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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 l.jpg

Chapter 9 Using Radio


Objectives 1 l.jpg
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 l.jpg
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


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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


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The Cons of Radio

  • Reliance on audio with no video limits impact

  • Numerous buys required to overcome small audiences

  • Limited audience research available


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Exhibit 9.1 Average Daily Share of Time Spent with Each Medium



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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.




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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.


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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.


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Exhibit 9.5 Radio Reaches Customers Everywhere


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Limitations of Radio

  • Audience fragmentation

  • Clutter

  • Lack of a visual element

  • Increased use of MP3 players


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Technical Aspects of Radio

  • Signal

  • Frequency

  • Amplitude

    • Amplitude modulation (AM)

    • Frequency modulation (FM)


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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.


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Spot Radio

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


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Exhibit 9.8 Top U.S. Radio Advertisers


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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).


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Arbitron Provides Ratings Services


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RADAR is the Primary Source of Network Radio Ratings


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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.


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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?


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Steps in Buying Radio

Delineate the target market

Select particular stations based on

audience and cost efficiency

Schedule spots



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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.


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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.


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Average quarter-hour persons

Average quarter-hour ratings

Average quarter-hour share

Cume persons

Cume rating

Gross impressions

Gross rating points

Radio Audiences


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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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