioritize the copy points. 7.6.m.00 p.00 a. The radio salesperson must be aware that everyone involved in the transaction is looking for different results. c) The radio representative may have to show how radio fits into the media mix currently being used by the advertisers. music. 12.m.12.00 p. drive time . breakfast audience. The media buyer is looking for efficient cost per point. while the client’s goal is to move product.m. music.m. the next step is to prepare a proposal. . program characteristics of station. .m. The consumer should not be burdened with too much information. The first step in the process is to meet the client to gain as much information as possible about the client and his or her business.00 a. Dayparts 6 a. radio prime time and same as morning drive time News. talk shows Music.3. . 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. Characteristics Drive time. 10. b) The salesperson must move from the general advantages of radio to the advantages of specific station. Often the job of the radio sales person must be conducted on a number of levels. After the salesperson has a firm grasp of the advertising problem. .m. 42 .00 p. Radio advertising faces challenges both from within the industry and from other media as it competes for advertising price.m.00 a.m.7.00 a. The central idea should be highlighted.m. 3. Radio salesperson must begin with the client’s needs and marketing goals. focused.
An agency or advertisers appoints a producer 2. Judge what you hear. Take it seriously Steps in Radio Ad Production 1. ⇒ Relate to the consumer. but they rarely related their features and benefits to factual data. a tug on the heartstrings. A clever phrase or execution can have consumers asking other people if they have heard the spot. or mental response. ⇒ Use plain. or mental exercises of a consumer during a radio spot help seed the memory and aid messages retention.Radio Advertising ⇒ Research your product or service. Speak the listeners’ language 3. Be a clear communicator Creative Radio Advertising These are some guidelines for producing creative radio advertisements:1. Plan your production 8. Production values are important 7. Always relate the brand to customers wants and needs. conversational English. The producer prepares cost estimation 43 . Keep it simple 5. Dare to be different 9. Many clients keep tabs on their competition. D ⇒ Generate extension. Meaningful statistics can give substantial support to your massage. The effect of a commercial can be multiplied by achieving extension. Understand the environment 2. Laughter. not what you read 6. Engage and entertain the listener 4. emotional. ⇒ Produce an immediate physical.
if one is needed. If necessary. 9. the producer casts the commercial. 6. 5. the producer selects a recording studio 4. You are on the air! Measuring the radio’s effect Effectiveness research requires clarity of objectives – what are the agreed objectives of the overall campaign and of the radio campaign within this? Radio effectiveness can be measured either using continuous research or in stages (“pre & 44 . The producer sees that the master tape is prepared for distribution on either tape or cassettes and shipped to stations. 7. With the aid of the casting director. The studio mixes music and sound with voices.Radio Advertising 3. If music is to be included. a rehearsal is held. the producer selects a musical director and chooses the music or selects stock music. The studio tapes music and sound separately 8.
playing the ads to consumers.Radio Advertising post”) – the pre-stage is normally the week before the campaign. to test whether the campaign is linked to the brand. Consumers tend to misattribute radio-advertising memories to other media. Brand names can be bleeped out of the commercial. radio advertising research aims can be categorised into two types: ⇒ Marketing issues – to what extent has radio helped to achieve the campaign aims? ⇒ Media planning issues – what effect do different media strategies have on the performance of the campaign? Marketing Issues:. Commercial recognition is a valuable technique – i. what are you aiming to measure? In broad terms. This tendency to misattribute can be offset by using matched samples of listeners and non-listeners. It provides a more robust measure of whether they have heard the campaign. particularly TV. However cases where other media are to be included in the research it might be more appropriate to use face-to-face interviewing.These vary widely and there can be often more than one objective set for a campaign. 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.e. then the effect can be attributed to radio fairly confidently – even if the listeners think the advertising was in another medium. Below are some typical examples: 45 . the post-stage in the week after the campaign finishes. Radio research can successfully be done using telephone interviewing – ads can be played down the line. This is particularly likely to happen where there is a strong executional link between the two media and/or where there is an history of TV advertising for the brand. This way. if the increase in advertising awareness is greater among listeners than it is among non-listeners. In other words. and avoids problems of trying to describe the ads.
Radio Advertising . you will need to be able to separate the effects of each using a separate.Burst versus continuous activity . and most obviously.there are specific tools available for measuring sales effects for example. Whatever your research objectives. bear in mind that you will still be judging the effects in terms of the overall campaign objectives. as a secondary aim you might also be trying to test and evaluate the effects of using different media strategies. Media Planning Issues: .Effectiveness of different spot lengths . for example: . Secondly. Any other questions are of secondary importance 2) The Importance of Split Samples 46 .Use of different day part strategies.In addition to tracking radio’s contribution to the success of a campaign. once you have defined them make sure that they form the core of the questionnaire you use. If you do intend to test a particular media strategy there are three important considerations to note. Lastly. Firstly.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 . when testing different media strategies. balanced research “cell” for each media-variable. if you are testing a number of media strategies simultaneously. you must gear the campaign so that you can test the particular media strategy in which you are interested.
If the only difference between the two samples is their radio listening. tends to dominate memories of advertising. 47 . to varying extents. Which Option Should You Choose:Neither of the two approaches above is necessarily better than the other. the second method has the advantage of questioning people who will have the same history of exposure to the brand. consumers will turn their thoughts to the most salient source they can think of – this tends to mean TV. However. Local distribution levels for the brand will also be the same. 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. as the medium with the most active expectations. Television. It is particularly important to use split samples where radio is part of a mixed media schedule in order to gauge the true radio effect.Radio Advertising Misattribution of Advertising:When asked to consider advertising. attributed to television in the consumer’s mind. but who are the same as the listeners in all other respects). Avoiding Misattribution: Using Split Samples:The simplest solution to the problem of measuring true radio awareness is to split your sample into two parts: listeners (target consumers who have been listening to the radio stations which carried the advertising) and non-listeners (people who do not listen to those stations. then any differences in their awareness or attitudes to the advertised brand can be reasonably attributed to radio – regardless of where they think they have seen or heard the advertising. with the result that campaigns in all other media are.
It is equally important to ensure weight of advertising for your brand in all other media is the same for both samples. as this could affect response. In this way. This ensures that any differences can confidently be attributed to radio ad exposure. It is important to match the media consumption of the samples (e. how much TV they watch etc) as well as their demographics. media consumption and weight of exposure to the brands’ advertising in other media.thus giving you a measure of radio’s effectiveness.g. 48 . The two geographical areas should also be comparable – (or “typical”) in terms of media and product consumption as a whole. 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 .Radio Advertising The key point is that the listener and non-listener samples must be matched as closely as possible in terms of demographics. 3) Where to do the research Test And Control Samples In Different Areas:This involves taking two matched samples of respondents in different geographical areas and comparing their advertising responses – one sample will live in the advertised area. the other in an area where no radio advertising ran.
Typically. In this way it will be possible to compare the results of those who have been exposed to the campaign to those who have not giving you a measure of radio’s effectiveness. 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. however. continuous radio research is impractical on grounds of cost unless it forms part of ongoing advertising tracking.Radio Advertising Test and Control Samples within the Same Area In this second approach.a pre-campaign and a post campaign study. 49 . Often. 4) When to do the research The ideal research method is to monitor advertising activity on a continuous basis. all of the research is done within the same area. whilst the other part of the sample will comprise people who do not listen to any station on the schedule. radio research is conducted in two stages .
In some instances one considers conducting more than two stages of research. 50 .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. consider adding an additional stage of research some weeks after a campaign has ended in order. to track decay in brand awareness. Face-to-face interviewing may also be preferable if respondents need to be shown visual ad material such as stills from TV ads. it might be worth slotting in an additional research phase during a particularly long advertising campaign or sponsorship. the larger the sample the better. 5) The research sample and sample sizes Sample Sizes Generally speaking. 6) Method and questionnaire Telephone research is often used for assessing the effect of radio campaigns: the method is adaptable and can often be cheaper than face-to-face interviewing. However at some point. say. Similarly. having done the post-research. ⇒ The post campaign study should be conducted as soon as possible after the radio campaign has ended – ideally during the first week after the campaign has come off air. the cost of an increased sample size becomes cost prohibitive and contributes little extra to statistical robustness. This will establish the base levels of whatever is being measured (eg brand awareness). Radio ads can successfully be played down the phone to respondents. For example.
e. ⇒ Branded .g. A fairly straightforward questionnaire will take around 10-15 minutes to run through – much longer and respondents will begin to lose interest and concentration! 51 . ⇒ Blind By bleeping out all brand references in each execution and asking whether the commercial has been heard before and then asking for the brand name. attitudes to the advertising/feelings about the proposition). two different approaches can be taken: blind or branded. whilst giving a true measure of ad recognition. playing the radio ads to consumers – as this is the best “memory jogger” of all. When playing the radio commercials in order to measure commercial recognition. (e. It also delivers a larger sample of people who are identifiable as having definitely heard the campaign: this is useful when analyzing them for their attitudes to the brand. it is possible to see whether creative treatment has successfully linked the message to the brand.this allows prompting for brand-specific data.Radio Advertising Commercial recognition is a valuable technique – i.
frequency. persuasion. impact etc. image. What radio can add: In planning:Radio's main contribution is a dramatic increase in frequency of exposures. demonstration. it extends TV messages to key times of day when TV audiences are lower or when product relevance is higher. Reason enough for us to study the role of Radio vis-à-vis other key media. This is mainly because it does most things well .coverage. either in the same period as the TV campaign or later to extend the campaign over time. b) Communication and c) Detailing of communication points. In communication:Given that Radio is perceived as personal medium. radio has a culture of response where listeners frequently interact with their station which they see as accessible. radio can bring brands closer and speak to the consumer at their level.Radio Advertising Radio with other media Most brands tag radio to their existing communication plans.a) Planning. radio can be used for regional or local exposure booster. Traditionally a high-cost medium. production costs are extremely high and viewers are increasingly avoiding ad breaks. the downside with TV is that the audience is now fragmented across many different channels. radio also allows tighter targeting against audiences thus reducing wastage. Radio with Television Characteristics of Television TV has traditionally been the most powerful and popular advertising medium for people in the media business. In detail:52 . 'what Radio can add' to each medium on three key parameters . radio can be used to reach light viewers.
Newspapers also have the authority of the written word. radio also reaches non-readers so it can significantly increase coverage. it can bring to life ideas.Radio Advertising Radio allows activity to be geographically varied. adding radio also means increased share of voice thus overcoming clutter In communication:Radio brings intrusiveness to a press campaign. radio allows brands to emphasize specific key times of day. Radio brings brand messages closer to the individual. as they tend to rely on rhythm and music. What radio adds: In planning:Radio adds frequency. radio can more strongly convey the brand's tone. which may seem flat on the page. the national press suffers from clutter and from the fact that the reader can and does edit ruthlessly to avoid advertising. Example of powerful SBTs: "Britannia Ting Ting Ting" They help to ensure that TV and radio advertising is well branded. speaking in a more personal way than press. which consumers recognize and associate with certain brands. In detail:53 . and this is real frequency in that exposures take place in real time. in most sectors. radio can allow a fast turnaround for new initiatives. which has been successfully established on TV. They leave a brand impression with even the most passive TV viewer or radio listener. Radio with Newspapers Characteristics of Newspapers Newspaper brings 'immediacy' to a communication. and there is less ad avoidance. and are good at presenting detail. which are absorbed at very low involvement levels. A sound. low production costs mean multiple copy messages can be varied round the core TV communication Sonic Brand Triggers. As a print medium. can be transferred on to radio. Sonic Brand Triggers are sounds.
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.Radio Advertising Flexibility means radio allows geographical variation on top of a national press campaign. striking ideas to be effective. it also allows localized copy variation relating to a national poster execution. in the sense that additional exposures to the advertising are played in full rather than having the listener look away or ignore. The weaknesses of outdoor advertising mainly stem from three issues: it has no editorial context. and it suffers from relatively expensive production. In communication:Radio allows more information to be conveyed. radio offers far tighter targeting which means reducing wastage. posters also operate within time which people think of as free . it uses extremely simple. Like radio. radio also offers tighter timing . 54 . day of week or even week of month. as listeners identify with their radio station and see it as aimed at people like them. In detail:Radio offers speed of production compared with the lengthy process of poster print deadlines.typically travelling time.within time of day. radio allows multiple copy. which is useful for explaining or persuading. in a very public way. radio is better able to communicate the tone or character of a brand. What radio adds: In planning:Radio adds real frequency. radio brings brands closer.
Radio Advertising Radio with Magazines Characteristics of magazines Magazines are useful to advertisers because of the relationship they have with the readers. They allow targeting by lifestyle and interest group. It allows brands to speak to consumers close to certain activities . radio also offers a greater share of voice for most categories. which means overcoming clutter. the high levels of clutter. ⇒ Recall of advertising. who consume them in a personal way. At the post-stage. and the opportunity for geographical variations.time of day. and there is less ad avoidance. radio allows tighter timing . ⇒ Commercial recognition – playing the ads to respondents. day of week etc. In communication:Radio brings intrusiveness to a magazine campaign. and the reader's inclination to simply turn the page. you will be seeking to detect spontaneous and prompted awareness. In many magazines the ads are seen as part of the magazine experience. housework etc In detail”:Radio offers fast turnaround within the long copy deadlines of magazines.driving. What radio adds: In planning:Radio adds frequency and also extends coverage well beyond the magazine readership. cooking. radio can bring to life ideas which might seem flat on the page. ⇒ Thoughts on what the main message of the ads was 55 . 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.
The findings have helped many radio stations to develop. With the growing salience of Radio.000 households and 3. The following is the standard procedure involved in calculating the listenership of a radio station. • • • • • Then the analysis findings are forwarded to the research department and published A project is selected and a deadline is given. All the interviewers are informed of the above and a questionnaire is given. The research can be undertaken by the research agency voluntarily to be sold later to companies. When the questionnaires are filled. A sample size is decided which is spread all over the target city / town etc. IMRB International decided to launch RADAR RADIO LISTENERSHIP SYSTEM . IRMB believes that time is ripe for a continuous Radio audience measurement system. they are complied and sent to the analysis department 56 .the continuous radio audience measurement system in Mumbai. or on particular request by a company.Radio Advertising Creating the right mix A fieldwork was conducted by IMRB(Indian Market Research Bureau) to know about the listeners which encompassed the entire Mumbai urban agglomeration through a random sampling of 6.600 individuals.
6 Go 92.100 90 80 70 60 Radio Advertising Female 42% 50 40 30 20 10 0 AIR FM1 AIR FM2 Vividh Bharati Radio Mirchi Radio City M ale 58% BBC AIR Primary WIN 94.5 SLBC World Space VOA At the country level: % mentioning Total awareness of radio stations Gender of radio audience Female 42% MALE 58% 57 .
30 .6.11pm A 12% 8% 6% 4% 2% 0% C 29% C 29% B 14% % liste n e r s Socio Economic Classification Listenership by time slots Analysis Analysis While the overall reach of radio in India is high it can be seen above that awareness of private radio channels is not much.11.7am . Being 58 .30 am 20% 18% D/E 45% A 12% Radio Advertising 16% 14% 12% D/E 10% 45% 11. Prasar Bharti(AIR) has the highest awareness which is due to the fact that it is a government channel with a pan India coverage and enjoyed monopoly when the radio space was shut for private players.00 pm B 14% 7pm .
Radio Advertising the only service provider it was able to penetrate deep into the Indian market.50 which make it very affordable. Radios are now available at prices below Rs. Which is why the new entrants are vying for their share of the pie and encouraging the government to release more airwaves for them. B have a wider variety of entertainment available to them radio is not widely used. 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.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. giving the advertisers a vast array to meet their specific target markets. However with new players entering the market and providing them with the content they want the trend is now changing more people are switching on their radio sets even in these categories. Radio is very popular with the sec D/E market due to its cheap cost. specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium. on the other and the 11-2 slot has the women segment listening while the nights are more concentrated on teens. As the 7. In order to meet the requirements of its listeners and its corporate audiences. For marketers it then becomes necessary to identify the audience they want to target and respectively book their airtime so as to reach the right audience with the right mix at the right time 59 . 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. Various shows are held by the radio stations.
developed and operated by the Ministry of Information & Broadcasting under the Government of India. which is a national service planned.I.Radio Advertising All India Radio A. Sound broadcasting started in India in 1927 with the proliferation of two privately owned 60 .R.
National channel of All India Radio started functioning on May 18. 1988.Radio Advertising transmitters in Bombay and Calcutta. The Regional Stations in different States form the middle tier of the broadcasting. to nearly 76% of the country's population fully reflecting the broad spectrum of national life. sports. Add FM radio and you have a formidable arsenal. AIR had a network of six stations and a complement of 18 transmitters. through its transmitters at Nagpur.'s coverage exceeds 90% of India. Prasar Bharati now plans a 24-hour news radio station not on FM. namely. national. newsreel. Mogra and Delhi beaming from dusk to dawn.R. regional and local. educate and entertain the masses. It transmits centrally originated news bulletins in Hindi and English. but on shortwave. With broadcasts in 24 languages and 146 dialects (home services). It was changed to All India Radio in 1936 and it came to be known as Akashwani since 1957 to inform.classical music channels to start with in Bangalore and Lucknow and to be extended across the country later. For FM it has other ideas . plays.I. reaching over 98% of the people in the largest democracy of the world. A. 50 high frequency (SW) transmitters and 87 FM transmitters. All India Radio is one of the largest radio networks in the world in terms of reach. spoken word and other topical programs. AIR has a three-tier system of broadcasting. It caters to the needs of the people. When India attained Independence in 1947. New initiatives by AIR Change is in the AIR. 61 . and another 10 foreign languages in external services. All India Radio has a network of 283 broadcasting centers with 146 medium frequency (MW) transmitters. Including North-Eastern Service at Shillong disseminates the vibrant and radiant cultural heritage of the Northeastern region of the country. music.
development of infrastructure and the changing scenario in the state. which produces more than 300 bulletins daily. Prasar Bharati is positioning AIR FM Rainbow as a channel offering a buffet fare . Helplines etc. Western Music.Hindi Music. Chat shows. a marketing plan and publicity plan with suitable media mix. The service. Hyderabad.Mittal. focusing on the rich cultural heritage. The entire publicity campaign of AIR is being designed by Prasar Bharati's ad agencies. will also cash in on phone bulletins. a venture promoted by Star and Music Broadcast Private Ltd (MBPL). The company has received the license to set up radio stations across the 62 . 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. setting up radio clubs and maximizing AIR revenue. RADIO CITY [91FM] Radio City. The ad agencies have been asked by the Prasar Bharati to make a strategy presentation. MBPL is a company backed by P. especially in North East and J&K.K. was launched on 21st May 2002. 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. will be launched across the country with a four-digit common number. Prasar Bharati is also planning to fill the vacancies in regional stations. 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). recommending a suitable positioning for AIR Channels. 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. family and Associates. Kolkata and Delhi at different numbers. AIR planned and developed special packages for the North East and J&K.Radio Advertising AIR. and for this it is launching a campaign in select cities.
Nagpur and Lucknow. Patna. The Mumbai license was secured for Rs 10 crores. marketing and programming. On the promotion front. Place: Intensive (all over Mumbai) also.Radio Advertising country in six cities . 1.Bangalore. a perfect blend of English and Hindi music. The 4 P’s Product: For listeners . hours 63 . Radio City aims to reach out to listeners across demographic barriers. a portfolio of entertainment programming 24 a day. 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. Delhi.Bangalore. Patna. Intensive research is being carried out to ascertain demographic profiles of radio listeners. The Television “fun ka doze har roz” ad campaign. information.The airtime. vivacious RJ’s. Price: Advertisement rates Promotion: Radio city is one of the top 3 stations in the city. Hoardings all over the city. so as to enable more targeted programming in the future. teamed up with professional. the channel undertook huge promotion campaign in the initial stages of its launch. Delhi. STAR India’s radio division would provide or take charge of advertisement sales. and is trying to create a brand name. Target audience Radio City is not looking at any particular segment to target. This is thanks to its promotions. 2. Mumbai. Nagpur and Lucknow. in mix of Hindi and English For corporate and retailers: . Mumbai.Music. Radio City’s market strategy is backed up by six months of intensive research in Bangalore. The channel is into sponsoring events especially college festival around Bombay city.
GO [92. The process is pretty lengthy. 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. involves one-on-one sales and education as to how advertising will help the brand. make them listen to it. So they talk to them about radio.7FM] 64 . probably create a radio spot. 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. National advertisers are all familiar with the concept of advertising. 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. Hence. besides advertising. the success rate with national advertisers is a lot higher than in the case of retail advertisers. IBM and HLL. sales and marketing support. on the other hand.Radio Advertising Advertising with Radio City Radio City also hopes to provide an effective advertisement medium. Radio City has managed to attract advertisements. The retail market. Radio City will have a four-hour slot in its 24-hour broadcast for advertisement. and of breaking new ground whereas with national advertisers. breaking to a 10-minute projection in every hour's programmed. from small local stores as well as big brands like Tanishq. Radio city is trying to drive the market by encouraging the ad spends on radio to increase from two per cent to the world average of 10 per cent. Star India is in-charge of providing the content. tell them this is how the brand will sound when on radio.
the music mix of Big 92. The company plans to take FM radio as a medium of entertainment not only to the key metros. The station has designed utilities such as traffic and weather updates along with time checks and health tips to help optimize the listener's time management and health.7 FM promises not only to entertain but to inform and empower the listener with utilities that one may take for granted.Radio Advertising Big 92.7 FM has lined up a stunning array of RJ's who will be the voice and personality of the channel. Target Audience: To address the competitive nature of Radio as a medium and to ensure the Stations stands out from the clutter.every third urban Indian and one in every eight Indian in the rural areas.7 FM will have the largest coverage from any private radio channel in the country. Big 92.000 villages to reach 200 million Indians across the length and breadth of the country. In short. but also to virgin markets that have never before experienced this medium of entertainment. The RJ's have been selected after a careful and selective nationwide hunt. Big 92. Unique Auditorium Music Tests (AMT's) have been conducted across all cities and over 1000 songs run past the sample audiences to verify both local flavor and city-connect. Big 92. In blind tests conducted among different audience segments. 1000 towns and 50. Besides innovative and fresh content.7 FM is poised to create history with its pan India presence. 65 .7 FM has undertaken extensive research and in-depth analysis of the likes and dislikes of the listeners before putting together its innovative programs.7 FM. The music played will span eras and genres so that it appeals to all.7 FM was preferred over that of existing FM stations. the station will air tunes. spanning across 45 cities.7 FM has the capacity to touch every fifth Indian across the country . Big 92. Based on these findings. Big 92. 40% of which will be exclusively heard only on Big 92.
The Station is now hosting the auditions process wherein. the contest this far has seen huge participation from people across Cities with astounding numbers.7 FM. displays at traffic signals etc. 1 FM Station. presented by BIG 92. Another category first initiative from India’s No. Go is a youth-centric station and they felt that better way to make their presence better to partner with college festivals Marketing initiatives ‘SING with SONU’. entertainment and business.7 FM aims to honor the deserving common man who works relentlessly and voluntarily for the betterment of society. to get an edge. 4 P’s Product: For listeners: the station is focusing on music of course.Radio Advertising Another important content strategy of the Station is "Acknowledgement of local heroes in our Society". For corporate and retailers: The airtime Place: Intensive in Bombay and exclusive because it does not have a presence in any other city. Kolkata and Chandigarh is just the right pedestal for the talented.7FM 66 . with a heavy local flavor. along with sports. Advertisements with BIG 92. Bangalore. one lucky winner from each city will be finally selected to be in the spotlight and share center-stage with none other than music maestro Sonu Niigaam at special concerts scheduled to be held in each of the 5 Cities.7 FM across the cities of Delhi. Price: Advertisement rates (Refer to annexures) Promotion: its presence is made known through hoardings. Big 92. BIG 92. Mumbai.
they can have consumer durables on the channel. STAR network that is star world and movies. Max New York Life. First. HLL.Radio Advertising BIG 92. BPL Mobile. Orange. Other advertisers are Tata Motors. how they’ll fit it in and this programming mantra helps them in that. Asian Paints. Ebay. Zee TV and Tata Indicom. when the client presents the germ of an idea. Colgate. There are two effects of this kind of the new programming. there are many new clients that will come in.in. especially with the coming in of the 11-2 afternoon slot. Alitalia airways. Discovery. The top advertisers on BIG 92.7 FM in were Coca Cola. That ways they try to be the preferred destination when an existing client wants to sponsor an event or a radio property. their immediate reaction is ‘yes’. So. Tata AIG.7 FM. it is a double positive impact on advertisers. 67 . McDonald. Timex watches. Sony Entertainment TV. Cadbury. At that time. indulge in experimental big stuff. Second. Kellogg’s. Then they figure out how do they juggle it.
Radio Advertising 68 .
2002. Because it is more a mature audience. energetic and passionate Apparently. 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. 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. the 24-hour FM radio channel from the Living Media stable.Radio Advertising RED [93. An additional Rs 20 crores has been invested on infrastructure etc in these three cities.87 crores as license fees for the three centers of Delhi. city-specific events and the latest buzz on everything current.5 MHz hit the airwaves in Mumbai first on June 26. RED FM has spent close to Rs 17. uncomplicated and honest.5FM] “Red is in your Head”. And in the second phase. reliable. followed by Delhi and Kolkata. The ‘take aways’ are plenty – everything that the station says and does is of relevance to its listeners. friendly. Target Audience 93. warm. Mumbai and Kolkata for the first year.5 Red FM caters to 25-plus age group. The much-awaited Red FM on 93. 69 . as a bright. weather. screams the advertisement of Red FM. Described. Red FM may not be modest but it is certainly witty.
they carried a DJ live on turntables from their studios. tailored to the customer’s needs. play a 10 second spot through the day. Recently. towards the influence of one station with the other. They have other high profiled clients like Sony 70 . Endorsing advertising on RED is not just about buying spots. Red is also focusing. Also it has a tie up with shopping malls like crossroads and ‘Groove’ a music store. Based on the need of the advertiser. use their strengths and improve co-ordination between the three stations. Red’s current advertisers profile includes both retail clients and corporates. Moreover. Every committee hosts its own festival and Red has been in touch with committees from Jai Hind. this is an important task in terms of helping the advertiser. Advertisement Red Fm does not go to sell radio spots but works like a consultant with the client. for the first time in India. they went on air live from a night club like Velocity and received a huge response from the listeners. which promote the station. (Refer to annexures) Promotion: Red Fm is affiliated with some clubs and pubs. but is a total experience. So if a retailer wants to announce his sale and he does not have a big budget. 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.Radio Advertising Price: advertisement rates. innovative methods like painting Double Decker buses. their job is to suggest that instead of a 30 second spot. They have 100 hoardings all over Mumbai city. KC. HR and nearly every other college in North Mumbai. With in a few days of launching. they suggest the best ways of achieving the objective. trains etc have also been adopted. they form a healthy percentage of advertisers.
Radio Advertising Entertainment. they would advise the drive time hours or the late night show. Coke. For male dominated products. 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. then the client has to pay substantial amount of money to radio station because if they produce a jingle that is their assets. the shortcoming is only in terms of delay. there would be food-related brands advertising on it. 71 . They normally charge around Rs. Red FM was launched six months late. if there were a cookery show. as they had already freezeed their media budget for the year. Hutch. Kotak Mahindra and Dabur among others. length of the commercial.and the rates might increase or decrease depending upon the need of the advertisers. similarly. State Bank of India. HT.000/. Is it a women’s product? Is it male-oriented? Is it a retailer? If it is a retailer. LG. The normal jingle length is 10 seconds and again here rates will differ on the basis of the sound effects. The do give some discounts to the accredited ad agency. Idea. ICICI Prudential. we would advise a cosmetics brand to advertise on that programme. Zee. surveys reveal that a number of men like tuning in to radio just before sleeping. There are several questions that RED FM identifies before making a time-band suggestion. And from the nonaccredited ad agency. music. none of them have refused to consider them in their media plan. face-to-face conversation. 4. background conversation. They take 100 % money in advance from the direct client. and therefore they faced a major drawback in terms of losing out on a number of corporates. If there were a programme on beauty tips. However. Their revenue only from Bombay is more than two crore. Metlife. 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.
they are also the only private FM radio broadcaster in the cities of Ahmedabad.SEC A and B and in that too mainly youth and housewives.3FM] Radio Mirchi belonging to the Times of India Group is in an enviable position to encash into a monopoly the 10-year license period for FM radio in the 12 cities it won.' They have a very clearly defined position . As the punch line says. a wholly-owned subsidiary of The Times Group.they are a contemporary hit radio station. debuted in Mumbai. Radio Mirchi is now present in seven Indian cities and is the only company with private FM radio stations in all four metropolitan cities of Delhi. This segment addresses about 12 lakh listeners The 4 P’s 72 . the Radio Mirchi private FM station. 2002. and their Target is around 18 to 35 .3 FM. 9 crores annual fees for Mumbai). Indore and Pune. 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. Mumbai. owned by Entertainment Network (India) Ltd. On April 23. on 98. Chennai and Kolkata.Radio Advertising RADIO MIRCHI [98. 'it is hot.
. retail showrooms. (Refer to annexure) Promotion: The marketing strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi.Radio Advertising 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. 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.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. CELEBRITIES and film stars that repeated every so often “hi I’m -------. Advertising 73 . Chennai. Connect with the growing Radio listening population in Mumbai. However the slogan by itself was incomplete without the voices that accompanied it. Delhi. pubs for continuous advertisement of their channel to make people aware of the temptations given by the channels to them. 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.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. RM later made a conscious decision to go Hindi. For corporates and retailers: the airtime Place: intensive in Mumbai and selective all over the country since it is established in cities like Kolkatta. Since radio is a free to air medium. Hence it quickly became a mass channel with Hinglish being its prime lingo and having a wide audience appeal. which reaches the lower end of the audience spectrum. Price: The advertisement rates.
000 and Rs 1. There is very little retail advertising 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. across the five stations. they have implemented the changes in the time slots of the different shows on air. the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. they offer ten minutes per hour on Radio Mirchi. stations offer discounts on what is on their rate cards. While all the other stations offer more slots and run ads for over 15 minutes.500 for a 10-second slot. In most cases.000 for a 10-second slot. Currently radio mirchi has hiked their prices because they know that Radio Mirchi today is one of the best radio channels and they offer value to the advertisers who spend on their station. Currently. So they have package deals for them also. IMRB conducts research for radio mirchi which is after every 15 days to know exactly what the listeners actually want to lend their ears to. Radio Mirchi gives 45 lakhs weekly listeners as per Radar study. Hence. on an average. the rest of the FM channels charge anything between Rs 1. there are 125 to 175 brands advertising on Radio Mirchi. There is an average listenership of 45 minutes per day on the station. There is huge inventory pressure on them and therefore they had to increase the ad rates. Today it is fashionable to be on radio. non prime time and the likes. accordingly.Radio Advertising Radio Mirchi charges the highest rate of Rs 2. In Indore more than half of Mirchi revenue comes from retail. In Ahmedabad and Pune it is probably about 25 to 40% of the business. So when the 74 . Clients buy effective rates and they buy a combination of spots like prime time. Most of the national advertisers on radio mirchi today want to buy all the stations on air. But in Mumbai it is at 10%. 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. On an average. There are about more than 300 advertisers on Mirchi.
But this country can have 5. which means going into the smaller towns. Future Plans:Radio Mirchi is looking radio Industry from the long term point of view. Lucknow and Kanpur.000 radio stations. Chandigarh. Hyderabad. Bangalore. That will still take us to about 15 frequencies. radio mirchi can provide them with the more information and help them to decide on the time slots and frequency etc… According to the study conducted: Mirchi delivers highest number in terms of listenership among Housewives and working men. Radio Mirchi delivers highest number in terms of listenership among the Radio Listening student population. Mirchi would eventually look at having a presence in every nook and corner of this country.Radio Advertising advertisers wants to advertise on radio. Radio Mirchi emerges up as the No.63 lacs. They are interested in some of the bigger cities for instance. definitely Coimbatore. Ludhiana. Case Study On Airtel 75 . 1 channel and delivers high numbers with Daily listenership at 24.
6 per minute with no extra subscription charges.the Asli Batliboi and Ding Dong . 76 .Radio Advertising Airtel. The radio channel in question happens to be Radio Mirchi. Mr. To avail this innovative tie-up. Pre-paid and post-paid customers of AirTel can access this service. the reason being the huge radio boom with the large number of customers tuning into radio more often than ever. Operating in more than 23 cities it has been able to attain a high number of customer and is now regarded as one of the best cellular services being provided in India. They can then listen to some popular programmes of the channel like. Hotpot Crackpot. 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. India’s leading cellular operator in the private sector.I. users have to pay a Value Added Service (VAS) rate of Rs. the users need to dial 646 from their Airtel enabled mobile handsets. Devdas . Mirchi Movie of the Month. However it has a long way to go as no one is ever safe in this market and one has to keep up its good work going. Bappi-da Da Gyan. For this.Mona Sing a Song. 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. Its major competitors are orange and R. Airtel is creating an attitude of being people friendly and thus gaining huge share in the market.M and various other providers. With increasing competition airtel is now going in for more of radio advertising as against the television .
radio ad jingles “TUM KO DEKH TE HIN . users can listen to songs. Airtel's tie-up allows users to listen to one channel only. KABHI PEDDAR ROAD . KABHI LINKING ROAD . where users can listen to any FM channel through their handsets. KABHI MEERA ROAD .6 per minute. DESH BHAR MAIN RE-CHARGE KAHIN BHI. Airtel . radios have offered services to its users free of cost. it does become quite doubtful as to how long Airtel's 'mirchi effect' will last with the charge rates as high as Rs. Nokia first introduced FM enabled phones. there has been an increasing demand of listening to FM channels through mobile handsets.Radio Advertising Recently. Among CDMA service providers. AAISI AZADI AUR KAHAN. For a long time now. And would also be convenient for its customers to recharge their mobile phones in these centers. With regard to this particular trend. through the R World of Reliance handsets.” 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. Recommendations 77 . CHARGE HUA ZINDAGI. KABHI AAREY ROAD . This all shows about their care for their customers.
as recommended by the TRAI. They should in fact. Under this system.Radio Advertising The vibrant voices airing music shows on twenty odd private FM radio stations in major cities do not reflect the viability worries and restrictions that haunt this industry. But with the government citing national security as the reason for not doing so leaves little hope of this happening. stations will pay the government a certain % of their gross revenue every year. The consumer will also benefit as the industry can now tap into a larger basket (the foreign players) for greater variety. Though the Supreme Court decision in 1995 declaring airwaves as public property led to the entry of a number entrants challenging the monopoly of All India Radio. currently a monopoly with All India Radio. go in for a system more prevalent worldwide . 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. This could attract potential listeners on the move who want their daily share of the happenings around the world. nothing much changed as regards to government control. In order to let the industry to grow the government needs to give it some space. The government charged a very heavy license fee for entering the market.revenue sharing. The Government should review its ban on private stations airing news and current affairs. atleast in the near future. The basic problem in the Radio space in India is the excessive Government control and regulation. did not allow broadcast of news and current events nor was there a scope of a foreign player entering the Indian market. Conclusion 78 . 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.
These advantages include high amount of time spent listening. In fact. Bennett Coleman & Co. greater reach may not necessarily translate into a marketing advantage. Ultimately content and packaging will be the king. Radio's share in the total advertising budgets of companies is likely to grow from 2 per cent to 5 per cent in the next three years. 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. The opening of the FM market is a new phenomenon and the maturing of the market will take its own evolutionary path. However. superior listener loyalty. the private FM players have a huge opportunity in grabbing a bigger chunk of the radio advertising pie as. despite All India Radio's enormous reach (97 per cent of the population). ad recall and message retention. superior target ability. etc. its revenues have declined. It would be just plain old quality of programming and the explosion of contests and sweepstakes offered by the Radio Stations currently. 79 . Living Media. One aping the other is an honest testimonial to justify this statement. 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. Consumers spend 85% of their time with ear-oriented media. the fortunes of radio advertising are likely to change with the advent of private players like Star India. Interestingly. In such a scenario. but spend only 15% of their time with such eye-oriented media as newspapers and magazines. with an expected growth rate of about 10 to 12 per cent every year. such as Radio.Radio Advertising Radio has many natural advantages that make it an excellent choice for an advertising medium. what will spell out the difference between success and failure will be neither size nor niche.
This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium. broadcasters need to develop the market by being more responsive to the advertiser's needs. Annexures Radio City .Radio Advertising 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.National Rate Card 80 . Conversely.
⇒ All bookings are subject to availability at the time of booking. the advertiser will move the spots to the programme replacing the discontinued programme in the same rate category. release orders should be given to MBPL through Star India Pvt. Asli Masti.11:00 Radio active 17:00 . ⇒ Others… RED FM Red fm is currently operating in Mumbai.17:00 20:00 . ⇒ To ensure proper and timely release of the spots. Delhi and Kolkotta. At least 2 weeks prior to the date of airing of the first spot.5 RED FM.20:00 11:00 .00:00 Round the clock Radio Mix Radio Master Blaster Radio Ga Ga Mumbai 8000 6000 6000 4000 Delhi 8000 6000 6000 4000 Banglore 5000 4500 4000 2500 Lucknow 4000 3000 3000 2000 Terms and conditions:⇒ Minimum acceptable radio spot/ commercial duration will be 10 seconds. Ltd. gets discontinued. The agency/advertiser must provide DATS at least fifteen days prior to first spot airing date.Radio Advertising 30 Secs spot buy rates (in Rs. The sponsorship material must be sent four weeks prior to start date of the sponsorship of any programme. Our rate card per 10 seconds(1 unit) of airtime is as listen as below: 81 .22:00 22:00 . 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. ⇒ In case any programme. under the brand name 93.) Programme category 07:00 .
m.m. ⇒ Morning 10:00 a. to 8:00 p.Radio Advertising 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. to 11:00 a. ⇒ Evenings 8:00 p. to 6:00 p.m.m. to 9:00 p. Sponsored Shows: Super Prime Time + 25 % premium Radio mirchi rate card 82 .m.m.m. to 8:00 a.m.m.m. to 10:00 a. ⇒ Evenings 6:00 p.m.m. ⇒ Evenings 5:00 p. Prime Time: ⇒ Morning 7:00 a.
jingle length would be counted in multiples of 5 seconds.000 Rs. 7. 5.m – 8 a.m 8 a. 5.m .10.m Time Band Delhi Mumbai Chennai Kolkata Ahmedabad Pune Family Family /Drive 500 850 500 650 250 220 260 145 220 260 145 170 215 130 170 215 130 12 a.000 83 .m Housewife / 260 Traders / Youth 5 p. Over 10 seconds.m 10 p.000 Rs.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.m – 10 p.10.000 Rs. E. A 23 second jingle would be billed as 25 seconds Jingle production charges Centres Mumbai Delhi Chennai Kolkata Ahmedabad Pune Jingle cost Rs.000 Rs.000 Rs. 7.g.5 p.m – 12 a.Radio Advertising Day Parts 7 a.
Newspapers and Magazines Times of India Economics Times Business Standard Financial Express Various websites were also visited such as.in 84 . www.com www.co.radiomirchi.org www.Radio Advertising Bibliography While working on this project I visited some of the radio station 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 Direct Marketing Management by Mary Lou Robert and Paul Berger.star.allindiaradio.
com www.com www.uk www.exchange4media.economicstimes.agencyfaqs.timesofindia.hinduonnet.rab.com 85 .com www.Radio Advertising www.co.indiatoday.com www.com www.
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