Radio Advertising

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RADIO ADVERTISING

Executive SummaryAdvertising 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. Radio advertising needs to do perform three things: - grab the attention of the listeners in less than 3 seconds - make an offer - give the listener all the information to act on the offer. Radio advertising is relatively low cost targeting to all the people irrespective of SEC A, B or C. it is one of the most intimate and involving of all media it is great for conveying immediacy i.e. grand openings, sales, promotions and special events at local and national level. This survey will be useful for Advertising Avenues to know which would be the most effective radio channel for placing advertisement and the best time slot for the advertisement based on the listening habits, the perceptions and the preferences of radio listeners. This research would also help to determine whether radio is an effective medium for advertising products, which would help to determine if more efforts need to be focused on radio as a medium. The survey would also be useful to help you to know which areas you should concentrate your advertising efforts and save the cost.

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RADIO ADVERTISING The Project included structured questionnaire to help determine the listening habits of the people on FM Radio and also Personal Interview with Sales Manager of all four FM Radio channels, content analysis of all four radio. The FM Channels that the advertisers need to focus their advertising efforts are Radio Mirchi and Go based on the target audience and analysis and to concentrate more efforts on afternoon time slot to target the youngsters Radio advertising is mostly suitable for the retailers at the local level. This medium is also suitable for the real estate developer, corporates, shopping malls, etc.

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RADIO ADVERTISING

INTRODUCTIONOld media dont die! They just bounce back in new avatars. Not so long ago radio had been written off as fuddy-duddy, down market and not so cool. Television and later new media were touted to being the media of the future. But thanks to technology radio is making a comeback. In fact, in its new avatar-fm-radio is all set too become the hippest, coolest and most with -it medium. FM radio is a new entity altogether and has to deal with new market dynamics. Media owners dealing with new markets will virtually have to draw up their strategies as they go along, create programming that is new, innovative and grab away eyeballs from TV sets and make them tune into their radio sets. Its a whole new challenge and competition is never far away. Ad revenues will also not be easy to come by, as advertisers will expect media players to put their money where their speakers are before they commit large sums of money towards radio advertising. The other challenge for radio in attracting advertisers is the nature of the mediumradio has always considered being a reminder medium. The involvement of listeners to radio is low, Vis a Vis television or print media. However in spite of the various challenges the emergence of private FM stations is certain to increase the quantum of radio advertising in the country , much like satellite channels did to the quantum of television advertising in the country. That should open up a vast new market of consumers-100 million Indian households own an estimated 150 million radios, outnumbering television sets 3:1. The geographical area covered by radio in India is as high as 98 percent and the penetration level is approximately 97 percent. But FM presently covers only 17 percent of the area and 21 % of the population of India through transmitters. Currently radio has just 2 percent of the 9000 crore Indian advertising market according to an Arthur Andersons survey. Globally depending on each country, radio has a 5 % to 12 % of the advertising cake. On the higher side are countries like the United States with 13 %, Canada with 12.7% and Spain with 9.1%. FM station executives are not forthcoming on multi-platform strategies as yet. Given that radio has penetrated into 100 million homes and a FM set costs around Rs. 50/- FICCI estimates FMs share to revy up from the present 1.5 percent to 5 % in five years.

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RADIO ADVERTISING 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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RADIO ADVERTISING

RADIO OVERVIEW IN INDIAThe past couple of years have witnessed a flurry of activity in the radio sector. An industry that accounted for nearly Rs. 150 crores worth of advertising surely needs to be studied closer than ever before. The current situation of the radio industry is akin to that of the TV industry in the early and mid 1990s. Further, with the possibility of a revenue sharing regime being brought in by the Govt. and the sector getting liberalized further, we need to be prepared for a revolution that is staring at us in the face. With the FM stations giving the local press a run for its money, a need gap still existed as far as the monitoring and evaluation of ad spends on radio was concerned. Radio advertising is getting bolder by the day with carefully worded scripts, brilliantly executed situations, the right strategy etc. Though the quality of the commercials has gone up by notches, FMCG companies still continue to bank wholly on television. FMCG brands ought to wake up to this elementary fact, and be a lot more pro-active on the radio front. In light of the fact that in cities like Mumbai and Delhi, radio stations have a far greater reach than print, companies ought to partner with their respective agencies in executing well-strategised radio commercials. Radio is perhaps the most cost-effective and powerful means of communications. Studies indicate that instead of two commercials on television, one commercial on TV and the other on radio gives about a 20 per cent higher brand recall. Also, a television commercial, if put out exactly on radio, works very well as the listener can then visualize the whole ad Agencies and clients are busy evaluating the media and its various stations. And the station heads are busy putting together a veritable package for the listeners, the success of which may lie in differentiation. And if one were to cite reasons for differentiation as a key to success, one would arrive at a logical answer- that the listener would possibly dive in to a particular station only if he is sure of a particular flavor that the station has to offer time and again. This flavor can be a concoction of choice of music, RJs and packaging. And though the station managers may not agree, the radio stations in Mumbai today are sounding pretty much the same. Over the years, publications and TV channels have been using radio as a support medium, as a reminder medium, and as a means of building up frequency. With the proliferation of private radio stations, one expects a definite increase in the usage of radio as a means of cross media 5

RADIO ADVERTISING marketing. This calls for some probing on our part to understand why the gush to market media brands on radio, what has been the learning over the years and with the private players entering, what would be the scenario in the days to come. Advertising drives revenues for a radio station. Therefore, it is of prime importance for the client to establish a market share or listenership To create word of mouth you need to stay close to the listener, you need to have a relationship with the listener, and radio has that relationship. People choose to listen to their radio, you need to feel that youve got a conversation going on between the radio and the listeners, they should be able to feel that they talk back to their radio more than any other medium. Its a medium that talks to the consumers on their level, one-on-one, so its always like a conversation, its like a dialogue medium, and this is why as soon as you start that dialogue your word of mouth propagation has started already. Mumbai has four private players Go 92.5 (Mid-Day Multimedia), Radio City (Star's joint venture), Radio Mirchi, and Red FM (Living Media) besides the two AIR FM players. In Mumbai, FM reach is estimated at 62 per cent. According to IMRB, reach is highest among students and working men; average daily listenership in households with FM access is 54 per cent, as compared with 85 per cent TV viewership. Time spent listening to radio is 105 minutes per day on an average, as compared to average daily TV viewersh