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
9-2
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
9-3
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
9-4
The Cons of Radio
• Reliance on audio with no video limits
impact
• Numerous buys required to overcome
small audiences
• Limited audience research available
9-5
Exhibit 9.1 Average Daily Share
of Time Spent with Each Medium
9-6
ClearChannel
9-7
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.
9-8
HD Radio
9-9
Exhibit 9.2 Online Radio Listeners
9-10
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.
9-11
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.
9-12
Exhibit 9.5 Radio Reaches
Customers Everywhere
9-13
Limitations of Radio
• Audience
fragmentation
• Clutter
• Lack of a visual
element
• Increased use of
MP3 players
9-14
Technical Aspects of Radio
• Signal
• Frequency
• Amplitude
– Amplitude
modulation (AM)
– Frequency
modulation (FM)
9-15
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.
9-16
Spot Radio
Spot radio means buying radio time on
local stations on a market-by-market
basis by national advertisers.
9-17
Exhibit 9.8
Top U.S. Radio Advertisers
9-18
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).
9-19
Arbitron Provides
Ratings Services
9-20
RADAR is the Primary
Source of Network Radio Ratings
9-21
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.
9-22
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?
9-23
Steps in Buying Radio
Delineate the target market
Select particular stations based on
audience and cost efficiency
Schedule spots
9-24
Exhibit 9.9 Radio Dayparts
9-25
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.
9-26
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.
9-27
Radio Audiences
• Average quarter- • Cume persons
hour persons • Cume rating
• Average quarter- • Gross impressions
hour ratings • Gross rating points
• Average quarter-
hour share
9-28
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?
9-29