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RADIO
ADVERTISING
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PROJECT REPORT
ON
( RADIO ADVERTISING )
SUBMITTED TO THE UNIVERSITY OF MUMBAI IN THE PARTIALFULLFILLMENT FOR THE DEGREE OF
BACHLOR OF MANAGEMENT STUDIES (B.M.S.)
BY
SWAPNIL DILIP RAUT
A / 703 , SHREENATH RESIDENCY
JAIDEEP NAGAR, H.D. KOPARKAR MARG, MULUND - WEST
MUMBAI 400080
TO
PROJECT GUIDE
HEMANT KOMBRABAIL
UNIVERSITY OF MUMBAI
BACHELOR OF MANAGEMENT STUDIESBHARTIYA VIDYA BHAVANS
HAZARIMAL SOMANI COLLEGE OF ARTS & SCIENCESHRI MANUBHAI MANEKLAL SHETH JR.COLLEGE OF
ARTS & SCIENCE AND JAYARAMDAS PATEL COLLEGE OFCOMMERCE & MANAGEMENT STUDIES
KULPATIK K.M. MUNSHI MARG,MUMBAI-400 007
DATE OF SUBMISSON:
DECLARATION
I SWAPNIL DILIP RAUT OF BHAVANS HAZARIMAL SOMANI COLLEGE OF ARTS
AND SCIENCE, SHRI MANUBHAI MANEKLAL SHETH JR. COLLEGE OF ARTS AND
SCIENCE AND JAYARAMDAS PATEL COLLEGE OF COMMERCE AND
MANAGEMENT STUDIES OF T.Y.BMS HEREBY DECLARE THAT I HAVE
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RadioAdvertisingCOMPLETED THIS PROJECT ON RADIO ADVERTISING DURING THE
ACADEMIC YEAR 20072008. THE INFORMATION SUBMITTED IS TRUE AND
ORIGINAL TO THE BEST OF MY KNOWLEDGE.
DATE: SIGNATURE OF THE STUDENT
PLACE: MUMBAI
CERTIFICATE
I, PROF. HEMANT KOMBRABAIL, HEREBY CERTIFY THAT SWAPNIL DILIP RAUT
OF BHAVANS HAZARIMAL SOMANI COLLEGE OF ARTS AND SCIENCE, SHRI
MANUBHAI MANEKLAL SHETH JR. COLLEGE OF COMMERCE AND MANAGEMET
STUDIES OF T.Y.BMS HEREBY DECLARE THAT HE HAS COMPLETED THIS
PROJECT ON RADIO ADVERTISING DURING THE ACADEMIC YEAR 2007
2008. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST
OF MY KNOWLEDGE.
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PROF. HEMANT KOBRABAIL PROF SUSY KURIAKOSE
SIGNATURE OF THE SIGNATURE THE PRINCIPAL
CO ORDINATOR OF THE COLLEGE
Acknowledgements
Written words have an unfortunate tendency to convert genuine gratitude into stilted
formality. However, I feel this is the best way to express my appreciation for everyone
concerned.
Working on the project on radio advertising has been an incredible experience for me. For
this very wonderful experience i would like to thank a lot of people without whose co-operation
and support working on this marketing project would not have been so pleasurable andinteresting.
Firstly, I would sincerely like to thank Mr.Sudarshan Sahe the marketing manager of radio
city and MS. Ritu Rajpal the frequency 104Rj for taking out some of their valuable time from
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RadioAdvertisingtheir busy schedule to answer my queries regarding the project. They were very supportive and
patient. Thus, they were a great help and a goldmine of information.
I would also like to thank Prof. Hemant Kobrabail for this guidance and help. If it was not
for their encouragement and support, this project would never have been possible and I would
have been deprived of a vast treasure of knowledge.
These acknowledgements are one way where I can actually thank the people who have been
instrumental in the making of this project. Without their help and guidance it would be a very
difficult task for me to try and plan this project and actually make it.
SWAPNIL DILIP RAUT
Executive Summary
Advertising in general expresses the positioning. Powerful advertising is the result of powerful
planning. Great ideas and great ad campaigns dont just pop out from no where, they are built on the key
communication points that motivate sales.
Radio is entirely a medium of sound, which evokes smells, sensations and visual images which
brings the listeners imaginations into play.
Radio advertising is one of the tools of advertising which is effectively used for communication
and positioning. It is one of the foundations for effective and successful advertising. Radio can be used
effectively for advertisement since it can target the large audience because of its high reach. Radio is
good at increasing awareness about the brand and business and helping in building the brand image.
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But all this was only for pure academic purpose. With the advent of television radio lost its
popularity and thus its purpose with the marketers. This led to sharp declines in the proportion of
advertisement spending on radio as compared to other media.
But then came the governments order on liberalization and privatization. This brought about
loads of changes in the world of radio broadcasting in India. Prominent and established companies
entered the business of FM Broadcasting.
FM broadcasting has breathed a new life into the medium of Radio in the past few months. Could
radio now think this as a new phase of its life or a re-birth? Of course yes, people are today talking only
Radio---- Radio Mirchi, Radio City, RED, Go and WIN. One will find people with radio sets of different
shapes and sizes listening to their favourite music on roads, in hotels, even the bidi shops aired on any of
the music channels. The radio channels are now vying against each other to provide their best to the
listeners
However one can see that although radio is an excellent medium it has been used to its full
potential and various efforts should be taken to improve it as with proper direction radio can reach heights
as it is the cheapest and a very good medium.
Objective
Through this project my objective has been to understand the following
To find out about the current scenario of the radio industry.
The reasons for a stunted growth of the industry
The various steps in radio advertisement
What the various radio stations have to offer the masses.
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INDEX
RADIO ADVERTISING
INTRODUCTION
HISTORY
TECHNICAL KNOWLEDGE
ROYLTIES
COST-ASPECT
PLAYERS IN DIFFERENT SECTOR
SWOT ANALYSISFUTURE OF RADIO INDUSTRY
RADIO ADVERTISING
ABOUT RADIO ADVERTISING
PROS AND CONS
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TYPES OF RADIO ADVERTISING
RADIO ADVERTISING
CHARGES
BUYING RADIO TIME
PRODUCING RADIO COMMERCIAL
SELLING RADIO COMMERCIAL
STEPS IN RADIO ADVERTISEMENT
MEASURING RADIO EFFECT
RADIO ADVERTISING
RADIO WITH OTHER MEDIA
SURVEYFIELD ANALYSIS
SUMMARY OF THE ANALYSIS
ALL INDIA RADIO
RADIO ADVERTISING
ADVERTISING WITH CHANNELS
RADIO ADVERTISING
CASE STUDYRECOMMENDATION
ANNEXURES
CONCLUSION
BIBILOGRAPHY
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Research Methodology
Through this project I have made an effort to understand the advertisng tool called radio
advertising which is being increasingly recognized by marketers as a powerful tool that helps in finding
new customers and retaining the existing ones at a much lesser cost.
Primary Research:
The aim of primary research was to understand radio advertising as it is seen in the corporate
world. To understand this I have taken two interview from different fields.
Mr. Ritu Rajpal who is currently working in fewer 104 channel who helped me understand what
all goes into the making of a radio advertisement.
The mode of interview used was an informal one where he answered my questions on one to one
basis.
Also Mr. Sudarshan Sahe the senior marketing manager of Radio City gave me an interview and
helped me in trying to understand as to how the station works and looks after the needs of its consumers.
Secondary Research
The aim of secondary research was to understand as to why radio advertising has been able to
grow at a considerable rate as compared to the other media.also the fall out of radio in the last decade .
It was also undertaken to understand how radio advertising is done and what are the current
players in the market.
Secondary data collection method: desk research
Secondary data collection sources: internet, books, newspaper articles.
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Introduction
Old media dont die! They just bounce back in new avatars. Not so long ago radio had been
written off as fuddy-duddy, down market and not so cool. Television and later new media were touted
to being the media of the future. But thanks to technology radio is making a comeback. In fact, in its new
avatar-fm-radio is all set too become the hippest, coolest and most with -it medium.
FM radio is a new entity altogether and has to deal with new market dynamics. Media owners
dealing with new markets will virtually have to draw up their strategies as they go along, create
programming that is new, innovative and grab away eyeballs from TV sets and make them tune into their
radio sets. Its a whole new challenge and competition is never far away. Ad revenues will also not be
easy to come by, as advertisers will expect media players to put their money where their speakers are
before they commit large sums of money towards radio advertising. The other challenge for radio in
attracting advertisers is the nature of the medium-radio has always considered being a reminder medium.
The involvement of listeners to radio is low, Vis a Vis television or print media.
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 , much like satellite channels did to the quantum
of television advertising in the country. That should open up a vast new market of consumers-100 million
Indian households own an estimated 150 million radios, outnumbering television sets 3:1.
The geographical area covered by radio in India in India is as high as 98 percent and the
penetration level is approximately 97 percent. But FM presently covers only 17 percent of the area and 21
% of the population of India through transmitters. Currently radio has just 2 percent of the 9000 crore
Indian advertising market according to an Arthur Andersons survey. Globally depending on each
country, radio has a 5 % to 12 % of the advertising cake. On the higher side are countries like the United
States with 13 %, Canada with 12.7% and Spain with 9.1%. FM station executives are not
forthcoming on multi-platform strategies as yet. Given that radio has penetrated into 100 million homes
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RadioAdvertisingand a FM set costs around Rs. 50/- FICCI estimates FMs share up from the present 1.5 percent to 5 % in
five years. They have also forecasted that revenues from radio advertising in India will be Rs. Rs. 1200
crores by 2005 and Revenue of radio services is expected to rise to Rs 689 crore by 2008 at a CAGR of
30 per cent.
While TV is a family medium, radio is personalized. Also advertising of certain product seems to
work very well while some might not. For example, 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. Thus the potential if FM is better is bigger town, as the car
population is much bigger. This would be the key when evaluating the medium. Also one must not forgot
that radio continues to be a medium that has tremendous reach among the poor and marginalized sections
of society.
With the coming of more channels, and the emergence of lifestyle advertising, radio will become
a push and pull medium. As said earlier, is not just making a comeback but is being reincarnated into a
new avatar.
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History of Indian Radio
For more than 4 decades, the Government of India did not permit private radio stations to
broadcast in India. Then history changed its course. In 1993, the Government allowed private FM
operators to 'buy' blocks (chunks) on All India Radio, prepare programming content, book commercials
from advertisers and broadcast the whole lot. Within 4 years, (1997-98), 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.
Then, in June 1998 the Government, through its electronic media regulatory body Prasar Bharti,
decided not to renew contracts of private FM operators.Not surprisingly, the advertising revenue fell by
50% within a year!
This time, the Government gave the green light to privatize radio in India. July 6, 1999 was the
historic day when the Government announced that 150 new FM channels would be licensed across 40
c i t i es .
And in 2000, the Government auctioned licenses for private FM channels to bolster the revenue.
And the focus on metros was evident in the bidding. Expecting to collect Rs 800 million from auctioning
108 licenses, the government had to actually face mass withdrawal of bidders because of the huge license
fee. A handful of serious bidders chose to remain.
In response to the Government's offer, many companies bid for the licenses to operate in key
markets. But the going was not so easy. Many gave up, unable to shell out the high license fee. For
instance, the bidding price for the Mumbai license was reportedly to the tune of Rs 9.75 crore. Others
dropped out saying the business was not viable. So, in effect, the competition shrank, players consolidated
and the Government extended its deadline. Today, there are roughly 10 players who will operate
approximately in 37 cities across the country.
The government collected close to Rs 4.6 billion as license fee for the privately run FM radio
channels in 40 cities. New Media Broadcasting, a Zee Group company, which focused mainly on the
smaller towns, won the largest number of bids.
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The first round of bidding - for 76 channels in 26 cities, garnered close to Rs 3.5 billion. The
government got the highest bids - Rs 97.5 million from each of 10 broadcast companies - for stations in
Mumbai. Interestingly, the bids for Hyderabad and Nagpur came next, each for Rs 77.2 million and Rs 74
million, respectively, while the bids for Delhi were Rs 71.2 million each
Radio is expected to follow the growth of the Television industry, which grew rapidly following
the entry of private players
Currently, FM coverage in India is restricted to just 17% of the country, compared to 89% of All India
Radio (AIR).
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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, pictures for
a TV set, data for a radio modem or whatever), encodes it onto a sine wave and transmits it with radio
waves. The receiver receives the radio waves and decodes the message from the sine wave it receives.
Both the transmitter and receiver use antennas to radiate and capture the radio signal.
When you listen to a radio station and the announcer says, "you are listening to 91.5 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. Megahertz means "millions of cycles per second," so "91.5 megahertz" means that the
transmitter at the radio station is operating at a frequency of 91,500,000 cycles per second. Your fm
(frequency modulated) radio can tune in to that specific frequency and give you clear reception of that
station. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz.
This band of the radio spectrum is used for no other purpose but fm radio broadcasts.
Common frequency band includes the following
AM radio - 535 kilohertz to 1.7 megahertz
FM radio - 88 megahertz to 108 megahertz
AM radio has been around a lot longer than FM radio. The first radio broadcasts occurred in 1906 or so,
and frequency allocation for AM radio occurred during the 1920s. In the 1920s, radio and electronic
capabilities were fairly limited, hence the relatively low frequencies for AM radio. FM radio was invented
by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting
possible. He built the first station in 1939, but FM did not become really popular until the 1960s.
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Players in Different Centers
Company Location of Centers Number of
Centers
Bid amount for first
years license (Rs.
crore)
Entertainment Network
[India]
Delhi, Mumbai, Calcutta,
Chennai, Ahmedabad,
Bhubaneshwar, Cuttack,
Hyderabad, Indore, Jabalpur,
Lucknow, Pune
12 43.87
Hitz FM Calcutta 1 1.00
India FM Calcutta 1 1.00
Living Media Delhi, Mumbai, Calcutta 3 17.87
Mid Day Broadcasting Delhi, Mumbai, Chennai 3 20.17
Millennium
Broadcasting
Delhi, Mumbai, Chennai 3 20.17
Music Broadcasting Delhi, Mumbai, Nagpur,
Bangalore, Patna, Lucknow
6 41.37
Sumangali Publications
- Sun TV
Chennai, Coimbatore,
Tirunalveli
3 9.87
Vertex Broadcasting Calcutta, Indore, Bhopal,
Vishakapatnam
4 2.90
Udaya TV - Sun TV Vishakapatnam 1 0.50
Incidentally, Music Broadcasting became the first firm in India to commence private FM broadcast from
Bangalore in July.
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Licence Fee and revenue sharing model
Currently, FM players pay annual licence fees, which go up by 15 per cent every year. Private
FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. However,
revenue-sharing also exists in the media sector. The objective is to make FM radio a success story. Its
better to keep the revenue-sharing figure low than to have a failed project. There has been debate on
whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years; it is firm on
revenue-sharing now. Revenue-sharing will follow payment of a one-time entry fee through a process
of bidding. Revenue-sharing figure is quite low at around 4 %.
While the private FM players had sought revenue-sharing in the band of 2-2.5 per cent, the panel
has fixed it at 4 per cent.
Setting up new radio stations
After the second round of privatization, the number of FM radio stations targeted is around 300 to
400. 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.
Future of Radio Industry
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FM Radio can play its part in building a stronger business future for India. Providing free-to-air
local broadcasts of music and entertainment, helpful information - traffic advisories, community
announcements and public service messages provide a real value-added service. But at current levels of
advertising support, each radio station is reeling under the brutal financial impact of high costs. With
more players in the fray the FM radio industry would grow and also enhance the governments yield from
licensing radio naturally.
The new India deserves an active private FM radio sector. It can provide a level playing field with
benefits for listeners, for advertisers, employment & career options. Spearhead the government objective
of growing the FM radio business in India.
With the government ready to reduce the license fees it will help in attractingnew palyers like
reliance which had earlier backed out only due to the entry fees.also government allowing foreign players
to enter he Indian market it will help the industry grow. Virgin group has already started exploring the
Indian market for suitable partners. various radio stations are coming up with IPO for example Radio
Mirchi thus helping them expand.
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. It is on the basis of these key drivers of growth, it is being predicted
that radio's share in the total advertising pie will see an increase in the medium term. There are an
estimated 150 million radio sets across the country. The Rs 1.6 billion industry is reported to be growingby 31 per cent every year and should touch the Rs 6.2 billion by 2007, with revenue rising at 23 per cent
annually. Also, though radio has only a 2 per cent share in the Rs 6,000 crore Indian advertising market,
advertising spending is expected to amount to Rs 500 crore this year.
SWOT Analysis
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RadioAdvertisingStrengths:
Recently, the government has agreed upon revenue-sharing model, which is 4 % for the
growth of the radio stations. So that they can develop themselves well because this industry is
still in an introduction stage.
The success of private FM stations, and reveals that radio listenership habits have changed
considerably; not only are listeners tuning into it more often but also sticking to radio for longer
hours everyday.
The advertisers, who would depend on word-of-mouth, pamphlets, brochures or ads in local
supplements of newspapers, are welcoming the opportunity.
Radio is considered as a background medium, because people can listen to radio anytime and
anywhere they want. It is also a free medium.
90% of India has access to radio which is unmatched by any other media.
Radio also reaches to uneducated village folk who do not read print publications. At the
places where the literacy rates are low where people hardly read newspapers and radio is the only
medium that they can understand. They cant afford a TV set. Therefore radio is more popular.
Radio is the least cost medium and it helps to reach mass audience with various backgrounds.
Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio
production is relatively inexpensive.
Radio is considered as a medium where the Proximity to purchase is very high.
Radio is a complement to another media. Therefore, other media or the advertisers or agency
can use this medium for brand recall.
Weakness:
One of the major weaknesses of Radio is that there is very less differentiation in the programmes
that are aired. Most of the stations plays much of the music that is played consist of Hindi Film
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songs, and therefore it is difficult to differentiate between the programmes of the different
channels.
Fragmented Audience - the large number of the audience in India is fragmented in various remote
places. And therefore, the percentage of listener tuned to anyone station is likely very small.
No proper research available - research is very important for any advertising segment. Research is
the main base to attract client and get more revenue. But, in India there is no proper research is
available. Many stations are conducting their own research which can be biased.
Radio-only nature of radio communication is a tremendous creative compromise. An advertiser
whose product depends on demonstration or visual impact is at a loss when it comes to radio.
And like its radio message creates a fleeting impression that is often gone in an instant. Many
advertisers think that without strong visual brand identification the medium can play little or no
role in their advertising plans.
Increase in listenership numbers but no increase in ad revenue. This is the situation that every
radio channel is facing.
Short commercials
Opportunities:
Getting copyright licenses from the government for running mega events which are aired on the
AIR radio station and have been restricted to be aired on other private stations.
Launching a radio station with 24-hour news channel Tie-ups with BEST or railway authority for playing the FM in train and in bus.
The launch of Private Radio FM has managed to create a set of New Listeners for the medium
The new radio stations which will come in future they can have venture with the college or
university campuses. And can play their station which will exclusively provide with the
information relating to that university/college campus.
With the coming of the many more new players in the radio industry each channels can position
themselves quite different from others, like, if some station is targeting the health conscious
people then their programming strategy will vary accordingly. And then it is easier for the
advertisers also to decide on which channel to advertise.
Allowing private FM players to start news and current affairs programmes.
One has to constantly innovate, and that is the challenge. Brand building is thus much more
difficult. At the same time, we are very bullish, and gung-ho about this whole enterprise.
Leaves huge scope for innovation in local market
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Threats:
The biggest threat to private radio industry players is ALL INDIA RADIO. AIR is the biggest
player in India because of its reach, low charges, government channel etc
Because of the new government policies there will be more number of stations and then
competition will also increase. This is one of the biggest threats it faces. With no particular
differentiation in the music. So, there is a fear of losing its brand loyalty.
Advertising in India
India has been among the fastest growing economies in the world, with a nominal GDP CAGR of
9.94% over the last 10 years (1995-2005). The nominal GDP for fiscal 2005 was Rs. 30,636 billion.
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RadioAdvertisingAccording to CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10.9%. There is a
correlation between the economic growth rates of a country i.e. the nominal GDP growth rate, and growth
rates of the advertising industry
The Indian advertising spends, as a percentage of GDP, is 0.34%, which lags behind other
developed and developing countries
During fiscal 2006, the gross advertising spend in India is estimated at Rs 111 billion, and is expected
to grow at 14.2% to reach Rs. 127 billion by fiscal 2007
Segmentation in advertising
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The five key industry segments comprise print, television, radio, cinema, and outdoor. These
different segments within the industry are at varying stages of growth and corporatization
Media Spends as % of Total Ad Spend
Year Print TV Radio Cinema Outdoor Internet
2000 49.0% 39.3% 2.5% 0.5% 8.4% 0.3%
2001 48.4% 40.6% 2.7% 0.4% 7.5% 0.4%
2002 47.2% 41.9% 2.9% 0.7% 7.0% 0.4%
2003 46.6% 43.0% 2.9% 0.7% 6.5% 0.4%
2004 46.3% 43.7% 2.9% 0.6% 6.0% 0.3%
The Indian television industry has grown rapidly, especially since 1991, which saw the beginning of
satellite broadcasting in India. This growth was also aided by the economic liberalization program of the
Government. 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. Thus, thetelevision broadcasting business, which started off as a single government controlled television channel,
now has over 300 channels covering the Indian footprint, resulting in growing ad spends on this medium.
Reforms and proliferation of private players were the key reasons for this rapid growth of the share of
television in the advertising industry.
Radio Advertising
Radio is still the king when it comes to getting your music. The best way for a new band to get
heard by the public and record label executions is over the airwaves.
Paradoxically, radio currently has only a 2.9 per cent share of the total advertising pie in India.
Globally, depending on country, radio has a 5 per cent to 12 per cent share of the advertising cake. On the
higher side are countries like the United States, with 13 per cent, Canada, with 12.7 per cent and Spain,
with 9.1 per cent.
Companies that advertise on FM channels today such as Hindustan Lever (HLL), Dr Morepen,
Amul, Castrol, Santro, Britannia, Parle, DSP Merrill Lynch etc are dominating the advertising on each
one of the FM channels, be it Radio Mirchi, Go 92.5 Red 93.5 or Radio City.
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Today, 70 per cent of the advertising comes from big-budget, national advertisers and the balance
30 per cent comes from retail. It is a known fact that retail advertising will grow because radio presents
the perfect advertising medium for local businesses in a local environment. But national advertisers are
also operational in the local market, implying that it is as important to them as it is to a retail advertiser, if
not more.
Nevertheless, it is undeniable that radio can be integral in exposing a new artist, new product or
services to new fans and taking a local market to a national level. Accordingly, it is extremely difficult to
obtain meaningful airplay. Putting it bluntly, successful radio promotion revolves around making and
managing relationships.
Radio promotion is an art that demands a certain style you may simply neither have nor desire to
cultivate. On top of that, it can take a great deal of time to make all the contacts and connections that arerequired for successful radio promotion.
Advertising agencies that control the national picture will be slow to move on to radio for
creative reasons. They have people who love to make television commercials, but don't have anybody
who knows how radio works. Here, only about 2.9 per cent of the money spent by advertisers goes to
radio, and up till now, all of that went to ALL INDIA RADIO.
However, in revenue terms, money from advertising has gone up. Revenue from commercials on
AIR, including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990,
to Rs 808.4 million in 2000, & Rs. 600 crores in 2002, representing a growth of about 7.5 per cent per
annum.
A clear advantage that radio has is that it can easily target city-based audiences. This makes
sense if the advertiser, like a food chain that is opening an outlet in Mumbai, wants to target a specific
audience. In such cases, it does not make much sense to advertise on TV, and the print medium is too
expensive. Radio is the best bet for such small-scale promotions. It is also aptly suited for local
promotions, and once audiences can be targeted, it has tremendous potential to eat into local mediums.
Consumer opinions
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RadioAdvertisingThe evidence from the qualitative research is that young people feel their local FM station is aimed at
people like them, but the advertising is not - they feel, probably quite correctly, that most advertising is
aimed at adults.
Because radio is a real-time intrusive medium, they have to sit through the full length of any ads which
are for irrelevant products. There was evidence of three sorts of memories:
Relevant: This includesAds which mentioned areas or names of specific interest, e.g. films,
outlets selling favoured brands, concerts
Vague/ not relevant: This includes memories of ads for local garages, 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 (SBTs) and sing them out loud.
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. There is no one medium which is ideal for advertisers or
every situation. Radio has a number of characteristics that makes it an ideal vehicle for numerous
advertisers as either a primary or secondary medium. Also, there are certain disadvantages of this media
which need to be considered.
Advantages of Radio
1. Largest Reach and Frequency
Radio offers an excellent combination of reach and frequency. The average adult listens more
than 3 hours a day, radio builds a large audience quickly and a normal advertising schedule easily allows
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RadioAdvertisingrepeated impact on listener. 90% of India has access to radio which is unmatched by any other media.
Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the
rural masses. Radio also reaches to uneducated village folk who do not read print publications. At the
places where the literacy rates are low where people hardly read newspapers and radio is the only medium
that they can understand. They cant afford a TV set. Therefore radio is more popular.
2. Broadly Selectivity
Specialized radio formats with prescribed audiences and coverage areas enable advertisers to
select the market they want to reach. From a marketing perspective, radio has the ability to reach
prospects by sex, age group, ethnic or religious background, income group, employment category,
educational level or special interest with a format that adds even greater dimensions to its already strong
personal communication environment.
Radios high overall reach and its ability to provide numerous formats make it a multifaceted
medium. Because of the relatively low cost of production, advertisers are able to adapt commercials to the
various stations then buy, a strategy that would normally be prohibitively in television.
3. Cost Efficiency
Radio is the least cost medium and it helps to reach mass audience with various backgrounds.
Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio
production is relatively inexpensive. National spots can be produced for about one tenth the cost of a TV
commercial, and local stations often produce local spots for free. Also, radio ads can be produced very
quickly.
4. Creativity and Flexibility
Radio is the most flexible medium because of very short closing periods for submitting an ad.
This means an advertiser can wait until close to an air date before submitting an ad. With this flexibility
of simple formats such as voice only can be created almost immediately to reflect changing market
conditions or advertisers can take advantage of special events or unique competitive opportunities in atimely fashion.
Radio also offers timeless, immediacy, local relevance and creative flexibility. The personal
nature of radio, combined with its flexibility and creativity, makes radio the choice for numerous product
categories. Copy changes can also be made very quickly.
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While radio may be one-dimensional in sensory stimulation, it can still have powerful creative
impact. Radio has been described as the theatre of the mind. The musical formats that attract audiences to
radio stations can also attract attention to radio ads. Audiences that favor certain music may be more
prone to an ad that uses recognizable, popular songs.
5. Proximity to Purchase
The mobility of radio and its huge out - of - home audience gives the medium an advantage
enjoyed by few other advertising vehicles. In the competitive environment facing most companies, it is
imperative that brands achieve consumer reinforcement as near as possible to the purchase decision.
Radios 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.
6. As a Complement to Another Media
In some cases, radio is the primary medium for local advertisers. 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.
A fundamental marketing strategy for radio has been its ability to successfully work with other
media to increase reach and frequency or to reach non-users and light users of other media. The radio
industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary
medium.
7. A personal medium
The human voice is the most personal means of communication. Radio gives the advertisers the
opportunity to take advantage of the right combination of words, voices, music, and sound effects to
establish a unique one-on-one connection with prospects that lets you grab their attention, evoke their
emotions, and persuade them to respond.
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Radio can be targeted by lifestyle formats and is more efficient than other media from a cost and
production standpoint. As a result many advertising agencies will move their budgets into radio.
Disadvantages of Radio
1. Misunderstanding
Sometimes there might be a misconception regarding the radio ad as it is only heard. In television
the chances of such misconception is less, as it is audio as well as visual.
2. Poor Radio Attentiveness
Just because radio reaches audiences almost everywhere does not mean that everyone is paying
attention. When a consumer is listening while doing some work or traveling in a car, he or she often
switches stations when an ad comes and divides his or her attention between the radio and road.
3. 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, advertisers
who want to blanket the market have to buy multiple stations, which may not be cost effective. However,
in radios quest to continue to fine tune its reach, some advertisers wonder if radio is offering too many
narrowly defined options. For those product categories with broad appeal, it is difficult to gain effective
reach and frequency without buying several radio stations and networks.
4. Chaotic buying procedures
For an advertiser who wants to include radio as a part of national advertising program, the buying
process can be sheer chaos. Since national networks and syndicated broad cast do not reach every
geographic market, an advertiser has to buy time in individual markets on a station-by-station basis. This
could involve dozens of different negotiations and individual contracts.
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5. Short Lived and Halfhearted Commercials
Radio commercials are brief and fleeting. They cant keep like a newspaper or a magazine ad.
Radio must compete with other activities for attentions, and it does not always succeed. Only 20 % of
time availability restricts the frequency of message exposure.
6. 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.
Many advertisers think that without strong visual brand identification the medium can play little or no
role in their advertising plans.
7. Limitations of SoundRadio is heard but not seen, a drawback if the product must be seen to be understood. Some
agencies think radio restricts their creative options.
8. RJ needs training
It is very important that the Radio Jockey is trained enough to deliver the ad. Sometimes the
voice really matters. If the voice is irritating then there is a chance that the campaign may flop.
9. No proper research available
In India, there is no proper research has been available on the area of radio listening, which will
be very helpful for the advertisers to decide them on advertising plan and budget and other matter.
Therefore, there could be a problem for the marketers in the sense that they might advertise on wrong
channel at a wrong time.
Types of Radio Advertising:
1. Network
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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. Networks provide
national and regional advertisers with simple administration and low effective net cost per station. The
advantage is less paper work and lower cost per station. Disadvantage includes lack of flexibility in
choosing affiliated stations the limited no. of stations on a networks roster and the long lead times
required to book time.
2. Spot Radio
Spot radio affords nationals advertisers great flexibility in their choice of markets, stations,
airtime, and copy. 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.
3. Local Radio
Local times denote radio spots purchased by a local advertiser for local market. It involves the
same procedure as national spots. Radio advertising is either live or taped. Most radio stations use
recorded shows with live news in between .Likewise, nearly all radio commercials are pre recorded to
reduce cost and maintain broadcast quality.
4. Sponsor Programme
Here the advertiser sponsors the whole or part of the programme. The RJ informs the audience
about the sponsored company throughout the programme.
5. RJ Mention/Whats On Mention
Here the Radio Jockey [RJ] informs the audience the information given by advertiser about the
new product launch, sale, exhibition going on at certain place etc.
Radio Stations Divide Their Days And Their Rates.
Radio stations divide theirrate cards into dayparts .The exact divisions vary from station to station.
6 am -10 am Morning drive
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10 am 3 pm Daytime
3pm 7pm Afternoon drive
7pm- 12am Nighttime
12am 6 am All night
Rating services measures audiences for only the first four day parts because all night listening is
very limited and not highly competitive. Heaviest radio use occurs during drive times (6-10 am and 3-
7pm) during the week (Monday- Friday).
This information is important to advertisers because usage and consumption vary for different
products. For example, radios morning drive time coincides with most peoples desire for a steaming,
fresh cup of coffee, so its great time for advertising coffee brands. For the lowest rate , an advertiser
orders spots on a run of station (ROS) basis, similar to the ROP in newspaper advertising .However, this
leaves total control of the spot placement up to the station. So most stations offer a total audience plan
(TAP) package rate, which guarantees a certain percentage of spots in the better day parts if the advertiser
buys a total package of time.
Length of Spots
The radio commercials in the test reels consisted of several different spot lengths, ranging from
15 to 60 seconds. The longest commercial played on the radio is 120 seconds. Those however are rare. In
theory, one could assume that the longer a spot, the better it will be remembered or at least, the more
chance there it that it will be heard. 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.
The spots for advertisement can be for 10 sec, 20 sec, 30 sec and 60 sec. In General,
10 second spot should contain 25 words
20 second spot should contain 45 words
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30 second spot should contain 65 words
60 second spot should contain 125 words
If youve never written a spot, 30 seconds sounds like an impossibly short time to get your
message across. But take a stop watch and time some spots on the air; youll see that quite a lot can be
accomplished in a short time. In fact, you may find that 60s, unless very well written and well produced,
sometimes seem a bit too long.
A 60 does allow you more variety in music, sound effects, and voice and can be useful for
political message, the announcement of a new or little-understood service, or other sports with a
information/education content.
30 is usually 70 to 80 words long, and a; 60 around 150 to 160 words. The cost of a: 30 is usually
about 60% to 75%.
Some stations no longer charge a separate rate for: 30s and: 60s. Instead, they charge a unit rate.
In other words, a: 30 costs the same as a: 60. Obviously, this is one case where you might want to use a:
60 to take advantage of the free air time. Check the rate cards of the stations you are interested in, or
ask your sales rep.
Buying Radio Time
1. Station Rates
While buying procedures to achieve national coverage may be chaotic, this does not mean they are
completely without structure. Although the actual buying may be time consuming and expensive if many
stations are involved, the structure is actually quite straight forward. Advertising time can be purchased
from networks, syndications, or local radio stations. Advertisers generally invest most heavily in local
placement. About 80% of annual radio advertising is placed locally. 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.
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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. Networks provide
national and regional advertisers with simple administration and low effective net cost per station.
2. 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. There are five basic dayparts on basis of which
advertiser can choose. The time period decision is based primarily on a demographic description of the
advertisers target audience. Drive-times dayparts attract a mostly male audience, while daytime primarily
female and nighttime is mostly teen. This information combined with programming formats, guides an
advertiser in a buying decision.
Putting half your sports into drive time and half into midday is a very safe strategy. Weekend
sports can also effectively reach teens.
b). Buying packages
As with magazine buying, radio advertising time is purchased from rate cards issued byindividual stations. Run-of-stations ads- ads that stations choose when to run- cost 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
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RadioAdvertisingaudience 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; theyre only for people who are ready for a long-term
commitment.
3) Frequency
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.
Flightand schedule are two words you may hear your radio sales representative use when you plan your
advertising. A flight is a group of ads. (Im 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.
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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 ResearchBureau)
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Producing Radio Commercial
Producing a radio spot can be a lot of fun advertisers often say its the most fun
they ever have in advertising. It can also be simple and inexpensive.
There are three basic elements to work with: the announcers voice, music, and sound effects.
Production can be done in the stations 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 elses.
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 listeners 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 radiotalent
b) Using an amateur voice
c) Hiring professional voice talent.
a) Using local radio talen t
If station produces the spot, one of their on-air people risk having the voice be so familiar that the
listener doesnt pay attention. If the ad runs only in drive time, one 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.
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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 womans voice, a childs, or even your own can make listeners stop and pay attention simply
because its not what theyre 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.
2). Music
The power of music cant be overemphasized. There are several options for putting music into
your commercials:
a) Have original music produced.
b) Use free music from the stations library.
c) Get permission to use an existing recording by a known artist. (But Its 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 investment. A catchy jingle helps
potential customers remember you more than almost anything else.
3). Sound Effects (SFX)
various onomatopoeic sounds like eeek, ho ho ho, ding dong, whistle etc. are available at the
local radio station. The sound of waves on the shore can help sell your vacation package and bird song
can put people in the mood for your spring sale.
Radio is entirely a medium of sound. When you use sound to evoke smells, sensations, and visual
images, you bring the listener, more involved with your spot, will be more involved with your ideas.
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4. The tapping Session
Once the decision is made about the script, voice, music, and sound effects, its time to record. At
may be just you and the announcer in the studio; the announcer will operate the equipment. At large
stations and professional recording studios, an engineer will record the spot while you and the announcerconcentrate on the reading.
You should also understand. Be aware that the announcer may have slight interpretation of the
reading than you do, and dont expect a performance that could only come from someone reading your
mind.
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Selling Radio Commercial
Selling radio advertising involves a number of steps. The radio salesperson must be aware that
everyone involved in the transaction is looking for different results. The media buyer is looking for
efficient cost per point, while the clients goal is to move product. As all radio stations are perceived to be
same it is important to build value into the radio station by offering credible benefits that produced results
and solutions for prospective clients.
Radio salesperson must begin with the clients needs and marketing goals. 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. After the salesperson has a firm grasp of the advertising problem, the next step is to prepare a
proposal. The successful ones begins with the clients problem and sales objectives an move
systematically to a solution.
Often the job of the radio sales person must be conducted on a number of levels.
a) An advertiser who is not currently scheduling radio may have to be convinced that the medium in
general is for a particular product.
b) The salesperson must move from the general advantages of radio to the advantages of specific
station.
c) The radio representative may have to show how radio fits into the media mix currently being usedby the advertisers.
Radio advertising faces challenges both from within the industry and from other media as it competes for
advertising price.
Dayparts Characteristics
6 a.m. - 10.00 a.m. Drive time, breakfast audience, interested chiefly in news
10.00 a.m. - 3.00 p.m. Daytime, program characteristics of station, talk , music, or all-news
3.00 p.m. - 7.00 p.m. Afternoon, drive time ; radio prime time and same as morning drive time
7.00 p.m. - 12.00 a.m. News, music, talk shows
12.00 a.m. - 6.00 a.m. Music, talk shows
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Elements of good radio commercial
Be single-minded, focused. The consumer should not be burdened with too much information.
Prioritize the copy points. The central idea should be highlighted.
Research your product or service. Many clients keep tabs on their competition, but they rarely
related their features and benefits to factual data. Meaningful statistics can give substantial
support to your massage.
Relate to the consumer, Always relate the brand to customers wants and needs. D
Generate extension. The effect of a commercial can be multiplied by achieving extension. A
clever phrase or execution can have consumers asking other people if they have heard the spot.
Produce an immediate physical, emotional, or mental response. Laughter, a tug on the
heartstrings, or mental exercises of a consumer during a radio spot help seed the memory and aid
messages retention.
Use plain, conversational English. Be a clear communicator
Creative Radio AdvertisingThese are some guidelines for producing creative radio advertisements:-
1. Understand the environment
2. Speak the listeners language
3. Engage and entertain the listener
4. Keep it simple
5. Judge what you hear, not what you read
6. Production values are important
7. Plan your production
8. Dare to be different
9. Take it seriously
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Steps in Radio Ad Production
1. An agency or advertisers appoints a producer
2. The producer prepares cost estimation
3. the producer selects a recording studio
4. With the aid of the casting director, if one is needed, the producer casts the commercial.
5. If music is to be included, the producer selects a musical director and chooses the music or selects
stock music.
6. If necessary, a rehearsal is held.7. The studio tapes music and sound separately
8. The studio mixes music and sound with voices.
9. The producer sees that the master tape is prepared for distribution on either tape or cassettes and
shipped to stations.
You are on the air!
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Measuring the radios effect
Effectiveness research requires clarity of objectives what are the agreed objectives of the
overall campaign and of the radio campaign within this? Radio effectiveness can be measured either using
continuous research or in stages (pre & post) the pre-stage is normally the week before the
campaign, the post-stage in the week after the campaign finishes.
Consumers tend to misattribute radio-advertising memories to other media, particularly TV.
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 tendency to misattribute can be offset by using matched samples of listeners and non-
listeners. This way, if the increase in advertising awareness is greater among listeners than it is among
non-listeners, then the effect can be attributed to radio fairly confidently even if the listeners think the
advertising was in another medium.
Radio research can successfully be done using telephone interviewing ads can be played down
the line. However cases where other media are to be included in the research it might be more appropriate
to use face-to-face interviewing.
Commercial recognition is a valuable technique i.e. playing the ads to consumers. It provides
a more robust measure of whether they have heard the campaign, and avoids problems of trying to
describe the ads. Brand names can be bleeped out of the commercial, to test whether the campaign is
linked to the brand.
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. In other words, what are you aiming to measure?
In broad terms, radio advertising research aims can be categorised into two types:
Marketing issues to what extent has radio helped to achieve the campaign aims?
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Media planning issues what effect do different media strategies have on the performance ofthe
campaign?
Marketing Issues:- These vary widely and there can be often more than one objective set for a campaign.
Below are some typical examples:
.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 - there are specific tools available
for measuring sales effects for example.
Media Planning Issues: - In addition to tracking radios contribution to the success of a campaign, as a
secondary aim you might also be trying to test and evaluate the effects of using different media strategies,
for example:
- Effectiveness of different spot lengths
- Burst versus continuous activity
- Use of different day part strategies.
If you do intend to test a particular media strategy there are three important considerations to
note.
Firstly, and most obviously, you must gear the campaign so that you can test the particular media
strategy in which you are interested.
Secondly, if you are testing a number of media strategies simultaneously, you will need to be ableto separate the effects of each using a separate, balanced research cell for each media-variable.
Lastly, when testing different media strategies, bear in mind that you will still be judging the
effects in terms of the overall campaign objectives.
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questionnaire you use. Any other questions are of secondary importance
2) The Importance of Split Samples
Misattribution of Advertising:-
When asked to consider advertising, consumers will turn their thoughts to the most salient source
they can think of this tends to mean TV. Television, as the medium with the most active expectations,
tends to dominate memories of advertising, with the result that campaigns in all other media are, to
varying extents, attributed to television in the consumers mind.
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.
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, but who are the same as the
listeners in all other respects).
If the only difference between the two samples is their radio listening, 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.
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.
Which Option Should You Choose:-
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Neither of the two approaches above is necessarily better than the other. However, the second
method has the advantage of questioning people who will have the same history of exposure to the brand.
Local distribution levels for the brand will also be the same.
The key point is that the listener and non-listener samples must be matched as closely as possible
in terms of demographics, media consumption and weight of exposure to the brands advertising in other
media. This ensures that any differences can confidently be attributed to radio ad exposure.
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.
In this way, it will be possible to compare the results among those who have been exposed to the
campaign with the results among those who have not - thus giving you a measure of radios effectiveness.
It is important to match the media consumption of the samples (e.g. how much TV they watch
etc) as well as their demographics, as this could affect response. It is equally important to ensure weight
of advertising for your brand in all other media is the same for both samples.
The two geographical areas should also be comparable (or typical) in terms of media and
product consumption as a whole.
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Test and Control Samples within the Same Area
In this second approach, all of the research is done within the same area.
One part of the sample will comprise people who do listen to the station(s) on your radio
schedule, whilst the other part of the sample will comprise people who do not listen to any station on the
schedule. 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 radios effectiveness.
4) When to do the research
The ideal research method is to monitor advertising activity on a continuous basis, since this allows
movements in advertising response to be compared directly to current advertising activity. Often,
however, continuous radio research is impractical on grounds of cost unless it forms part of ongoing
advertising tracking.
Typically, radio research is conducted in two stages - a pre-campaign and a post campaign study.
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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. This will
establish the base levels of whatever is being measured (eg brand awareness).
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.
In some instances one considers conducting more than two stages of research. For example, it might
be worth slotting in an additional research phase during a particularly long advertising campaign or
sponsorship. Similarly, having done the post-research, consider adding an additional stage of research
some weeks after a campaign has ended in order, say, to track decay in brand awareness.
5) The research sample and sample sizes
Sample Sizes
Generally speaking, the larger the sample the better. However at some point, the cost of an increasedsample size becomes cost prohibitive and contributes little extra to statistical robustness.
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. Radio ads can successfully be played down the
phone to respondents.
Face-to-face interviewing may also be preferable if respondents need to be shown visual ad material
such as stills from TV ads.
Commercial recognition is a valuable technique i.e. playing the radio ads to consumers as this is the
best memory jogger of all. 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.
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RadioAdvertisingWhen playing the radio commercials in order to measure commercial recognition, two different
approaches can be taken: blind or branded.
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, it is possible to see whether creative
treatment has successfully linked the message to the brand.
Branded - this allows prompting for brand-specific data, (e.g. attitudes to the advertising/feelings
about the proposition), whilst giving a true measure of ad recognition.
A fairly straightforward questionnaire will take around 10-15 minutes to run through much
longer and respondents will begin to lose interest and concentration!
Radio with other media
Most brands tag radio to their existing communication plans. Reason enough for us to study the
role of Radio vis--vis other key media.
'what Radio can add' to each medium on three key parameters - a) Planning, b) Communication
and c) Detailing of communication points.
Radio with Television
Characteristics of Television
TV has traditionally been the most powerful and popular advertising medium for people in the
media business. This is mainly because it does most things well - coverage, frequency, image, persuasion,
demonstration, impact etc.
Traditionally a high-cost medium, the downside with TV is that the audience is now fragmented
across many different channels, production costs are extremely high and viewers are increasingly
avoiding ad breaks.
What radio can add:
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Radio's main contribution is a dramatic increase in frequency of exposures, either in the same
period as the TV campaign or later to extend the campaign over time; radio can be used for regional or
local exposure booster; radio can be used to reach light viewers; it extends TV messages to key times of
day when TV audiences are lower or when product relevance is higher; radio also allows tighter targeting
against audiences thus reducing wastage.
In communication:-
Given that Radio is perceived as personal medium, radio can bring brands closer and speak to the
consumer at their level; radio has a culture of response where listeners frequently interact with their
station which they see as accessible.
In detail:-
Radio allows activity to be geographically varied; radio can allow a fast turnaround for new
initiatives; low production costs mean multiple copy messages can be varied round the core TV
communication Sonic Brand Triggers. Sonic Brand Triggers are sounds, which consumers recognize and
associate with certain brands.
Example of powerful SBTs:
"Britannia Ting Ting Ting"
They help to ensure that TV and radio advertising is well branded. They leave a brand impression
with even the most passive TV viewer or radio listener, as they tend to rely on rhythm and music, which
are absorbed at very low involvement levels. A sound, which has been successfully established on TV,
can be transferred on to radio.
Radio with Newspapers
Characteristics of Newspapers
Newspaper brings 'immediacy' to a communication. Newspapers also have the authority of thewritten word, and are good at presenting detail. As a print medium, the national press suffers from clutter
and from the fact that the reader can and does edit ruthlessly to avoid advertising.
What radio adds:
In planning:-
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Radio adds frequency, and this is real frequency in that exposures take place in real time; radio
also reaches non-readers so it can significantly increase coverage; in most sectors, adding radio also
means increased share of voice thus overcoming clutter
In communication:-
Radio brings intrusiveness to a press campaign, and there is less ad avoidance; it can bring to life
ideas, which may seem flat on the page; radio can more strongly convey the brand's tone. Radio brings
brand messages closer to the individual, speaking in a more personal way than press; radio allows brands
to emphasize specific key times of day.
In detail:-
Flexibility means radio allows geographical variation on top of a national press campaign.
Radio with Outdoor
Characteristics of Outdoor
The strength of outdoor advertising lies in its ability to suddenly confront the consumer with an
idea or a challenge, in a very public way. Like radio, posters also operate within time which people thinkof as free - typically travelling time.
The weaknesses of outdoor advertising mainly stem from three issues: it has no editorial context,
it uses extremely simple, striking ideas to be effective,and it suffers from relatively expensive production.
What radio adds:
In planning:-
Radio adds real frequency, in the sense that additional exposures to the advertising are played in
full rather than having the listener look away or ignore; radio offers far tighter targeting which meansreducing wastage; radio also offers tighter timing - within time of day, day of week or even week of
month.
In communication:-
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Radio allows more information to be conveyed, which is useful for explaining or persuading;
radio allows multiple copy; radio brings brands closer, as listeners identify with their radio station and see
it as aimed at people like them; radio is better able to communicate the tone or character of a brand.
In detail:-
Radio offers speed of production compared with the lengthy process of poster print deadlines; it
also allows localized copy variation relating to a national poster execution.
Radio with Magazines
Characteristics of magazines
Magazines are useful to advertisers because of the relationship they have with the readers, who
consume them in a personal way. They allow targeting by lifestyle and interest group. In many magazines
the ads are seen as part of the magazine experience.
Weaknesses of magazines include the fact that lead times can be very long depending on the
title's frequency of publication, the high levels of clutter, and the reader's inclination to simply turn the
page.
What radio adds:
In planning:-
Radio adds frequency and also extends coverage well beyond the magazine readership; radio
allows tighter timing - time of day, day of week etc; radio also offers a greater share of voice for most
categories, which means overcoming clutter.
In communication:-
Radio brings intrusiveness to a magazine campaign, and there is less ad avoidance; radio can
bring to life ideas which might seem flat on the page; radio can more strongly convey the advertising tone
of voice. It allows brands to speak to consumers close to certain activities - driving, cooking, housework
etc
In detail:-
Radio offers fast turnaround within the long copy deadlines of magazines, and the opportunity for
geographical variations.
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Recall of advertising. At the post-stage, you will be seeking to detect spontaneous and
prompted awareness.
Commercial recognition playing the ads to respondents.
Thoughts on what the main message of the ads was
Creating the right mix
A fieldwork was conducted by IMRB(Indian Market Research Bureau) to know about the
listeners which encompassed the entire Mumbai urban agglomeration through a random sampling of
6,000 households and 3,600 individuals.
With the growing salience of Radio, IRMB believes that time is ripe for a continuous Radio
audience measurement system. IMRB International decided to launch RADAR RADIO LISTENERSHIP
SYSTEM - the continuous radio audience measurement system in Mumbai.
The findings have helped many radio stations to develop. The following is the standard procedure
involved in calculating the listenership of a radio station.
The research can be undertaken by the research agency voluntarily to be sold later to companies,
or on particular request by a company.
A project is selected and a deadline is given.
All the interviewers are informed of the above and a questionnaire is given.
A sample size is decided which is spread all over the target city / town etc.
When the questionnaires are filled, they are complied and sent to the analysis department
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RadioAdvertisingAt the country level:
Total awareness of radio stations
Gender of radio audience
Socio Economic Classification
53
0
2
4
6
8
10
12
14
16
18
20
Vividh
Bharati
Radio
Mirchi
Radio
City
AIR
Primary
SLBC World
Space
Red Fm
% mentioning
Male
58%
Female
42%
A
12%
B
14%
C
29%
D / E
45%
MALE
58%
A
12%
B
14%
D/E
45%
Female
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Listenership by time slots
Analysis
Analysis
While the overall reach of radio in India is high it can be seen above that awareness of private
radio channels is not much. Prasar Bharti(AIR) has the highest awareness which is due to the fact that it is
a government channel with a pan India coverage and enjoyed monopoly when the radio space was shut
for private players. Being the only service provider it was able to penetrate deep into the Indian market.
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. Which is why the new entrants are vying for their share of the pie and encouraging the
government to release more airwaves for them.
54
0 %
2 %
4 %
6 %
8 %
1 0 %
1 2 %
1 4 %
1 6 %
1 8 %
2 0 %
% l i s t e n e
7am - 11.30 am
11.30 - 6.00 pm7pm - 11pm
C
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Radio is very popular with the sec D/E market due to its cheap cost. Radios are now available at
prices below Rs.50 which make it very affordable. While the sec A, B have a wider variety of
entertainment available to them radio is not widely used. 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, specially the teenagers !
When an advertiser places an advertisement he has to make sure that his target audiences are met
through this medium. Various shows are held by the radio stations. In order to meet the requirements of
its listeners and its corporate audiences.
As the 7.30 to 11 slot is the most important slot because many listeners are tuned in the shows
are generally family oriented as everyone mostly listens to them and news programs on government
owned stations. on the other and the 11-2 slot has the women segment listening while the nights are more
concentrated on teens. giving the advertisers a vast array to meet their specific target markets.
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. 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
=
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All India Radio
A.I.R, which is a national service planned, developed and operated by the Ministry of
Information & Broadcasting under the Government of India. Sound broadcasting started in India in 1927
with the proliferation of two privately owned transmitters in Bombay and Calcutta. It was changed to All
India Radio in 1936 and it came to be known as Akashwani since 1957 to inform, educate an