radio advertising final copy-prjct[1]

8/7/2019 Radio Advertising final copy-prjct[1].

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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


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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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RadioAdvertisingWhatever your research objectives, once you have defined them make sure that they form the core of the

questionnaire you use. Any other questions are of secondary importance

2) The Importance of Split Samples

Misattribution of Advertising:-

When asked to consider advertising, 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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RadioAdvertisingIn planning:-

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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RadioAdvertising

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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RadioAdvertising

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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RadioAdvertising

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

42%


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RadioAdvertising

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

29%


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RadioAdvertising

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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RadioAdvertising

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

radio advertising final copy-prjct[1]

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