Final Project Radio Advtsng

8/3/2019 Final Project Radio Advtsng

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A PROJECT REPORT ON

RADIO ADVERTISING

SUBMITTED BY

NEHA PRAVEEN KUMAR

T.Y.B.M.S. SEMESTER V

2009-10

ROLL NO: 57

UNDER THE GUIDANCE OF

PROF. YAKKALI VENKAT RAMANA

TOLANI COLLEGE OF COMMERCE

SHER-E-PUNJAB, ANDHERI (EAST),

MUMBAI-400093


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DECLARATION

I, Neha Praveen Kumar of Tolani College of Commerce, of T.Y.B.M.S. (Semester V)

declare that I have completed this project on Radio Advertising in the academic year 2009

10. The information submitted is true and original to the best of my knowledge.

Signature of the Student

Date:

Place:


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CERTIFICATE

I, Prof Yakkali Venkat Ramana hereby certify that Miss Neha Praveen Kumar of, Tolani

College of Commerce of T.Y.B.M.S. (Semester V) has completed the project on the Radio

Advertising, in the academic year 200910. The information submitted is true and original

to the best of my knowledge.

Signature of Signature of Signature of the

The Project Guide the Coordinator Principal of the College

(Prof Yakkali Venkat (Prof. Hema Mehta) (Dr. Raju .G.Chandnani)

Ramana)


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ACKNOWLEDGEMENT

It has always been my sincere desire as a management student to get an opportunity toexpress my views, skills, attitude and talent in which I am proficient. A project is one such

avenue through which a student who aspires to be a future manager does something creative.

This project has given me the chance to get in touch with the practical aspects of

management.

I am extremely grateful to the University of Mumbai for having prescribed this project work

to me as a part of the academic requirement in the Bachelor of Management (BMS) course.

I wish to appreciate the management of Tolani College Of Commerce for providing the state

of the art facilities, the Principal Dr. Raju .G.Chandnani for his dynamic leadership and the

library staff for their support in providing academic content, and the teaching and supporting

staff of the College, for providing the entire state of the art infrastructure and resources to

enable the completion and enrichment of my project.

I wish to extend special thanks to my project Guide Prof. Yakkali Venkat Ramana & my co-

Coordinator Prof. Hema Mehta without whose guidance; the project may not have taken

shape.

I wish to extend a special thanks to my sister Mrs. Tanvi Chetan Phatak for her help towards

the collection of the data for this project as she has been in the Radio Industry.

Finally, I thank all my friends and family members who have directly or indirectly helped me

towards the execution of this project.

- Neha Praveen Kumar


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Sr. No. Content Page No.

1 Executive Summary 06

2 Research Methodology 08

3 Introduction 09

4 Technical Knowledge 11

5 Advent Of The Format Radio 14

6 History Of Indian Radio 16

7 SWOT Analysis 20

8 Advertising In India : Radio Advertising 23

9 Pros And Cons Of Radio Advertising 27

10 Types And Detailed Information Of Radio Advertising 32

11 Creating The Right Mix 57

12 All India Radio 61

13 Radio City 91.1fm 64

14 Red Fm 93.5 Fm 66

15 Radio Mirchi 98.3 Fm 69

16 Recommendations 73

17 Conclusions 74

18 Bibliography 76


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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.

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, One will find people

with radio sets of different shapes and sizes listening to their favorite 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.


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Objective

Through this project my objective has been to understand the following

To find out about the current scenario of the radio industry. The reasons for a stunted growth of the industry The various steps in radio advertisement Realizing the needs and wants of consumers and fulfilling them What the various radio stations have to offer the masses.


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RESEARCH METHODOLOGY

Through this project I have made an effort to understand the advertising 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.

The aim of research was to understand as to why radio advertising has been able to grow at a

considerable rate as compared to the other media.

It was also undertaken to understand how radio advertising is done and what re the

current players in the market.

Secondary data collection method: desk research Secondary data collection sources: internet, books, newspaper articles


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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.

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


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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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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.
http://electronics.howstuffworks.com/radio.htmhttp://electronics.howstuffworks.com/radio.htmhttp://electronics.howstuffworks.com/radio.htmhttp://electronics.howstuffworks.com/radio.htm


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ROYALTIES

Copyright Board reduces royalties in radio (Article from The Business Standard)

The radio industry got a fillip today as the royalties it pays to music companies were

substantially reduced by the Copyright Board. The Board directed that radio companies

would have to pay two per cent of their net advertising revenues to music providers. Radio

companies were paying royalties on an hourly rate which was around Rs 850 per hour of

broadcast.

Music royalties has been an issue for a while now and this is sure to bring some respite to

the industry. With Phase III on the anvil, the timing couldnt have been better. If the musicroyalty issue is sorted, it will further fuel Phase III growth for the FM radio industry and

allow broadcasters to deepen footprint while offering advertisers a greater reach, said

Soumen Ghosh Choudhury, business head, 92.7 BIG FM. All over the world, owners of

copyright charge license fee as a percentage of net advertising revenues and not as a per

needle hour rate, the Copyright Board said in its order. Shares of media companies,

especially those in the radio business, were in the spotlight briefly after reports suggested that

the Copyright Board has resolved the music royalty issue with the operators.

The order brings the Indian music royalty regime in line with the global trends. In all

countries where radio has developed well, the music royalty is of the order of nil to four per

cent. Our request had been for one per cent, but we respect the Copyright Boards order of

two per cent of net advertising revenues. From around Rs 100 crore that the radio

broadcasters were accruing, the burden will now come down to around Rs 14 crore, said

Prashant Panday, ED and CEO, ENIL.

This decision will change the entire business model of radio companies. It will improve the

profitability of several radio stations in smaller towns. This, in turn, will lead to increased

enthusiasm in the upcoming bidding for Phase III licences, said Ashish Pherwani, associate

director (advisory services), Ernst & Young.


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ENIL shares closed nearly flat at Rs 237.95 after being as high as nine per cent. Tips rose two

per cent to Rs 45 after rising eight per cent. Reliance Broadcast Network gained four per cent

to end at Rs 89.50, while Sun TV was down 1.3 per cent to close at Rs 466.65. Saregama lost

almost 2.5 per cent to Rs 147 after climbing four per cent.

TV Today was down 2.85 per cent to finish at Rs 85.25 and Mid-Day Multimedia was down

3.9 per cent to end at Rs 34.45. HT Media closed down 1.5 per cent at Rs 166.75


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ADVENT OF FORMAT RADIO

The arrival of 'Moving Pictures' with sound and then 'Television' were expected to be

the death knell for 'Radio'. However Radio has not just survived repeated predictions of its

demise but grown tremendously. It has benefited listeners and advertisers alike and earned

the status of a 'Constant Companion'... What allowed Radio to accomplish this feat? Read on

for the long journey the Radio industry has covered thus far.

It was way back in 1895, that Guglielmo Marconi invented an antenna to send and

receive radio signals. It took quite a while before Reginald Fessenden developed the first

radio receiver in 1913. However, experts give a lot of credit to David Sarnoff who actuallyconceived what is called as the "radio music box". It was Sarnoff who suggested that radio

should be mass-produced for public consumption. His persistence paid off in 1919 when such

sets were available for general purchase. This saw the beginning of what was later looked on

as the 'Golden Age of Radio'.

Early 1920s saw the launch of commercial radio. People in households would gather

around the radio to listen to their favorite programs much as they do today with TV. Radio

became the first medium delivering entertainment to the masses in their homes. The 1st paid

announcement on radio was a 10-minute capsule from Howthorne Court; a Queens based

Real Estate Company. This era was characterized with 'block programming' wherein radio

offered something to everyone. News, drama, sports; live musical recordings would be

presented in 30 or 60-minute programs. A network soap opera could be followed by a 15-

minute newscast followed by one hour of a concert.

Then in the 1950s TV began to catch the public's attention. Audiences were charmedby the audiovisual experience of TV. A large number of popular shows moved from radio to

TV. That was not all, as the radio industry was also losing a large number of talented staff to

TV.

At this point in time, radio experts discovered an opportunity that only radio could

provide. They realized that radio was the only medium that could be used while doing other

things, like getting dressed for work, cooking a meal, traveling to office, studying and more.


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Radio turned 'local' and moved to what is known in the industry as 'Format'

programming. This era also spawned two of radio's greatest strengths: immediacy and local

service. Format radio strategy was based on providing the same kind of entertainment to a

selected audience, throughout the day, seven days a week.

As the story goes, Storz and McClendon used to frequent a local malt shop, which had

a jukebox. They observed that the customers would usually come and play the same songs

that they liked, over and over again. In fact, the staff serving these people would end up

playing just the same songs even when the shop was closed.From this insight emerged the

"Top 40" format or the "Contemporary Hit Radio (CHR)" format were the most popular hits

would be played on a higher rotation.

This led to a change in the way radio time was being sold. Sales people shifted from

selling programs to selling commercials. It also led to a shift in the way radio programs were

scheduled. As radio was being used as a background medium of entertainment, it had to be

relevant to the listener at every point of time in the day. The shows therefore had to be

reflective of various day parts in the life of the listener.

Irrespective of the form it came in, format radio definitely made radio not just survive

the onslaught of TV but also made it grow tremendously. Being the only medium that couldbe carried and used wherever you are, it could update you about your world throughout the

day while providing you with the entertainment you like all the time. Radio became "The

Constant Companion".

The total number of radio sets at the time of independence in 1947 was a mere

275000.at that time a radio receiver used to be a status symbol in this country. But today its

possession is taken for granted. According to estimates, there are radio sets in about 105

million households in the country.


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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, theadvertising 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 ci t ies .

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

Setting up new radio stations

After the second round of privatization, the number of FM radio stations targeted is

around 500 to 600. 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


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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.


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FUTURE OF RADIO INDUSTRY

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.


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SWOT ANALYSIS

Strengths:

The success of private FM stations, and reveals that radio listenership habits havechanged 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 inlocal supplements of newspapers, are welcoming the opportunity.

Radio is considered as a background medium, because people can listen to radioanytime 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 variousbackgrounds. 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 theprogrammes that are aired. Most of the stations plays much of the music that is played

consist of Hindi Film 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 invarious remote places. And therefore, the percentage of listener tuned to anyone

station is likely very small.


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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. Anadvertiser 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 situationthat every radio channel is facing.

Short commercials

Opportunities:

Getting copyright licenses from the government for running mega events which areaired 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 thecollege 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 channelscan 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 thebiggest 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 andthen 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.


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ADVERTISING IN INDIA

India is one of the fastest growing economies in the world and thus offers a big opportunity to

all the corporate, round the world, to make an entry in this highly profitable and untappedmarket.

With an increasing consumer awareness and international exposure, no business can survive

for long without the right kind of promotion and advertising in an informative and

progressive market like India. These considerations have made advertising in India a highly

daunting and competitive business.

Some of the other facts that make India an extremely lucrative market for advertisers, all

across the world are:

Advertisers in India reach about 75 per cent of the population through television, andalmost the entire population through radio. Certain televised programs enjoy a viewer

ship of more than 100 million. The Indian viewer ship exhibits good brand name

recognition of both foreign and domestic products and services.

With ready access to value added information such as television rating points,audience profiles and opinion polls available to marketers, the sophistication of

advertising in India is at par with world standards. The world's leading advertising

agencies have a major presence in the Indian market.

English-language advertising in India is among the most creative in the world. Withthe advent of satellite television, advertising has made major headway in the last

decade. All the major channels have fashioned themselves on lines of international

channels, where advertising is tailored for their target audience.

The importance of the Hindi-speaking market (though also fluent in English) can begauged from the fact that Star TV, once an all-English channel, is now rich in Hindi

programs. Even BBC is reportedly toying with the idea of airing Hindi programs.

In addition to advertising, all other kinds of trade promotion activities are also welldeveloped in India. A large of exhibitions, conferences and seminars are widespread

and held all over India.


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All this calls for an agency that is nothing but the best in its area of operation and thatunderstands the local market, inside out. It must be well versed with the medley of

cultures , life styles and demography of the targeted group.

Segmentation in advertising

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

edia Spends as % of Total Ad Spend

Year Print TV Radio Cinema OutdoorInternet

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, the television 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.


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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.

Companies that advertise on FM channels today such as Hindustan Lever , Amul,

Castrol, Santro, Britannia, Parle, DSP Merrill Lynch etc are dominating the advertising on

each one of the FM channels, be it Radio Mirchi, Red 93.5 or Radio City.

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 are required 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.

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.


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Consumer opinions

The evidence from the qualitative research is that young people feel their local FM station isaimed 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 includes Ads 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.


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PROS AND CONS OF RADIO ADVERTISING

Every medium has special strengths and weaknesses that makes it more or less suitedto 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 repeated 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.


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3. CostEfficiency

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 a timely fashion.

Radio also offers timeless, immediacy, local relevance and creative flexibility. Thepersonal 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.

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


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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 theadvertisers 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.

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.


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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 Sound

Radio 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.


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TYPES OF RADIO ADVERTISING:

1. Network

Advertiser may use one of the national radio networks to carry their messages to theentire 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 marke ts,

stations, airtime, and copy. They can tailor commercials to the local market and put them on

the air quicklysome 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.


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RADIO STATIONS DIVIDE THEIR DAYS AND THEIR

RATES.

Radio stations divide their rate cards into dayparts .The exact divisions vary from station tostation.

6 am -10 am Morning drive

10 am3 pm Daytime

3pm7pm Afternoon drive

7pm- 12am Nighttime

12am6 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.


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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




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.


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BUYING RADIO TIME

1. Station RatesWhile 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 IndividualBusiness and National Rates for Agencies.

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 OptionsMost stations offer several options for buying air time:

a) Buying by specific daypartsb) Buying packagesc) 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

by individual stations. Run-of-stations ads- ads that stations choose when to run- cost less


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than ads scheduled during a specific dayparts. The price can also increase if an advertiser

wants the ad read live on the air by a popular local radio personality hosting a show during a

day part.

Buying packages is an easy, usually low-cost method. Marking a package buy is

called buying Run of Station (ROS), Total Audience Plan (TAP), or Best Time Available(

BTA). This means simply that you pay to buy a package of sports at a flat rate and the station

decides (within certain specified limits) when the sports will run. Stations will usually

guarantee to divide your sports fairly between drive times and other dayparts.

c). Sponsorships or adjacencies

A sponsorship is just what its name implies. You are associating your company name

with a specific program. The advertisers sponsor the whole or part of the programme. The RJ

informs the audience about the sponsored company throughout the programme.

. Is brought to you by

An adjacency is the next best thing to a sponsorship. If you buy an adjacency, your

ad will run every day just before or just after (in other words, adjacent to) the program you

specify.

Other fixed-position spots are also available. For example, you may specify that you

want your spot to run at 6:13 a.m. every Monday, Wednesday, and Friday.Sponsorships, adjacencies, and fixed positions go for premium rates. Sponsorships on

top-rated shows can cost up to twice as much as other spots in the same dayparts. Having

your name associated with a particular show or event can do a lot to reinforce your

positioning, and these premium spots can be so powerful that you may be able to run far

fewer spots than you otherwise would, spending less to achieve the same impact.

Sponsorships are like marriages; 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


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month.) A schedule is the long-term version of a flight. (I run a schedule of 20 ads a week,

six months out of the year.)

4) How many stations do you need

Just as you should never run too few spots, you should also not run on too few stations.

But how many is enough?Generally, you should run on at least two or three stations, but that

varies depending on your audience and the number of competing stations in the market.

If your target and audience includes both younger and older people, you may need to

buy two or more stations with widely different formats.

There are, however, times when one station will suffice. If your audience is business

people, and you can afford to buy drive time on the dominant news/talk station in the market,

that may be all you need to succeed.

To really learn who is listening to your spots, survey the local market. These surveys

break the audience down by age and sex, break the listening week down into segment, and

then tell you how many listeners each station had in each category. Similar survey on

listenership has been conducted by IMRB (Indian Market Research Bureau)


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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 VoiceThere 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 radiotalentb) Using an amateur voicec) Hiring professional voice talent.

a) Using local radio talentIf 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 salespresentations are made by women.


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b) Using amateur voicesOne 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 talentIf 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 alllarge 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 announcer concentrate 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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RADIO ADVERTISING PRODUCTION

For some businesses radio advertising production planning

stops at deciding when and where to buy their advertising

spots. The result is an ineffective advertising campaign, and a

lot of wasted money. Being successful with an advertising

campaign does require a little forethought.

Planning out your radio advertising production before you

start is crucial to your success. You need to be prepared to let

your customers know how your different from the

competition, have a plan to grab your audiences attention, and

have your sales pitched polished and ready to go.

Be Unique

There is a term in business called Competitive Advantage. It is about how you separate

your business from every other business that offers a similar product or service. For your

radio advertising production to be effective you need to be able to tell your listeners what

your competitive advantage is.

With most radio advertising production you have 15 to 30 seconds for your commercial

message. You need to be able to let the audience know why they should come to you instead

of going to your competition. If you dont know what that reason is, you better figure it out

quickly.

Grab Their Attention

Regardless of how much commercial time you purchased, in reality you only have a few

seconds to convince your audience that they should continue to listen to what you have to

say. Your radio advertising production needs to be written in a way that catches the listeners

attention and draws them into your message.

If you dont know how to do that it is worth the investment to go to a radio advertising

agency to have your radio advertising production written and produced for you. While radio


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station advertising is relatively inexpensive, it is a big waste of money if you cant get people

to listen to your message.

Once you have their attention, make sure you keep you message simple and easy to follow.

If you try to cram too much information in your radio advertising production you will start to

lose people. Focus on one action that you want your customers to take, and focus the

message on getting them to take that action,

Sell the Sizzle

There is a concept in advertising that you need to sell the

sizzle, not the steak. That means that your radio advertising

production needs to focus on delivering what people want,

and not necessarily what they need. While features are

important, many people are more interested in the benefits.

Chances are whatever product or service you are offering is

being offered by one of your competitors. Your radio

advertising production needs to clearly let people know the

benefits they will get by purchasing from you. When people

need to eat, there are many different kinds of foods available.

If you want them to buy your steak, you need to make them hear the sizzle and to taste the

juices on their tongue.

Because you cant use pictures in radio advertising production, your ad needs descriptive

copywriting that will get your message across only using words. You need to be able to paint

a picture in their mind with what you are telling them. If you can do that effectively, your ad

will work.

Having a quality radio advertising production can generate a lot of traffic to your business. If

you can do it well, it is a very cost effective way to get your message out to a lot of potential

customers. If this is a route you are considering, it may be worth the investment in seeking

professional help in creating your first radio advertising production.


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Points To Keep In Mind

You only have a few seconds to catch your audiences attention. You need to be able to clearly state your competitive advantage. An effective way to sell is to focus on the benefits of your product or serviceand not on the features.

Keep your message simple and easy to understand, not over-stuffed withinformation.

When you are getting started it is worth investing in help from a radioadvertising professional to make sure your commercials are effective.


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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 mediabuyer 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 clientsproblem 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 themedium in general is for a particular product.

b) The salesperson must move from the general advantages of radio to the advantages ofspecific station.

c) The radio representative may have to show how radio fits into the media mixcurrently being used by the advertisers.

Radio advertising faces challenges both from within the industry and from other media as it

competes for advertising price.

Day parts 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 muchinformation. Prioritize the copy points. The central idea should be highlighted.

Research your product or service. Many clients keep tabs on their competition, butthey 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 theheartstrings, 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


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CREATIVE RADIO ADVERTISING

These 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

Steps in Radio Ad Production

1. An agency or advertisers appoints a producer2. The producer prepares cost estimation3. the producer selects a recording studio4. 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 themusic or selects stock music.

6. If necessary, a rehearsal is held.7. The studio tapes music and sound separately8. 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 objectiveswhat are the agreed objectivesof 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

confidentlyeven if the listeners think the advertising was in another medium.

Radio research can successfully be done using telephone interviewingads 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 techniquei.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 issuesto what extent has radio helped to achieve the campaign aims? Media planning issues what effect do different media strategies have on the

performance ofthe campaign?


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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 theparticular media strategy in which you are interested.

Secondly, if you are testing a number of media strategies simultaneously, you willneed to be able to 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 bejudging the effects in terms of the overall campaign objectives.

Whatever 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


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Misattribution of Advertising:-

When asked to consider advertising, consumers will turn their thoughts to the most

salient source they can think ofthis 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 radioregardless 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:-

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.


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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 responsesone 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 TVthey 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.

Test and Control Samples within the Same Area


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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.

The pre-campaign study should be conducted as close to the start of the radiocampaign 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 radiocampaign 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 longadvertising 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


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Generally speaking, the larger the sample the better. However at some point, the cost of an

increased sample 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.

When 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 thecommercial 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 theadvertising/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!


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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:

In 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:-


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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 the written 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:-

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.


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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 think of 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 means reducing wastage; radio also offers tighter timing - within time of day,

day of week or even week of month.

In communication:-

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.


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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

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Final Project Radio Advtsng