radio advertising 2

7/27/2019 Radio Advertising 2

1/80

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.

0


2/80

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.

1


3/80

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 >

9


4/80

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


5/80

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


6/80

!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.

B


7/80

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


8/80

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.


9/80

&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;;=(;


10/80

$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.

07


11/80

'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.


12/80

!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.

01


13/80

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.

09


14/80

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.

0C


15/80

.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.

08


16/80

$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.

0B


17/80

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

0=


18/80

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.

0


19/80

!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,

0;


20/80

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


21/80

'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.

10


22/80

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.

11


23/80

'. (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.

19


24/80

(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.

1C


25/80

'. 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.

18


26/80

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.

1B


27/80

!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.

1=


28/80

)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.

1


29/80

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.

1;


30/80

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.

97


31/80

@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


32/80

'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

91


33/80

!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.

99


34/80

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.

9C


35/80

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

98


36/80

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


37/80

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


38/80

+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)

9


39/80

-ar5eting ?ssues:


40/80

#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.

B8


66/80

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.

BB


67/80

!&" 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.

B=


68/80

"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.

B


69/80

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.

B;


70/80

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.

=7


71/80

"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

=0


72/80

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.

=1


73/80

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


74/80

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


75/80

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

=8


76/80

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=

=B


77/80

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.

==


78/80

!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

=


79/80

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/


80/80

www.economicstimes.com

www.indiatoday.com
http://www.economicstimes.com/http://www.indiatoday.com/http://www.economicstimes.com/http://www.indiatoday.com/

radio advertising 2

Documents