1. Chapter 9 Using Radio Kleppner’s Advertising Procedure, 18e
Lane * King * Reichart

2. Learning Objectives
Describe radio’s strengths as an advertising medium.
Understand the limitations and challenges faced by radio.
Discuss how radio commercial time is bought and sold.
Identify different roles of AM and FM radio.
Explain the rating systems used in radio.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

3. The Pros of Radio
Primary medium for targeting narrow audience segments
Mobile medium going with listeners into the marketplace
Medium with immediacy and relatively low production costs
Personal relationship with audience
Supplemental medium to build reach and frequency
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

4. The Cons of Radio Reliance on audio with no video limits impact
Numerous buys required to overcome small audiences
Limited audience research available
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

5. Exhibit 9.1 Average Daily Share of Time Spent with Each Medium
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

6. ClearChannel
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

7. Radio and New Technology
HD radio offers terrestrial radio stations the ability to deliver additional programming on the same amount of bandwidth with higher-quality sound.
Satellite radio is available by subscription and limits commercial interruption.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

8. Exhibit 9.2 Listeners and Online Radio
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

9. Advantages of Radio as an Advertising Medium (1)
Radio targets.
Radio reaches a majority of the population several hours/day.
Radio advertising influences consumers closest to the time of purchase.
Radio reaches light users of other media.
Radio works well with other media.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

10. Advantages of Radio as an Advertising Medium (2)
Much of radio listening takes place out-of-home.
Radio delivers consistent listening patterns.
Radio delivers messages at a low CPM.
Radio provides advertisers both immediacy and flexibility.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

11. Exhibit 9.4 Radio Reaches Customers Everywhere
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

12. Limitations of Radio Audience fragmentation Clutter
Lack of a visual element
Increased use of MP3 players
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

13. Top Radio Formats Country News/news-talk Religion Variety
Religious contemporary
Adult contemporary
Adult alternative
Spanish
Hot adult
Talk
News stations
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

14. Technical Aspects of Radio
Signal
Frequency
Amplitude
Amplitude modulation (AM)
Frequency modulation (FM)
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

15. Exhibit 9.7 Top U.S. Radio Advertisers
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

16. Radio Networks Benefit from Satellite Technology
Stations are guaranteed quality programming based on latest audience research.
Radio networks bring celebrities that local stations could not afford.
Small stations can obtain national advertising dollars.
Cost efficiencies of shared programming with hundreds of affiliates keep personnel and programming costs low.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

17. Spot Radio
Spot radio means buying radio time on local stations on a market-by-market basis by national advertisers.
Exhibit 9.8 Top U.S. Advertisers in Local Radio
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

18. AM versus FM FM dominates overall listening audience.
AM stations reach older audience.
Talk radio has “saved” AM; HD radio may help further.
Radio is largely devoted to music; especially country.
The quality of the audience is as important as the size (hence, focus on niche markets like jazz).
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

19. Radio Dayparts Daypart Time Morning Drive 6:00 AM to 10:00 AM Midday
10:00 AM to 3:00 PM
Afternoon Drive
3:00 PM to 7:00 PM
Evening
7:00 PM to 12:00 AM
Overnight
12:00 AM to 6:00 AM
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

20. Arbitron Provides Ratings Services
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

21. Issues in Buying Radio Time
Inventory is perishable.
Coordination with other media is a must.
Most radio advertisings sold in packages of spots tailored for each advertiser.
Fixed rate cards rarely exist.
Negotiations determine pricing.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

22. Questions to Pose When Buying Radio
What are the product characteristics and benefits? Can these be relayed through radio?
Who is the target market and can they be reached with radio?
Who is the competition? How are they using radio and other media?
What is our basic advertising and marketing strategy? Is it consistent with radio?
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

23. Steps in Buying Radio Delineate the target market
Select particular stations based on
audience and cost efficiency
Schedule spots
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

24. Differences between TV and Radio Ratings
Radio advertisers are interested in broad formats rather than programs.
Radio ratings measure audience accumulation over a relatively long period of time or several dayparts.
Audiences for individual stations are smaller than for television.
Higher levels of frequency are necessary.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

25. Metro Survey Area An MSA always includes a
city or cities whose population is specified as that of the central city together with the county in which it is located.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

26. Radio Audiences Average quarter-hour persons
Average quarter-hour ratings
Average quarter-hour share
Cume persons
Cume rating
Gross impressions
Gross rating points
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

27. For Discussion
What is the major disadvantage of radio for most advertisers?
What are the primary advantages of radio to advertisers?
Who are the listeners of AM radio? What do they listen to?
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall