Chapter 9 Using Radio

Radio Pros Primary medium for targeting narrow audience segments Mobile medium Relatively low production costs Personal relationship with audience

Radio Cons No visual component Small audiences Adequate audience research is not always available

Radio and New Technology Audio platform will become computers and satellites. Internet radio listening will continue to grow. Internet radio listeners are becoming habitual listeners.

Advantages of Radio over Most Other Media Radio targets very selective audience Reaches a majority of the population several hours per day Influences consumers closest to the time of purchase Reaches light users of other media Listening takes place on an out-of-home basis Delivers consistent listening patterns Delivers its message at a very low CPM level Provides advertisers with immediacy and flexibility

Advantages of Radio over Most Other Media Radio is a personal medium Radio is broadly selective Radio is local

Exhibit 9.6 People spend more time with radio.

Limitations and Challenges of Radio Audience fragmentation Clutter Lack of visual element Secondary medium

Exhibit 9.7 Radio reaches customers everywhere.

Creative Techniques for Radio Sound effects Jingles Short, choppy copy Vivid descriptions to create a mental picture

Jingle Jingle -- Folgers

Network Radio Leading advertisers National retail chains Pharmaceutical companies Packaged goods Basically program providers (individual shows) Growing largely because of satellite technology

Network Radio Advantages for Local Stations Guaranteed quality programming Networks bring celebrities. Stations can obtain national advertising dollars as part of a network. Cost efficiencies of shared programming

AM vs. FM as an Advertising Medium FM dominates the overall listening audience. 80% of audience listens to FM. Constantly searching for niche formats

Radio Rating Services The Arbitron Company RADAR Measures audiences in over 280 local markets Use of listeners’ diaries 1999 – began collecting web cast audience information RADAR Radio All Dimension Audience Research Primary source of radio network ratings

Buying Radio Unsold spots = lost revenue Fixed rate cards rarely exist for radio advertising Radio spots normally 60 seconds Use specific dayparts or a combination of time periods Rely on the expertise of radio sales personnel

Buying Radio Sold in dayparts 5-8 a.m. 8-10 a.m. -- Morning Drive Time 10-12 & 1-3 p.m. 12-1 p.m. -- Lunch Drive Time 3-7 p.m. -- Afternoon Drive Time 7-11 p.m. -- Evening 11-5 a.m. -- Late Night

Geographical Patterns of Radio Ratings Metro survey area Total survey area

Average Quarter Hour Estimates (AQHE) Average quarter hour persons Estimated number of people listening to a station for at least 5 minutes during a 15-minute period Average quarter hour rating Percentage of population being measured AQH rating = AQH persons x 100 Population