Radio Advertising 2
Transcript of Radio Advertising 2
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Executive Summary
Advertising in general expresses the positioning. Powerful advertising is the result
of powerful planning. Great ideas and great ad campaigns dont just pop out from no
where, they are built on the key communication points that motivate sales.
adio is entirely a medium of sound, which evokes smells, sensations and visual
images which brings the listeners imaginations into play.
adio advertising is one of the tools of advertising which is effectively used for
communication and positioning. !t is one of the foundations for effective and successful
advertising. adio can be used effectively for advertisement since it can target the large
audience because of its high reach. adio is good at increasing awareness about the brand
and business and helping in building the brand image.
"ut all this was only for pure academic purpose. #ith the advent of television
radio lost its popularity and thus its purpose with the marketers. $his led to sharp declines
in the proportion of advertisement spending on radio as compared to other media.
%& broadcasting has breathed a new life into the medium of adio in the past few
months. 'ould radio now think this as a new phase of its life or a re(birth) *f course yes,
people are today talking only adio(((( adio &irchi, adio 'ity, +, Go and #!-.
*ne will find people with radio sets of different shapes and sies listening to their
favorite music on roads, in hotels, even the bidi shops aired on any of the music channels.
$he radio channels are now vying against each other to provide their best to the listeners
/owever one can see that although radio is an excellent medium it has been used
to its full potential and various efforts should be taken to improve it as with proper
direction radio can reach heights as it is the cheapest and a very good medium.
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Objective
$hrough this project my objective has been to understand the following
$o find out about the current scenario of the radio industry.
$he reasons for a stunted growth of the industry
$he various steps in radio advertisement
ealiing the needs and wants of consumers and fulfilling them
#hat the various radio stations have to offer the masses.
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Introduction
*ld media dont die2 $hey just bounce back in new avatars. -ot so long ago
radio had been written off as fuddy(duddy, down market and not so cool. $elevision and
later 3new media4 were touted to being the media of the future. "ut thanks to technology
radio is making a comeback. !n fact, in its new avatar(fm(radio is all set too become the
hippest, coolest and most with (it medium.
%& radio is a new entity altogether and has to deal with new market dynamics.
&edia 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
$5 sets and make them tune into their radio sets. !ts a whole new challenge and
competition is never far away. Ad revenues will also not be easy to come by, as
advertisers will expect media players to put their money where their speakers are before
they commit large sums of money towards radio advertising. $he other challenge for
radio in attracting advertisers is the nature of the medium(radio has always considered
being a reminder medium. $he involvement of listeners to radio is low, 5is a 5is
television or print media.
/owever in spite of the various challenges the emergence of private %& stations
is certain to increase the 6uantum of radio advertising in the country , much like satellite
channels did to the 6uantum of television advertising in the country. $hat should open up
a vast new market of consumers(077 million !ndian households own an estimated 087
million radios, outnumbering television sets 9:0.
$he geographical area covered by radio in !ndia in !ndia is as high as ;< percent
and the penetration level is approximately ;= percent. "ut %& presently covers only 0=
percent of the area and 10 > of the population of !ndia through transmitters. 'urrently
radio has just 1 percent of the ;777 crore !ndian advertising market according to an
Arthur Andersons survey. Globally depending on each country, radio has a 8 > to 01 >
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of the advertising cake. *n the higher side are countries like the ?nited @tates with 09 >,
'anada with 01.=> and @pain with ;.0>. %& station executives are not forthcoming
on multi(platform strategies as yet. Given that radio has penetrated into 077 million
homes and a %& set costs around s. 87( %!''! estimates %&s share up from the
present 0.8 percent to 8 > in five years. $hey have also forecasted that revenues from
radio advertising in !ndia will be s. s. 0177 crores by 1778 and evenue of radio
services is expected to rise to s B
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Some Basic Technical Knowledge
Any radio setup has two parts:
$he transmitter
$he receiver
$he transmitter takes some sort of message Dit could be the sound of someoneEs
voice, pictures for a $5 set, data for a radio modem or whateverF, encodes it onto a sine
wave and transmits it with radio waves. $he receiver receives the radio waves and
decodes the message from the sine wave it receives. "oth the transmitter and receiver use
antennas to radiate and capture the radio signal.
#hen you listen to a radio station and the announcer says, you are listening to
;0.8 fm 3what the announcer means is that you are listening to a radio station
broadcasting an fm radio signalat a fre6uency of ;0.8 megahert. &egahert means
millions of cycles per second, so ;0.8 megahert means that the transmitter at the
radio station is operating at a fre6uency of ;0,877,777 cycles per second. Hour fm
Dfre6uency modulatedF radio can tune in to that specific fre6uency and give you clear
reception of that station. All fm radio stations transmit in a band of fre6uencies between
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!oyalties
%& is primarily a music channel, so the 6uestion of royalties is relevant. $he
!ndian Protographic ecord @ociety D!P@F and Phonographic Performance DPF Jtd.
DPPJF are supposed to hold all the rights of royalties. $hey are demanding s. 0,877 per
hour Das against s. 077 per hour, at which they are supplying music to A!F, PPJ is
demanding a royalty of s. 187 per hour of needle time, the actual duration of a piece of
music. $he !P@ is demanding s. 077 per hour. $he !P@ claims royalty for the original
composers and authors of music.
"ost # As$ect
A Jicencee pays s. B777( per hour.
Add s. 0,877( for the music.
Add s. 9,777( for the technology, salaries and other expenses. An hour long
show thus costs s. 07,877.
07 ( &inutes have been set aside for advertising. *ne minute is reserved out of
07 ( minutes for social awareness advertising.
$hus, advertising time available for sale is ; ( minutes.
!n other words, 0< advertisements each of 97 seconds can be accommodate in an
hour.
$his is the high target. "esides the tariff card should be modest, considering the
limited range and listenership supposing a 97 ( seconder costs s. 877 at prime time for
0< such spots, the total revenue generated is s. ;777( . Another estimate puts the
production cost of an hour long programme around s. B,777(. Add s. B,777( of the
licensee fee to A!.
@tudio hiring costs are between s. 877 ( s. 0777 an hour. $he total expenses
are thus s. 01,877 to s. 09,777 per hour.
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Advent o% ormat !adio
$he arrival of E&oving PicturesE with sound and then E$elevisionE were expected to
be the death knell for EadioE. /owever adio has not just survived repeated predictions
of its demise but grown tremendously. !t has benefited listeners and advertisers alike and
earned the status of a E'onstant 'ompanionE... #hat allowed adio to accomplish this
feat) ead on for the long journey the adio industry has covered thus far.
!t was way back in 0
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At this point in time, radio experts discovered an opportunity that only radio could
provide. $hey realied that radio was the only medium that could be used while doing
other things, like getting dressed for work, cooking a meal, traveling to office, studying
and more.
adio turned ElocalE and moved to what is known in the industry as E%ormatE
programming. $his era also spawned two of radioEs greatest strengths: immediacy and
local service. %ormat radio strategy was based on providing the same kind of
entertainment to a selected audience, throughout the day, seven days a week.
As the story goes, @tor and &c'lendon used to fre6uent a local malt shop, which
had a jukebox. $hey observed that the customers would usually come and play the same
songs that they liked, over and over again. !n fact, the staff serving these people would
end up playing just the same songs even when the shop was closed. %rom this insight
emerged the $op C7 format or the 'ontemporary /it adio D'/F format were the
most popular hits would be played on a higher rotation.
$his led to a change in the way radio time was being sold. @ales people shifted
from selling programs to selling commercials. !t also led to a shift in the way radio
programs were scheduled. As radio was being used as a background medium ofentertainment, it had to be relevant to the listener at every point of time in the day. $he
shows therefore had to be reflective of various day parts in the life of the listener.
!rrespective of the form it came in, format radio definitely made radio not just
survive the onslaught of $5 but also made it grow tremendously. "eing the only medium
that could be carried and used wherever you are, it could update you about your world
throughout the day while providing you with the entertainment you like all the time.
adio became $he 'onstant 'ompanion.
$he total number of radio sets at the time of independence in 0;C= was a mere
1=8777.at that time a radio receiver used to be a status symbol in this country. "ut today
its possession is taken for granted. According to estimates, there are radio sets in about
078 million households in the country.
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&istory o% Indian !adio
%or more than C decades, the Government of !ndia did not permit private radio
stations to broadcast in !ndia. $hen history changed its course. !n 0;;9, the Government
allowed private %& operators to EbuyE blocks DchunksF on All !ndia adio, prepare
programming content, book commercials from advertisers and broadcast the whole lot.
#ithin C years, D0;;=(;
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$he government collected close to s C.B billion as license fee for the privately
run %& radio channels in C7 cities. -ew &edia "roadcasting, a Oee Group company,
which focused mainly on the smaller towns, won the largest number of bids.
$he first round of bidding ( for =B channels in 1B cities, garnered close to s 9.8
billion. $he government got the highest bids ( s ;=.8 million from each of 07 broadcast
companies ( for stations in &umbai. !nterestingly, the bids for /yderabad and -agpur
came next, each for s ==.1 million and s =C million, respectively, while the bids for
elhi were s =0.1 million each
adio is expected to follow the growth of the $elevision industry, which grew
rapidly following the entry of private players
'urrently, %& coverage in !ndia is restricted to just 0=> of the country,
compared to of All !ndia adio DA!F.
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'layers in (i%%erent "enters
"om$any )ocation o% "enters *umber o%
"enters
Bid amount %or
%irst yearslicense +!s,
crore-
+ntertainment
-etwork !ndiaQ
elhi, &umbai, 'alcutta,
'hennai, Ahmedabad,
"hubaneshwar, 'uttack,
/yderabad, !ndore,Nabalpur, Jucknow, Pune
01 C9.
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!ncidentally, &usic "roadcasting became the first firm in !ndia to commence
private %& broadcast from "angalore in Nuly.
)icence ee and revenue sharing model
'urrently, %& players pay annual licence fees, which go up by 08 per cent every
year. Private %& radio sector would shift to a revenue(sharing model from the existing
licence fee regime. /owever, revenue(sharing also exists in the media sector. $he
objective is to 3make %& radio a success story4. !ts better to keep the revenue(sharing
figure low than to have a failed project. $here has been debate on whether to recommend
a revenue(sharing structure or a fixed amount for a period of 07 yearsK it is firm on
revenue(sharing now. !evenue#sharing will %ollow $ayment o% a one#time entry %ee
through a $rocess o% bidding,evenue(sharing figure is 6uite low at around C >.
#hile the private %& players had sought revenue(sharing in the band of 1(1.8 per
cent, the panel has fixed it at C per cent.
Setting u$ new radio stations
After the second round of privatiation, the number of %& radio stations targeted
is around 977 to C77. $he panel also suggested that players wanting to enter the sector in
the second round of licensing need to have a technical viability clearance by a financial
institution on the financial viability of the project. !t has also recommended to the
government to release additional spectrum for the use of %& radio companies so that the
number of companies operating in one centre can go up.
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uture o% !adio Industry
%& adio can play its part in building a stronger business future for !ndia.
Providing free(to(air local broadcasts of music and entertainment, helpful information (
traffic advisories, community announcements and public service messages provide a real
value(added service. "ut at current levels of advertising support, each radio station is
reeling under the brutal financial impact of high costs. #ith more players in the fray the
%& radio industry would grow and also enhance the governments yield from licensing
radio naturally.
$he new !ndia deserves an active private %& radio sector. !t can provide a level
playing field with benefits for listeners, for advertisers, employment M career options.
@pearhead the government objective of growing the %& radio business in !ndia.
#ith the government ready to reduce the license fees it will help in attractingnew
palyers like reliance which had earlier backed out only due to the entry fees.also
government allowing foreign players to enter he !ndian market it will help the industry
grow. 5irgin group has already started exploring the !ndian market for suitable partners.
various radio stations are coming up with !P* for example adio &irchi thus helping
them expand.
$he future looks bright as the reach of radio is expected to raise post the increase
in the number and 6uality of players in the industry. !t is on the basis of these key drivers
of growth, it is being predicted that radioEs share in the total advertising pie will see an
increase in the medium term. $here are an estimated 087 million radio sets across the
country. $he s 0.B billion industry is reported to be growing by 90 per cent every year
and should touch the s B.1 billion by 177=, with revenue rising at 19 per cent annually.
Also, though radio has only a 1 per cent share in the s B,777 crore !ndian advertising
market, advertising spending is expected to amount to s 877 crore this year.
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S.OT Analysis
Strengths/
ecently, the government has agreed upon revenue(sharing model, which is C >
for the growth of the radio stations. @o that they can develop themselves well
because this industry is still in an introduction stage.
$he success of private %& stations, and reveals that radio listenership habits have
changed considerablyK not only are listeners tuning into it more often but also
sticking to radio for longer hours everyday.
$he advertisers, who would depend on word(of(mouth, pamphlets, brochures or
ads in local supplements of newspapers, are welcoming the opportunity.
adio is considered as a background medium, because people can listen to radio
anytime and anywhere they want. !t is also a free medium.
;7> of !ndia has access to radio which is unmatched by any other media.
adio also reaches to uneducated village folk who do not read print publications.
At the places where the literacy rates are low where people hardly read
newspapers and radio is the only medium that they can understand. $hey cant
afford a $5 set. $herefore radio is more popular.
adio is the least cost medium and it helps to reach mass audience with various
backgrounds. adio offers its reach fre6uency and selectivity at one of the lowest
costs per thousand and radio production is relatively inexpensive.
adio is considered as a medium where the 3Proximity to purchase4 is very high.
adio is a complement to another media. $herefore, other media or the advertisers
or agency can use this medium for brand recall.
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.ea0ness/
*ne of the major weaknesses of adio is that there is very less differentiation in
the programmes that are aired. &ost of the stations plays much of the music that
is played consist of /indi %ilm songs, and therefore it is difficult to differentiate
between the programmes of the different channels.
%ragmented Audience ( the large number of the audience in !ndia is fragmented in
various remote places. And therefore, the percentage of listener tuned to anyone
station is likely very small.
-o proper research available ( research is very important for any advertising
segment. esearch is the main base to attract client and get more revenue. "ut, in
!ndia there is no proper research is available. &any stations are conducting their
own research which can be biased.
adio(only nature of radio communication is a tremendous creative compromise.
An advertiser whose product depends on demonstration or visual impact is at a
loss when it comes to radio. And like its radio message creates a fleeting
impression that is often gone in an instant. &any advertisers think that without
strong visual brand identification the medium can play little or no role in their
advertising plans.
!ncrease in listenership numbers but no increase in ad revenue. $his is the
situation that every radio channel is facing.
@hort commercials
O$$ortunities/
Getting copyright licenses from the government for running mega events which
are aired on the A! radio station and have been restricted to be aired on other
private stations.
Jaunching a radio station with 1C(hour news channel
$ie(ups with "+@$ or railway authority for playing the %& in train and in bus.
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$he launch of Private adio %& has managed to create a set of R-ew Jisteners
for the medium
$he new radio stations which will come in future they can have venture with the
college or university campuses. And can play their station which will exclusively
provide with the information relating to that universitycollege campus.
#ith the coming of the many more new players in the radio industry each
channels can position themselves 6uite different from others, like, if some station
is targeting the health conscious people then their programming strategy will vary
accordingly. And then it is easier for the advertisers also to decide on which
channel to advertise.
Allowing private %& players to start news and current affairs programmes.
*ne has to constantly innovate, and that is the challenge. "rand building is thus
much more difficult. At the same time, we are very bullish, and gung(ho about
this whole enterprise.
Jeaves huge scope for innovation in local market
Threats/
$he biggest threat to private radio industry players is AJJ !-!A A!*. A! is
the biggest player in !ndia because of its reach, low charges, government channel
etcI
"ecause of the new government policies there will be more number of stations
and then competition will also increase. $his is one of the biggest threats it faces.
#ith no particular differentiation in the music. @o, there is a fear of losing its
brand loyalty.
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Advertising in India !ndia has been among the fastest growing economies in the world, with a nominal
GP 'AG of ;.;C> over the last 07 years D0;;8(1778F. $he nominal GP for fiscal
1778 was s. 97,B9B billion. According to '@* estimates nominal GP growth for fiscal
177B is estimated at 07.;>. $here is a correlation between the economic growth rates of
a country i.e. the nominal GP growth rate, and growth rates of the advertising industry
$he !ndian advertising spends, as a percentage of GP, is 7.9C>, which lags behind
other developed and developing countries
uring fiscal 1778, the gross advertising spend in !ndia is estimated at s 000
billion, and is expected to grow at 0C.1> to reach s. 01= billion by fiscal 177B
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Segmentation in advertising
$he five key industry segments comprise print, television, radio, cinema, and
outdoor. $hese different segments within the industry are at varying stages of growth and
corporatiation
Media Spends as % of Total Ad Spend
Year Print TV Radio Cinema Outdoor Internet
2000 49.0% 39.3% 2.5% 0.5% 8.4% 0.3%
2001 48.4% 40.6% 2.7% 0.4% 7.5% 0.4%
2002 47.2% 41.9% 2.9% 0.7% 7.0% 0.4%
2003 46.6% 43.0% 2.9% 0.7% 6.5% 0.4%
2004 46.3% 43.7% 2.9% 0.6% 6.0% 0.3%
$he !ndian television industry has grown rapidly, especially since 0;;0, which saw
the beginning of satellite broadcasting in !ndia. $his growth was also aided by the
economic liberaliation program of the Government. $he growth of the satellite
television audience saw proliferation of a number of satellite television channels offering
more choices to media buyers and consumers of entertainment. $hus, the television
broadcasting business, which started off as a single government controlled television
channel, now has over 977 channels covering the !ndian footprint, resulting in growing
ad spends on this medium. eforms and proliferation of private players were the key
reasons for this rapid growth of the share of television in the advertising industry.
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!adio Advertising
adio is still the king when it comes to getting your music. $he best way for a
new band to get heard by the public and record label executions is over the airwaves.
Paradoxically, radio currently has only a 1.; per cent share of the total advertising
pie in !ndia. Globally, depending on country, radio has a 8 per cent to 01 per cent share of
the advertising cake. *n the higher side are countries like the ?nited @tates, with 09 per
cent, 'anada, with 01.= per cent and @pain, with ;.0 per cent.
'ompanies that advertise on %& channels today such as /industan Jever D/JJF,
r &orepen, Amul, 'astrol, @antro, "ritannia, Parle, @P &errill Jynch etc are
dominating the advertising on each one of the %& channels, be it adio &irchi, Go ;1.8
ed ;9.8 or adio 'ity.
$oday, =7 per cent of the advertising comes from big(budget, national advertisers
and the balance 97 per cent comes from retail. !t is a known fact that retail advertising
will grow because radio presents the perfect advertising medium for local businesses in a
local environment. "ut national advertisers are also operational in the local market,
implying that it is as important to them as it is to a retail advertiser, if not more.
-evertheless, it is undeniable that radio can be integral in exposing a new artist,
new product or services to new fans and taking a local market to a national level.
Accordingly, it is extremely difficult to obtain meaningful airplay. Putting it bluntly,
successful radio promotion revolves around making and managing relationships.
adio promotion is an art that demands a certain style you may simply neither
have nor desire to cultivate. *n top of that, it can take a great deal of time to make all the
contacts and connections that are re6uired for successful radio promotion.
Advertising agencies that control the national picture will be slow to move on to
radio for creative reasons. $hey have people who love to make television commercials,
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but donEt have anybody who knows how radio works. /ere, only about 1.; per cent of the
money spent by advertisers goes to radio, and up till now, all of that went to AJJ !-!A
A!*.
/owever, in revenue terms, money from advertising has gone up. evenue from
commercials on A!, including on 5ividh "harti and Primary 'hannel Dincluding %&F
rose from s 9;9 million in 0;;7, to s
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'ros and "ons o% !adio Advertising
+very medium has special strengths and weaknesses that makes it more or less
suited to special marketing problems of specific advertising. $here is no one medium
which is ideal for advertisers or every situation. adio has a number of characteristics
that makes it an ideal vehicle for numerous advertisers as either a primary or secondary
medium. Also, there are certain disadvantages of this media which need to be considered.
Advantages o% !adio
1. Largest Reach and Frequency
adio offers an excellent combination of reach and fre6uency. $he average adult
listens more than 9 hours a day, radio builds a large audience 6uickly and a normal
advertising schedule easily allows repeated impact on listener. ;7> of !ndia has access to
radio which is unmatched by any other media. adio is not only the medium of hearing
news but also is a source of entertainment and advertising for the rural masses. adio also
reaches to uneducated village folk who do not read print publications. At the places
where the literacy rates are low where people hardly read newspapers and radio is the
only medium that they can understand. $hey cant afford a $5 set. $herefore radio is
more popular.
2. Broadly Selectivity
@pecialied radio formats with prescribed audiences and coverage areas enable
advertisers to select the market they want to reach. %rom a marketing perspective, radio
has the ability to reach prospects by sex, age group, ethnic or religious background,
income group, employment category, educational level or special interest with a format
that adds even greater dimensions to its already strong personal communication
environment.
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adios high overall reach and its ability to provide numerous formats make it a
multifaceted medium. "ecause of the relatively low cost of production, advertisers are
able to adapt commercials to the various stations then buy, a strategy that would normally
be prohibitively in television.
3. ost !"##iciency
adio is the least cost medium and it helps to reach mass audience with various
backgrounds. adio offers its reach fre6uency and selectivity at one of the lowest costs
per thousand and radio production is relatively inexpensive. -ational spots can be
produced for about one tenth the cost of a $5 commercial, and local stations often
produce local spots for free. Also, radio ads can be produced very 6uickly.
$. reativity and Fle%i&ility
adio is the most flexible medium because of very short closing periods for
submitting an ad. $his means an advertiser can wait until close to an air date before
submitting an ad. #ith 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 uni6ue competitive opportunities in a timely fashion.
adio also offers timeless, immediacy, local relevance and creative flexibility.
$he personal nature of radio, combined with its flexibility and creativity, makes radio the
choice for numerous product categories. 'opy changes can also be made very 6uickly.
#hile radio may be one(dimensional in sensory stimulation, it can still have
powerful creative impact. adio has been described as the theatre of the mind. $he
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
recogniable, popular songs.
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'. (ro%i)ity to (urchase
$he mobility of radio and its huge out ( of ( home audience gives the medium an
advantage enjoyed by few other advertising vehicles. !n the competitive environment
facing most companies, it is imperative that brands achieve consumer reinforcement as
near as possible to the purchase decision. adios daily fre6uency offers scope for
continued messages and hence the consumers are more likely to remember that product
and consumer lend up buying that product.
*. +s a o),le)ent to +nother -edia
!n some cases, radio is the primary medium for local advertisers. /owever for
national advertisers and most large local and regional firms, radio is most often used as
complementary medium to extend the reach and fre6uency 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 fre6uency or to reach non(users and light
users of other media. $he radio industry realies that the bulk of its revenue comes from
advertisers who use radio as a secondary medium.
. + ,ersonal )ediu)
$he human voice is the most personal means of communication. adio gives the
advertisers the opportunity to take advantage of the right combination of words, voices,
music, and sound effects to establish a uni6ue 3one(on(one4 connection with prospects
that lets you grab their attention, evoke their emotions, and persuade them to respond.
adio can be targeted by lifestyle formats and is more efficient than other mediafrom a cost and production standpoint. As a result many advertising agencies will move
their budgets into radio.
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(isadvantages o% !adio
1. -isunderstanding
@ometimes there might be a misconception regarding the radio ad as it is only
heard. !n television the chances of such misconception is less, as it is audio as well as
visual.
2. (oor Radio +ttentiveness
Nust because radio reaches audiences almost everywhere does not mean that
everyone is paying attention. #hen a consumer is listening while doing some work or
traveling in a car, he or she often switches stations when an ad comes and divides his orher attention between the radio and road.
3. Frag)ented +udiences
$he large number of stations that try to attract the same audience in a market has
created tremendous fragmentation. !f a large number of radio stations compete for the
same audience, advertisers who want to blanket the market have to buy multiple stations,
which may not be cost effective. /owever, in radios 6uest to continue to fine tune its
reach, some advertisers wonder if radio is offering too many narrowly defined options.
%or those product categories with broad appeal, it is difficult to gain effective reach and
fre6uency without buying several radio stations and networks.
$. haotic &uying ,rocedures
%or an advertiser who wants to include radio as a part of national advertising
program, the buying process can be sheer chaos. @ince national networks and syndicated
broad cast do not reach every geographic market, an advertiser has to buy time in
individual markets on a station(by(station basis. $his could involve doens of different
negotiations and individual contracts.
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'. Short Lived and al#hearted o))ercials
adio commercials are brief and fleeting. $hey cant keep like a newspaper or a
magaine ad. adio must compete with other activities for attentions, and it does not
always succeed. *nly 17 > of time availability restricts the fre6uency of message
exposure.
*. reative Li)itations
$he audio(only nature of radio communication is a tremendous creative
compromise. An advertiser whose product depends on demonstration or visual impact is
at a loss when it comes to radio. &any advertisers think that without strong visual brand
identification the medium can play little or no role in their advertising plans.
. Li)itations o# Sound
adio is heard but not seen, a drawback if the product must be seen to be
understood. @ome agencies think radio restricts their creative options.
0. R needs training
!t is very important that the adio Nockey is trained enough to deliver the ad.
@ometimes the voice really matters. !f the voice is irritating then there is a chance that the
campaign may flop.
. o ,ro,er research availa&le
!n !ndia, there is no proper research has been available on the area of radio
listening, which will be very helpful for the advertisers to decide them on advertising
plan and budget and other matter. $herefore, there could be a problem for the marketers
in the sense that they might advertise on wrong channel at a wrong time.
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Ty$es o% !adio Advertising/
1. et4or5
Advertiser may use one of the national radio networks to carry their messages to
the entire national markets simultaneously via stations that subscribe to the networks
programs. -etworks provide national and regional advertisers with simple administration
and low effective net cost per station. $he advantage is less paper work and lower cost
per station. isadvantage includes lack of flexibility in choosing affiliated stations the
limited no. of stations on a networks roster and the long lead times re6uired to book time.
2. S,ot Radio
@pot radio affords nationals advertisers great flexibility in their choice of
markets, stations, airtime, and copy. $hey can tailor commercials to the local market and
put them on the air 6uickly S some stations will run a commercial with as little as 17
minutes lead time.
3. Local Radio
Jocal times denote radio spots purchased by a local advertiser for local market. !t
involves the same procedure as national spots. adio advertising is either live or taped.&ost radio stations use recorded shows with live news in between .Jikewise, nearly all
radio commercials are pre recorded to reduce cost and maintain broadcast 6uality.
$. S,onsor (rogra))e
/ere the advertiser sponsors the whole or part of the programme. $he N
informs the audience about the sponsored company throughout the programme.
'. R -ention/6hat7s 8n -ention
/ere the adio Nockey NQ informs the audience the information given by
advertiser about the new product launch, sale, exhibition going on at certain place etc.
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!adio Stations (ivide Their (ays And Their !ates,
adio stations divide their rate cardsinto day,arts.$he exact divisions vary from station
to station.
B am (07 am &orning drive
07 am S 9 pm aytime
9pm S =pm Afternoon drive
=pm( 01am -ighttime
01am S B am All night
ating services measures audiences for only the first four day parts because all
night listening is very limited and not highly competitive. /eaviest radio use occurs
during drive times DB(07 am and 9(=pmF during the week D&onday( %ridayF.
$his information is important to advertisers because usage and consumption vary
for different products. %or example, radios morning drive time coincides with most
peoples desire for a steaming, fresh cup of coffee, so its great time for advertising coffee
brands. %or the lowest rate , an advertiser orders spots on a run of station D*@F basis,
similar to the *P in newspaper advertising ./owever, this leaves total control of the
spot placement up to the station. @o most stations offer a total audience plan D$APF
package rate, which guarantees a certain percentage of spots in the better day parts if the
advertiser buys a total package of time.
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)ength o% S$ots
$he radio commercials in the test reels consisted of several different spot lengths,
ranging from 08 to B7 seconds. $he longest commercial played on the radio is 017
seconds. $hose however are rare. !n theory, one could assume that the longer a spot, the
better it will be remembered or at least, the more chance there it that it will be heard.
esearch on television commercials proved that this theory holds true for the medium
television: a doubling or tripling in spot seconds results in duplication in recall.
$he spots for advertisement can be for 07 sec, 17 sec, 97 sec and B7 sec. !n
General,
07 second spot should contain 18 words
17 second spot should contain C8 words
97 second spot should contain B8 words
B7 second spot should contain 018 words
!f youve never written a spot, 97 seconds sounds like an impossibly short time
to get your message across. "ut take a stop watch and time some spots on the airK youll
see that 6uite a lot can be accomplished in a short time. !n fact, you may find that B7s,
unless very well written and well produced, sometimes seem a bit too long.
A B7 does allow you more variety in music, sound effects, and voice and can be
useful for political message, the announcement of a new or little(understood service, or
other sports with a informationeducation content.
97 is usually =7 to to =8>.
@ome stations no longer charge a separate rate for: 97s and: B7s. !nstead, theycharge a unit rate.!n other words, a: 97 costs the same as a: B7. *bviously, this is one
case where you might want to use a: B7 to take advantage of the 3free4 air time. 'heck
the rate cards of the stations you are interested in, or ask your sales rep.
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Buying !adio Time
1. Station Rates
#hile buying procedures to achieve national coverage may be chaotic, this does not
mean they are completely without structure. Although the actual buying may be time
consuming and expensive if many stations are involved, the structure is actually 6uite
straight forward. Advertising time can be purchased from networks, syndications, or local
radio stations. Advertisers generally invest most heavily in local placement. About
of annual radio advertising is placed locally. About 08> is allocated to national spot
placement and only 8> is invested in network broadcasts. &any stations have local rates
for !ndividual "usiness and -ational ates for Agencies.
Advertiser may use one of the national radio networks to carry their messages to
the entire national markets simultaneously via stations that subscribe to the networks
programs. -etworks provide national and regional advertisers with simple administration
and low effective net cost per station.
2. Your Dayparts Buying Options
&ost stations offer several options for buying air time:
aF "uying by specific dayparts
bF "uying packages
cF "uying sponsorships or adjacencies
a9. Buying s,eci#ic day,arts
$his relates to the time period of purchase. $here are five basic dayparts on basis
of which advertiser can choose. $he time period decision is based primarily on a
demographic description of the advertisers target audience. rive(times dayparts attract a
mostly male audience, while daytime primarily female and nighttime is mostly teen. $his
information combined with programming formats, guides an advertiser in a buying
decision.
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Putting half your sports into drive time and half into midday is a very safe
strategy. #eekend sports can also effectively reach teens.
&9. Buying ,ac5ages
As with magaine buying, radio advertising time is purchased from rate cards
issued by individual stations. un(of(stations ads( ads that stations choose when to run(
cost less than ads scheduled during a specific dayparts. $he price can also increase if an
advertiser wants the ad read live on the air by a popular local radio personality hosting a
show during a day part.
"uying packages is an easy, usually low(cost method. &arking a package buy is
called buying un of @tation D*@F, $otal Audience Plan D$APF, or "est $ime
AvailableD "$AF. $his means simply that you pay to buy a package of sports at a flat rate
and the station decides Dwithin certain specified limitsF when the sports will run. @tations
will usually guarantee to divide your sports fairly between drive times and other dayparts.
c9. S,onsorshi,s or adacencies
A sponsorship is just what its name implies. Hou are associating your company
name with a specific program. $he advertisers sponsor the whole or part of the
programme. $he N informs the audience about the sponsored company throughout the
programme. 3IIIII. !s brought to you byIII4
An adjacency is the next best thing to a sponsorship. !f you buy an adjacency,
your ad will run every day just before or just after Din other words, adjacent toF the
program you specify.
*ther fixed(position spots are also available. %or example, you may specify that
you want your spot to run at B:09 a.m. every &onday, #ednesday, and %riday.
@ponsorships, adjacencies, and fixed positions go for premium rates.
@ponsorships on top(rated shows can cost up to twice as much as other spots in the same
dayparts. /aving your name associated with a particular show or event can do a lot to
reinforce your positioning, and these premium spots can be so powerful that you may be
able to run far fewer spots than you otherwise would, spending less to achieve the same
impact.
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@ponsorships are like marriagesK theyre only for people who are ready for a long(
term commitment.
3) Frequency
adio, like most media, re6uires repetition to have impact. As a general rule, a
minimum of 17 spots per week should be aired. $here are scheduling strategies that help
increase the impact of the spots you place.
Flight and scheduleare two words you may hear your radio sales representative use
when you plan your advertising. A flight is a group of ads. D3!m running a flight of
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'roducing !adio "ommercial
Producing a radio spot can be a lot of fun advertisers often say its
the most fun they ever have in advertising. !t can also be simple and inexpensive.
$here are three basic elements to work with: the announcers voice, music, and
sound effects. Production can be done in the stations own studios or in an independent
production house. @tations are usually well( e6uipped to produce spots, and they often
employ young, creative people whose fresh ideas will keep your spots from sounding like
everywhere elses.
!t all begins with a good script, which means not just the words, but the
combination of words, music, and sound effects. All these are part of the script. Hour
spot can be clever or straightforward, but it must grab the listeners attention in about
three seconds, and it must not leave the listener wondering, 3whose spot was that,
anyways)4
$he following are some of the factors you should have in mind from the first
moment you sit down to plan your spot.
1) !"e #oice
$here are two factors concerning voice. %irst, you should use a voice that is
appropriate for your image.
$here are two good, low( cost options for achieving this, and one higher( cost
option:
aF ?sing local radiotalentbF ?sing an amateur voice
cF /iring professional voice talent.
a9 ;sing local radio talen t
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!f station produces the spot, one of their on(air people risk having the voice be so
familiar that the listener doesnt pay attention. !f the ad runs only in drive time, one
can have the midday announcer do the honors. Get the least familiar voice available.
Jisteners will be less likely to tune it out.
%emale announcers can also be used. @tudies have shown that women presenters
are just as effective as menK but only a small Dbut increasingF percentage of all
broadcast sales presentations are made by women.
&9 ;sing a)ateur voices
*ne great thing about radio is that even an untrained voice can be very effective.
!n fact, the less the voice sounds like one of the regular announcers, the better.
A womans voice, a childs, or even your own can make listeners stop and pay
attention simply because its not what theyre expecting to hear. A word of caution:
Amateurs can sound stiff and false.
c9 ;sing ,ro#essional voice talent
!f a very sleek production value is needed hire voice talent from another station,
the local community theater or, in larger markets, from a talent agency. 'elebrity
voices can sometimes be hired.
2). $usic
$he power of music cant be overemphasied. $here are several options for
putting music into your commercials:
aF /ave original music produced.
bF ?se free music from the stations library.
cF Get permission to use an existing recording by a known artist. D"ut !ts
difficult and expensive to obtain the rightsF.
dF "uy canned music Dsound alikeF in the style of many popular composers in
all large markets who supply such productions for a modest charge.
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A lot of radio or $5 advertising, can be done having a jingle product. $he cost runs
anywhere from s.B77 to a few thousand rupees, and it can be a very worth while
investment. A catchy jingle helps potential customers remember you more than almost
anything else.
3). Soun %&&ects 'SF()
various onomatopoeic sounds like eeek, ho ho ho, ding dong, whistle etc. are
available at the local radio station. $he sound of waves on the shore can help sell your
vacation package and bird song can put people in the mood for your spring sale.
adio is entirely a medium of sound. #hen you use sound to evoke smells,
sensations, and visual images, you bring the listener, more involved with your spot, will
be more involved with your ideas.
4. !"e tapping Session
*nce the decision is made about the script, voice, music, and sound effects, its
time to record. At may be just you and the announcer in the studioK the announcer will
operate the e6uipment. At large stations and professional recording studios, an engineer
will record the spot while you and the announcer concentrate on the reading.
Hou should also understand. "e aware that the announcer may have slight
interpretation of the reading than you do, and dont expect a performance that could only
come from someone reading your mind.
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Selling !adio "ommercial
@elling radio advertising involves a number of steps. $he radio salesperson must
be aware that everyone involved in the transaction is looking for different results. $he
media buyer is looking for efficient cost per point, while the clients goal is to move
product. As all radio stations are perceived to be same it is important to build value into
the radio station by offering credible benefits that produced results and solutions for
prospective clients.
adio salesperson must begin with the clients needs and marketing goals. $he
first step in the process is to meet the client to gain as much information as possible about
the client and his or her business. After the salesperson has a firm grasp of the advertising
problem, the next step is to prepare a proposal. $he successful ones begins with the
clients problem and sales objectives an move systematically to a solution.
*ften the job of the radio sales person must be conducted on a number of levels.
aF An advertiser who is not currently scheduling radio may have to be convinced
that the medium in general is for a particular product.
bF $he salesperson must move from the general advantages of radio to the
advantages of specific station.
cF $he radio representative may have to show how radio fits into the media mixcurrently being used by the advertisers.
adio advertising faces challenges both from within the industry and from other media as
it competes for advertising price.
Dayparts "aracteristics
B a.m. ( 07.77 a.m. rive time, breakfast audience, interested chiefly in news
07.77 a.m. ( 9.77 p.m. aytime, program characteristics of station, talk , music, or all(news
9.77 p.m. ( =.77 p.m. Afternoon, drive time K radio prime time and same as morning drive
time
=.77 p.m. ( 01.77 a.m. -ews, music, talk shows
01.77 a.m. ( B.77 a.m. &usic, talk shows
Elements o% good radio commercial
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Be singleenerate e%tension. $he effect of a commercial can be multiplied by achieving
extension. A clever phrase or execution can have consumers asking other people
if they have heard the spot.
(roduce an i))ediate ,hysical= e)otional= or )ental res,onse. Jaughter, a tug
on the heartstrings, or mental exercises of a consumer during a radio spot help
seed the memory and aid messages retention.
;se ,lain, conversational +nglish. "e a clear communicator
"reative !adio Advertising
$hese are some guidelines for producing creative radio advertisements:(
0. ?nderstand the environment
1. @peak the listeners language
9. +ngage and entertain the listener
C. Teep it simple
8. Nudge what you hear, not what you read
B. Production values are important
=. Plan your production
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0. An agency or advertisers appoints a producer
1. $he producer prepares cost estimation
9. the producer selects a recording studio
C. #ith the aid of the casting director, if one is needed, the producer casts the
commercial.
8. !f music is to be included, the producer selects a musical director and chooses the
music or selects stock music.
B. !f necessary, a rehearsal is held.
=. $he studio tapes music and sound separately
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+ffectiveness research re6uires clarity o% objectives S what are the agreed
objectives of the overall campaign and of the radio campaign within this) adio
effectiveness can be measured either using continuous research or in stages +2$re 3
$ost4-S the pre(stage is normally the week before the campaign, the post(stage in the
week after the campaign finishes.
"onsumers tend to misattribute radio(advertising memories to other media,
particularly $5. $his is particularly likely to happen where there is a strong executional
link between the two media andor where there is an history of $5 advertising for the
brand.
$his tendency to misattribute can be offset by using matched sam$les of
listeners and non#listeners, $his way, if the increase in advertising awareness is greater
among listeners than it is among non(listeners, then the effect can be attributed to radio
fairly confidently S even if the listeners think the advertising was in another medium.
adio research can successfully be done using tele$hone interviewingS ads can
be played down the line. /owever cases where other media are to be included in the
research it might be more appropriate to use %ace#to#%ace interviewing,
"ommercial recognition is a valuable techni6ue S i.e. playing the ads to
consumers. !t provides a more robust measure of whether they have heard the campaign,
and avoids problems of trying to describe the ads. "rand names can be bleeped out of the
commercial, to test whether the campaign is linked to the brand.
5-De&ining t"e researc" o*+ecti,es
$he key to any successful research is to have a clear understanding of why the research is
being conducted in the first place. !n other words, what are you aiming to measure)
!n broad terms, radio advertising research aims can be categorised into two types:
&arketing issues S to what extent has radio helped to achieve the campaign aims)
&edia planning issues S what effect do different media strategies have on the
performance ofthe campaign)
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-ar5eting ?ssues:
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#hatever your research objectives, once you have defined them make sure that they form
the core of the 6uestionnaire you use. Any other 6uestions are of secondary importance
2) !"e -mportance o& Spit Sampes
-isattri&ution o# +dvertising: of the music played on & is /indi and contemporary +nglish hits
are played keeping in mind the tastes of their $G. @ince radio is a free to air medium,which reaches the lower end of the audience spectrum, & later made a conscious
decision to go /indi. /ence it 6uickly became a mass channel with /inglish being its
prime lingo and having a wide audience appeal..
%or corporates and retailers: the airtime
(lace: intensive in &umbai and selective all over the country since it is established in
cities like Tolkatta, elhi,'hennai.
(rice: $he advertisement rates. Defer to annexureF
(ro)otion:$he marketing strategy of adio &irchi revolves around two crucial pegs S
create hype around the name adio &irchi, plug adio &irchi through the other media
that $he $imes Group owns.it also does a lot of tie(ups and contests for the consumers
Mar0eting strategies
adio mirchi has also tied up with various shopping malls, retail showrooms,
pubs for continuous advertisement of their channel to make people aware of the
temptations given by the channels to them. adio mirchi has two main objectives behind
doing an extensive marketing which are(
$o create the $op of the &ind recall in the relevant $arget Audience.
'onnect with the growing adio listening population in &umbai.
A very large factor that contributed towards the establishing the brand of A!*
&!'/! was its catchy slogan 3its hot4. /owever the slogan by itself was incomplete
without the voices that accompanied it. '+J+"!$!+@ and film stars that repeated every
so often 3hi !m (((((((( !m hot and !m adio &irchi224 big names that generated
curiosity and excitement and compelled the listener to refrain from flipping the dial.
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Advertising
adio &irchi charges the highest rate of s 1,777 for a 07(second slot, the rest of
the %& channels charge anything between s 0,777 and s 0,877 for a 07(second slot.
adio &irchi gives C8 lakhs weekly listeners as per adar study. $here is an
average listenership of C8 minutes per day on the station. $he rates are so reasonable that
advertisers can afford 07 or 08 spots a day and run the campaign for 08 days or three
weeks at a fraction of the cost that you will incur in print or $elevision. $here are about
more than 977 advertisers on &irchi. $oday it is fashionable to be on radio.
adio mirchi sells independently and does not offer any print package deal even
though they belong to $imes Group S they are an independent company. &ost of the
national advertisers on radio mirchi today want to buy all the stations on air. @o they have
package deals for them also.
$here is very little retail advertising on radio. !n !ndore more than half of &irchi
revenue comes from retail. !n Ahmedabad and Pune it is probably about 18 to C7> of the
business. "ut in &umbai it is at 07>.
'urrently radio mirchi has hiked their prices because they know that adio &irchi
today is one of the best radio channels and they offer value to the advertisers who spend
on their station. #hile all the other stations offer more slots and run ads for over 08
minutes, they offer ten minutes per hour on adio &irchi. $here is huge inventory
pressure on them and therefore they had to increase the ad rates. 'urrently, on an
average, there are 018 to 0=8 brands advertising on adio &irchi.
!n most cases, stations offer discounts on what is on their rate cards. *n an average,
across the five stations, the effective ad rate going for a ten second spot would be
anywhere between s 0777 to s 1777. 'lients buy effective rates and they buy a
combination of spots like prime time, non prime time and the likes.
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!&" conducts research for radio mirchi which is after every 08 days to know
exactly what the listeners actually want to lend their ears to. /ence, accordingly, they
have implemented the changes in the time slots of the different shows on air. @o when the
advertisers wants to advertise on radio, radio mirchi can provide them with the more
information and help them to decide on the time slots and fre6uency etcI
According to the study conducted:(
&irchi delivers highest number in terms of listenership among /ousewives and
working men.
adio &irchi delivers highest number in terms of listenership among the adio
Jistening student population.
adio &irchi emerges up as the -o. 0 channel and delivers high numbers with aily
listenership at 1C.B9 lacs.
uture 'lans/#
adio &irchi is looking radio !ndustry from the long term point of view. $hey are
interested in some of the bigger cities for instance, "angalore, /yderabad, definitely
'oimbatore, 'handigarh, Judhiana, Jucknow and Tanpur. $hat will still take us to about
08 fre6uencies. "ut this country can have 8,777 radio stations. &irchi would eventually
look at having a presence in every nook and corner of this country, which means going
into the smaller towns.
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"ase Study On Airtel
Airtel, !ndias leading cellular operator in the private sector. *perating in more
than 19 cities it has been able to attain a high number of customer and is now regarded as
one of the best cellular services being provided in !ndia. !ts major competitors are orange
and .!.& and various other providers.
Airtel is creating an attitude of being people friendly and thus gaining huge share
in the market. /owever it has a long way to go as no one is ever safe in this market and
one has to keep up its good work going.
#ith increasing competition airtel is now going in for more of radio advertising
as against the television . the reason being the huge radio boom with the large number of
customers tuning into radio more often than ever. Airtel saw this as an opportunity to
grab the most number of customers through radio and their started spending more on
radio than ever before.
Promotional strategies adopted by Airtel through radio:uff ?ff &irchi2 /ai /ai &irchi2
Airtel is now the first G@& service provider to tie up with a radio channel for the
users benefit. $he radio channel in 6uestion happens to be adio &irchi.
$o avail this innovative tie(up, the users need to dial BCB from their Airtel enabled
mobile handsets. $hey can then listen to some popular programmes of the channel like,
&irchi &ovie of the &onth, "appi(da a Gyan, &r. /otpot 'rackpot, evdas ( the Asli
"atliboi and ing ong ( &ona @ing a @ong.
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Pre(paid and post(paid customers of Air$el can access this service. %or this, users
have to pay a 5alue Added @ervice D5A@F rate of s.B per minute with no extra
subscription charges.
ecently, there has been an increasing demand of listening to %& channels
through mobile handsets. -okia first introduced %& enabled phones, where users can
listen to any %& channel through their handsets. AirtelEs tie(up allows users to listen to
one channel only. Among '&A service providers, through the #orld of eliance
handsets, users can listen to songs.
%or a long time now, radios have offered services to its users free of cost. #ith
regard to this particular trend, it does become 6uite doubtful as to how long AirtelEs
Emirchi effectE will last with the charge rates as high as s.B per minute.
Airtel ( radio ad jingles
3$?& T* +T/ $+ /!- ,
'/AG+ /?A O!-AG!,
TA"/! J!-T!-G *A , TA"/! P+A *A ,
TA"/! &++A *A , TA"/! AA+H *A ,
+@/ "/A &A!- +('/AG+ TA/!- "/!,
AA!@! AOA! A? TA/A-.4
Ningle made by airtel basically targets its own customers by saying that wherever
they go they will be able to avail of airtel services anywhere. And would also be
convenient for its customers to recharge their mobile phones in these centers. $his all
shows about their care for their customers.
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ecommendations
$he vibrant voices airing music shows on twenty odd private %& radio stations in
major cities do not reflect the viability worries and restrictions that haunt this industry.
$he basic problem in the adio space in !ndia is the excessive Government control
and regulation. !n order to let the industry to grow the government needs to give it some
space. $hough the @upreme 'ourt decision in 0;;8 declaring airwaves as public property
led to the entry of a number entrants challenging the monopoly of All !ndia adio,
nothing much changed as regards to government control. $he government charged a very
heavy license fee for entering the market, did not allow broadcast of news and current
events nor was there a scope of a foreign player entering the !ndian market.
*ne way to get over the license fee crisis in the radio broadcasting industry is for the
government to drop the &idding of their gross revenue every year.
$he Government should revie4 its &an on ,rivate stations airing ne4s and current
a##airs, currently a monopoly with All !ndia adio. $his could attract potential listeners
on the move who want their daily share of the happenings around the world. "ut with the
government citing national security as the reason for not doing so leaves little hope of
this happening, atleast in the near future.
+ llo4ing #oreign ,layers to enter the ?ndian )ar5etcould also spell a boon for the
!ndian company gain from the expertise and superior technology of the foreign player.
$he consumer will also benefit as the industry can now tap into a larger basket Dthe
foreign playersF for greater variety.
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"onclusion
adio has many natural advantages that make it an excellent choice for an
advertising medium. $hese advantages include high amount of time spent listening,
superior target ability, superior listener loyalty, ad recall and message retention, and
much more which can be attributed to the Rlow cost of ownership feature of A!* as a
medium.
'onsumers spend of their time with ear(oriented media, such as adio, but
spend only 08> of their time with such eye(oriented media as newspapers and
magaines. Het advertisers spend 88> of their money on eye media DprintF and only C8>
of their money on ear media such as adio and television.
adioEs share in the total advertising budgets of companies is likely to grow from
1 per cent to 8 per cent in the next three years, with an expected growth rate of about 07
to 01 per cent every year. !n fact, the fortunes of radio advertising are likely to change
with the advent of private players like @tar !ndia, "ennett 'oleman M 'o, Jiving &edia,
&id ay etc.
$he opening of the %& market is a new phenomenon and the maturing of the
market will take its own evolutionary path. !nterestingly, the private %& players have a
huge opportunity in grabbing a bigger chunk of the radio advertising pie as, despite All
!ndia adioEs enormous reach D;= per cent of the populationF, its revenues have declined.
!n such a scenario, where the cheapness of radio is likely to ensure that the bulk of
radio advertisers are those that go for a one(city(local(audience strategy, greater reach
may not necessarily translate into a marketing advantage. ?ltimately content and
packaging will be the king.
/owever, what will spell out the difference between success and failure will be
neither sie nor niche. !t would be just plain old 6uality of programming and the
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explosion of contests and sweepstakes offered by the adio @tations currently. *ne aping
the other is an honest testimonial to justify this statement.
!n the end adio offers tremendous opportunities for advertisers and media
planners need to explore various options by which they can effectively use radio in their
media mix. 'onversely, broadcasters need to develop the market by being more
responsive to the advertiserEs needs. $his will provide an opportunity for the market to
arrive at the final verdict on the effectiveness of the medium.
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Annexures
!adio "ity # *ational !ate "ard
3D Secs s,ot &uy rates Ein Rs.9
'rogramme category Mumbai (elhi Banglore )uc0now
7=:77 ( 00:77
0=:77 ( 17:77
adio active
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ed fm is currently operating in &umbai, elhi and Tolkotta, under the brand name ;9.8
+ %&, Asli &asti.
*ur rate card per 07 secondsD0 unitF of airtime is as listen as below:
Individual "ity !ates
"ity 'rime S'T *'T!OS
&umbai 0
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Minimum jingle length
$he minimum jingle duration will be considered as 07 sec.
*ver 07 seconds, jingle length would be counted in multiples of 8 seconds. +.g.
A 19 second jingle would be billed as 18 seconds
Gingle $roduction charges
(ay 'arts Time Band (elhi Mumbai "hennai Kol0ata Ahmedabad 'une
H a,m : > a,m amily 988 988 ??8 ??8 5H8 5H8
> a,m : 5? a,m amily
(rive
>98 698 ?68 ?68 ?59 ?59
5? a,m # 9 $,m &ousewi%e
Traders
outh
?68 ?98 5@9 5@9 5F8 5F8
9 $,m : 58 $,m (rive 998 @88 ??8 ??8 5H8 5H8
58 $,m : H a,m B'O1s
outh
(rive
?68 ?98 5@9 5@9 5F8 5F8
"entres Gingle cost
&umbai s.07,777
elhi s.07,777
'hennai s. =,777
Tolkata s. =,777
Ahmedabad s. 8,777
Pune s. 8,777
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Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday
0700-
1100hrs
Good Morning Mumbai (GMM)
Jaggu & TarannaRate 1!00"-
#ig #run$h(0%00-
100 hrs)T-Man
Rate1!0"-
1100-
1'00hrs
The Midday Sho
ShrutiRate 1000"-
SundayMiddaySho
(100-100 hrs)
Ra*i
Rate1000"-
1'00-
1%00hrs
1700-1%00hrs
+o,,ege Radioadir
.range Re/uest ourRate 1!0"-
MumbaiMatinee(100-
1%00 hrs)Tra*e, Guy
Rate
1000"-
1%00-100hrs
orn . 2,easeMa,ini
Rate 1!00"-
MumbaiTo3 0(1%00-
100 hrs)4nnieRate
1!0"-
100-0000hrs
ightShi5tG,enn
Rate 1!0"-
#a$ardi #ree6er i*idightsMa,ini
Rate 1!0"-
inetieson 8!+hrisRate
1!0"-
0000-0100hrs
Midnight Shi5tRate 7!0"-
9i*e :J SetSandyRate7!0"-
Midnight Shi5tRate 7!0"-
;4,, rates are 3er 10 se$onds o5 airtimeSu3er 2rime Time #and (0%00hrs-1000hrs) and (1%00hrs-000hrs)
;S2T# i,, attra$t a !0< 3remium on $ard rates=
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Ac0nowledgements
#ritten words have an unfortunate tendency to convert genuine gratitude into
stilted formality. /owever, ! feel this is the best way to express my appreciation for
everyone concerned.
#orking on the project on radio advertising has been an incredible experience for
me. %or this very wonderful experience i would like to thank a lot of people without
whose co(operation and support working on this marketing project would not have been
so pleasurable and interesting.
%irstly, ! would sincerely like to thank &r.@udarshan @ahe the marketing manager
of radio city and &r.&adhav Noshi of Jeo "urnett for taking out some of their valuable
time from their busy schedule to answer my 6ueries regarding the project. $hey were
very supportive and patient. $hus, they were a great help and a goldmine of information.
! would also like to thank Prof. Gehna /ingorani for this guidance and help. And
last but not least our Prof. Aditya "hat for their knowledge and expertise in this field. !f it
was not for their encouragement and support, this project would never have been possible
and ! would have been deprived of a vast treasure of knowledge.
$hese acknowledgements are one way where ! can actually thank the people who
have been instrumental in the making of this project. #ithout their help and guidance it
would be a very difficult task for me to try and plan this project and actually make it.
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!esearch Methodology
$hrough this project ! have made an effort to understand the advertisng tool called
radio advertising which is being increasingly recognied by marketers as a powerful tool
that helps in finding new customers and retaining the existing ones at a much lesser cost.
'rimary !esearch/
$he aim of primary research was to understand radio advertising as it is seen in
the corporate world. $o understand this ! have taken two interview from different fields.
&r. &adhav Noshi who is currently working in Jeo "urnett who helped me
understand what all goes into the making of a radio advertisement.
$he mode of interview used was an informal one where he answered my
6uestions on one to one basis.
Also &r. @udarshan @ahe the senior marketing manager of adio 'ity gave me an
interview and helped me in trying to understand as to how the station works and looksafter the needs of its consumers
Secondary !esearch
$he aim of secondary research was to understand as to why radio advertising has
been able to grow at a considerable rate as compared to the other media.also the fall out
of radio in the last decade .
!t was also undertaken to understand how radio advertising is done and what re
the current players in the market.
@econdary data collection method: desk research
@econdary data collection sources: internet, books, newspaper articles
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Bibliogra$hy
#hile working on this project ! visited some of the radio stations and they gaveme some information
/owever to support the same ! have done some most of the research work from
the following text books:
$he advertising handbook by ell ennison
irect &arketing &anagement by &ary Jou obert and Paul "erger.
-ewspapers and &againes
$imes of !ndia
+conomics $imes
"usiness @tandard
%inancial +xpress
5arious websites were also visited such as,
www.allindiaradio.org
www.radiomirchi.com
www.star.co.in
www.go;18fm.com
www.rab.co.uk
www.exchangeCmedia.com
www.agencyfa6s.com
www.timesofindia.com
www.hinduonnet.com
=;
http://www.allindiaradio.org/http://www.radiomirchi.com/http://www.star.co.in/http://www.go925fm.com/http://www.rab.co.uk/http://www.exchange4media.com/http://www.agencyfaqs.com/http://www.timesofindia.com/http://www.hinduonnet.com/http://www.allindiaradio.org/http://www.radiomirchi.com/http://www.star.co.in/http://www.go925fm.com/http://www.rab.co.uk/http://www.exchange4media.com/http://www.agencyfaqs.com/http://www.timesofindia.com/http://www.hinduonnet.com/ -
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www.economicstimes.com
www.indiatoday.com
http://www.economicstimes.com/http://www.indiatoday.com/http://www.economicstimes.com/http://www.indiatoday.com/