Radio Advertising

Executive Summary

Advertising in general expresses positioning. Powerful advertising is result of

powerful planning. Great ideas and great ad campaigns don’t just pop out from nowhere,

they are built on key communication points that motivate sales.

Radio is entirely the medium of sound, which evokes smells, sensations and

visual images which brings listeners imaginations into play.

Radio advertising is one of tools of advertising which is effectively used for

communication and positioning. It is one of foundations for effective and successful

advertising. Radio can be used effectively for advertisement since it can target large

audience because of its high reach. Radio is good at increasing awareness about brand

and business and helping in building brand image.

But all this was only for pure academic purpose. With advent of television radio

lost its popularity and thus its purpose with marketers. This led to sharp declines in

proportion of advertisement spending on radio as compared to other media.

But soon came government’s order for liberalization and privatization of radio

industry. This brought about loads of changes in world of radio broadcasting in Pakistan.

Prominent and established companies entered business of FM Broadcasting.

FM broadcasting has breathed the new life into medium of Radio in past few

months. Could radio now think this as the new phase of its life or the re-birth? Of course

yes, people are today talking only Radio---- FM 101, FM 106.2, HOT Sachal, Hum FM,

etc. One will find people with radio sets of different shapes and sizes listening to their

favorite music on roads, in hotels, even Cigarette shops aired on any of music channels.

The radio channels are now vying against each other to provide their best to 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 cheapest and the very good medium.

Objective

Through this project my objective has been to understand following

To find out about current scenario of radio industry.

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Radio Advertising

The reasons for the stunted growth of industry

The various steps in radio advertisement

Realizing needs and wants of consumers and fulfilling them

What various radio stations have to offer masses.

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Radio Advertising

Introduction

Old media don’t’ 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 media of future. But thanks to technology radio is

making the comeback. In fact, in its new avatar-fm-radio is all set too become hippest,

coolest and most with -it medium.

FM radio is the 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. It’s the 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 nature of medium-radio has always considered being the

reminder medium. The involvement of listeners to radio is low, Vis the Vis television or

print media.

However in spite of various challenges emergence of private FM stations is

certain to increase quantum of radio advertising in country , much like satellite channels

did to quantum of television advertising in country. That should open up the vast new

market of consumers-100 million Pakistani households own an estimated 150 million

radios, outnumbering television sets 3:1.

The geographical area covered by radio in Pakistan in Pakistan is as high as 98

percent and penetration level is approximately 97 percent. But FM presently covers only

17 percent of area and 21 % of population of Pakistan through transmitters. Currently

radio has just 2 percent of 9000 billion Pakistani advertising markets according to an

Arthur Anderson’s survey. Globally depending on each country, radio has the 5 % to 12

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Radio Advertising

% of advertising cake. On higher side are countries like 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 and the FM set costs around Rs.

50/- FICCI estimates FM’s share up from present 1.5 percent to 5 % in five years. They

have also forecasted that revenues from radio advertising in Pakistan will be Rs. Rs. 1200

billions by 2005 and Revenue of radio services is expected to rise to Rs 689 billion by

2008 at the CAGR of 30 per cent.

While TV is the 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 the good impact when advertised on radio is

primarily known as the “drive time” medium most people who turn in are doing so while

commuting. Thus potential if FM is better is bigger town, as car population is much

bigger. This would be key when evaluating medium. Also one must not forgot that radio

continues to be the medium that has tremendous reach among poor and marginalized

sections of society.

With coming of more channels, and emergence of lifestyle advertising, radio will

become the push and pull medium. As said earlier, is not just making the comeback but is

being reincarnated into the new avatar.

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Radio Advertising

Research Methodology

Through this project I have made an effort to understand advertising tool called

radio advertising which is being increasingly recognized by marketers as the powerful

tool that helps in finding new customers and retaining existing ones at the much lesser

cost.

Primary Research:

The aim of primary research was to understand radio advertising as it is seen in

corporate world. To understand this I have taken two interviews from different fields.

Mrs. Azra Maqsood who has experience of 18 years working at SZABIST and

was an integral part in the launching of Szab Radio channel, she helped me understand

what all goes into making of the radio advertisement. The mode of interview used was an

informal one where he answered my questions on one to one basis.

Also Mr. Naveed Zuberi senior Sales Manager of FM 106.2 gave me an interview

and helped me in trying to understand as to how station works and looks after 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 the considerable rate as compared to other media also fall out of

radio in last decade. It was also undertaken to understand how radio advertising is done

and what re current players in market.

Secondary data collection method: desk research

Secondary data collection sources: internet, books, newspaper articles

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Radio Advertising

Some Basic Technical Knowledge

Any radio setup has two parts:

The transmitter

The receiver

The transmitter takes some sort of message (it could be sound of someone's voice,

pictures for the TV set, data for the radio modem or whatever), encodes it onto the sine

wave and transmits it with radio waves. The receiver receives radio waves and decodes

message from sine wave it receives. Both transmitter and receiver use antennas to radiate

and capture radio signal.

When you listen to the radio station and announcer says, "you are listening to 91.5

fm “what announcer means is that you are listening to the radio station broadcasting an

fm radio signal at the frequency of 91.5 megahertz. Megahertz means "millions of cycles

per second," so "91.5 megahertz" means that transmitter at radio station is operating at

the 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 the band of frequencies between 88 megahertz and 108 megahertz.

This band of radio spectrum is used for no other purpose but fm radio broadcasts.

Common frequency band includes following…

AM radio - 535 kilohertz to 1.7 megahertz

FM radio - 88 megahertz to 108 megahertz

AM radio has been around the lot longer than FM radio. The first radio broadcasts

occurred in 1906 or so, and frequency allocation for AM radio occurred during 1920s. In

1920s, radio and electronic capabilities were fairly limited, hence relatively low

frequencies for AM radio. FM radio was invented by the man named Edwin Armstrong

in order to make high-fidelity (and static-free) music broadcasting possible. He built first

station in 1939, but FM did not become really popular until 1960s.

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Radio Advertising

Royalties

FM is primarily the music channel, so question of royalties is relevant. The

Pakistani Proto-graphic Record Society (IPRS) and Phonographic Performance (P) Ltd.

(PPL) are supposed to hold all rights of royalties. They are demanding Rs. 1,500 per hour

(as against Rs. 100 per hour, at which they are supplying music to FM), PPL is

demanding the royalty of Rs. 250 per hour of needle time, actual duration of the piece of

music. The IPRS is demanding Rs. 100 per hour. The IPRS claims royalty for original

composers and authors of music.

Cost - Aspect

A Licensee pays Rs. 6000/- per hour.

Add Rs. 1,500/- for music.

Add Rs. 3,000/- for technology, salaries and other expenses. An hour long show

thus costs Rs. 10,500.

10 - Minutes have been set aside for advertising. One minute is reserved out of

10 - minutes for social awareness advertising.

Thus, advertising time available for sale is 9 - minutes.

In other words, 18 advertisements each of 30 seconds can be accommodate in an

hour.

This is high target. Besides tariff card should be modest, considering limited

range and listenership supposing the 30 - secondary costs Rs. 500 at prime time for 18

such spots, total revenue generated is Rs. 9000/- . Another estimate puts production cost

of an hour long program around Rs. 6,000/-. Add Rs. 6,000/- of licensee fee to FM.

Studio hiring costs are between Rs. 500 - Rs. 1000 an hour. The total expenses are

thus Rs. 12,500 to Rs. 13,000 per hour.

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Radio Advertising

Advent of Format Radio

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

be 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 status of the 'Constant Companion'... What allowed Radio to accomplish this feat?

Read on for long journey 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 the while before Reginald Fessenden developed first

radio receiver in 1913. However, experts give the lot of credit to David Sarnoff who

actually conceived what is called as "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 beginning of what was later

looked on as 'Golden Age of Radio'.

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

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

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

announcement on radio was the 10-minute capsule from Howthorne Court; the 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 the 15-minute newscast followed by one hour of the concert.

Then in 1950s TV began to catch public's attention. Audiences were charmed by

audiovisual experience of TV. A large number of popular shows moved from radio to

TV. That was not all, as radio industry was also losing the 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 only medium that could be used while doing other

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Radio Advertising

things, like getting dressed for work, cooking the meal, traveling to office, studying and

more.

Radio turned 'local' and moved to what is known in 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 same kind of entertainment

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

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

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

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

playing just same songs even when shop was closed. From this insight emerged "Top 40"

format or "Contemporary Hit Radio (CHR)" format were most popular hits would be

played on the higher rotation.

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

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

were scheduled. As radio was being used as the background medium of entertainment, it

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

reflective of various day parts in life of listener.

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

onslaught of TV but also made it grow tremendously. Being only medium that could be

carried and used wherever you are, it could update you about your world throughout day

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

Companion".

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

275000.at that time the radio receiver used to be the 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 country.

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Radio Advertising

History of Pakistani Radio

 For more than 4 decades, Government of Pakistan did not permit private radio

stations to broadcast in Pakistan. Then history changed its course. In 1993, Government

allowed private FM operators to 'buy' blocks (chunks) on Radio Pakistan, prepare

programming content, book commercials from advertisers and broadcast whole lot.

Within 4 years, (1997-98), FM Radio advertising and sponsorship business grew to Rs.

93 billions with first FM channel FM 100 & govt.’s own channel FM 101 becoming main

players.

 Then, in June 1998 Government, through its electronic media regulatory body

PEMRA, decided not to renew contracts of private FM operators. Not surprisingly,

advertising revenue fell by 50% within the year!

 This time, Government gave green light to privatize radio in Pakistan. July 6,

1999 was historic day when Government announced that 150 new FM channels would be

licensed across 25 ci t ies . And in 2000, Government auctioned licenses for private FM

channels to bolster revenue. And focus on metros was evident in bidding. Expecting to

collect Rs 800 million from auctioning 108 licenses, government had to actually face

mass withdrawal of bidders because of huge license fee. A handful of serious bidders

chose to remain. In response to Government's offer, many companies bid for licenses to

operate in key markets. But going was not so easy. Many gave up, unable to shell out

high license fee. For instance, bidding price for Karachi license was reportedly to tune

of Rs 9.75 billion. Others dropped out saying business was not viable. So, in effect,

competition shrank, players consolidated and Government extended its deadline. Today,

there are roughly 10 players who will operate approximately in 37 cities across country.

The government collected close to Rs 4.6 billion as license fee for privately run

FM radio channels in 25 cities. Radio Awaz, the Roshan Media Company, which focused

mainly on smaller towns, won largest number of bids. The first round of bidding - for 76

channels in 26 cities, garnered close to Rs 3.5 billion. The government got highest bids -

Rs 97.5 million from each of 10 broadcast companies - for stations in Karachi.

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Radio Advertising

Interestingly, bids for Hyderabad and Sukkur came next, each for Rs 77.2 million and Rs

74 million, respectively, while bids for Lahore were Rs 71.2 million each. Radio is

expected to follow growth of Television industry, which grew rapidly following entry of

private players.

Currently, FM coverage in Pakistan is restricted to just 17% of country,

compared to 89% of Radio Pakistan (AM 858).

License Fee and revenue sharing model

Currently, FM players pay annual license fees, which go up by 15 per cent every

year. Private FM radio sector would shift to the revenue-sharing model from existing

license fee regime. However, revenue-sharing also exists in media sector. The objective

is to “make FM radio the success story”. It’s better to keep revenue-sharing figure low

than to have the failed project. There has been debate on whether to recommend the

revenue-sharing structure or the fixed amount for the period of 10 years; it is firm on

revenue-sharing now. Revenue-sharing will follow payment of the one-time entry fee

through the process of bidding. Revenue-sharing figure is quite low at around 4 %.

While private FM players had sought revenue-sharing in band of 2-2.5 per cent,

panel has fixed it at 4 per cent.

Setting up new radio stations

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

around 300 to 400. The panel also suggested that players wanting to enter sector in

second round of licensing need to have the technical viability clearance by the financial

institution on financial viability of project. It has also recommended to government to

release additional spectrum for use of FM radio companies so that number of companies

operating in one centre can go up.

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Radio Advertising

Future of Radio Industry

FM Radio can play its part in building the stronger business future for Pakistan.

Providing free-to-FM local broadcasts of music and entertainment, helpful information -

traffic advisories, community announcements and public service messages provide the

real value-added service. But at current levels of advertising support, each radio station is

reeling under brutal financial impact of high costs. With more players in fray FM radio

industry would grow and also enhance government’s yield from licensing radio naturally.

The new Pakistan deserves an active private FM radio sector. It can provide the

level playing field with benefits for listeners, for advertisers, employment & career

options. Spearhead government objective of growing FM radio business in Pakistan.

With government ready to reduce license fees it will help in attracting new players like

reliance which had earlier backed out only due to entry fees. Also government allowing

foreign players to enter Pakistani market it will help industry grow. Virgin group has

already started exploring Pakistani market for suitable partners. Various radio stations are

coming up with IPO for example FM 101 thus helping them expand.

The future looks bright as reach of radio is expected to raise post increase in

number and quality of players in industry. It is on basis of these key drivers of growth, it

is being predicted that radio's share in total advertising pie will see an increase in medium

term. There are an estimated 150 million radio sets across country. The Rs 1.6 billion

industry is reported to be growing by 31 per cent every year and should touch Rs 6.2

billion by 2007, with revenue rising at 23 per cent annually. Also, though radio has only

the 2 per cent share in Rs 6,000 billion Pakistani advertising market, advertising spending

is expected to amount to Rs 500 billion this year.

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Radio Advertising

SWOT Analysis

Strengths:

Recently, government has agreed upon revenue-sharing model, which is 4 % for

growth of 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 every day.

The advertisers, who would depend on word-of-mouth, pamphlets, brochures or

ads in local supplements of newspapers, are welcoming opportunity.

Radio is considered as the background medium, because people can listen to radio

anytime and anywhere they want. It is also the free medium.

90% of Pakistan 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 places where literacy rates are low where people hardly read newspapers and

radio is only medium that they can understand. They can’t afford the TV set.

Therefore radio is more popular.

Radio is least cost medium and it helps to reach mass audience with various

backgrounds. Radio offers its reach frequency and selectivity at one of lowest

costs per thousand and radio production is relatively inexpensive.

Radio is considered as the medium where “Proximity to purchase” is very high.

Radio is the complement to another media. Therefore, other media or advertisers

or agency can use this medium for brand recall.

Weakness:

One of major weaknesses of Radio is that there is very less differentiation in

programs that are aired. Most of stations plays much of music that is played

consist of Hindi Film songs, and therefore it is difficult to differentiate between

programs of different channels.

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Radio Advertising

Fragmented Audience - large number of audience in Pakistan is fragmented in

various remote places. And therefore, 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 main base to attract client and get more revenue. But, in

Pakistan 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 the tremendous creative

compromise. An advertiser whose product depends on demonstration or visual

impact is at the loss when it comes to radio. And like its radio message creates the

fleeting impression that is often gone in an instant. Many advertisers think that

without strong visual brand identification medium can play little or no role in

their advertising plans.

Increase in listenership numbers but no increase in ad revenue. This is situation

that every radio channel is facing.

Short commercials

Opportunities:

Getting copyright licenses from government for running mega events which are

aired on FM radio station and have been restricted to be aired on other private

stations.

Launching the radio station with 24-hour news channel

Tie-ups with Daewoo express or railway authority for playing FM in train and in

bus.

The launch of Private Radio FM has managed to create the set of ‘New Listeners’

for medium

The new radio stations which will come in future they can have venture with

college or university campuses. And can play their station which will exclusively

provide with information relating to that university/college campus.

With coming of many more new players in radio industry each channels can

position themselves quite different from others, like, if some station is targeting

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Radio Advertising

health conscious people then their programming strategy will vary accordingly.

And then it is easier for advertisers also to decide on which channel to advertise.

Allowing private FM players to start news and current affairs programs.

One has to constantly innovate, and that is challenge. Brand building is thus much

more difficult. At same time, we are very bullish, and gung-ho about this whole

enterprise.

Leaves huge scope for innovation in local market

Threats:

The biggest threat to private radio industry players is FM 101. FM 101 is biggest

player in Pakistan because of its reach, low charges, government channel etc…

Because of new government policies there will be more number of stations and

then competition will also increase. This is one of biggest threats it faces. With no

particular differentiation in music. So, there is the fear of losing its brand loyalty.

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Radio Advertising

Advertising in Pakistan

Before current recession era (which will soon wear-off) Pakistan has been among

growing economies in world, with the nominal GDP CAGR of 9.94% over last 10 years

(1995-2005). The nominal GDP for fiscal 2005 was Rs. 30,636 billion. According to

CSO estimates nominal GDP growth for fiscal 2006 is estimated at 10.9%. There is the

correlation between economic growth rates of the country i.e. nominal GDP growth rate,

and growth rates of advertising industry

The Pakistani advertising spends, as the percentage of GDP, is 0.34%, which lags

behind other developed and developing countries

During fiscal 2005, gross advertising spend in Pakistan is estimated at Rs 111 billion,

and is expected to grow at 14.2% to reach Rs. 127 billion by fiscal 2006

Segmentation in advertising

The five key industry segments comprise print, television, radio, cinema, and outdoor.

These different segments within 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%

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Radio Advertising

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 Pakistani television industry has grown rapidly, especially since 1991, which saw

beginning of satellite broadcasting in Pakistan. This growth was also aided by economic

liberalization program of Government. The growth of satellite television audience saw

proliferation of the number of satellite television channels offering more choices to media

buyers and consumers of entertainment. Thus, television broadcasting business, which

started off as the single government controlled television channel, now has over 300

channels covering Pakistani footprint, resulting in growing ad spends on this medium.

Reforms and proliferation of private players were key reasons for this rapid growth of

share of television in advertising industry.

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Radio Advertising

Radio Advertising

Radio is still king when it comes to getting your music. The best way for the new

band to get heard by public and record label executions is over airwaves. Paradoxically,

radio currently has only the 2.9 per cent share of total advertising pie in Pakistan.

Globally, depending on country, radio has the 5 per cent to 12 per cent share of

advertising cake. On higher side are countries like 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 Unilever Pakistan,

Telenor, Nestle Pakistan, Engro Foods, UBL, Warid, Nokia, PIA etc are dominating

advertising on each one of FM channels, be it FM 101, Radioactive FM 96 Mast FM 103

or FM 106.2.

Today, 70 per cent of advertising comes from big-budget, national advertisers and

balance 30 per cent comes from retail. It is the known fact that retail advertising will

grow because radio presents perfect advertising medium for local businesses in the local

environment. But national advertisers are also operational in local market, implying that

it is as important to them as it is to the retail advertiser, if not more.

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Radio Advertising

Nevertheless, it is undeniable that radio can be integral in exposing the new artist,

new product or services to new fans and taking the local market to the 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 the certain style you may simply neither

have any desire to cultivate. On top of that, it can take the great deal of time to make all

contacts and connections that are required for successful radio promotion. Advertising

agencies that control 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 money spent by

advertisers goes to radio, and up till now, all of that went to Radio Pakistan.

However, in revenue terms, money from advertising has gone up. Revenue from

commercials on FM, including on Radio Pakistan (AM 828 KHZ) and Primary Channel

(including FM 101) rose from Rs 393 million in 1990, to Rs 808.4 million in 2000, & Rs.

600 billion in 2002, representing the 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 advertiser, like the food chain that is opening an outlet in Karachi, wants to target the

specific audience. In such cases, it does not make much sense to advertise on TV, and

print medium is too expensive. Radio is 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

The evidence from qualitative research is that young people feel their local FM station is

aimed at people like them, but advertising is not - they feel, probably quite correctly, that

most advertising is aimed at adults. Because radio is the real-time intrusive medium, they

have to sit through full length of any ads which are for irrelevant products. There was

evidence of three sorts of memories:

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Radio Advertising

Relevant: This includes Ads which mentioned areas or names of specific interest,

e.g. Films, outlets selling favored 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 (SBT’s) and sing them out loud.

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Radio Advertising

Pros and Cons of Radio Advertising

Every medium has special strengths and weaknesses that make 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 the number of characteristics

that makes it an ideal vehicle for numerous advertisers as either the 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 the day, radio builds the large audience quickly and the normal

advertising schedule easily allows repeated impact on listener. 90% of Pakistan has

access to radio which is unmatched by any other media. Radio is not only medium of

hearing news but also is the source of entertainment and advertising for rural masses.

Radio also reaches to uneducated village folk who do not read print publications. At

places where literacy rates are low where people hardly read newspapers and radio is

only medium that they can understand. They can’t afford the TV set. Therefore radio is

more popular.

2. Broadly Selectivity

Specialized radio formats with prescribed audiences and coverage areas enable

advertisers to select market they want to reach. From the marketing perspective, radio has

ability to reach prospects by sex, age group, ethnic or religious background, income

group, employment category, educational level or special interest with the format that

adds even greater dimensions to its already strong personal communication environment.

Radio’s high overall reach and its ability to provide numerous formats make it

the multifaceted medium. Because of relatively low cost of production, advertisers are

able to adapt commercials to various stations then buy, the strategy that would normally

be prohibitively in television.

3. Cost –Efficiency

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Radio Advertising

Radio is least cost medium and it helps to reach mass audience with various

backgrounds. Radio offers its reach frequency and selectivity at one of lowest costs per

thousand and radio production is relatively inexpensive. National spots can be produced

for about one tenth cost of the 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 most flexible medium because of very short closing periods for

submitting an ad This means an advertiser can wait until close to an FM 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 the timely fashion.

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

The personal nature of radio, combined with its flexibility and creativity, makes radio

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 theatre of 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 medium an

advantage enjoyed by few other advertising vehicles. In competitive environment facing

most companies, it is imperative that brands achieve consumer reinforcement as near as

possible to purchase decision. Radio’s daily frequency offers scope for continued

messages and hence consumers are more likely to remember that product and consumer

lend up buying that product.

6. As the Complement to Another Media

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Radio Advertising

In some cases, radio is 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 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 bulk of its revenue comes

from advertisers who use radio as the secondary medium.

7. A personal medium

The human voice is most personal means of communication. Radio gives

advertisers opportunity to take advantage of right combination of words, voices, music,

and sound effects to establish the 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 the cost and

production standpoint. As the result many advertising agencies will move their budgets

into radio.

Disadvantages of Radio

1. Misunderstanding

Sometimes there might be the misconception regarding radio ad as it is only

heard. In television 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 the consumer is listening while doing some work or

traveling in the car, he or she often switches stations when an ad comes and divides his or

her attention between radio and road.

3. Fragmented Audiences

The large number of stations that try to attract same audience in the market has

created tremendous fragmentation. If the large number of radio stations compete for same

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Radio Advertising

audience, advertisers who want to blanket market have to buy multiple stations, which

may not be cost effective. However, in radio’s 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 the part of national advertising

program, 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 the station-by-station basis. This could involve dozens of different

negotiations and individual contracts.

5. Short Lived and Halfhearted Commercials

Radio commercials are brief and fleeting. They can’t keep like the newspaper or

the magazine ad Radio must compete with other activities for attentions, and it does not

always succeed. Only 20 % of time availability restricts frequency of message exposure.

6. Creative Limitations

The audio-only nature of radio communication is the tremendous creative

compromise. An advertiser whose product depends on demonstration or visual impact is

at the loss when it comes to radio. Many advertisers think that without strong visual

brand identification medium can play little or no role in their advertising plans.

7. Limitations of Sound

Radio is heard but not seen, the drawback if product must be seen to be

understood. Some agencies think radio restricts their creative options.

8. RJ needs training

It is very important that Radio Jockey is trained enough to deliver ad. Sometimes

voice really matters. If voice is irritating then there is the chance that campaign may flop.

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Radio Advertising

9. No proper research available

In Pakistan, there is no proper research available on area of radio listening, which

will be very helpful for advertisers to decide them on advertising plan and budget and

other matter. Therefore, there could be the problem for marketers in sense that they might

advertise on wrong channel at the wrong time.

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Radio Advertising

Types of Radio Advertising:

1. Network

Advertiser may use one of national radio networks to carry their messages to

entire national markets simultaneously via stations that subscribe to 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 limited no. of

stations on the networks roster and long lead times required to book time.

2. Spot Radio

Spot radio affords national’s advertiser’s great flexibility in their choice of markets,

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

FM quickly – some stations will run the commercial with as little as 20 minutes lead

time.

3. Local Radio

Local times denote radio spots purchased by the local advertiser for local market. It

involves 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 Program

Here advertiser sponsors whole or part of program. The RJ informs audience

about sponsored company throughout program.

5. RJ Mention/What’s On Mention

Here Radio Jockey [RJ] informs audience information given by advertiser about

new product launch, sale, exhibition going on at certain place etc.

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Radio Advertising

Radio Stations Divide Their Days And Their Rates.

Radio stations divide their rate cards into day-parts .The exact divisions vary from

station to station.

6 am -10 am Morning drive

10 am – 3 pm Daytime

3pm – 7pm Afternoon drive

7pm- 12am Nighttime

12am – 6 am All night

Rating services measures audiences for only 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 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

people’s desire for the steaming, fresh cup of coffee, so it’s great time for advertising

coffee brands. For lowest rate, an advertiser order’s spots on the run of station (ROS)

basis, similar to ROP in newspaper advertising .However, this leaves total control of spot

placement up to station. So most stations offer the total audience plan (TAP) package

rate, which guarantees the certain percentage of spots in better day parts if advertiser

buys the total package of time.

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Radio Advertising

Length of Spots

The radio commercials in test reels consisted of several different spot lengths,

ranging from 15 to 60 seconds. The longest commercial played on radio is 120 seconds.

Those however are rare. In theory, one could assume that longer the spot, better it will be

remembered or at least, more chance there it that it will be heard. Research on television

commercials proved that this theory holds true for medium television: the doubling or

tripling in spot seconds results in duplication in recall.

The spots for advertisement can be for 10 sec, 20 sec, 30 sec and 60 sec. In

General,

10 second spot should contain 25 words

20 second spot should contain 45 words

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Radio Advertising

30 second spot should contain 65 words

60 second spot should contain 125 words

If you’ve never written the spot, 30 seconds sounds like an impossibly short time to

get your message across. But take the stop watch and time some spots on FM; you’ll see

that quite the lot can be accomplished in the short time. In fact, you may find that 60s,

unless very well written and well produced, sometimes seem the bit too long.

A 60 does allow you more variety in music, sound effects, and voice and can be

useful for political message, announcement of the new or little-understood service, or

other sports with the information/education content.

30 is usually 70 to 80 words long, and the; 60 around 150 to 160 words. The cost

of the: 30 are usually about 60% to 75%.

Some stations no longer charge the separate rate for: 30s and: 60s. Instead, they

charge the unit rate. In other words, the: 30 costs same as the: 60. Obviously, this is one

case where you might want to use the: 60 to take advantage of “free” air time. Check rate

cards of stations you are interested in, or ask your sales rep.

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Radio Advertising

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 actual buying may be time

consuming and expensive if many stations are involved, 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.

Advertiser may use one of national radio networks to carry their messages to

entire national markets simultaneously via stations that subscribe to networks programs.

Networks provide national and regional advertisers with simple administration and low

effective net cost per station.

2) Day parts Buying Options

Most stations offer several options for buying air time:

a) Buying by specific day parts

b) Buying packages

c) Buying sponsorships or adjacencies

a). Buying specific day parts

This relates to time period of purchase. There are five basic day parts on basis of

which advertiser can choose. The time period decision is based primarily on the

demographic description of advertisers target audience. Drive-times day parts attract the

mostly male audience, while daytime primarily female and nighttime is mostly teen. This

information combined with programming formats, guides an advertiser in the buying

decision.

Putting half your spots into drive time and half into midday is the very safe

strategy. Weekend sports can also effectively reach teens.

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Radio Advertising

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 than ads scheduled during the specific day parts. The price can also increase if

an advertiser wants ad read live on FM by the popular local radio personality hosting the

show during the day part.

Buying packages is an easy, usually low-cost method. Marking the 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 the package of sports at the flat rate and

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

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

c). Sponsorships or adjacencies

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

name with the specific program. The advertisers sponsor whole or part of program. The

RJ informs audience about sponsored company throughout program. “……………. Is

brought to you by………”

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

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

parts. Having your name associated with the particular show or event can do the 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 same

impact.

Sponsorships are like marriages; they’re only for people who are ready for the

long-term commitment.

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Radio Advertising

3) Frequency

Radio, like most media, requires repetition to have impact. As the general rule,

the minimum of 20 spots per week should be aired. There are scheduling strategies that

help increase impact of spots you place.

Flight and schedule are two words you may hear your radio sales representative

use when you plan your advertising. A flight is the group of ads. (“I’m running the flight

of 80 ads this month.”) A schedule is long-term version of the flight. (“I run the schedule

of 20 ads the week, six months out of 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 number of competing stations in

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 dominant news/talk station in

market, that may be all you need to succeed.

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

break audience down by age and sex, break 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 PAS (Pakistan Advertisers’ Society)

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Radio Advertising

Producing Radio Commercial

Producing the radio spot can be the lot of fun advertisers often say it’s most fun

they ever have in advertising. It can also be simple and inexpensive. There are three basic

elements to work with: announcer’s voice, music, and sound effects. Production can be

done in station’s own studios or in an independent production house. Stations are usually

well- equipped to produce spots, and they often employ young, creative people whose

fresh ideas will keep your spots from sounding like everywhere else’s.

It all begins with the good script, which means not just words, but combination of

words, music, and sound effects. All these are part of script. Your spot can be clever or

straightforward, but it must grab listener’s attention in about three seconds, and it must

not leave listener wondering, “Whose spot was that, anyways?” The following are some

of factors you should have in mind from first moment you sit down to plan your spot.

1) The Voice

There are two factors concerning voice. First, you should use the voice that is

appropriate for your image.

There are two good, low- cost options for achieving this, and one higher- cost option:

a) Using local radio talent

b) Using an amateur voice

c) Hiring professional voice talent.

a) Using local radio talen t

If station produces spot, one of their on-FM people risk having voice be so

familiar that listener doesn’t pay attention. If ad runs only in drive time, one can have

midday announcer do honors. Get 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 the small (but increasing) percentage of all

broadcast sales presentations are made by women.

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Radio Advertising

b) Using amateur voices

One great thing about radio is that even an untrained voice can be very effective.

In fact, less voice sounds like one of regular announcers, better.

A woman’s voice, the child’s, or even your own can make listeners stop and pay

attention simply because it’s not what they’re expecting to hear. A word of caution:

Amateurs can sound stiff and false.

c) Using professional voice talent

If the very sleek production value is needed hire voice talent from another station,

local community theater or, in larger markets, from the talent agency. Celebrity voices

can sometimes be hired.

2). Music

The power of music can’t be overemphasized. There are several options for

putting music into your commercials:

a) Have original music produced.

b) Use free music from station’s library.

c) Get permission to use an existing recording by the known artist. (But it’s

difficult and expensive to obtain rights).

d) Buy canned music (sound alike) in style of many popular composers in all

large markets who supply such productions for the modest charge.

A lot of radio or TV advertising can be done having the jingle product. The cost runs

anywhere from Rs.600 to the few thousand rupees, and it can be the very worthwhile

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 local radio station. The sound of waves on shore can help sell your vacation

package and bird song can put people in mood for your spring sale.

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Radio Advertising

Radio is entirely the medium of sound. When you use sound to evoke smells,

sensations, and visual images, you bring listener, more involved with your spot; will be

more involved with your ideas.

4. The tapping Session

Once decision is made about script, voice, music, and sound effects, it’s time to

record. At may be just you and announcer in studio; announcer will operate equipment.

At large stations and professional recording studios, an engineer will record spot while

you and announcer concentrate on reading.

You should also understand. Be aware that announcer may have slight

interpretation of reading than you do, and don’t expect the performance that could only

come from someone reading your mind.

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Radio Advertising

Selling Radio Commercial

Selling radio advertising involves the number of steps. The radio salesperson must

be aware that everyone involved in transaction is looking for different results. The media

buyer is looking for efficient cost per point, while client’s goal is to move product. As all

radio stations are perceived to be same it is important to build value into radio station by

offering credible benefits that produced results and solutions for prospective clients.

Radio salesperson must begin with client’s needs and marketing goals. The first

step in process is to meet client to gain as much information as possible about client and

his or her business. After salesperson has the firm grasp of advertising problem, next step

is to prepare the proposal. The successful ones begin with client’s problem and sales

objectives an move systematically to the solution.

Often job of radio sales person must be conducted on the number of levels.

a) An advertiser who is not currently scheduling radio may have to be convinced

that medium in general is for the particular product.

b) The salesperson must move from general advantages of radio to advantages of

specific station.

c) The radio representative may have to show how radio fits into media mix

currently being used by advertisers.

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

competes for advertising price.

Day parts Characteristics

6 the.m. - 10.00 the.m. Drive time, breakfast audience, interested chiefly in news

10.00 the.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

the.m.

News, music, talk shows

12.00 the.m. - 6.00

the.m.

Music, talk shows

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Radio Advertising

Elements of good radio commercial

Be single-minded, focused. The consumer should not be burdened with too much

information. Prioritize 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 consumer, Always relate brand to customers wants and needs. D

Generate extension . The effect of the commercial can be multiplied by achieving

extension. A clever phrase or execution can have consumers asking other people

if they have heard spot.

Produce an immediate physical, emotional, or mental response. Laughter, the tug

on heartstrings, or mental exercises of the consumer during the radio spot help

seed memory and aid messages retention.

Use plain , conversational English. Be the clear communicator

Creative Radio Advertising

These are some guidelines for producing creative radio advertisements:-

1. Understand environment

2. Speak listeners’ language

3. Engage and entertain 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 the producer

2. The producer prepares cost estimation

3. producer selects the recording studio

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Radio Advertising

4. With aid of casting director, if one is needed, producer casts commercial.

5. If music is to be included, producer selects the musical director and chooses

music or selects stock music.

6. If necessary, the 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 master tape is prepared for distribution on either tape or

cassettes and shipped to stations.

=You are on FM!

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Radio Advertising

Measuring radio’s effect

Effectiveness research requires clarity of objectives – what are agreed objectives

of overall campaign and of radio campaign within this? Radio effectiveness can be

measured either using continuous research or in stages (“pre & post”) – pre-stage is

normally week before campaign, post-stage in week after campaign finishes.

Consumers tend to misattribute radio-advertising memories to other media,

particularly TV. This is particularly likely to happen where there is the strong execution

link between two media and/or where there is the history of TV advertising for brand.

This tendency to misattribute can be offset by using matched samples of

listeners and non-listeners. This way, if increase in advertising awareness is greater

among listeners than it is among non-listeners, then effect can be attributed to radio fairly

confidently – even if listeners think advertising was in another medium.

Radio research can successfully be done using telephone interviewing – ads can

be played down line. However cases where other media are to be included in research it

might be more appropriate to use face-to-face interviewing.

Commercial recognition is the valuable technique – i.e. playing ads to

consumers. It provides the more robust measure of whether they have heard campaign,

and avoids problems of trying to describe ads. Brand names can be bleeped out of

commercial, to test whether campaign is linked to brand.

1) Defining research objectives

The key to any successful research is to have the clear understanding of why research is

being conducted in first place. In other words, what are you aiming to measure?

In broad terms, radio advertising research aims can be categorized into two types:

Marketing issues – to what extent has radio helped to achieve campaign aims?

Media planning issues – what effect do different media strategies have on

performance of campaign?

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Radio Advertising

Marketing Issues:- These vary widely and there can be often more than one objective set

for the campaign. Below are some typical examples:

.Increase sales

Increase footfall / store traffic

Increase brand awareness

Change consumers’ perceptions about the 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 radio’s contribution to success of the

campaign, as the secondary aim you might also be trying to test and evaluate 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 the particular media strategy there are three important

considerations to note.

Firstly, and most obviously, you must gear campaign so that you can test

particular media strategy in which you are interested.

Secondly, if you are testing the number of media strategies simultaneously, you

will need to be able to separate effects of each using the separate, balanced

research “cell” for each media-variable.

Lastly, when testing different media strategies, bear in mind that you will still be

judging effects in terms of overall campaign objectives.

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Radio Advertising

Whatever your research objectives, once you have defined them make sure that they form

core of 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 most

salient source they can think of – this tends to mean TV. Television, as medium with

most active expectations, tends to dominate memories of advertising, with result that

campaigns in all other media are, to varying extents, attributed to television in

consumer’s 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 problem of measuring true radio awareness is to split

your sample into two parts: listeners (target consumers who have been listening to radio

stations which carried advertising) and non-listeners (people who do not listen to those

stations, but who are same as listeners in all other

respects). If only difference between two samples is their radio listening, then any

differences in their awareness or attitudes to advertised brand can be reasonably

attributed to radio – regardless of where they think they have seen or heard advertising. It

is particularly important to use split samples where radio is part of the mixed media

schedule in order to gauge true radio effect.

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Radio Advertising

Which Option Should You Choose:-

Neither of two approaches above is necessarily better than other. However,

second method has advantage of questioning people who will have same history of

exposure to brand. Local distribution levels for brand will also be same. The key point is

that listener and non-listener samples must be matched as closely as possible in terms of

demographics, media consumption and weight of exposure to brands’ advertising in other

media. This ensures that any differences can confidently be attributed to radio ad

exposure.

3) Where to do 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

advertised area, other in an area where no radio advertising ran. In this way, it will be

possible to compare results among those who have been exposed to campaign with

results among those who have not - thus giving you the measure of radio’s effectiveness.

It is important to match media consumption of 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 same for both samples.

The two geographical areas should also be comparable – (or “typical”) in terms of media

and product consumption as the whole.

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Radio Advertising

Test and Control Samples within Same Area

In this second approach, all of research is done within same area. One part of

sample will comprise people who do listen to station(s) on your radio schedule, whilst

other part of sample will comprise people who do not listen to any station on schedule. In

this way it will be possible to compare results of those who have been exposed to

campaign to those who have not giving you the measure of radio’s effectiveness.

4) When to do research

The ideal research method is to monitor advertising activity on the 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 - the pre-campaign and the post

campaign study.

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Radio Advertising

The pre-campaign study should be conducted as close to start of radio campaign

as possible – preferably during week immediately preceding radio campaign. This

will establish base levels of whatever is being measured (e.g. brand awareness).

The post campaign study should be conducted as soon as possible after radio

campaign has ended – ideally during first week after campaign has come off FM.

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 the particularly

long advertising campaign or sponsorship. Similarly, having done post-research, consider

adding an additional stage of research some weeks after the campaign has ended in order,

say, to track decay in brand awareness.

5) The research sample and sample sizes

Sample Sizes

Generally speaking, larger sample better. However at some point, 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 effect of radio campaigns: method is

adaptable and can often be cheaper than face-to-face interviewing. Radio ads can

successfully be played down 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 the valuable technique – i.e. playing radio ads to consumers

– as this is best “memory jogger” of all. It also delivers the larger sample of people who

are identifiable as having definitely heard campaign: this is useful when analyzing them

for their attitudes to brand.

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Radio Advertising

When playing 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

commercial has been heard before and then asking for brand name, it is possible

to see whether creative treatment has successfully linked message to brand.

Branded - this allows prompting for brand-specific data, (e.g. attitudes to

advertising/feelings about proposition), whilst giving the true measure of ad

recognition.

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Radio Advertising

Comparing Radio with other media

Most brands tag radio to their existing communication plans. Reason enough for

us to study role of Radio vis-à-vis other key media.

'What Radio can add' to each medium on three key parameters – the a) Planning,

b) Communication and c) Detailing of communication points.

Radio with Television

Characteristics of Television

TV has traditionally been most powerful and popular advertising medium for

people in media business. This is mainly because it does most things well - coverage,

frequency, image, persuasion, demonstration, impact etc.

Traditionally the high-cost medium, downside with TV is that 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 the dramatic increase in frequency of exposures,

either in same period as TV campaign or later to extend 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 consumer at their level; radio has the 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 the fast

turnaround for new initiatives; low production costs mean multiple copy messages can be

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Radio Advertising

varied round core TV communication Sonic Brand Triggers. Sonic Brand Triggers are

sounds, which consumers recognize and associate with certain brands.

Example of powerful SBTs:

"Warid… Life ka Network"

They help to ensure that TV and radio advertising is well branded. They leave the

brand impression with even 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 the communication. Newspapers also have

authority of written word, and are good at presenting detail. As the print medium,

national press suffers from clutter and from fact that 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 the press campaign, and there is less ad avoidance; it

can bring to life ideas, which may seem flat on page; radio can more strongly convey

brand's tone. Radio brings brand messages closer to individual, speaking in the 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 the national press

campaign.

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Radio Advertising

Radio with Outdoor

Characteristics of Outdoor

The strength of outdoor advertising lies in its ability to suddenly confront

consumer with an idea or the challenge, in the 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 sense that additional exposures to advertising are

played in full rather than having listener look away or ignore; radio offers for 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 tone or character of the brand.

In detail:-

Radio offers speed of production compared with lengthy process of poster print

deadlines; it also allows localized copy variation relating to the national poster execution.

Radio with Magazines

Characteristics of magazines

Magazines are useful to advertisers because of relationship they have with

readers, who consume them in the personal way. They allow targeting by lifestyle and

interest group. In many magazines ads are seen as part of magazine experience.

48

Radio Advertising

Weaknesses of magazines include fact that lead times can be very long depending

on title's frequency of publication, high levels of clutter, and reader's inclination to simply

turn page.

What radio adds?

In planning:-

Radio adds frequency and also extends coverage well beyond magazine

readership; radio allows tighter timing - time of day, day of week etc; radio also offers

the greater share of voice for most categories, which means overcoming clutter.

In communication:-

Radio brings intrusiveness to the magazine campaign, and there is less ad

avoidance; radio can bring to life ideas which might seem flat on page; radio can more

strongly convey 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 long copy deadlines of magazines, and

opportunity for geographical variations.

Recall of advertising. At post-stage, you will be seeking to detect

spontaneous and prompted awareness.

Commercial recognition – playing ads to respondents.

Thoughts on what main message of ads was

49

Radio Advertising

Creating the right mix

A fieldwork was conducted by PAS (Pakistan Advertisers’ Society) to know

about listeners which encompassed entire Karachi urban agglomeration through the

random sampling of 6,000 households and 3,600 individuals.

With growing salience of Radio, PAS believes that time is ripe for the continuous

Radio audience measurement system. PAS International decided to launch RAM (Radio

Audience Management) - continuous radio audience measurement system in Pakistan.

The findings have helped many radio stations to develop. The following is

standard procedure involved in calculating listenership of the radio station.

The research can be undertaken by research agency voluntarily to be sold later to

companies, or on particular request by the company.

A project is selected and the deadline is given.

All interviewers are informed of above and the questionnaire is given.

A sample size is decided which is spread all over target city / town etc.

When questionnaires are filled, they are complied and sent to analysis

department

Then analysis findings are forwarded to research department and published

At country level:

Total awareness of radio stations

50

Radio Advertising

Gender of radio audience

Listenership by time slots

Analysis

While overall reach of radio in Pakistan is high it can be seen above that awareness

of private radio channels is not much. Radio Pakistan (FM 101) has highest awareness

which is due to fact that it is the government channel with the pan Pakistan coverage and

enjoyed monopoly when radio space was shut for private players. Being only service

provider it was able to penetrate deep into Pakistani market. The private fm players

mainly having license for big cities and towns although are gaining awareness in cities

51

Radio Advertising

and towns they are still in their growth stage and for them to be known everywhere they

have to diversify geographically and reach rural population where radio is the very

important medium of entertainment. Which is why new entrants are vying for their share

of pie and encouraging government to release more airwaves for them?

Radio is very popular with sec D/E market due to its cheap cost. Radios are now

available at prices below Rs.50 which make it very affordable. While sec A, B has the

wider variety of entertainment available to them radio is not widely used. However with

new players entering market and providing them with content they want trend is now

changing more people are switching on their radio sets even in these categories, specially

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 radio stations, In

order to meet requirements of its listeners and its corporate audiences. As 7.30 to 11 slot

is most important slot because many listeners are tuned in shows are generally family

oriented as everyone mostly listens to them and news programs on government owned

stations. on other and 11-2 slot has women segment listening while nights are more

concentrated on teens, Giving advertisers the vast array to meet their specific target

markets.

Based on these findings most of radio stations have categorized their shows and

advertisement rates to meet needs of its audiences which can be seen in various positions

of stations. For marketers it then becomes necessary to identify audience they want to

target and respectively book their airtime so as to reach right audience with right mix at

right time

52

Radio Advertising

Radio Pakistan

 Radio Pakistan, which is the national service planned, developed and operated by

Ministry of Information & Broadcasting under Government of Pakistan. Sound

broadcasting started in Pakistan in 1927 with proliferation of two privately owned

transmitters in Sialkot and Chakwal. It was changed to Radio Pakistan in 1936 to inform,

educate and entertain masses.

 Radio Pakistan is one of largest radio networks in world in terms of reach. When

Pakistan attained Independence in 1947, FM had the network of six stations and the

complement of 18 transmitters. Radio Pakistan has the network of 283 broadcasting

centers with 146 medium frequency (MW) transmitters, 50 high frequency (SW)

transmitters and 87 FM transmitters. With broadcasts in 24 languages and 146 dialects

(home services), and another 10 foreign languages in external services, Radio Pakistan’s

coverage exceeds 70% of Pakistan, reaching over 78% of people in largest democracy of

world. Add FM radio and you have the formidable arsenal.

FM has the three-tier system of broadcasting, namely, national, regional and local.

 National channel of Radio Pakistan started functioning on May 18, 1988. It caters to

needs of people, through its transmitters at Quetta, Laiya and Lahore beaming from dusk

to dawn. It transmits centrally originated news bulletins in Hindi and English, plays,

sports, music, newsreel, spoken word and other topical programs, to nearly 76% of

country's population fully reflecting broad spectrum of national life. The Regional

Stations in different States form middle tier of broadcasting. Including North-Western

Service at FATA disseminates vibrant and radiant cultural heritage of Northwestern

region of country.

New initiatives by FMChange is in Radio Pakistan now plans the 24-hour news radio station - not on

shortwave, but on FM. For FM it has other ideas - classical music channels to start with

in Islamabad and Peshawar and to be extended across country later.

FM, which produces more than 300 bulletins daily, will also cash in on phone

bulletins. The service, which is on in Multan, Hyderabad, Islamabad and Lahore at

53

Radio Advertising

different numbers, will be launched across country with the four-digit common number.

FM planned and developed special packages for North East and J&K, focusing on rich

cultural heritage, development of infrastructure and changing scenario in state. Radio

Pakistan (FM 101) is also planning to fill vacancies in regional stations, especially in

North East and J&K, setting up radio clubs and maximizing FM revenue.

Radio Pakistan (FM 101) is set to launch the major campaign aimed at

repositioning and total branding of two FM Channels of Radio Pakistan (FM). Radio

Pakistan (FM 101) is positioning FM Rainbow as the channel offering the buffet fare -

Local Music, Western Music, Chat shows, Help-lines etc. and for this it is launching the

campaign in select cities. The publicity campaign of FM is focused on projecting FM as

world's oldest and largest radio network both in terms of geographical and population

reach and only source for news and entertainment for people in remote places. It will

promote and publicize sports events covered by FM besides popularizing existing

services like Radio on Demand and News on Phone.

The entire publicity campaign of FM is being designed by Radio Pakistan (AM

858)'s ad agencies. The ad agencies have been asked by Radio Pakistan (FM 101) to

make the strategy presentation, recommending the suitable positioning for FM Channels,

the marketing plan and publicity plan with suitable media mix.

FM 106.2

FM 106.2, was launched on 21st May 2007. The channel has received license to

set up radio stations across country in six cities - Islamabad, Lahore, Karachi, Multan,

Quetta and Peshawar. The Karachi license was secured for Rs 10 billion. STAR

Pakistan’s radio division would provide or take charge of advertisement sales, marketing

and programming. FM 106.2 aims to reach out to listeners across demographic barriers.

Target audience

  FM 106.2 is not looking at any particular segment to target, and is trying to create

the brand name. The idea is to create brand and then to move on to specific target

programming. FM 106.2’s market strategy is backed up by six months of intensive

54

Radio Advertising

research in Islamabad. Intensive research is being carried out to ascertain demographic

profiles of radio listeners, so as to enable more targeted programming in future. 

The 4 P’s

Product:

For listeners - Music, information, the portfolio of entertainment programming 24 hours

the day, in mix of Hindi (Read Urdu) and English

For corporate and retailers: - The airtime.

Place: Intensive (all over Pakistan) also, Selective in sense that it has set up radio stations

across country in six cities - Islamabad, Lahore, Karachi, Multan, Quetta and Peshawar.

Price: Advertisement rates

Promotion: FM 106.2 is one of top 3 stations in city. This is thanks to its promotions, the

perfect blend of English and Hindi music, teamed up with professional, vivacious RJ’s.

On promotion front, channel undertook huge promotion campaign in initial stages of its

launch.

1. The Television “fun ka doze har roz” ad campaign.

2. Hoardings all over city.

The channel is into sponsoring events especially college festival around Sialkot city.

Advertising with FM 106.2

FM 106.2 also hopes to provide an effective advertisement medium. This is to

fulfill aspirations of national advertisers seeking vast local reach as well as to local

advertisers to access an organized medium for projecting their products and services. FM

106.2 has managed to attract advertisements, from small local stores as well as big brands

like Taneez, IBM and Unilever Pakistan. Star Marketing Pakistan is in-charge of

providing content, besides advertising, sales and marketing support. FM 106.2 will have

the four-hour slot in its 24-hour broadcast for advertisement, breaking to the 10-minute

projection in every hour's program. FM 106.2 is trying to drive market by encouraging ad

spends on radio to increase from two per cent to world average of 10 per cent.

55

Radio Advertising

National advertisers are all familiar with concept of advertising. The retail market,

on other hand, involves one-on-one sales and education as to how advertising will help

brand. So they talk to them about radio, probably create the radio spot, make them listen

to it, tell them this is how brand will sound when on radio. The process is pretty lengthy.

Because of this strength of our retail sales team is three times that of our corporate sales

team because in retail sales there is this job of exploration and education, and of breaking

new ground whereas with national advertisers, it is the question of marketing the new

medium and educating people about it rather than having to explain concept of

advertising per se. Hence, success rate with national advertisers is the lot higher than in

case of retail advertisers.

RADIOACTIVE FM 96

Radioactive FM 96 FM was launched on 10th May’2008 by Hum group. Radio

Hum seems to have found the niche for them and clearly positioned them as ' English

Channel with the local/Pakistani image'. It provides the focus on international artists who

are popular in Pakistan. Not to say that big Pakistani artists with big fame do not feature

in their mix. So if advertiser wants to target the niche population with the fastidious ear

for English music you know where to be! It delivers best international chart topping hits

and most with – it bollywood sounds, belting out best hits nonstop 24 hours the day. It

does not only concentrate on Hindi or English but emphasizes on attractive blend of both

world.

Target Audience:

Radioactive FM 96 FM now targets only socio economic category (SEC) A and

B1, target audience is young, and more westernized. It primarily plays English music.

They are clear on their strategy and have already started catering to the certain set of

audience that is mature, white-collar and upwardly mobile. Providing an attractive blend

of 50:50 Local & English programs, channel targets age group of 15 to 45 year old,

educated, white collar executive whose needs are clearly English music and

programming. Radioactive FM 96 targets upscale Karachi, Corporate aiming to serve

56

Radio Advertising

cream class of Karachi can select Radioactive FM 96 as the part of their communication

program.

The 4 P’s

Product:

For listeners : station is focusing on music of course, along with sports, entertainment and

business, with the heavy local flavor, to get an edge.

For corporate and retailers: The airtime

Place: Intensive in Sialkot and exclusive because it does not have the presence in any

other city.

Price: Advertisement rates

Promotion: its presence is made known through hoardings, displays at traffic signals etc.

Go is the youth-centric station and they felt that better way to make their presence better

to partner with college festivals

Marketing initiatives

Radioactive FM 96 has in fact re-christened itself as Karachi’s College Radio station. In

complete tandem with festivities, station had also launched the 13-week College Radio

hunt some time back, which was presented by Colgate Fresh Energy Gel. Wherein

auditions would be held for potential talent and finalists would then be exposed to in

house training sessions, which would equip them with capabilities of hosting radio

programs of their own.

Advertisements with Radioactive FM 96

Radioactive FM 96 indulges in experimental big stuff. There are two effects of

this kind of new programming. First, when client presents germ of an idea, their

immediate reaction is ‘yes’. Then they figure out how do they juggle it, how they’ll fit it

in and this programming mantra helps them in that. That ways they try to be preferred

destination when an existing client wants to sponsor an event or the radio property.

Second, there are many new clients that will come in, especially with coming in

of 11-2 afternoon slot. At that time, they can have consumer durables on channel. Not

57

Radio Advertising

just the LG CDMA but the LG refrigerator and AC can also be advertised. So, it is the

double positive impact on advertisers. 90% of their advertisers are large tickets. That is

by virtue of audience profile that Radioactive are bringing. They have retailers also. They

have the classified section on station called Karachi bazaar. But those are basically

advertisers who are very keen to be on station.

Radioactive does not plan to hike rates because they are looking at consolidating

at current rates and also trying to minimize discounts they give to our clients on rate card.

The station is seeing the 50-60 per cent quarter on quarter growth. During first half of

2003-04, station has garnered total revenues of Rs 1.36 billion.

HOT Sachal [105 FM]

The much-awaited Hum FM on 93.5 MHz hit airwaves in Karachi first on June

26, 2008, followed by Lahore and Islamabad. Described, as the bright, energetic and

passionate Apparently, HOT Sachal FM has spent close to Rs 17.87 billions as license

fees for three centers of Lahore, Karachi and Islamabad for first year. An additional Rs

20 billions has been invested on infrastructure etc in these three cities. And in second

phase,

Hum FM may not be modest but it is certainly witty, reliable, friendly, warm,

uncomplicated and honest. The ‘take aways’ are plenty – everything that station says and

does is of relevance to its listeners.

Target Audience

Hum FM caters to 25-plus age group. Because it is more the mature audience.

They changes everything in terms of how we play music and RJs we have according to

this target group.

The 4 P’s

Product:

For listeners: The programming mix has non-stop music interspersed with Hum FM’s

‘crisp’ and ‘entertaining’ updates on traffic, weather, city-specific events and latest buzz

on everything current.

For corporates and retailers: airtime

58

Radio Advertising

Place: Intensive in Karachi and selective all over country because it has other stations in

Lahore and Islamabad.

Price: advertisement rates.

Promotion: Hum Fm is affiliated with some clubs and pubs, which promote station. Also

it has the tie up with shopping malls like crossroads and ‘Groove’ the music store. They

have 100 hoardings all over Karachi city.

Marketing initiatives

It stays connected with youth by being in touch with committees of various colleges in

order to collaborate with them on internal festivals. Every committee hosts its own

festival and Hum has been in touch with committees from Delhi College, S.M. College,

Khatoon-e-Pakistan and nearly every other college in Karachi.

Within the few days of launching, they carried the DJ live on turntables from their

studios. Recently, for first time in Pakistan, they went on FM live from the night club like

Evolution and received the huge response from listeners.

Advertisement

Hum Fm does not go to sell radio spots but works like the consultant with client.

Based on need of advertiser, they suggest best ways of achieving objective. So if the

retailer wants to announce his sale and he does not have the big budget, their job is to

suggest that instead of the 30 second spot, play the 10 second spot through day.

Endorsing advertising on HOT Sachal is not just about buying spots, but is the total

experience, tailored to customer’s needs. Hum is also focusing, towards influence of one

station with other, use their strengths and improve co-ordination between three stations;

this is an important task in terms of helping advertiser.

Hum’s current advertisers profile includes both retail clients and corporate, they

form the healthy percentage of advertisers. They have other high profiled clients like

59

Radio Advertising

Vibe TV, HUM TV, LG, Coke, Telenor, Mobilink, Warid, PICIC, PIA, UBL, KFC and

Bio Amla among others.

Hum FM was launched six months late; and therefore they faced the major

drawback in terms of losing out on the number of corporate. However, none of them have

refused to consider them in their media plan; shortcoming is only in terms of delay, as

they had already freezed their media budget for year.

They normally charge around Rs. 4,000/- and rates might increase or decrease

depending upon need of advertisers, length of commercial.

They take 100 % money in advance from direct client, And from non-accredited

ad agency. The do give some discounts to accredited ad agency.

FM 101 [Radio Pakistan’s Channel]

FM 101 belonging to Government of Pakistan is in an enviable position to encash

into the monopoly 10-year license period for FM radio in 12 cities it won. FM 101 has

landed this gift indirectly from Reliance and Zee who chickened out of FM radio business

after instigating the bidding war resulting in unviable and exorbitant license fees (Rs. 9

billion annual fees for Karachi).

 On April 23, 2002, FM 101 private FM station, owned by Entertainment Network

(Pakistan) Ltd, the wholly-owned subsidiary of The Times Group, debuted in Karachi,

on 98.3 FM. FM 101 is now present in seven Pakistani cities and is only company

with private FM radio stations in all four metropolitan cities of Lahore, Karachi,

Larkana and Islamabad.

As punch line says, 'it is Taza' They have the very clearly defined position - they

are the contemporary hit radio station, and their Target is around 18 to 35 - SEC A and B

and in that too mainly youth and housewives. This segment addresses about 12 lakh

listeners

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Radio Advertising

The 4 P’s

Product:

For listeners: 90% of music played on RM is Urdu and contemporary English hits are

played keeping in mind tastes of their TG. Since radio is the free to FM medium, which

reaches lower end of audience spectrum, RM later made the conscious decision to go

Hindi. Hence it quickly became the mass channel with Hinglish being its prime lingo and

having the wide audience appeal..

For corporates and retailers: airtime

Place: intensive in Karachi and selective all over country since it is established in cities

like Islamabad, Lahore, Larkana.

Price: The advertisement rates. (Refer to annexure)

Promotion: The marketing strategy of FM 101 revolves around two crucial pegs – create

hype around name FM 101, plug FM 101 through other media that The Times Group

owns.it also does the lot of tie-ups and contests for consumers

Marketing strategies

FM 101 has also tied up with various shopping malls, retail showrooms, pubs for

continuous advertisement of their channel to make people aware of temptations given by

channels to them. FM 101 has two main objectives behind doing an extensive marketing

which are-

To create Top of Mind recall in relevant Target Audience.

Connect with growing Radio listening population in Karachi.

A very large factor that contributed towards establishing brand of FM 101 was its

catchy slogan “it’s Taza”. However slogan by itself was incomplete without voices that

accompanied it. CELEBRITIES and film stars that repeated every so often “hi I’m --------

And you’re litening to FM 101, Taza Hai!!” big names that generated curiosity and

excitement and compelled listener to refrain from flipping dial.

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Radio Advertising

Advertising

FM 101 charges highest rate of Rs 2,000 for the 10-second slot, rest of FM

channels charge anything between Rs 1,000 and Rs 1,500 for the 10-second slot.

FM 101 gives 45 lakhs weekly listeners as per Radar study. There is an average

listenership of 45 minutes per day on station. The rates are so reasonable that advertisers

can afford 10 or 15 spots the day and run campaign for 15 days or three weeks at the

fraction of cost that you will incur in print or Television. There are about more than 300

advertisers on FM 101. Today it is fashionable to be on radio.

FM 101 sells independently and does not offer any print package deal even

though they belong to Radio Pakistan – they are an independent company. Most of

national advertisers on FM 101 today want to buy all stations on FM. So they have

package deals for them also.

Currently FM 101 has hiked their prices because they know that FM 101 today is

one of best radio channels and they offer value to advertisers who spend on their station.

While all other stations offer more slots and run ads for over 15 minutes, they offer ten

minutes per hour on FM 101. There is huge inventory pressure on them and therefore

they had to increase ad rates. Currently, on an average, there are 125 to 175 brands

advertising on FM 101.

In most cases, stations offer discounts on what is on their rate cards. On an

average, across five stations, effective ad rate going for the ten second spot would be

anywhere between Rs 1000 to Rs 2000. Clients buy effective rates and they buy the

combination of spots like prime time, non prime time and likes.

PAS conducts research for FM 101 which is after every 15 days to know exactly

what listeners actually want to lend their ears to. Hence, accordingly, they have

implemented changes in time slots of different shows on FM. So when advertisers wants

to advertise on radio, FM 101 can provide them with more information and help them to

decide on time slots and frequency etc…

According to study conducted:-

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Radio Advertising

FM 101 delivers highest number in terms of listenership among Housewives and

working men.

FM 101 delivers highest number in terms of listenership among Radio Listening

student population.

FM 101 emerges up as No. 1 channel and delivers high numbers with Daily

listenership at 24.63 lacs.

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Radio Advertising

Recommendations And Conclusions

RecommendationsThe vibrant voices airing music shows on twenty odd private FM radio stations in

major cities do not reflect viability worries and restrictions that haunt this industry.

The basic problem in Radio space in Pakistan is excessive Government control

and regulation. In order to let industry to grow government needs to give it some space.

Though Supreme Court decision in 1995 declaring airwaves as public property led to

entry of number entrants challenging monopoly of Radio Pakistan, nothing much

changed as regards to government control. The government charged the very heavy

license fee for entering market did not allow broadcast of news and current events nor

was there the scope of the foreign player entering Pakistani market.

One way to get over license fee crisis in radio broadcasting industry is for

government to drop bidding-driven process for setting radio license fees because it is this

system that leads to viability crisis. They should in fact, as recommended by TRAI, go in

for the system more prevalent worldwide - revenue sharing. Under this system, stations

will pay government the certain % of their gross revenue every year.

The Government should review its ban on private stations airing news and

current affairs, currently the monopoly with Radio Pakistan. This could attract potential

listeners on move who want their daily share of happenings around world. But with

government citing national security as reason for not doing so leaves little hope of this

happening, at least in near future.

A llowing foreign players to enter Pakistani market could also spell the boon for

Pakistani company gain from expertise and superior technology of foreign player. The

consumer will also benefit as industry can now tap into the larger basket ( foreign

players) for greater variety.

ConclusionRadio has many natural advantages that make it an excellent choice for an

advertising medium. These advantages include high amount of time spent listening,

superior target ability, superior listener loyalty, ad recall and message retention, and

64

Radio Advertising

much more which can be attributed to ‘low cost of ownership’ feature of radio as the

medium.

Consumers spend 85% of their time with ear-oriented media, such as Radio, but

spend only 15% of their time with such eye-oriented media as newspapers and

magazines. Yet advertisers spend 55% of their money on eye media (print) and only 45%

of their money on ear media such as Radio and television.

Radio's share in total advertising budgets of companies is likely to grow from 2

per cent to 5 per cent in next three years, with an expected growth rate of about 10 to 12

per cent every year. In fact, fortunes of radio advertising are likely to change with advent

of private players like Hum FM, Roshan Media, FM 100, Sachal’s etc.

The opening of FM market is the new phenomenon and maturing of market will

take its own evolutionary path. Interestingly, private FM players have the huge

opportunity in grabbing the bigger chunk of radio advertising pie as, despite Radio

Pakistan's enormous reach (97 per cent of population), its revenues have declined.

In such the scenario, where cheapness of radio is likely to ensure that bulk of

radio advertisers are those that go for the one-city-local-audience strategy, greater reach

may not necessarily translate into the marketing advantage. Ultimately content and

packaging will be king.

However, what will spell out difference between success and failure will be

neither size nor niche. It would be just plain old quality of programming and explosion of

contests and sweepstakes offered by Radio Stations currently. One aping other is an

honest testimonial to justify this statement.

In end Radio offers tremendous opportunities for advertisers and media planners

need to explore various options by which they can effectively use radio in their media

mix. Conversely, broadcasters need to develop market by being more responsive to

advertiser's needs. This will provide an opportunity for market to arrive at final verdict on

effectiveness of medium.

65

Radio Advertising

Annexures

FM 106.2 - National Rate Card

30 Secs spot buy rates (in Rs.)

Program category Karachi Lahore Banglore Peshawar

07:00 - 11:00

17:00 - 20:00

Radio active 8000 8000 5000 4000

11:00 - 17:00

20:00 - 22:00

Radio Mix 6000 6000 4500 3000

22:00 - 00:00 Radio Master Blaster 6000 6000 4000 3000

Round clock Radio Ga Ga 4000 4000 2500 2000

Terms and conditions:-

Minimum acceptable radio spot/ commercial duration will be 10 seconds.

In case any program, which is being offered in this package, gets discontinued,

advertiser will move spots to program replacing discontinued program in same

rate category.

All bookings are subject to availability at time of booking. The agency/advertiser

must provide DATS at least fifteen days prior to first spot airing date. The

sponsorship material must be sent four weeks prior to start date of sponsorship of

any program.

All invoices should be settled by advertisers/agency within 30 days from date of

receipt of invoice.

66

Radio Advertising

HOT Sachal FM

HOT fm is currently operating in Karachi, Lahore and Kolkotta, under brand name

Sachal’s HOT 105.

Individual City Rates

City Prime SPT NPT/ROS

Karachi 1800 2400 1200

Lahore 1800 2400 1200

Kolkotta 1200 1800 600

Super Prime Time:

Mornings 8:00 the.m. to 10:00 the.m.

Evenings 6:00 p.m. to 8:00 p.m.

Prime Time:

Morning 7:00 a.m. to 8:00 a.m.

Morning 10:00 a.m. to 11:00 a.m.

Evenings 5:00 p.m. to 6:00 p.m.

Evenings 8:00 p.m. to 9:00 p.m.

Sponsored Shows:

Super Prime Time + 25 % premium

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Radio Advertising

FM 101 rate card

Day Parts Time

Band

Lahore Karachi Larkana Islamabad Ahmedabad Sukkur

7 the.m – 8

the.m

Family 500 500 220 220 170 170

8 the.m – 12

the.m

Family

/Drive

850 650 260 260 215 215

12 the.m - 5

p.m

Housewife

/ Traders /

Youth

260 250 145 145 130 130

5 p.m – 10

p.m

Drive 550 400 220 220 170 170

10 p.m – 7

the.m

BPO’s /

Youth /

Drive

260 250 145 145 130 130

Minimum jingle length

The minimum jingle duration will be considered as 10 sec.

Over 10 seconds, jingle length would be counted in multiples of 5 seconds. E.g. A

23 second jingle would be billed as 25 seconds

Jingle production charges

Centres Jingle cost

Karachi Rs.10,000

Lahore Rs.10,000

Larkana Rs. 7,000

68

Radio Advertising

Islamabad Rs. 7,000

Ahmedabad Rs. 5,000

Sukkur Rs. 5,000

FM 107

Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday

0700-

1100

hrs

Good Morning Karachi (GMM)

Jaggu & Taranna

Rate: 1500/-

Big

Brunch

(0800-

1200

hrs)

T-Man

Rate:

1250/-

1100-

1400

hrs

The Midday Show

Shruti

Rate: 1000/-

Sunday

Midday

Show

(1200-

1600

hrs)

Ravi

Rate:

1000/-

1400-

1800

hrs

1700-

1800

College Radio

Nadir

Orange Request Hour

Rate: 1250/-

Karachi

Matinee

(1600-

1800

hrs)

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Radio Advertising

hrs

Travel

Guy

Rate:

1000/-

1800-

2100

hrs

Horn Ok Please

Malini

Rate: 1500/-

Karachi

Top 20

(1800-

2100

hrs)

Annie

Rate:

1250/-

2100-

0000

hrs

NightShift

Glenn

Rate: 1250/-

Bacardi Breezer Vivid

Nights

Malini

Rate: 1250/-

Nineties

on 925

Chris

Rate:

1250/-

0000-

0100

hrs

Midnight Shift

Rate: 750/-

Live DJ

Set

Sandy

Rate:

750/-

Midnight

Shift

Rate: 750/-

*All rates are per 10 seconds of airtime

Super Prime Time Band (0800hrs-1000hrs) and (1800hrs-2000hrs)

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Radio Advertising

Bibliography

While working on this project I visited some of radio stations and they gave me

some information. However to support same I have done some more of research work

from following text books:

The advertising handbook by Dell Dennison

Direct Marketing Management by Mary Lou Robert and Paul Berger.

Newspapers and Magazines

Daily Dawn

The Economist

Financial Daily

Various websites were also visited such as,

Apna Karachi FM 107

Awaz FM 105

Awaz FM 106

CityFM 89

FM 100 Pakistan

FM 101

FM 96 International

FM Lakki 88

Hot 105

Hum FM 106.2

Mast FM 103

Mast FM103

Radio Active FM 96

Radio One - FM 91

Radio Pakistan

Voice of Kashmir (VOK) 105 FM

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