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Chapter 9 Using Radio

Chapter 9 Using Radio. Objectives_1. Understand The role of radio as a selective medium Radio’s strength as a secondary medium Radio’s ability to reach audiences at a low cost. Objectives_2. Understand Attempts to overcome radio’s lack of a visual dimension

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Chapter 9 Using Radio

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  1. Chapter 9 Using Radio

  2. Objectives_1 Understand • The role of radio as a selective medium • Radio’s strength as a secondary medium • Radio’s ability to reach audiences at a low cost

  3. Objectives_2 Understand • Attempts to overcome radio’s lack of a visual dimension • Different roles of AM and FM radio • The rating systems used in radio

  4. The Pros of Radio • Primary medium for targeting narrow audience segments • Mobile medium going with listeners into the marketplace • Medium with relatively low production costs and immediacy • Personal relationship with audience • Supplemental medium to build reach and frequency

  5. The Cons of Radio • Reliance on audio with no video limits impact • Numerous buys required to overcome small audiences • Limited audience research available

  6. Exhibit 9.1 Average Daily Share of Time Spent with Each Medium

  7. ClearChannel

  8. 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.

  9. HD Radio

  10. Exhibit 9.2 Online Radio Listeners

  11. 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.

  12. 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.

  13. Exhibit 9.5 Radio Reaches Customers Everywhere

  14. Limitations of Radio • Audience fragmentation • Clutter • Lack of a visual element • Increased use of MP3 players

  15. Technical Aspects of Radio • Signal • Frequency • Amplitude • Amplitude modulation (AM) • Frequency modulation (FM)

  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.

  17. Spot Radio Spot radio means buying radio time on local stations on a market-by-market basis by national advertisers.

  18. Exhibit 9.8 Top U.S. Radio Advertisers

  19. 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).

  20. Arbitron Provides Ratings Services

  21. RADAR is the Primary Source of Network Radio Ratings

  22. 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.

  23. Questions to Consider 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?

  24. Steps in Buying Radio Delineate the target market Select particular stations based on audience and cost efficiency Schedule spots

  25. Exhibit 9.9 Radio Dayparts

  26. 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.

  27. 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.

  28. Average quarter-hour persons Average quarter-hour ratings Average quarter-hour share Cume persons Cume rating Gross impressions Gross rating points Radio Audiences

  29. 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?

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