Chapter 5 - Analysis of Fm Radio Advertising Content
CHAPTER 5 - ANALYSIS OF FM RADIO ADVERTISING CONTENT
194 A. Overview
This chapter is aims to analyse communication strategies and different trends used by FM Radio Advertisements in general and in the selected research area Pune and Lucknow.
Chapter provides brief about the Current State of the FM Radio hidustry, FM Radio Programming, Industry Landscape, Revenue and Analysis of FM Radio Advertisements in Pune and Lucknow.
The Researcher has analysed the product categories of FM Radio Advertisements (in each time slot). Communication strategies and some general trends about the FM Radio Advertisements in each location viz. Pune and Lucknow.
B. Introduction
The Researcher has chosen two FM Radio Station in each selected research area (Pune and Lucknow) through simple random method without replacement. The selected FM Radio Stations in Pune are Radio Mirchi and Radio City and in Lucknow Radio Mirchi and Red FM.
Data coding sheets were used to record the description of FM Radio Advertisements. Each time slot was analysed for 15 consecutive days. The Researcher reviewed the previous studies also for the better understanding and the background information of the research topic.
C. Current State of the FM Radio Industry
The FM Radio sector in India has come a long way and the road ahead is equally exciting. Going by the numbers, India's FM Radio industry accounts for just four per cent of India's total advertising. The small share of FM Radio industry in the overall advertising pie is no surprise considering that radio is not considered to be the primary advertising medium, but it is still very effective in executing regional advertising campaigns.
195 Currently, the advertising revenues comprise more than 85-90 per cent of the total revenue generated by FM Radio companies.^^ The number of FM Radio Stations can be expected to grow multi-fold during the third phase of expansion, attracting the attention of both domestic and international players.
The sector is expected to generate revenue of around INR 14 billion in 2012-13, with 245 private FM Radio Stations operating in 86 cities, and has been growing at a CAGR of 14% annually. ^According to IRS 2012 Q @ data, radio has an estimated audience of 158 million people (out of which FM Radio accounts for 106 million), as compared to 563 million in the TV segment and 352 million in the print sector. Advertising revenues comprise more than 85% -90% of the total revenue generated by FM Radio companies; non FCT sales can contribute up to 20% of a radio company's total revenue today. ^^
Many large companies are now achieving EBIDTA break even after 50%-60% of their license period has expired. This implies that they have very little time left to recoup their accumulated losses. Given limited inventory and revenue growth opportunities, profitability, has been largely achieved by companies by controlling their costs by centralizing their operations, enhancing their employees' productivity and networking their stations.
The key challenges faced by industry today include limited inventory, inability to demonstrate ROI and slow recovery of ad effective rates (ERs). Therefore the need of hour is for the radio industry to collaborate and implement a measurement system the supports the growth of the industry.
Given that smart phone shipments to India are growing at more than 60% per annum and the cost of broadband is expected to reduce to FNR 250 per user per month^^, it is clear that is only a matter of time before internet radio gains significantly in popularity, as audience
^^ www.radioandmusic.com 64 , www.cii.in ^^ http://www.ey.com/IN/en/Newsroom/News-releases/PR_Indias-FM-radio-segment-to-generate- INR14-bn-in-2012-13 ^^http://www.avendus.coni/Files/Fund%20Performance%20PDF/Avendus_Report- India%27s_Mobile_Intemet-2013.pdf 196 move away from music channels to genre specific and niche ones. This could affect the value of FM Radio license in the middle to long term.
With the implementation of Phase III, with 839 frequencies being made available for auction, radio is expected to provide advertiser with a much deeper reach. ^^
More than 50% of FM Radio consumption is in homes, followed by people listening in transit (Mobile phones and in car listening) and out of home listening at restaurants, office and shops. Around 25% of total radio listenership is now on mobile phones, fuelled by handset manufacturers that have made FM Radio as standard feature in most of their models. Some radio companies claimed that their research indicates that mobile phones listenership in metros comprises more than 75% of their total listenership.^^
This is also reflected by the fact that many FM Radio companies. Including Radio Mirchi, Radio City and Big FM, among others, have now commenced radio service on internet. Since the internet and terrestrial FM Radio cater to different sets of audiences, they are both expected to co-exist.
*^ http://pitchonnet.com/blog/2013/04/22/phase-iii-marketers-media-owners-gung-ho-about-radio- advertising/ ** http://pitchonnet.com/blog/2013/04/22/phase-iii-marketers-media-owners-gung-ho-about-radio- advertising/ 197 D. FM Radio Programming
The average composition of an hour of radio programming varies significantly across different radio companies, cities and time bands. Broadly following break-up is the norm:
Table 5.1 - FM Radio programming content (Minute/Hour)
Large Station- Prime Large station- Non- Smaller Time prime time Station
Music 32-40 40-50 40-52
Advertisements 14-17 5-10 4-11
Promotions and 2-5 1-3 1-3 Stationalities
Jock talk 4-6 4-7 3-6
Source: EY survey analysis 2013
The analysis given above does not include the time from midnight to 7a.m. and clearly indicates that demand for prime time radio in large cities is significant. 1. Programming Genre
All stations define music formats such as contemporary, retro, mixed, etc. Some stations broadcast programmes in English and alternate languages. Some use the same format consistently throughout the day, while others use different format during different time band.
Most stations provide same genre of content. Furthermore, given the large amounts paid to acquire license, the content must appeal to a large audience based to most effective monetize investments, and therefore, radio stations generally broadcast content and formats that have mass appeal.
198 However, some stations are beginning to experiment to differentiate their content from that of other stations. Big FM has launched a travelogue format on its stations, which provides details about various tourist destinations in India, while fever FM has introduced radio dramas such as the Ramayana, Gandhi, Bose and Baal Gopal. Radio companies are also experimenting with specific genres. For example. Radio One has transformed its stations in Delhi and Mumbai and only offers English music on these. This helps them attract advertisers looking for target audience groups. Radio One has also differentiated itself in other cities such as in Kolkata, where it airs retro music and in Chennai, where it only broadcast on-demand music.
Their inability to be innovative in their FM Radio programming is driving radio companies to launch online radio stations that cater to niche and specialized tastes. Radio Mirchi has four online radio stations - Meethi Mirchi, which airs modem Bollywood songs, Purani Jeans, which broadcasts retro Bollywood songs, Mirchi Edge which provides music beyond Bollywood and Club Mirchi, which airs Hindi and English club mixes. Radio city also operates three online stations - Web Radio Live, Freedom Radio and Non-Stop Indipop.
ii. Regulations Governing Programming Content
There are restrictions on the type of content on FM Radio Stations can air. According to the Grant of Permission Agreement (GOPA), all FM licenses are required to follow AlR's content and advertising code. ^^
Furthermore, FM Radio Stations are not permitted to broadcast their own news bulletins. This is expected to change after roll-out of phase III, with radio players being allowed to air news bulletins on the AIR.
E. Industry Landscape
Prasar Bharti operates All India Radio (AIR), India's public sector FM Radio service. Air stations broadcast from 267 transmitters that are installed at 246 places across India and its
^"^ National Consultation on Community Radio Policy-EDAA.in 199 FM Radio Stations reach around 42% of India's population. Furthermore, 248 new FM transmitters are being installed in the country under various schemes approved under the eleventh five year plan to further augment AIR's FM terrestrial coverage. AIR is expected to reach around 54% of India's population on implementation of this project. ^"
AIR does not have any FM Radio Stations in 160 of the cities included in phase III license auctions. Prasar Bharti proposes to provide FM transmitters with program production facilities at 20 of these cities. This scheme has been proposed in twelfth plan, subject to availability of funds. Consequently, AIR radio requires more than 500 transmitters to increase its coverage to more than 80% of the country.
i. Revenue
The industry's revenues have been estimated at INR 14.2 billion for 2012-13, and have been growing at a CAGR of 14% over the last three years.^' However, the rate of growth is slowing down due to limited expansion opportunities and the overall economic slowdown affecting all segments of media.
Revenue Growth in FM Radio is Driven By
• Launch of new stations in the A+ and A category towns, allowing for more programming variety to emerge and for new listeners to be acquired. At present there are only 4-9 stations available in these towns, in contrast there are many more TV charmels, newspapers, magazines, outdoor sites and websites available. • Launch of stations across more tier II and tier III cities, which enables radio companies to provide advertisers with a bouquet of channels that can support brand launches across states or regions as a substitute for print or regional TV. • Retention of key sales talent and client relationship. • Extensive focus on events and activations to give more practical solutions to advertisers and enable them to experience the effectiveness of radio.
™ Allindiaradio.gov.in/ ^' Indian Media and Entertainment Industry Report 2013 200 Implementation of an accurate nationwide measurement mechanism that will evaluate returns across FM Radio Stations. ii. Ad Revenue of TV, Print, Cinema, Radio and Internet Media in India
Table 5.2 - Advertising revenue of different media (numbers in crore)
Television Print Radio Cinema Outdoor Internet Total
2007 7,110 8,516 480 104 1,412 350 17,972
2008 8,319 10,050 662 129 1,752 470 21,382
2009 8,492 8,073 681 103 1,419 703 19,471
2010 10,530 10,487 885 118 1,848 1,030 24,898
2011 11,478 11,509 903 140 1,717 1,535 27,282
2012 11,478 11,970 930 151 1,862 2,303 28,694
2013 12,526 12,526 967 166 1,943 3,040 30,808 Est. Source: Indian Media and Entertainment Report 2013
• The growth in advertising revenues in the media industry was moderate in 2012, and is expected to continue moderate base in 2013, owing to a subdued macro environment affecting advertising revenues. However, growth is expected to pick up in the subsequent years. • According to the 2013-Pitch Madison Media Ad Outlook, advertising revenues in 2013 is expected to grow by 7.4% to RSM. 30,808 crore against RSM. 28,694 corer in 2012.
201 • Television and Print expected to remain the dominant category with 39% & 41% respectively in this sector. The new category, internet is growing rapidly and quickly grabbing a larger share of the market.
iii. Growth in Number of FM Radio Advertisers
Advertising revenues comprise more than 85%-90% of the total revenues generated FM Radio companies. Unlike in international radio markets, in which local retail advertisers contributes as much as 75% of station's revenues, retail advertiser's accounts for only 40% of the local advertising revenues, retail advertisers' accounts for only 40% of local advertising revenues of Indian radio companies. Regional radio networks generate the higher proportion of their revenues (averaging between 60%-80% of their total ad revenues) from retail advertisers. In the past three years, retail advertising on FM Radio has grown twice as fast as national advertising. Overall, there is 10%)-20%) growth in the number of advertising campaigns using radio, which is now an integral part of around 50% of all advertising campaigns-rising to as much as 70% of campaigns during festive season.
Table 5.3 - Growth in FM Radio 2005 2009 2010 Jan-Oct2012 Categories 285 336 368 379 Advertisers 1,715 4,515 5,813 5,581 Brands 1,295 6,651 8,585 8,133 Volumes in hours 5,273 30, 405 43,099 41,202 Source: ADEX INDIA, a division of TAM Media Research
202 The Following Table Depicts the Percentage of Total Media Spends Allocated (on an average) by Each Category on Radio:
Table 5.4 - Medi a spends on FM Radio Real Estate 10 to 50% Telecom 6 to 10% TV channels 6tol0% Retails 6 to 10% Handset 6 to 10% Auto <5% FMCG <5% Durables <5% Financial Services <5% Source: Media and Entertainment Industry Report 201
203 F. Analysis of FM Radio Advertisements in Pune and Lucknow i. Product Category of FM Radio Ads and their Frequency in Pune
Table 5.5 - Product category of FM Radio ads and their frequency in Pune
Product Category Frequency Percentage
Automobiles 896 14.94%
Constructions 398 6.64%
Entertainment 445 7.42%
Finance 294 4.90%
Food & Drinks 301 5.02%
Health 708 11.81%
Home Decor 39 0.65%
Insurance 200 3.34%
Jewellers 99 1.65%
Life style 183 3.05%
Online shopping 74 1.23%
Other 1677 27.97%
Real Estate 427 7.12%
Telecom 110 1.83%
Tours & Travels 145 2.42% Grand Total 5996 100.00%
204 *The class 'Other' contains different types of products those cannot be included into any major type and had less counts.
In Pune Radio City and Radio Mirchi were selected to record the advertisements. After recording the advertisements and dividing them into different categories for successive 15 days, The Researcher formed the above table.
The table is showing that in Pune, FM Radio Advertising covers all segments and advertisers from all sector use FM Radio to broadcast their advertisements. After analysing the data coding sheets the Researcher found that FM Radio advertisements could be categorized into Automobile, Entertainment, Tour and travels, Telecom, Real Estate etc.
The development in the spheres of information technology, medical and management education, and networking with the multinational concerns in the various economic enterprises has contributed to the unprecedented growth of new professional middle class in the city. This class by its nature is highly mobile, cosmopolitan and oriented to a life style which celebrates quality consumption, entertainment and sophisticated style of life.
The immigrant segment in the class is quite substantial, and it adds to the city's new cosmopolitan ethos in the realms of culture, consumption pattern and social life. Its cosmopolitanism contributes to the diversification in the all segments of the society. And these diversifications are clearly visible in the pattern of FM Radio Advertising in Pune.
In Pune, 14.96% FM Radio Advertisements belongs to Auto mobile Industry followed by Health (11.81%), Entertainment (7.42%), Real Estate (7.12%), Construction (6.64%) and class 'other'(27.97%) contains different types of products those cannot be included into any major type and had less counts. Left over products categories have less than 5% share in overall FM Radio Advertisements.
The Researcher observed that FM Radio Advertisements in Pune have justified share of local and national advertising. Each sector has its potential customers and according to their availability advertisers decide the frequency and timings of the advertisements. Advertisements also cover on-going events, promotions, sale and offers. Advertisers keep changing their advertisements according to their offers or any other activities.
205 Pune, is culturally very rich, the advertisements related to art galleries, events, fair, sports and other events are the vital part of the FM Radio Advertising here.
The above tables are clearly indicating that, there is significant variation in percentage of advertisements of different class in different locations.
Following is the test of hypothesis to check whether the class of advertisements depends on the location.
HO: The Class of advertisements depends on the Location.
HI: The Class of advertisements independent of the Location.
Table 5.5.1 - Chi-square Test
Test used Value of test statistic d.f. p-value Decision
Chi-Square 1792 16 0.000 Reject HO test
Conclusion: From the test above. The Researcher conclude that the data do not support HO. Hence there is dependency in class of advertisements and the location.
In today's programmatic world of advertising, marketers are becoming better at placing their advertisements in front of the right audience at the right time. The growth and availability of data has spurred this movement. In radio industry, AdEx India, in technical collaboration with AirCheck, a wholly owned subsidiary of RCS Inc., USA, announces the launch of Radio AdEx that will provide 24X7 monitoring data and analysis of advertising expenditures in Radio across 4 metros covering 13 radio stations. With this latest introduction from AdEx India, it completes a powerfiil package of ad monitoring and analysis that covers Newspapers, Magazines, TV and now Radio. Radio AdEx becomes the largest and most technologically advanced radio monitoring and analysis service that will provide quick, accurate and wide range of radio advertising monitors and analyses.
Along with this all leading FM Radio Stations in India offer a number of customized advertising solutions according to the advertiser's target, budget and location.
206 ii. Product category of FM Radio Ads and their frequency in Lucknow
Table 5.6 - Product category of FM Radio ads and their frequency in Lucknow Product Category Frequency Percentage Automobiles 361 6.04% Constructions 3 0.05% Entertainment 578 9.68% Finance 197 3.30% Food and Beverages 1495 25.03% Health 989 16.56% Home Decor 0 0.00% Home decor 26 0.44% Insurance 125 2.09% Jewellers 70 1.17% Life style 167 2.80% Online shopping 0 0.00% Other 1144 19.15% Real Estate 462 7.73% Telecom 94 1.57% Tours & Travels 262 4.39% Grand Total 5973 100.00%
*The class 'Other' contains different types of products those cannot be included into any major type and had less counts.
In Lucknow, Radio City and Red FM were selected for the analysis of advertised products and services. Categories of broadcasted advertisement on FM Radio could be broadly divided into Food and Beverages, Health, Entertainment, Real Estate, Home Decor, Jewellers, lifestyle. Online shopping. Insurance, , Tours and Travels, Telecom and Others
207 (contains different types of products those cannot be included into any major type and had less counts).
From data coding sheets in which advertisements got recorded for consecutive 15 days, The Researcher shaped this above table which is clearly showing that there is more percentage of advertisements related to Food and Beverages and Health sector. Also the percentage of advertisements related to Automobiles, Entertainment and Real Estate is noticeable in Lucknow.
Lucknow FM Radio listeners get exposed to advertisements of Food and Beverages (25.03 %) and Health (16.56%) followed by Entertainment (9.68%) and Real Estate (7.73%).Though the class 'other'(19.15%) contains different types of products those cannot be included into any major type and had less counts. Remaining products In Lucknow could be recalled by less than 6% each. However Construction and on line shopping were not at all identified. From above table it is clear that, there is significant variation in percentage of advertisements of different categories.
FM Radio Stations in Lucknow broadcast more than 25% advertisements related to Food and Beverages and this category of advertisements includes both local and national advertisements. Under the type of local advertisements FM Radio broadcast advertisements related to sweet shops, restaurants. Dairy Products (Amul, Parag), Food Joints etc. And brands like Dominos, Pizza hut, Mac Donald's, Parley G, Maggie, Pepsi, and Coke are the few name come under the national advertising of the food and beverage category.
Other categories like health, lifestyle and Real estate also have the mixture of local and national advertisements. Most local advertisements used to come from the sectors like real estate, jewellers, life style, tour and travels.
Because of low rates of FM Radio advertisements local advertiser prefer FM Radio Advertising and broadcast their advertisements with high frequency. And these local advertisers use FM Radio as a main advertising medium to reach their target customers.
208 The market of Lucknow has huge potential and each and every brand want to reach to their target customers here. National Brands use FM Radio in their advertising campaigns as a supportive medium. FM Radio emerged as very popular and compliment medium to other mediums like television, Print and Outdoor.
In Lucknow, there are all major FM Radio stations are available and they are covering 99% area of the city. The Researcher observed that FM Radio in Lucknow become an indispensable medium of entertainment. People start tuning FM Radio from early morning and they stick to these FM Radio stations till night. FM Radio stations have amazing presence in the routine life of Lucknow's people and it is a strong medium to disseminate advertisements to the customers.
One of the best characteristic of FM Radio is that it gives instant information about local and regional happenings and because of this feature the percentage of advertisements related to entertainment and information about sale and offers is also very high in all FM Radio stations in Lucknow.
209 iii. Classification of Language Used in Pune Radio Advertisements
Table 5.7 - Classification of language used in Pune FM Radio ads Grand Row Labels English Hindi Marathi Other Total Automobiles 513 234 126 23 896 Constructions 110 20 268 0 398 Entertainment 134 89 183 39 445 Finance 4 235 51 4 294 Food & Drinks 7 282 3 9 301 Health 30 240 412 26 708 Home Decor 4 30 5 0 39 Insurance 0 200 0 0 200 Jewellers 22 17 59 1 99 Life style 65 16 102 0 183 Online shopping 74 0 0 0 74 Other 424 732 505 16 1677 Real Estate 141 60 221 5 427 Telecom 0 75 32 3 110 Tours & Travels 8 103 26 8 145 Grand Total 1632 8195 1993 149 11969
210 Table 5.8 - Percentage of FM Radio ads according to language in Pune Grand Row Labels English Hindi Marathi Other Total Automobiles 57.25% 26.12% 14.06% 2.57% 100.00% Constructions 27.64% 5.03% 67.34% 0.00% 100.00% Entertainment 30.11% 20.00% 41.12% 8.76% 100.00% Finance 1.36% 79.93% 17.35% 1.36% 100.00% Food & Beverages 2.33% 93.69% 1.00% 2.99% 100.00% Health 4.24% 33.90% 58.19% 3.67% 100.00% Home Decor 10.26% 76.92% 12.82% 0.00% 100.00% Insurance 0.00% 100.00% 0.00% 0.00% 100.00% Jewellers 22.22% 17.17% 59.60% 1.01% 100.00% Life style 35.52% 8.74% 55.74% 0.00% 100.00% Online shopping 100.00% 0.00% 0.00% 0.00% 100.00% Other 25.28% 43.65% 30.11% 0.95% 100.00% Real Estate 33.02% 14.05% 51.76% 1.17% 100.00% Telecom 0.00% 68.18% 29.09% 2.73% 100.00% Tours & Travels 5.52% 71.03% 17.93% 5.52% 100.00%
Grand Total 13.64% 68.47% 16.65% 1.24% 100.00%
The most common language of Pune, spoken by majority of the population, is Marathi. In fact, Marathi is the official language of state of Maharashtra. Apart from Marathi, Hindi is also one of the languages used commonly in Pune and is used widely throughout the city. A large number of software companies as well as some of the best professional institutions of the country have opened up branches in Pune. This has resulted in a large influx of people from other parts of country as well as the world. As the city is acquiring a cosmopolitan character, and that's why a few changes in its culture are also accruing. English is becoming a part of the languages commonly spoken in the Poona city of India. Apart from that, a number of other Indian languages are also spoken in the city. There is a significant minority of people from Gujarat and Parsis, who speak Gujarati.
211 Radio holds the key that will unite India's linguistic and ethnic diversity and improve the economic disparity and the huge rural-urban divide. "Imagine having your own radio station where you can walk in any time to ask for your favourite music, share some important local event or chat with your neighbour who's now become a celebrity," said media advocacy campaigner Ms. Sucharita S. Eashwar. And FM Radio in Pune is a perfect example of above statement. FM Radio in Pune connects different cultures, class and languages.
Above given data is clearly showing that FM Radio in Pune, broadcast advertisements in various languages. There were 68.47% Hindi advertisements followed by 16.65% Marathi advertisements, 13.64% English advertisements and 1.24% other( Guajarati and some other languages).
The Researcher analysed that Apart from Insurance and Online shopping all other categories broadcast their advertisements in many languages. Insurance sector broadcast its advertisements in Hindi and all Online shopping advertisements broadcast in English.
Mostly Hindi advertisements belongs to the category Food and Beverages (93.69%) followed by Finance (79.93%), Home Decor (76.92%), Tours and Travels (71.03%), Telecom (68.18%). Other (43.65%) and Health (33.90%). Other categories have less than 30% share of Hindi advertising in Pune.
Maximum number of English advertisements comes from Automobile sector, 57.25% advertisements of Automobile sector in Pune broadcast in English. Other sectors like Life Style, Real Estate, Jewellers, Entertainment and Construction and Home decor broadcast more than 10% of their total advertisements in English language.
Highest share of Marathi advertisements in Pune comes from the sector Construction (67.34%) followed by Jewellers (59.60%), Health (58.19%), Life Style (55.74%), Real Estate (51.76%), Entertainment (41.12%) and Other categories have less than 20% of Marathi advertisements in their total advertising share.
212 One thing is noticeable that share of Marathi advertisement is more in local brands as compared to national brands. Division of languages in Pune advertisements is also based on the product segment and their target customer.
Following is the hypothesis to test whether there is dependency in language used for ads and the class of ad at both locations.
HO: The Language of advertisement depends on the Class of advertisement.
HI: The Language of advertisement is independent of the Class of advertisement.
Table 5.8.1 - Chi-square Test
Location Test used Value of test statistic d.f p-value Decision
Pune 4007 26 0.000 Chi-Square test Reject HO Lucknow 0.000 2720 45
Conclusion: From the test above, we conclude that the data do not support HO. Hence there is dependency in Language of ads and the Class of ad for both locations. The language used for a particular ad highly depends on the class of ad at both locations.
Use of local/regional language in FM Radio Advertisements is highly appreciable as well as affordable. In FM Radio, Advertiser has freedom to choose language of their ad- campaign according to the target customers. And sometimes Advertisers broadcast their ad- campaign in more than one language because of the low rates of time-slots. A 30-second ad on radio is often less expensive than a 30-second TV ad and easier to produce.
The Researcher observed that most of the time, local advertisers select local language to broadcast their advertisements. Retail advertisers, those have local outlets in the city or during the sale/offers, broadcast advertisements in local languages i.e. Big Bazaar, Mac Donald's, Hyundai Motors etc.
213 iv. Classification of Language used in Lucknow Radio Advertisements
Table 5.9 - Classification of language used in Lucknow FM Radio ads Grand Product Category English Hindi Marathi Other Total Automobiles 28 333 0 0 361
Constructions 0 3 0 0 3
Entertainment 1 577 0 0 578 Finance 0 197 0 0 197 Food & Drinks 0 1495 0 0 1495
Health 55 921 0 13 989
Home decor 0 26 0 0 26 Insurance 0 124 0 1 125 Jewellers 11 59 0 0 70 Life style 1 166 0 0 167 Other 0 1143 0 1 1144 Real Estate 0 462 0 0 462 Telecom 0 94 0 0 94
Tours & Travels 0 262 0 0 262
Grand Total 1632 8195 1993 149 11969
214 Table 5.10 - Percentage of FM Radio advertisements according language used in Lucknow Grand Product Category English Hindi Marathi other Total
Automobiles 7.76% 92.24% 0.00% 0.00% 100.00%
Constructions 0.00% 100.00% 0.00% 0.00% 100.00%
Entertainment 0.17% 99.83% 0.00% 0.00% 100.00%
Finance 0.00% 100.00% 0.00% 0.00% 100.00%
Food & Drinks 0.00% 100.00% 0.00% 0.00% 100.00%
Health 5.56% 93.12% 0.00% 1.31% 100.00%
Home decor 0.00% 100.00% 0.00% 0.00% 100.00%
Insurance 0.00% 99.20% 0.00% 0.80% 100.00%
Jewellers 15.71% 84.29% 0.00% 0.00% 100.00%
Life style 0.60% 99.40% 0.00% 0.00% 100.00%
Other 0.00% 99.91% 0.00% 0.09% 100.00%
Real Estate 0.00% 100.00% 0.00% 0.00% 100.00%
Telecom 0.00% 100.00% 0.00% 0.00% 100.00%
Tours & Travels 0.00% 100.00% 0.00% 0.00% 100.00%
In Lucknow, languages differ from region to region. Among the most common languages of Lucknow is Hindi, which is spoken all over India. However, the most prominent language spoken in Lucknow is the Urdu language. Though it is an ancient language, it is very much prevalent in Lucknow. In fact, the language is synonymous with Lucknow and is often referred to as Lucknowi Urdu. It is this form of Urdu that is used by most literary figures like poets and novel writers.
Urdu is also the official language of Lucknow. Apart from Urdu and Hindi, many other languages are spoken in different parts of Lucknow. These include the two thousand year
215 old language called Braj, Awadhi, Koshali, Bhojpuri and Koeli. Bhojpuri is a widely spoken language in not just Lucknow but also most of Uttar Pradesh and the neighbouring state of Bihar. The younger generation of Lucknow is well versed in English as most schools and educational institutions impart education in English medium.
The above tables are clearly showing that in Lucknow, FM Radio broadcast advertisements mostly in Hindi and sometimes in English and no other langue used in Lucknow FM Radio advertisements. Although Radio Jockeys' use Urdu words in their presentations but in advertisements the usage of Urdu is negligible. And the main language used in FM Radio Advertisements is Hindi.
The most creative radio advertisements will start with clear identification of the audience, how the product or service can benefit them and then placement of the message when they can hear it. The sum of these components equals the best radio advertising. Placement of message is a very important part of any successful advertisement. And in Lucknow, Mostly Advertisers place their advertisements in Hindi language because of its wide acceptance and popularity in the city.
The Researcher observed that sectors like jewellers, automobile and health always wants to target a niche segment and for attracting those customers' advertisers broadcast their advertisements in English. Hindi is a common and most acceptable language in the city, advertisers can cormects themselves with the masses only with the effective use of Hindi messages. Jingles like "nirma sandal soap", "ghar pe pada hai sona to har sapna sach hona", "aao banaaye kal ke genious parley g" and "nahi huaa nahi huaa horlics" are some very popular Hindi jingles broadcast in Lucknow FM Radio Stations. .
216 V. Language Distribution in Radio City and Radio Mirchi Pune
Table 5.11 - Language distribution in Radio City and Radio Mirchi Pune
Row Labels English Hindi Marathi Other Grand Total Radio CityPune 694 1326 899 81 3000 Radio Mirchi Pune 842 1007 1094 53 2996
Table 5.12 - Language distribution in Radio City and Radio Mirchi Pune (%) Row Labels English Hindi Marathi Other Grand Total
Radio CityPune 23.13% 44.20% 29.97% 2.70% 100.00%
Radio Mirchi Pune 28.10% 33.61% 36.52% 1.77% 100.00%
The cosmopolitan face of the Pune reflects on the broadcasting pattern of all FM Radio Stations of the city. Along with Hindi and English songs FM Radio Stations broadcast Marathi songs also in Pune. Radio Jockeys' speaks in Marathi and Hindi and sometimes in English. Few FM Radio Stations have dedicated shows, those play Marathi songs only.
FM Radio Advertisements in Pune get aired in all languages i.e. Hindi, English and Marathi. Radio City Pune broadcast 44.20% Hindi advertisements followed by 29.97% Marathi advertisements and 23.13% English advertisements.
Radio Mirchi Pune, broadcasts 36.52% Marathi advertisements followed by 33.61%) Hindi Advertisements and 28.10% English Advertisements. Above mentioned data is clearly showing that Pune FM radio advertisements broadcast in different languages.
Radio Stations always put a local flavour in their programming to reach local audience. "We are aiming to give listeners a different experience by getting into the niche areas i.e. by providing them a differentiated programme. So, if the listeners in my State want us to get into different areas of programming we would deliver to them what they want. So, if the listeners want a talk show they will be given, and that's why we are so keen on multiple
217 licenses, which is the key to differentiation." Said, Anvita Nath, National Creative Head, Radio City.
Shows of Radio City Pune, like Latika (A devotional show with Hindi and Marathi devotional music), Kedar Joshi and Filmi Chokri Apurva use so much Marathi content to target the Marathi listeners in City.
Radio Mirchi also aired some shows with so much Marathi content i.e. My Sunday Missal (Sunday mornings with Celebrity RJ's from Marathi Industry as they get the best of Marathi Songs from 7am-10am only on Radio Mirchi) and Kalti Katta {Office kinva college madhun Kalti mara ani Sumit sobat Kattya var Masti mara).
FM Radio stations deliver content of local interest in local language in their shows to reach maximum number of audience. Similarly, FM Radio broadcast their advertisements in local language to target the maximum number of customers. vi. Language Distribution in Radio City and Red FM Lucknow
Table 5.13 - Language distribution in Radio City and Red FM Lucknow Row Labels English Hindi Marathi Other Grand Total
Radio CityLucknow 21 2973 0 2 2996
Red FMLucknow 75 2889 0 13 2977
Table 5.14 - Language distribution in Radio City and Red FM Lucknow (%)
English Hindi Marathi other Grand Total Row Labels
0.70% 99.23% 0.00% 0.07% 100.00% Radio CityLucknow
2.52% 97.04% 0.00% 0.44% 100.00% Red FMLucknow
218 In the selected FM Radio stations in Lucknow, the Researcher analysed the language division in individual station. Radio City, Lucknow broadcast its 99.23% advertisements in Hindi and only 0.70% advertisements broadcast in English.
Red FM Lucknow broadcast 97.04% advertisements in Hindi and 2.52% advertisements in English. Presence of other language in Lucknow is negligible, Hindi emerged as a first choice of advertisers and very few advertisements broadcast in English.
Red FM Lucknow broadcast more English advertisements as compare to Radio City Lucknow.
Red FM is an Indian FM Radio brand, with stations broadcasting at the frequency 93.5 megahertz. It was launched in 2002, playing a mix of Hindi and English songs. However, the programming is now 100% exclusively Hindi. The marketing department of the station is wholly responsible for the advertisement sales of the in-house productions. Apart from offering the available advertisement time in the most effective way, marketing team of the Red FM offers follow up service to its advertisers.
Entertainment Network (India) Ltd chief executive officer Prashant Panday said: "Clients now want Radio+ solutions. Thanks to the economic slowdown, resulting in higher spends on radio; the medium has grown faster than print, TV and outdoors for two years in a row. Moreover, increased use of radio in a creative way by brand integrations coupled with programming, multimedia solutions and integration of digital with radio has been in demand this year." And selection of language for conveys messages to the target customers, is one of most important decision for any advertiser and Radio Station.^^
The market of Lucknow is divided amongst children, youngsters, young adults and aged people; they all like to listen to FM Radio. Advertisers want to reach and target all these
72 http://www.televisionpost.com/printradio/fm-radio-leams-to-live-in-an-inactive-vear/ TelevisionPost.com
219 listeners in a most effective manner. Mostly Advertisers prefer to give their advertisements in Hindi because it is local and most popular language in Lucknow region and listeners from any class can understand Hindi effortlessly. And a few percentages of English advertisements broadcast in Lucknow to reach niche segment. Some specific Advertisers opt English language to attract their targeted customers.
G. Analysis of FM Radio Advertisements in Different Day-parts (Time-Slots)
Commercial radio got a big boost in India following the introduction of FM Radio. The goal of the government in popularizing FM Radio, which is the short form of Frequency Modulated radio, was to improve programme content, and give listeners a wider choice of programmes by allowing private players to set up radio channels. There have been two major initiatives in the introduction of FM Radio. In Phase I that was introduced in 1999, 21 channels were set up in 12 cities. In Phase II that was initiated in 2005, the FM Radio market literally exploded in India. The number of FM Radio Stations grew to 242, and their footprint spread across 85 cities. Phase III aims to take FM Radio to towns with one lakh population. Once this is formally launched, the FM radio will be available in 294 cities and the number of FM Radip Stations will jump to 839.
FM Radio Stations provide a great opportunity for the advertisers to advertise their products and services. The FM broadcasts have already become very popular in both urban and rural markets. Marketers can leverage upon this growing popularity of the FM Radio channels to cost-effectively advertise their products and achieve the objectives of coverage, reach and response.
Advertising of products and services is the route to rope in more customers and improve a company's image. Radio is an effective, low-cost medium for advertising a company's products. The medium of FM Radio has today enabled advertisers to reach out to the audiences cost-effectively and achieve the objectives of coverage, reach and response.
Currently, as far as advertising is concerned, only one-and-a-half percentage of the total advertising spending can be attributed to radio. In other countries around the world, the
220 average ranges from 5-15%. In Sri Lanka, for example, 21% of the total advertising expenditure is spent on radio.^^ This shows the vast potential of the radio as a medium of advertising. It is said that the radio covers almost 89% of the country in terms of area and 97% in terms of population.
In this part of chapter, the researcher trying to analyze FM Radio Advertisements in different time slots. The Researcher has selected two different cities i.e. Lucknow and Pune (representing individual regions of the country) to analyze the various aspects of FM Radio Advertisements in the different time-slots of FM Radio broadcasting.
Below giving tables are representing the data of FM Radio Advertisements of the selected FM Radio Stations i.e. Radio City (Lucknow), Red FM (Lucknow), Radio City (Pune), Radio Mirchi (Pune).
i. Time-Slot with Radio stations
Table 5.15 - Ads according to radio stations in different time-slots 2-5 Grand Radio Station 7-11 AM 5-9 PM 9-11 PM PM Total Radio 899 750 897 450 2996 CityLucknow Red FM 898 750 882 447 2977 Lucknow Radio City 900 750 900 450 3000 Pune Radio 899 749 900 448 2996 MirchiPune
Grand Total 3596 2999 3579 1795 11969
" http://www.iupindia.in/506/MM_FM_Radio_l2.html
221 Chart 5.1 - Percentage of ads according to radio stations in different time-slots
Percentage of of ads
119-11 PM U 5-9 PM H2-5PM H 7-11 AM
RM Pune
Most FM Radio Stations have Radio Jockeys that play music from a playlist determined by the program director, arranged by blocks of time. Though practices differ by region and format, what follows is a typical arrangement in a FM Radio Station in India.
The first block (time-slot) of the day is the "morning drive time" block in the early morning. Nielsen Audio defines this block between 6 a.m. and 10 a.m., though it can begin as early as 5 a.m. (though usually not later than 6), and end as early as 9 a.m. or as late as 11 a.m. This block usually includes news bulletins and traffic and weather advisories for commuters, as well as light comedy from the morning Radio Jockeys team. Some stations emphasize music, and reduce gags and call-ins in this period.
The midday block (defined by Nielsen Audio as 10 a.m. to 3 p.m., though often extended later to about 5 p.m.) is mostly music. For a period around noon a station may play nonstop music or go to an all-request format for people eating lunch. This block is often occupied by a "no-repeat workday;" stations that offer this feature usually target captive audiences
222 such as retail workers, who have to listen to the station for long periods of time and can become irritated by repetition.
In the early evening, or "afternoon drive" (defined by Nielson Audio as 3 to 7 p.m.), the evening rush-hour programming resembles the midday programming, but adds traffic and weather advisories for commuters. Some stations insert a short snippet of stand-up comedy ("5 O'clock Funnies") around 5 o'clock when commuters leave work, or play specifically selected "car tunes" ideal for listening while driving.
The evening block (defined by Nielson Audio as 7 p.m. to midnight), if present, returns to music.
The overnight programming, from midnight to the beginning of drive time, is generally low-key music with quiet, if any, announcing. Some stations play documentaries or even infomercials, while some others play syndicated or voice tracked Radio Jockeys. Complete automation, with no jock, is very common in this day part. It is not uncommon to play more adventurous selections during late night programming blocks, since late night is generally not considered significant for ratings.
Weekends, especially Sundays, often carry different programming. The countdown show ranking the top songs of the previous week. Other types of weekend programming include niche programming, retrospective shows and world music Hour. Stations may carry shows with different genres of music such as religious, classical, retro and regional music.
Every FM Radio Station has its rate card (divided into day parts). Advertisers select radio station and time slots according to their budget and target customers.
Above giving table is clearly showing that the numbers of broadcasting FM Radio Advertisements are highest in morning (7-11AM) and evening (5-9PM) time slots in all selected FM Radio Stations in Lucknow and Pune.
After noon (2-5PM) time slot has second highest number of FM Radio Advertisements frequencies in all selected FM Radio Stations in Lucknow and Pune.
223 Night (9-12PM) time slot has minimum number of advertisements in selected FM Radio Stations in Lucknow and Pune.
Another noticeable finding is that number of broadcasting advertisements is nearly similar in Lucknow and Pune in all time slots.
In the following, Researcher tests whether there is any dependency in time slots and radio stations for number of advertisements.
Ho = The slots and radio stations are independent of each other.
Hi = The slots and radio stations are not independent of each other.
Following is the table of expected cell count.
Table 5.15.1 - Expected Cell Counts
Grand Radio Channel 7-11 AM 2-5 PM 5-9 PM 9-11 PM Total
Radio 900.13 750.69 895.87 449.31 2996 City_Lucknow
Red FM Lucknow 894.42 754.93 890.19 446.46 3000
Radio City PUNE 901.33 751.69 897.07 449.91 2977
Radio 900.13 750.69 895.87 449.31 2996 MirchiPune
Grand Total 3596 2999 3579 1795 11969
224 To test above hypothesis, Researcher used chi-square test. The resuh of this test is as below,
Table 5.15.2 - Chi-square Test
Chi-square Attributes d.f. P-value Decision value
Time slot Accept 0.161 9 1.00 Radio Channel HO
Conclusion: As P-value of the test is greater than 0.05, we accept Ho and conclude that the time slots (day parts) and radio stations are independent of each other. This means, the number of advertisements in any given time slot does not depend on radio channel.
FM Radio is the most flexible medium because of very short closing periods for submitting an advertisement. This means an advertiser can wait until close to an air date before submitting an advertisement. With this flexibility of simple formats such as voice only can be created almost immediately to reflect changing maiket conditions advertisers can take advantage of special events or unique competitive opportunities in a timely fashion. FM Radio also offers timeless, immediacy, local relevance and creative flexibility. The personal nature of radio, combined with its flexibility and creativity, makes radio the choice for numerous product categories. The musical formats that attract audiences to radio stations can also attract attention to radio advertisements. Audiences that favour certain music may be more prone to an advertisement that uses recognizable, popular songs.
FM Radio advertisers have so many options. Advertisers know their target customers and according to that they select radio station and day parts for broadcasting the advertisements.
225 ii. Slot with language: Ads According to Time-slot and Language
Table 5.16 - Ads According to Time-slot and Language Grand Language 7-11 AM 2-5 PM 5-9 PM 9-11 PM Total
English 540 272 486 334 1632
Hindi 2420 2255 2366 1154 8195
Marathi 609 434 692 258 1993
More than 1 27 38 35 49 149
Grand Total 3596 2999 3579 1795 11969
Chart 5.2 - Percentage of ads according to language in different time-slots
Percentage of of ads 100% 90% 80% 70% 60% M9-11PM 50% U 5-9 PM 40% H2-5PM 30% 117-11 AM 20% 10% 0% 1 English Hindi Marathi More than 1
Be it a radio, TV, cinema, press, Internet or outdoor advertisement, language is always an element of the utmost importance.
226 Above table is presenting the usage of local, national and international languages in FM Radio Advertisements in selected areas.
From above table and graph, we see that in morning slot (7-11 am) the number of advertisements in given languages is nearly same. In the afternoon slot (2-5 pm) the percentage of Hindi advertisements is more and it is less than other language ads in evening slot (5-9 pm).
The percentage of English advertisements is more in the morning (7-11 am) and evening slot (5-9pm). Marathi (Local language) used most in evening slot (5-9pm) advertisements.
"Words used in their proper order and in a pleasing manner would readily be accepted and obliged by the world" says Thiruvalluvar (Circa 100 B.C., kuRaL: 648), an ancient Tamil poet, highlighting the importance of language used in making human communication highly effective. This is true not only of language use in interpersonal communication at an informal level but also in the fields of education, administration and mass communication at a formal level. Mass communication plays a vital role in the overall development of the modem society through quick dissemination of information pertaining to all aspects of life to a wider public. In this respect, the different media used such as newspapers, magazines, radio and television aim at brevity, preciseness and clarity of information besides attempting to inform, attract and persuade people towards certain action or change. In this endeavor, the way language is used remains an important influencing factor, which demands a systematic study.
Advertising is a form of mass communication closely linked with the world of commerce and marketing. It is a powerfiil tool for the flow of information from the seller to the buyer. It influences and persuades people to act or believe. It is also something which affects most of us in a number of different spheres of our lives. It not only influences any human society but also reflects certain aspects of that society's values and structure. There are many special and specific reasons for using advertising in its several forms. Announcing a new product or service, expanding the market to new buyers, announcing a modification or a price change, educating customers, challenging competition, recruitment of staff and
227 \
attracting investors are a few such reasons. In the process of creating advertisements for all these reasons, language, i.e., choice of expression is of crucial importance. What kinds of choices make an advertisement highly effective is something worthy to be studied from a linguistic perspective.
Both radio and television are broadcasting media. Communication in radio is only through sound while it is through a combination of sound, sight (picture) and motion in television. Radio demands only listening while television demand both listening and viewing. Both radio and television advertisements are made attractive with the help of background music, voices on or off, product sounds and different other sound effects. The motion picture gives an additional effect to the television advertisements. What is sold in both the media is time. Since both radio and television involve oral communication, the demand for the use of spoken style of language is more when compared with the magazines.
The advertisements can be classified into non-commercials and commercials on the basis of the object and purpose involved in advertising. In non-commercial advertisements, selling and buying are not involved and certain ideas, morals or appeals are communicated to the common public from government agencies or various associations and societies. The purpose may be related to charity, political propaganda, or different social welfare measures. Commercial advertisements are sub classified into commercial consumer advertisements and prestige advertisements. The commercial consumer advertisements involve consumer goods such as cosmetics, medicines etc., while the prestige advertisements include services like banking, insurance etc., of the different classes of advertisements, the commercial consumer advertisements are the most prominent in terms of both quality and quantity.
A successful advertisement is expected to accomplish five functions namely (1) attracting attention (2) commanding interest (3) creating desire (4) inspiring conviction and (5) provoking action. (Jefkins,1973 ; Vestergaard and Shrodder, 1985). All these five functions are inter-related and in concert serve to promote the selling power of the product advertised. In achieving these fiinctions in the production of an advertising copy, an effective use of language becomes all the more important. Commenting on the extreme care
228 that one should take with regard to the use of language in advertisements, Ranade (1998) states: 'Incredible, the amount of damage one may cause with a slight play on words here and there or a twist in the title, or even by the willful omission of a single comma'.
Radio is a fantastic medium to local advertisers as it allows them to reach out to the local community in their local language and cost effective way.
In the following. The Researcher tests whether there is any dependency in time slots and language of advertisements.
Ho = The time slots and language of advertisements are independent of each other.
Hi = The time slots and language of advertisements are not independent of each other.
Following is the table of expected cell count.
Table 5.16.1 - Expected Cell Count 7-11 9-11 Grand Language 2-5 PM 5-9 PM AM PM Total
English 490.32 408.92 488 244.75 1632
Hindi 2462.13s 2053.37 2450.49 1229.01 8195
Marathi 598.78 499.37 595.95 298.89 1993
More than 1 44.77 37.33 44.55 22.35 149
Grand Total 3596 2999 3579 1795 11969
229 To test above hypothesis, we can use chi-square test. The resuh of this test is as below,
Table 5.16.2 - Chi-square Test
Chi- Attributes square d.f. P-value Decision value
Time slot Reject 182.154 9 0.00 HO Language
Conclusion: As P-value of the test is less than 0.05, we reject Ho and conclude that the time slots and language of advertisements are dependent of each other. This means, the language of advertisements depends on the time of presenting the advertisement.
When Advertisers promote their business through radio, it's important for both the prospect and the radio station to approach the endeavour from a realistic perspective - that not all radio stations are all things to all marketing objectives.
Advertising is an effort to influence the buying behaviour of the customers by offering a persuasive selling message about the products and services. FM Radio has an advantage that advertisers may convey their messages in the local language of the customers and during that period of time, when the proximity of listening to that message is highest.
FM Radio Stations in Pune and Lucknow have so much variety in their shows and play songs of different moods, styles and languages to cater the interest area of all kind of listeners. Accordingly, advertisers select language and style of their advertisements too.
230 iii. Time-Slot with Location: Ads According to Time-slot and Location
Table 5.17 - Ads According to Time-slot and Location 7-11 9-11 Grand Location 2-5 PM 5-9 PM AM PM Total
Lucknow 1797 1500 1779 897 5973
Pune 1799 1499 1800 898 5996
Grand Total 3596 2999 3579 1795 11969
Chart 5.3 - Percentage of ads according to locations in different time-slots
Percentage of of ads 100%
80% m mi] N' M9-11PM 60% U 5-9 PM 40% H 2-5 PM ^^^ 117-11 AM 20% 1
0% Lucknow Pune
From above table and graph, we see that the percentage of advertisements in any time slot is virtually similar in two different locations.
The Researcher recorded the advertisements aired in same time-slot (day-part) of two different location viz. Pune and Lucknow. Recorded data indicated that, numbers of broadcasted advertisements were nearly equal in same day-part of Pune and Lucknow.
231 Radio has come a long way since the transistor era. Today, listeners have multiple access to FM Radio through mobile phones, in-car listenership, particularly during drive time, restaurants, coffee shops and public transport to name a few, an FM Radio phenomenon that is peculiar to urban India is becoming popular in other parts of the country.
In addition to this, FM Radio Stations are said to earn huge chunk of their advertising revenues from the metros. But all this could change with the soon-to-be-launched Phase 3 that will witness the addition of 839 FM Radio Stations in nearly 300 new cities having a population of one lakh and above. This is expected to further increase the reach of private FM Radio Stations across the country, which, in turn, will lead to a spike in the advertising share of the medium.
While the metros are saturated with radio players and with advertisers looking for options to widen their nets, industry observers are of the view that the next phase of growth in FM Radio will come from the tier 2 and tier 3 cities. This phenomenon, they say, will explode in a big way once Phase 3 becomes a reality.
Most industry players are of the view that time spent on radio in small towns and cities is much more than in metros like Mumbai and Delhi. Besides, most of the non-metros are said to face a lot of power cuts, hence more time is spent on listening to radio, which becomes an alternative source of entertainment and information.
"Radio is extremely effective in Tier 2 and 3 cities. In the smaller towns, the share of radio is higher than what it is in the bigger towns. In some markets, the share of radio is as high as 20 per cent of the print market. This is a reflection of the effectiveness of radio" said Prashant Panday, CEO, Radio Mirchi.^''
With such effectiveness in the smaller towns and cities, most big advertisers these days are shifting their focus beyond metros, particularly towards the rural markets. Radio is believed to play an effective and constructive role in delivering better ROIs (Return on Investment)
http://www.mxmindia.com/2012/02/radio-players-expect-boom-in-small-town-india/
232 for brands in these markets, particularly as other mediums are either too expensive or do not provide good reach.
"Since the level of activity in these markets is lower than in metros, people have more time to spend with themselves. This is where radio fills the gap. An increase in number of FM- enabled handsets has further increased the consumption of radio," pointed out Harrish M Bhatia, CEO, MY FM."
"Radio measurement surveys conducted by RAM have proved that the average time spent listening to radio per day is 244 minutes in Nagpur and 206 minutes in Jaipur as compared to 127 minutes in Mumbai and 124 minutes in Delhi (Source: RAM Sweeps 1.0)," he added.
Nowadays, a lot of advertisers use television and print as a lead reach medium whereas radio is used as an amplifying medium. Industry observers are of the view that after Phase III expansion, radio is likely to be seen by advertisers and marketers as a reach medium, especially for the national advertisers. As a result more advertisers are likely to use radio- led advertisements instead of using it just a complementary advertisement medium.
But the real magic of FM Radio, its reach, effectiveness in metros, mini metros and rural markets is likely to be seen only after the launch of FM Phase III. As of now, the cities which do not have private FM radio are eagerly waiting to experience the medium.
In the following, researcher tests whether there is any dependency in time slots and location.
Ho = The time slots and location are independent of each other.
Hi = The time slots and location are not independent of each other.
Following is the table of expected cell count.
^^ http://www.mxmindia.com/2012/02/radio-plavers-expect-boom-in-small-town-india/
233 Table 5.17.1 - Expected Cell Count
Grand Location 7-11 AM 2-5 PM 5-9 PM 9-11 PM Total
Lucknow 1794.54 1496.62 1786.06 895.78 5973
Pune 1801.46 1502.38 1792.94 899.22 5996
Grand Total 3596 2999 3579 1795 11969
To test above hypothesis, we can use chi-square test. The result of this test is as below,
Table 5.17.2 - Chi-square Test
Chi-square Attributes d.f. P-value Decision value
Time slot 0.081 3 0.99 Accept HO Location
Conclusion: As P-value of the test is greater than 0.05, we accept Ho and conclude that the slots and location are independent of each other. This means, the number of advertisements in any the time slot does not depend on location.
Radio Stations in Pime and Lucknow, have similar kind of programme genre. Radio stations follow a slandered division of day parts and decide their rate cards according to that. Number of advertisements in any time slot is totally depends on the duration of show.
234 iv. Time-Slot and Type of Ads: Ads According to Time-slot and Type
Table 5.18 - Ads According to Time-slot and Type of Advertisements 7-11 9-11 Grand Ad Category 2-5 PM 5-9 PM AM PM Total
Local 971 796 1019 438 3224
National 2147 1820 2238 1160 7365
Other 478 383 322 197 1380
Grand Total 3596 2999 3579 1795 11969
Chart 5.4 - Percentage of ads according to type of ads in different time-slots
Percentage of of ads
M9-11PM u 5-9 PM m 2-5 PM H 7-11 AM
Local National Other
FM Radio targets audiences efficiently because different stations attract different listeners. This allows advertisers to talk selectively to the groups they are most interested in. Added
235 to this is FM Radio's regional/local structure, which means that brands can focus their activity very effectively onto key market areas.
In Pune and Lucknow, National and Local advertisers, both prefer giving advertisements in FM Radio. Above table and graph, are clearly showing that the share of national advertisements is more than local/regional advertisements in all time slot (day-part) in both selected locations.
At an all-India level, the share of national advertisers in radio is more than that of regional advertisers. Globally, the local retail segment constitutes a large part of radio's advertising income. As per the CII-KPMG report, while local advertising contributes 70% of radio revenues in the United States of America, In India, the share of local advertising is only about 8% of radio revenues. Ideally, a localized medium like radio can be effectively used for local- level promotions apart from being bundled as part of cross-media promotion strategies. Thus there is a huge potential for the radio industry to benefit from an expected increase in the share of local advertisements.
Around 90 per cent of the cities for which frequencies will be auctioned belong to tier II or tier III categories. Going forward, different players are expected to strategies differently for auctions. Some national players plan to fill current gaps in their network while others plan to expand aggressively in South India. Local players would most likely look to consolidate in their current regions, states the report. It adds that apart from content and advertising, radio is also growing at the back of the rising usage of digital media. While terrestrial is the mainstay of radio, many broadcasters are tapping into the digital world in various ways.
While national advertisers are increasingly flocking to the tier 2 and tier 3 markets, local advertisers such as retail outlets, education institutes, real estate, auto outlets and others are also said to be increasingly advertising on radio. While metros may bring a significant chunk of revenues for larger FM Radio Stations, it is learnt that the advertising revenues from tier 2 and tier 3 markets are growing significantly year on year.
Players are now realizing that niche offerings such as Camatic music, devotional music and more in regional languages or even mainstream music in regional languages can gain
236 significant traction with local as well as global audiences. Radio City brings Tamil music to its online listeners through its first regional stream Radio City Tamil launched in July 2013. Apart from Radio City, Radio Josh also launched an online Telugu radio station.'^
Innovation in programming content on radio is the driving force to attract and retain listeners. The customization was limited to only music with most programming cantered on music. However, stations are now diversifying into different kinds of content and activities in order to differentiate and suit the listener's palate. This has further strengthened their engagement with audiences by creating a strong coimects based on local customization.
According to Narendra Kumar Alambara, Vice President, Starcom Mediavest Group, Chennai, both retail and national brands will gain by using radio in the smaller markets. While retail will be able to gauge the efficacy of the medium in the market, national brands will be able to tap into these markets with more focus. "Radio is as good as any medium in smaller towns. Given the smaller geographies and the relative newness of FM in these markets, it has that edge, but ultimately the medium has to transcend from being just an entertainment/information media into being a medium that can deliver results for the brand."^^
The challenges, too, are many for FM Radio in these growth markets. The challenges relate to filling up the entire available inventory. Local businesses are not strong enough to fill it up. So radio stations have to rely heavily on business from national clients. Apart from this, for some stations there is the constant battle to keep profitability intact.
R Venkata Subramanian, Senior Director-Investments, MPG India noted: "The is no strong local media in many of these tier 2 and 3 cities, and this is where radio has the potential to be a highly effective and reach building medium. The challenges, however, include the emotional connect with the RJs and how effective the FM station actually is. There is a need for better radio commercials. One other challenge for the radio industry in these
^^ http://www.televisionpost.coni/printradio/southem-private-fm-radio-industry-to-grow-at-19-cagr- to-rs-830-crore-in-fy-201II ^^ http://www.mxmindia.com/2012/02/radio-players-expect-boom-in-small-town-india/
237 markets is the lack of a good credible measurement system, which will measure the effectiveness of radio commercials and listenership." But a Big FM spokesperson countered: "The radio, as a medium, enjoys much higher visibility and it is the only medium that people can relate to as it is customized to those markets and hence it will have a much better appeal."^*
In the following, The Researcher tests whether there is any dependency in time slots and type of advertisements.
Ho = The slots and type of ads are independent of each other.
Hi = The slots and type of ads are not independent of each other.
Following is the table of expected cell count.
Table 5.18.1 - Expected Cell Count 7-11 9-11 Grand Ad Category 2-5 PM 5-9 PM AM PM Total
Local 193.49 161.36 192.57 96.58 3224
National 630.93 526.18 627.95 314.94 7365
Other 414.61 345.78 412.65 206.96 1380
Grand Total 3596 2999 3579 1795 11969
To test above hypothesis, we can use chi-square test. The result of this test is as below,
^* http://www.mxmindia.com/2012/02/radio-players-expect-boom-in-small-town-india/
238 Table 5.18.2 - Chi-square Test
Chi- Attributes square d.f. P-value Decision value
Time slot 133.65 12 0.00 Reject HO Ad Category
Conclusion: As P-value of the test is less than 0.05, we reject Ho and conclude that the slots and type of advertisements are dependent of each other. This means, the type of advertisements depend on the time slot of presenting the advertisement.
Advertisers select time slot according to their budget and the content of the programme. Prime time (7-11 am and 5-9pm) usually has high advertising rates as compare to other slots. Content of the show is another factor of selecting any time slots for the advertiser i.e. Khoobsurat (11am to 2pm) is a female oriented show of Radio Mirchi, will be more successful in targeting female customers.
Leading FM Radio stations like Radio Mirchi, Red FM and Radio City have in-house research and advertising agencies and they provide customized services and effective timings (time-slots) to advertisers for the maximum benefits.
239