1. Chapter 9
Using Radio

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

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

4. 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.

5. 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

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

7. Exhibit 9.6 People spend more time with radio.

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

9. Exhibit 9.7 Radio reaches customers everywhere.

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

11. Jingle
Jingle -- Folgers

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

13. 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

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

15. 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

16. 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

17. 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

18. Geographical Patterns of Radio Ratings
Metro survey area
Total survey area

19. 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