Copy of Radio Advertising

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    Executive Summary

    Advertising in general expresses the positioning. Powerful advertising is the result

    of powerful planning. Great ideas and great ad campaigns dont just pop out from no

    where, they are built on the key communication points that motivate sales.

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

    images which brings the listeners imaginations into play.

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

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

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

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

    and business and helping in building the brand image.

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

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

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

    But then came the governments order on liberalization and privatization. This

    brought about loads of changes in the world of radio broadcasting in India. Prominent

    and established companies entered the business of FM Broadcasting.

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

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

    people are today talking only Radio---- Radio Mirchi, Radio City, RED, Go and WIN.One will find people with radio sets of different shapes and sizes listening to their

    favourite music on roads, in hotels, even the bidi shops aired on any of the music

    channels. The radio channels are now vying against each other to provide their best to the

    listeners

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    However one can see that although radio is an excellent medium it has been used

    to its full potential and various efforts should be taken to improve it as with proper

    direction radio can reach heights as it is the cheapest and a very good medium.

    Objective

    Through this project my objective has been to understand the following

    To find out about the current scenario of the radio industry.

    The reasons for a stunted growth of the industry

    The various steps in radio advertisement

    What the various radio stations have to offer the masses.

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    Research Methodology

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

    called radio advertising which is being increasingly recognized by marketers as a

    powerful tool that helps in finding new customers and retaining the existing ones at a

    much lesser cost.

    Primary Research:

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

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

    Mr. Madhav Joshi who is currently working in Leo Burnett who helped me

    understand what all goes into the making of a radio advertisement.

    The mode of interview used was an informal one where he answered my

    questions on one to one basis.

    Also Mr. Sudarshan Sahe the senior marketing manager of Radio City gave me an

    interview and helped me in trying to understand as to how the station works and looks

    after the needs of its consumers

    Secondary Research

    The aim of secondary research was to understand as to why radio advertising has

    been able to grow at a considerable rate as compared to the other media.also the fall out

    of radio in the last decade .

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

    the current players in the market.

    Secondary data collection method: desk research

    Secondary data collection sources: internet, books, newspaper articles

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    Arthur Andersons survey. Globally depending on each country, radio has a 5 % to 12 %

    of the advertising cake. On the higher side are countries like the United States with 13 %,

    Canada with 12.7% and Spain with 9.1%. FM station executives are not forthcoming

    on multi-platform strategies as yet. Given that radio has penetrated into 100 million

    homes and a FM set costs around Rs. 50/- FICCI estimates FMs share up from the

    present 1.5 percent to 5 % in five years. They have also forecasted that revenues from

    radio advertising in India will be Rs. Rs. 1200 crores by 2005 and Revenue of radio

    services is expected to rise to Rs 689 crore by 2008 at a CAGR of 30 per cent.

    While TV is a family medium, radio is personalized. Also advertising of certain

    product seems to work very well while some might not. For example, cellular phone

    service or auto related products would have a good impact when advertised on radio is

    primarily known as a drive time medium most people who turn in are doing so while

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

    much bigger. This would be the key when evaluating the medium. Also one must not

    forgot that radio continues to be a medium that has tremendous reach among the poor and

    marginalized sections of society.

    With the coming of more channels, and the emergence of lifestyle advertising,

    radio will become a push and pull medium. As said earlier, is not just making a comeback

    but is being reincarnated into a new avatar.

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

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

    Advent of Format Radio

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

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

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

    earned the status of a 'Constant Companion'... What allowed Radio to accomplish this

    feat? Read on for the long journey the Radio industry has covered thus far.

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

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

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

    actually conceived what is called as the "radio music box". It was Sarnoff who suggested

    that radio should be mass-produced for public consumption. His persistence paid off in

    1919 when such sets were available for general purchase. This saw the beginning of what

    was later looked on as the 'Golden Age of Radio'.

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

    gather around the radio to listen to their favorite programs much as they do today with

    TV. Radio became the first medium delivering entertainment to the masses in their

    homes. The 1st paid announcement on radio was a 10-minute capsule from Howthorne

    Court; a Queens based Real Estate Company. This era was characterized with 'block

    programming' wherein radio offered something to everyone. News, drama, sports; live

    musical recordings would be presented in 30 or 60-minute programs. A network soap

    opera could be followed by a 15-minute newscast followed by one hour of a concert.

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

    charmed by the audiovisual experience of TV. A large number of popular shows moved

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

    of talented staff to TV.

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

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

    other things, like getting dressed for work, cooking a meal, traveling to office, studying

    and more.

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

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

    local service. Format radio strategy was based on providing the same kind of

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

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

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

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

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

    emerged the "Top 40" format or the "Contemporary Hit Radio (CHR)" format were the

    most popular hits would be played on a higher rotation.

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

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

    programs were scheduled. As radio was being used as a background medium of

    entertainment, it had to be relevant to the listener at every point of time in the day. The

    shows therefore had to be reflective of various day parts in the life of the listener.

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

    survive the onslaught of TV but also made it grow tremendously. Being the only medium

    that 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.

    Radio became "The Constant Companion".

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

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

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

    105 million households in the country.

    History of Indian Radio

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

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

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

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

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

    Rs. 93 crores with Times of India's Times FM & Mid-Day Group's Radio Mid-Day

    becoming the main players.

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

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

    the advertising revenue fell by 50% within a year!

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

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

    would be licensed across 40 cities.

    And in 2000, the Government auctioned licenses for private FM channels to

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

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

    mass withdrawal of bidders because of the huge license fee. A handful of serious bidderschose to remain.

    In response to the Government's offer, many companies bid for the licenses to

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

    the high license fee. For instance, th e bid ding price for the Mumbai license was

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    reportedly to the tune of Rs 9.75 crore. Others dropped out saying the business was not

    viable. So, in effect, the competition shrank, players consolidated and the Government

    extended its deadline. Today, there are roughly 10 players who will operate

    approximately in 37 cities across the country.

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

    run FM radio channels in 40 cities. New Media Broadcasting, a Zee Group company,

    which focused mainly on the smaller towns, won the largest number of bids.

    The first round of bidding - for 76 channels in 26 cities, garnered close to Rs 3.5

    billion. The government got the highest bids - Rs 97.5 million from each of 10 broadcast

    companies - for stations in Mumbai. Interestingly, the bids for Hyderabad and Nagpur

    came next, each for Rs 77.2 million and Rs 74 million, respectively, while the bids for

    Delhi were Rs 71.2 million each

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    Also, though radio has only a 2 per cent share in the Rs 6,000 crore Indian advertising

    market, advertising spending is expected to amount to Rs 500 crore this year.

    SWOT Analysis

    Strengths:

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

    % for the growth of the radio stations. So that they can develop themselves well

    because this industry is still in an introduction stage.

    The success of private FM stations, and reveals that radio listenership habits

    have changed considerably; not only are listeners tuning into it more often but

    also sticking to radio for longer hours everyday.

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

    or ads in local supplements of newspapers, are welcoming the opportunity.

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

    radio anytime and anywhere they want. It is also a free medium.

    90% of India has access to radio which is unmatched by any other media.

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

    publications. At the places where the literacy rates are low where people hardly

    read newspapers and radio is the only medium that they can understand. They

    cant afford a TV set. Therefore radio is more popular.

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

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

    lowest costs per thousand and radio production is relatively inexpensive.

    Radio is considered as a medium where the Proximity to purchase is very

    high.

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

    advertisers or agency can use this medium for brand recall.

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    Weakness:

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

    the programmes that are aired. Most of the stations plays much of the music that

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

    between the programmes of the different channels.

    Fragmented Audience - the large number of the audience in India is fragmented in

    various remote places. And therefore, the percentage of listener tuned to anyone

    station is likely very small.

    No proper research available - research is very important for any advertising

    segment. Research is the main base to attract client and get more revenue. But, in

    India there is no proper research is available. Many stations are conducting their

    own research which can be biased.

    Radio-only nature of radio communication is a tremendous creative compromise.

    An advertiser whose product depends on demonstration or visual impact is at a

    loss when it comes to radio. And like its radio message creates a fleeting

    impression that is often gone in an instant. Many advertisers think that without

    strong visual brand identification the medium can play little or no role in their

    advertising plans.

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

    situation that every radio channel is facing.

    Short commercials

    Opportunities:

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    Getting copyright licenses from the government for running mega events which

    are aired on the AIR radio station and have been restricted to be aired on other

    private stations.

    Launching a radio station with 24-hour news channel

    Tie-ups with BEST or railway authority for playing the FM in train and in bus.

    The launch of Private Radio FM has managed to create a set of New Listeners

    for the medium

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

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

    provide with the information relating to that university/college campus.

    With the coming of the many more new players in the radio industry each

    channels can position themselves quite different from others, like, if some station

    is targeting the health conscious people then their programming strategy will vary

    accordingly. And then it is easier for the advertisers also to decide on which

    channel to advertise.

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

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

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

    this whole enterprise.

    Leaves huge scope for innovation in local market

    Threats:

    The biggest threat to private radio industry players is ALL INDIA RADIO. AIR is

    the biggest player in India because of its reach, low charges, government channel

    etc

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

    and then competition will also increase. This is one of the biggest threats it faces.

    With no particular differentiation in the music. So, there is a fear of losing its

    brand loyalty.

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    Advertising in India

    India has been among the fastest growing economies in the world, with a nominal

    GDP CAGR of 9.94% over the last 10 years (1995-2005). The nominal GDP for fiscal

    2005 was Rs. 30,636 billion. According to CSO estimates nominal GDP growth for fiscal

    2006 is estimated at 10.9%. There is a correlation between the economic growth rates of

    a country i.e. the nominal GDP growth rate, and growth rates of the advertising industry

    The Indian advertising spends, as a percentage of GDP, is 0.34%, which lags behind

    other developed and developing countries

    During fiscal 2005, the gross advertising spend in India is estimated at Rs 111

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

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    Segmentation in advertising

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

    outdoor. These different segments within the industry are at varying stages of growth and

    corporatization

    Media Spends as % of Total Ad Spend

    Year Print TV Radio Cinema Outdoor Internet

    2000 49.0% 39.3% 2.5% 0.5% 8.4% 0.3%

    2001 48.4% 40.6% 2.7% 0.4% 7.5% 0.4%

    2002 47.2% 41.9% 2.9% 0.7% 7.0% 0.4%

    2003 46.6% 43.0% 2.9% 0.7% 6.5% 0.4%

    2004 46.3% 43.7% 2.9% 0.6% 6.0% 0.3%

    The Indian television industry has grown rapidly, especially since 1991, which saw

    the beginning of satellite broadcasting in India. This growth was also aided by the

    economic liberalization program of the Government. The growth of the satellite

    television audience saw proliferation of a number of satellite television channels offering

    more choices to media buyers and consumers of entertainment. Thus, the television

    broadcasting business, which started off as a single government controlled television

    channel, now has over 300 channels covering the Indian footprint, resulting in growing

    ad spends on this medium. Reforms and proliferation of private players were the key

    reasons for this rapid growth of the share of television in the advertising industry.

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    Radio Advertising

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

    new band to get heard by the public and record label executions is over the airwaves.

    Paradoxically, radio currently has only a 2.9 per cent share of the total advertising

    pie in India. Globally, depending on country, radio has a 5 per cent to 12 per cent share of

    the advertising cake. On the higher side are countries like the United States, with 13 per

    cent, Canada, with 12.7 per cent and Spain, with 9.1 per cent.

    Companies that advertise on FM channels today such as Hindustan Lever (HLL),

    Dr Morepen, Amul, Castrol, Santro, Britannia, Parle, DSP Merrill Lynch etc are

    dominating the advertising on each one of the FM channels, be it Radio Mirchi, Go 92.5

    Red 93.5 or Radio City.

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

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

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

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

    implying that it is as important to them as it is to a retail advertiser, if not more.

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

    new product or services to new fans and taking a local market to a national level.

    Accordingly, it is extremely difficult to obtain meaningful airplay. Putting it bluntly,

    successful radio promotion revolves around making and managing relationships.

    Radio promotion is an art that demands a certain style you may simply neither

    have nor desire to cultivate. On top of that, it can take a great deal of time to make all the

    contacts and connections that are required for successful radio promotion.

    Advertising agencies that control the national picture will be slow to move on to

    radio for creative reasons. They have people who love to make television commercials,

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    but don't have anybody who knows how radio works. Here, only about 2.9 per cent of the

    money spent by advertisers goes to radio, and up till now, all of that went to ALL INDIA

    RADIO.

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

    commercials on AIR, including on Vividh Bharti and Primary Channel (including FM)

    rose from Rs 393 million in 1990, to Rs 808.4 million in 2000, & Rs. 600 crores in 2002,

    representing a growth of about 7.5 per cent per annum.

    A clear advantage that radio has is that it can easily target city-based

    audiences. This makes sense if the advertiser, like a food chain that is opening an outlet

    in Mumbai, wants to target a specific audience. In such cases, it does not make muchsense to advertise on TV, and the print medium is too expensive. Radio is the best bet for

    such small-scale promotions. It is also aptly suited for local promotions, and once

    audiences can be targeted, it has tremendous potential to eat into local mediums.

    Consumer opinions

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

    station is aimed at people like them, but the advertising is not - they feel, probably quite

    correctly, that most advertising is aimed at adults.

    Because radio is a real-time intrusive medium, they have to sit through the full length of

    any ads which are for irrelevant products. There was evidence of three sorts of memories:

    Relevant: This includesAds which mentioned areas or names of specific interest, e.g.

    films, outlets selling favoured brands, concerts

    Vague/ not relevant: This includes memories of ads for local garages, cars and

    insurance companies - little or no specific detail remembered

    Sonic Brand Triggers:Much evidence of children's ability to pick up on musical

    Sonic brand Triggers (SBTs) and sing them out loud.

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    Radios high overall reach and its ability to provide numerous formats make it a

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

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

    be prohibitively in television.

    3. Cost Efficiency

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

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

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

    produced for about one tenth the cost of a TV commercial, and local stations often

    produce local spots for free. Also, radio ads can be produced very quickly.

    4. Creativity and Flexibility

    Radio is the most flexible medium because of very short closing periods for

    submitting an ad. This means an advertiser can wait until close to an air date before

    submitting an ad. With this flexibility of simple formats such as voice only can be created

    almost immediately to reflect changing market conditions or advertisers can take

    advantage of special events or unique competitive opportunities in a 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 the

    choice for numerous product categories. Copy changes can also be made very quickly.

    While radio may be one-dimensional in sensory stimulation, it can still have

    powerful creative impact. Radio has been described as the theatre of the mind. The

    musical formats that attract audiences to radio stations can also attract attention to radio

    ads. Audiences that favor certain music may be more prone to an ad that uses

    recognizable, popular songs.

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    Types of Radio Advertising:

    1. Network

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

    the entire national markets simultaneously via stations that subscribe to the networks

    programs. Networks provide national and regional advertisers with simple administration

    and low effective net cost per station. The advantage is less paper work and lower cost

    per station. Disadvantage includes lack of flexibility in choosing affiliated stations the

    limited no. of stations on a networks roster and the long lead times required to book time.

    2. Spot Radio

    Spot radio affords nationals advertisers great flexibility in their choice of

    markets, stations, airtime, and copy. They can tailor commercials to the local market and

    put them on the air quickly some stations will run a commercial with as little as 20

    minutes lead time.

    3. Local Radio

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

    involves the same procedure as national spots. Radio advertising is either live or taped.Most radio stations use recorded shows with live news in between .Likewise, nearly all

    radio commercials are pre recorded to reduce cost and maintain broadcast quality.

    4. Sponsor Programme

    Here the advertiser sponsors the whole or part of the programme. The RJ

    informs the audience about the sponsored company throughout the programme.

    5. RJ Mention/Whats On Mention

    Here the Radio Jockey [RJ] informs the audience the information given by

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

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    Radio Stations Divide Their Days And Their Rates.

    Radio stations divide theirrate cards into dayparts .The exact divisions vary from station

    to station.

    6 am -10 am Morning drive

    10 am 3 pm Daytime

    3pm 7pm Afternoon drive

    7pm- 12am Nighttime

    12am 6 am All night

    Rating services measures audiences for only the first four day parts because all

    night listening is very limited and not highly competitive. Heaviest radio use occurs

    during drive times (6-10 am and 3-7pm) during the week (Monday- Friday).

    This information is important to advertisers because usage and consumption vary

    for different products. For example, radios morning drive time coincides with most

    peoples desire for a steaming, fresh cup of coffee, so its great time for advertising coffee

    brands. For the lowest rate , an advertiser orders spots on a run of station (ROS) basis,

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

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

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

    advertiser buys a total package of time.

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    Length of Spots

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

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

    seconds. Those however are rare. In theory, one could assume that the longer a spot, the

    better it will be remembered or at least, the more chance there it that it will be heard.

    Research on television commercials proved that this theory holds true for the medium

    television: a doubling or tripling in spot seconds results in duplication in recall.

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

    General,

    10 second spot should contain 25 words

    20 second spot should contain 45 words

    30 second spot should contain 65 words

    60 second spot should contain 125 words

    If youve never written a spot, 30 seconds sounds like an impossibly short time

    to get your message across. But take a stop watch and time some spots on the air; youll

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

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

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

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

    other sports with a information/education content.

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

    a: 30 is usually about 60% to 75%.

    Some stations no longer charge a separate rate for: 30s and: 60s. Instead, theycharge a unit rate. In other words, a: 30 costs the same as a: 60. Obviously, this is one

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

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

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    Sponsorships are like marriages; theyre only for people who are ready for a long-

    term commitment.

    3) Frequency

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

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

    increase the impact of the spots you place.

    Flightand schedule are two words you may hear your radio sales representative use

    when you plan your advertising. A flight is a group of ads. (Im running a flight of 80

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

    ads a week, six months out of the year.)

    4) How many stations do you need

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

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

    stations, but that varies depending on your audience and the number of competing

    stations in the market.

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

    to buy two or more stations with widely different formats.

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

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

    in the market, that may be all you need to succeed.

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

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

    segment, and then tell you how many listeners each station had in each category. Similarsurvey on listenership has been conducted by IMRB (Indian Market ResearchBureau)

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    Producing Radio Commercial

    Producing a radio spot can be a lot of fun advertisers often say its

    the most fun they ever have in advertising. It can also be simple and inexpensive.

    There are three basic elements to work with: the announcers voice, music, and

    sound effects. Production can be done in the stations own studios or in an independent

    production house. Stations are usually well- equipped to produce spots, and they often

    employ young, creative people whose fresh ideas will keep your spots from sounding like

    everywhere elses.

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

    combination of words, music, and sound effects. All these are part of the script. Your

    spot can be clever or straightforward, but it must grab the listeners attention in about

    three seconds, and it must not leave the listener wondering, whose spot was that,

    anyways?

    The following are some of the factors you should have in mind from the first

    moment you sit down to plan your spot.

    1) The Voice

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

    appropriate for your image.

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

    option:

    a) Using local radiotalentb) Using an amateur voice

    c) Hiring professional voice talent.

    a) Using local radio talen t

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

    anywhere from Rs.600 to a few thousand rupees, and it can be a very worth while

    investment. A catchy jingle helps potential customers remember you more than almost

    anything else.

    3). Sound Effects (SFX)

    various onomatopoeic sounds like eeek, ho ho ho, ding dong, whistle etc. are

    available at the local radio station. The sound of waves on the shore can help sell your

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

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

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

    be more involved with your ideas.

    4. The tapping Session

    Once the decision is made about the script, voice, music, and sound effects, its

    time to record. At may be just you and the announcer in the studio; the announcer will

    operate the equipment. At large stations and professional recording studios, an engineer

    will record the spot while you and the announcer concentrate on the reading.

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

    interpretation of the reading than you do, and dont expect a performance that could only

    come from someone reading your mind.

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    Selling Radio Commercial

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

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

    media buyer is looking for efficient cost per point, while the clients goal is to move

    product. As all radio stations are perceived to be same it is important to build value into

    the radio station by offering credible benefits that produced results and solutions for

    prospective clients.

    Radio salesperson must begin with the clients needs and marketing goals. The

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

    the client and his or her business. After the salesperson has a firm grasp of the advertising

    problem, the next step is to prepare a proposal. The successful ones begins with the

    clients problem and sales objectives an move systematically to a solution.

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

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

    that the medium in general is for a particular product.

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

    advantages of specific station.

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

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

    it competes for advertising price.

    Dayparts Characteristics

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

    10.00 a.m. - 3.00 p.m. Daytime, program characteristics of station, talk , music, or all-news

    3.00 p.m. - 7.00 p.m. Afternoon, drive time ; radio prime time and same as morning drive

    time

    7.00 p.m. - 12.00 a.m. News, music, talk shows

    12.00 a.m. - 6.00 a.m. Music, talk shows

    Elements of good radio commercial

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    1. An agency or advertisers appoints a producer

    2. The producer prepares cost estimation

    3. the producer selects a recording studio

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

    commercial.

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

    music or selects stock music.

    6. If necessary, a rehearsal is held.

    7. The studio tapes music and sound separately

    8. The studio mixes music and sound with voices.

    9. The producer sees that the master tape is prepared for distribution on either tape

    or cassettes and shipped to stations.

    You are on the air!

    Measuring the radios effect

    Effectiveness research requires clarity of objectives what are the agreed

    objectives of the overall campaign and of the radio campaign within this? Radio

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    .Increase sales

    Increase footfall / store traffic

    Increase brand awareness

    Change consumers perceptions about a brand

    Broaden consumer appeal

    Not all of these aims are best evaluated with consumer survey research - there are

    specific tools available for measuring sales effects for example.

    Media Planning Issues: - In addition to tracking radios contribution to the success of a

    campaign, as a secondary aim you might also be trying to test and evaluate the effects of

    using different media strategies, for example:

    - Effectiveness of different spot lengths

    - Burst versus continuous activity

    - Use of different day part strategies.

    If you do intend to test a particular media strategy there are three important

    considerations to note.

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

    particular media strategy in which you are interested.

    Secondly, if you are testing a number of media strategies simultaneously, you will

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

    cell for each media-variable.

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

    judging the effects in terms of the overall campaign objectives.

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

    the core of the questionnaire you use. Any other questions are of secondary importance

    2) The Importance of Split Samples

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    Misattribution of Advertising:-

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

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

    with the most active expectations, tends to dominate memories of advertising, with the

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

    the consumers mind.

    This misattribution is disproportionately likely to happen with radio and is still

    more likely to happen when radio campaigns are creatively synergistic with TV

    executions.

    Avoiding Misattribution: Using Split Samples:-

    The simplest solution to the problem of measuring true radio awareness is to split

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

    radio stations which carried the advertising) and non-listeners (people who do not listen

    to those stations, but who are the same as the listeners in all other

    respects).

    If the only difference between the two samples is their radio listening, then any

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

    attributed to radio regardless of where they think they have seen or heard the

    advertising.

    It is particularly important to use split samples where radio is part of a mixed

    media schedule in order to gauge the true radio effect.

    Which Option Should You Choose:-

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

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

    history of exposure to the brand. Local distribution levels for the brand will also be the

    same.

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    The key point is that the listener and non-listener samples must be matched as

    closely as possible in terms of demographics, media consumption and weight of exposure

    to the brands advertising in other media. This ensures that any differences can

    confidently be attributed to radio ad exposure.

    3) Where to do the research

    Test And Control Samples In Different Areas:-

    This involves taking two matched samples of respondents in different

    geographical areas and comparing their advertising responses one sample will live in

    the advertised area, the other in an area where no radio advertising ran.

    In this way, it will be possible to compare the results among those who have been

    exposed to the campaign with the results among those who have not - thus giving you a

    measure of radios effectiveness.

    It is important to match the media consumption of the samples (e.g. how much

    TV they watch etc) as well as their demographics, as this could affect response. It is

    equally important to ensure weight of advertising for your brand in all other media is the

    same for both samples.

    The two geographical areas should also be comparable (or typical) in terms of

    media and product consumption as a whole.

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    Test and Control Samples within the Same Area

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

    One part of the sample will comprise people who do listen to the station(s) on

    your radio schedule, whilst the other part of the sample will comprise people who do not

    listen to any station on the schedule. In this way it will be possible to compare the results

    of those who have been exposed to the campaign to those who have not giving you a

    measure of radios effectiveness.

    4) When to do the research

    The ideal research method is to monitor advertising activity on a continuous basis,

    since this allows movements in advertising response to be compared directly to currentadvertising activity. Often, however, continuous radio research is impractical on grounds

    of cost unless it forms part of ongoing advertising tracking.

    Typically, radio research is conducted in two stages - a pre-campaign and a post

    campaign study.

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

    campaign as possible preferably during the week immediately preceding the

    radio campaign. This will establish the base levels of whatever is being measured

    (eg brand awareness).

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

    campaign has ended ideally during the first week after the campaign has come

    off air.

    In some instances one considers conducting more than two stages of research. For

    example, it might be worth slotting in an additional research phase during a particularly

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

    consider adding an additional stage of research some weeks after a campaign has endedin order, say, to track decay in brand awareness.

    5) The research sample and sample sizes

    Sample Sizes

    Generally speaking, the larger the sample the better. However at some point, the cost ofan increased sample size becomes cost prohibitive and contributes little extra to statistical

    robustness.

    6) Method and questionnaire

    Telephone research is often used for assessing the effect of radio campaigns: the method

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

    successfully be played down the phone to respondents.

    Face-to-face interviewing may also be preferable if respondents need to be shown visual

    ad material such as stills from TV ads.

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

    consumers as this is the best memory jogger of all. It also delivers a larger sample of

    people who are identifiable as having definitely heard the campaign: this is useful when

    analyzing them for their attitudes to the brand.

    When playing the radio commercials in order to measure commercial recognition, two

    different approaches can be taken: blind or branded.

    Blind By bleeping out all brand references in each execution and asking whether

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

    possible to see whether creative treatment has successfully linked the message to

    the brand.

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

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

    recognition.

    A fairly straightforward questionnaire will take around 10-15 minutes to run

    through much longer and respondents will begin to lose interest and

    concentration!

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    Radio with other media

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

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

    'what Radio can add' to each medium on three key parameters - a) Planning, b)

    Communication and c) Detailing of communication points.

    Radio with Television

    Characteristics of Television

    TV has traditionally been the most powerful and popular advertising medium for

    people in the media business. This is mainly because it does most things well - coverage,frequency, image, persuasion, demonstration, impact etc.

    Traditionally a high-cost medium, the downside with TV is that the audience is

    now fragmented across many different channels, production costs are extremely high and

    viewers are increasingly avoiding ad breaks.

    What radio can add:

    In planning:-

    Radio's main contribution is a dramatic increase in frequency of exposures, either

    in the same period as the TV campaign or later to extend the campaign over time; radio

    can be used for regional or local exposure booster; radio can be used to reach light

    viewers; it extends TV messages to key times of day when TV audiences are lower or

    when product relevance is higher; radio also allows tighter targeting against audiences

    thus reducing wastage.

    In communication:-

    Given that Radio is perceived as personal medium, radio can bring brands closer

    and speak to the consumer at their level; radio has a culture of response where listeners

    frequently interact with their station which they see as accessible.

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    In detail:-

    Flexibility means radio allows geographical variation on top of a national press

    campaign.

    Radio with Outdoor

    Characteristics of Outdoor

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

    consumer with an idea or a challenge, in a very public way. Like radio, posters also

    operate within time which people think of as free - typically travelling time.

    The weaknesses of outdoor advertising mainly stem from three issues: it has no

    editorial context, it uses extremely simple, striking ideas to be effective,and it suffers

    from relatively expensive production.

    What radio adds:

    In planning:-

    Radio adds real frequency, in the sense that additional exposures to the

    advertising are played in full rather than having the listener look away or ignore; radio

    offers far tighter targeting which means reducing wastage; radio also offers tighter timing

    - within time of day, day of week or even week of month.

    In communication:-

    Radio allows more information to be conveyed, which is useful for explaining or

    persuading; radio allows multiple copy; radio brings brands closer, as listeners identify

    with their radio station and see it as aimed at people like them; radio is better able to

    communicate the tone or character of a brand.

    In detail:-

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

    print deadlines; it also allows localized copy variation relating to a national poster

    execution.

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    Creating the right mix

    A fieldwork was conducted by IMRB(Indian Market Research Bureau) to know

    about the listeners which encompassed the entire Mumbai urban agglomeration through a

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

    With the growing salience of Radio, IRMB believes that time is ripe for a

    continuous Radio audience measurement system. IMRB International decided to launch

    RADAR RADIO LISTENERSHIP SYSTEM - the continuous radio audience

    measurement system in Mumbai.

    The findings have helped many radio stations to develop. The following is thestandard procedure involved in calculating the listenership of a radio station.

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

    to companies, or on particular request by a company.

    A project is selected and a deadline is given.

    All the interviewers are informed of the above and a questionnaire is

    given.

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

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

    analysis department

    Then the analysis findings are forwarded to the research department and published

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    the only service provider it was able to penetrate deep into the Indian market. The private

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

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

    everywhere they have to diversify geographically and reach the rural population where

    the radio is a very important medium of entertainment. Which is why the new entrants are

    vying for their share of the pie and encouraging the government to release more airwaves

    for them.

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

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

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

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

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

    specially the teenagers !

    When an advertiser places an advertisement he has to make sure that his target

    audiences are met through this medium. Various shows are held by the radio stations. In

    order to meet the requirements of its listeners and its corporate audiences.

    As the 7.30 to 11 slot is the most important slot because many listeners are tuned

    in the shows are generally family oriented as everyone mostly listens to them and news

    programs on government owned stations. on the other and the 11-2 slot has the women

    segment listening while the nights are more concentrated on teens. giving the advertisers

    a vast array to meet their specific target markets.

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

    and advertisement rates to meet the needs of its audiences which can be seen in the

    various positions of the stations. For marketers it then becomes necessary to identify the

    audience they want to target and respectively book their airtime so as to reach the right

    audience with the right mix at the right time

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    All India Radio

    A.I.R, which is a national service planned, developed and operated by the

    Ministry of Information & Broadcasting under the Government of India. Sound

    broadcasting started in India in 1927 with the proliferation of two privately owned

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    transmitters in Bombay and Calcutta. It was changed to All India Radio in 1936 and it

    came to be known as Akashwani since 1957 to inform, educate and entertain the masses.

    All India Radio is one of the largest radio networks in the world in terms of

    reach. When India attained Independence in 1947, AIR had a network of six stations and

    a complement of 18 transmitters.

    All India Radio has a 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, A.I.R.'s coverage exceeds 90% of

    India, reaching over 98% of the people in the largest democracy of the world. Add FM

    radio and you have a formidable arsenal.

    AIR has a three-tier system of broadcasting, namely, national, regional and local.

    National channel of All India Radio started functioning on May 18, 1988. It caters to the

    needs of the people, through its transmitters at Nagpur, Mogra and Delhi 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 the

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

    The Regional Stations in different States form the middle tier of the broadcasting.

    Including North-Eastern Service at Shillong disseminates the vibrant and radiant cultural

    heritage of the Northeastern region of the country.

    New initiatives by AIR

    Change is in the AIR. Prasar Bharati now plans a 24-hour news radio station -

    not on FM, but on shortwave. For FM it has other ideas - classical music channels to

    start with in Bangalore and Lucknow and to be extended across the country later.

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

    bulletins. The service, which is on in Patna, Hyderabad, Kolkata and Delhi at different

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

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

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

    Prasar Bharati is also planning to fill the vacancies in regional stations, especially in

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

    Prasar Bharati is set to launch a major campaign aimed at repositioning and total

    branding of the two FM Channels of All India Radio (AIR). Prasar Bharati is positioning

    AIR FM Rainbow as a channel offering a buffet fare - Hindi Music, Western Music, Chat

    shows, Helplines etc. and for this it is launching a campaign in select cities. The publicity

    campaign of AIR is focused on projecting AIR as the world's oldest and largest radio

    network both in terms of geographical and population reach and the only source for news

    and entertainment for people in remote places. AIR as the radio network that

    communicates with people in their language broadcasting in 24 languages and 146

    dialects contributes to the enrichment of Indian classical music and broadcast fast and

    accurate. It will promote and publicize sports events covered by AIR besides

    popularizing existing services like Radio on Demand and News on Phone.

    The entire publicity campaign of AIR is being designed by Prasar Bharati's ad

    agencies. The ad agencies have been asked by the Prasar Bharati to make a strategy

    presentation, recommending a suitable positioning for AIR Channels, a marketing plan

    and publicity plan with suitable media mix.

    RADIO CITY [91FM]

    Radio City, a venture promoted by Star and Music Broadcast Private Ltd

    (MBPL), was launched on 21st May 2002. MBPL is a company backed by P.K.Mittal,

    family and Associates. The company has received the license to set up radio stations

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    across the country in six cities - Bangalore, Delhi, Mumbai, Patna, Nagpur and Lucknow.

    The Mumbai license was secured for Rs 10 crores. STAR Indias radio division would

    provide or take charge of advertisement sales, marketing and programming. Radio City

    aims to reach out to listeners across demographic barriers.

    Target audience

    Radio City is not looking at any particular segment to target, and is trying to

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

    programming. Radio Citys market strategy is backed up by six months of intensive

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

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

    The 4 Ps

    Product:

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

    a day, in mix of Hindi and English

    For corporate and retailers: - The airtime.

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

    stations across the country in six cities - Bangalore, Delhi, Mumbai, Patna, Nagpur and

    Lucknow.

    Price: Advertisement rates

    Promotion: Radio city is one of the top 3 stations in the city. This is thanks to its

    promotions, a perfect blend of English and Hindi music, teamed up with professional,

    vivacious RJs.

    On the promotion front, the channel undertook huge promotion campaign in the initial

    stages of its launch.

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

    2. Hoardings all over the city.

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

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    Place: Intensive in Bombay and exclusive because it does not have a presence in any

    other city.

    Price: Advertisement rates (Refer to annexures)

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

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

    partner with college festivals

    Marketing initiatives

    Go 92.5 has in fact re-christened itself as Mumbais College Radio station. In complete

    tandem with the festivities, the station had also launched a 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 the finalists would then be exposed to in house

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

    programmes of their own.

    Advertisements with GO 92.5FM

    GO 92.5, indulge in experimental big stuff. There are two effects of this kind of

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

    immediate reaction is yes. Then they figure out how do they juggle it, how theyll fit it

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

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

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

    in of the 11-2 afternoon slot. At that time, they can have consumer durables on the

    channel. Not just a LG CDMA but a LG refrigerator and AC can also be advertised. So, it

    is a double positive impact on advertisers.

    90% of their advertisers are the large tickets. That is by virtue of the audience

    profile that Go are bringing. They have retailers also. They have a classified section on

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    the station called Mumbai bazaar. But those are basically the advertisers who are very

    keen to be on the station.

    There has been a sizeable increase in channel spends on Go 92.5 and they have

    had the majority of the revenue coming in from niche English channels such as Star

    Movies, Star World, Zee English, Zee MGM, AXN and Discovery. A few big Hindi

    properties such as Awaaz and Jeena Isi Ka Naam Hain have been promoted extensively

    as well.

    The top advertisers on Go 92.5 in September 2003 were Coca Cola, Max New

    York Life, Tata AIG, Asian Paints, Colgate, Orange, Kelloggs, Discovery, BPL Mobile,

    Cadbury, McDonald, Alitalia airways, Timex watches, HLL, STAR network that is star

    world and movies, Sony Entertainment TV, Zee TV and Tata Indicom. Other advertisers

    are Tata Motors, Bazee.com.

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

    current rates and also trying to minimize the discounts they give to our clients on the rate

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

    half of 2003-04, the station has garnered total revenues of Rs 1.36 crore.

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    RED [93.5FM]

    Red is in your Head, screams the advertisement of Red

    FM, the 24-hour FM radio channel from the Living Media stable.

    The much-awaited Red FM on 93.5 MHz hit the airwaves in

    Mumbai first on June 26, 2002, followed by Delhi and Kolkata.

    Described, as a bright, energetic and passionate Apparently, RED

    FM has spent close to Rs 17.87 crores as license fees for the three

    centers of Delhi, Mumbai and Kolkata for the first year. An

    additional Rs 20 crores has been invested on infrastructure etc in

    these three cities. And in the second phase,

    Red FM may not be modest but it is certainly witty, reliable, friendly, warm,uncomplicated and honest. The take aways are plenty everything that the station says

    and does is of relevance to its listeners.

    Target Audience

    93.5 Red FM caters to 25-plus age group. Because it is more a mature audience.

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

    to this target group

    The 4 Ps

    Product:

    For listeners: The programming mix has non-stop music interspersed with Red FMs

    crisp and entertaining updates on traffic, weather, city-specific events and the latest

    buzz on everything current.

    For corporates and retailers: the airtime

    Place: Intensive in Mumbai and selective all over the country because it has other

    stations in Delhi and Kolkatta.

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    Price: advertisement rates. (Refer to annexures)

    Promotion: Red Fm is affiliated with some clubs and pubs, which promote the station.

    Also it has a tie up with shopping malls like crossroads and Groove a music store. They

    have 100 hoardings all over Mumbai city. Moreover, innovative methods like painting

    Double Decker buses; trains etc have also been adopted.

    Marketing initiatives

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

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

    festival and Red has been in touch with committees from Jai Hind, KC, HR and nearly

    every other college in North Mumbai.

    With in a few days of launching, they carried a DJ live on turntables from their

    studios. Recently, for the first time in India, they went on air live from a night club like

    Velocity and received a huge response from the listeners.

    Advertisement

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

    Based on the need of the advertiser, they suggest the best ways of achieving the

    objective. So if a retailer wants to announce his sale and he does not have a big budget,

    their job is to suggest that instead of a 30 second spot, play a 10 second spot through the

    day. Endorsing advertising on RED is not just about buying spots, but is a total

    experience, tailored to the customers needs. Red is also focusing, towards the influence

    of one station with the other, use their strengths and improve co-ordination between the

    three stations; this is an important task in terms of helping the advertiser.

    Reds current advertisers profile includes both retail clients and corporates, they

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

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    Entertainment, Zee, LG, Coke, Hutch, Idea, HT, ICICI Prudential, State Bank of India,

    Metlife, Kotak Mahindra and Dabur among others.

    Red FM was launched six months late; and therefore they faced a major drawback

    in terms of losing out on a number of corporates. However, none of them have refused to

    consider them in their media plan; the shortcoming is only in terms of delay, as they had

    already freezeed their media budget for the year.

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

    depending upon the need of the advertisers, length of the commercial.

    Their revenue only from Bombay is more than two crore. The normal jingle

    length is 10 seconds and again here rates will differ on the basis of the sound effects,

    music, background conversation, face-to-face conversation. They do produce jingles

    according to the advertisers and if the advertiser or the client wants to use that jingle

    somewhere else in some other media, then the client has to pay substantial amount of

    money to radio station because if they produce a jingle that is their assets.

    They take 100 % money in advance from the direct client. And from the non-

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

    There are several questions that RED FM identifies before making a time-band

    suggestion. Is it a womens product? Is it male-oriented? Is it a retailer? If it is a retailer,

    they could slot it in the 116 time band when people are going to the market or when a

    housewife might be listening to the radio while cooking.

    If there were a programme on beauty tips, we would advise a cosmetics brand to

    advertise on that programme; similarly, if there were a cookery show, there would be

    food-related brands advertising on it. For male dominated products, they would advise

    the drive time hours or the late night show; surveys reveal that a number of men like

    tuning in to radio just before sleeping.

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    RADIO MIRCHI [98.3FM]

    Radio Mirchi belonging to the Times of India Group is in an enviable position to

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

    Radio Mirchi has landed this gift indirectly from Reliance and Zee who chickened out of

    the FM radio business after instigating a bidding war resulting in unviable and exorbitantlicense fees (Rs. 9 crores annual fees for Mumbai).

    On April 23, 2002, the Radio Mirchi private FM station, owned by Entertainment

    Network (India) Ltd, a wholly-owned subsidiary of The Times Group, debuted in

    Mumbai, on 98.3 FM. Radio Mirchi is now present in seven Indian cities and is the

    only company with private FM radio stations in all four metropolitan cities of Delhi,

    Mumbai, Chennai and Kolkata. they are also the only private FM radio broadcaster in

    the cities of Ahmedabad, Indore and Pune.

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

    are a 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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    The 4 Ps

    Product:

    For listeners: 90% of the music played on RM is Hindi and contemporary English hits

    are played keeping in mind the tastes of their TG. Since radio is a free to air medium,which reaches the lower end of the audience spectrum, RM later made a conscious

    decision to go Hindi. Hence it quickly became a mass channel with Hinglish being its

    prime lingo and having a wide audience appeal..

    For corporates and retailers: the airtime

    Place: intensive in Mumbai and selective all over the country since it is established in

    cities like Kolkatta, Delhi,Chennai.

    Price: The advertisement rates. (Refer to annexure)

    Promotion:The marketing strategy of Radio Mirchi revolves around two crucial pegs

    create hype around the name Radio Mirchi, plug Radio Mirchi through the other media

    that The Times Group owns.it also does a lot of tie-ups and contests for the consumers

    Marketing strategies

    Radio 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. Radio mirchi has two main objectives behind

    doing an extensive marketing which are-

    To create the Top of the Mind recall in the relevant Target Audience.

    Connect with the growing Radio listening population in Mumbai.

    A very large factor that contributed towards the establishing the brand of RADIO

    MIRCHI was its catchy slogan its hot. However the slogan by itself was incomplete

    without the voices that accompanied it. CELEBRITIES and film stars that repeated everyso often hi Im -------- Im hot and Im Radio Mirchi!! big names that generated

    curiosity and excitement and compelled the listener to refrain from flipping the dial.

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    IMRB conducts research for radio mirchi which is after every 15 days to know

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

    have implemented the changes in the time slots of the different shows on air. So 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 frequency etc

    According to the study conducted:-

    Mirchi delivers highest number in terms of listenership among Housewives and

    working men.

    Radio Mirchi delivers highest number in terms of listenership among the Radio

    Listening student population.

    Radio Mirchi emerges up as the No. 1 channel and delivers high numbers with Daily

    listenership at 24.63 lacs.

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    Recommendations

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

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

    The basic problem in the Radio space in India is the excessive Government control

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

    space. Though the Supreme Court decision in 1995 declaring airwaves as public property

    led to the entry of a number entrants challenging the monopoly of All India Radio,

    nothing much changed as regards to government control. The 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 Indian market.

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

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

    this system that leads to the viability crisis. They should in fact, as recommended by the

    TRAI, go in for a system more prevalent worldwide - revenue sharing. Under this system,

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

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

    affairs, currently a monopoly with All India Radio. This could attract potential listeners

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

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

    this happening, atleast in the near future.

    A llowing foreign players to enter the Indian marketcould also spell a boon for the

    Indian company gain from the expertise and superior technology of the foreign player.

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

    foreign players) for greater variety.

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    Conclusion

    Radio 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

    much more which can be attributed to the low cost of ownership feature of RADIO as a

    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 the total advertising budgets of companies is likely to grow from

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

    to 12 per cent every year. In fact, the fortunes of radio advertising are likely to change

    with the advent of private players like Star India, Bennett Coleman & Co, Living Media,

    Mid Day etc.

    The opening of the FM market is a new phenomenon and the maturing of the

    market will take its own evolutionary path. Interestingly, the private FM players have a

    huge opportunity in grabbing a bigger chunk of the radio advertising pie as, despite All

    India Radio's enormous reach (97 per cent of the population), its revenues have declined.

    In 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. Ultimately content and

    packaging will be the king.

    However, what will spell out the difference between success and failure will be

    neither size nor niche. It would be just plain old quality of programming and the

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    Acknowledgements

    Written words have an unfortunate tendency to convert genuine gratitude into

    stilted formality. However, I feel this is the best way to express my appreciation for

    everyone concerned.

    Working on the project on radio advertising has been an incredible experience for

    me. For this very wonderful experience i would like to thank a lot of people without

    whose co-operation and support working on this marketing project would not have been

    so pleasurable and interesting.

    Firstly, I would sincerely like to thank Mr.Sudarshan Sahe the marketing manager

    of radio city and Mr.Madhav Joshi of Leo Burnett for taking out some of their valuable

    time from their busy schedule to answer my queries regarding the project. They were

    very supportive and patient. Thus, they were a great help and a goldmine of information.

    I would also like to thank Prof. Gehna Hingorani for this guidance and help. And

    last but not least our Prof. Aditya Bhat for their knowledge and expertise in this field. If it

    was not for their encouragement and support, this project would never have been possible

    and I would have been deprived of a vast treasure of knowledge.

    These acknowledgements are one way where I can actually thank the people who

    have been instrumental in the making of this project. Without their help and guidance it

    would be a very difficult task for me to try and plan this project and actually make it.

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