1. To assess historical information regarding advertising through radio. 2. To evaluate the reasons radio is a successful advertising medium. 3.

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2 1. To assess historical information regarding advertising through radio. 2. To evaluate the reasons radio is a successful advertising medium. 3. To understand the steps associated with purchasing a radio advertisement. 4. To recognize the process in creating a radio advertisement. 2

3 Radio Advertisement Basics Designing & Purchasing 3

4 4

5 First began broadcasting in the 1920s Development of AM and FM radio in the mid 1930s Development of Digital Audio Broadcasting in the late 1990s 5

6 1900 s 1910 s 1920 s 1930 s 1940 s 1950 s 1960 s 1970 s 1980 s 1990 s May : the first broadcasting station officially opened 1952: transistors were first produced commercially 1925: the modern type of receiver called a super heterodyne appeared December 12, 1901: Marconi succeeded in transmitting a signal across the Atlantic Ocean 6

7 Is a highly successful medium of advertising for the following reasons: ability to target specific demographics reaches a large number of consumers low costs high potential for creativity - 7

8 Include several different general formats of music such as: news/talk/information: news, sports, talk adult contemporary Latin: Hispanic all varieties contemporary hits: pop, rhythmic urban country rock oldies alternative new AC/Smooth Jazz religious 8

9 Is the task of choosing who an advertisement is directed toward Can be accomplished by analyzing listener habits listener habits can often be traced to demographics such as age, sex and ethnicity 9

10 Example 1: Top Formats Based on Age Group Age Format Teens contemporary hits (Pop), urban Adults contemporary hits, urban, Latin Adults Latin, contemporary hits, adult contemporary Adults adult contemporary, news, Latin Adults news, adult contemporary, rock Adults news, adult contemporary, country Adults 65 + news, country, adult contemporary

11 Is another level of demographics available to trace listener habits Example: Listeners Based on Ethnicity Format news/talk/information urban contemporary Listener 90.1% Other, 4.3% Hispanic, 5.6% African American 15.1% Other, 7.2% Hispanic, 77.7% African American Based on the above information, if a product s target market is the African American population, the product might have more success if advertised on an urban contemporary station rather than the 11 news/talk/information format

12 Reaches 93 percent of consumers each week Reaches 72 percent of consumers each day Reaches more than 228 million Americans in just one week Consumers Reached Every Day Consumers Not Reached Every Day

13 The average person spends more than 700 hours per year listening to the radio Consumers listen to the radio at home, in the car and at work Many people often listen to the radio while performing other tasks this increases listening time 13

14 Gives radio advertising an advantage over many other mediums the lack of a visual spurs the imagination the mind must create a visual to accompany what one hears this holds the listeners interest and keeps their attention 14

15 Compared to other advertising mediums such as newspaper, television and magazine Most cost effective due to the price/reach ratio reaches more people per dollar spent on advertising Television spots can cost up to two to three times the amount of a radio spot of the same duration 15

16 16

17 1. Decide what you are trying to communicate to the listener new business opening brand recognition promotion, sale 2. Develop content and write the script cast talent: voice and music 17

18 3. Record the advertisement obtain an extra copy of the recording for use by multiple stations if necessary 4. Purchase a time slot at selected station(s) 18

19 Before buying a radio spot do the following: research each station s primary demographic know station s frequency and reach find out cost per point do not tell the station what your target market is so they do not attempt to match their radio station to your target demographic request media kit: negotiate costs 19

20 Production fees staff time to produce the commercial recording expenses Dubs and talent fees voice talent: voice of your advertisement music: custom music, background, jingles generally talent fees are less than $2,000 20

21 Is based on stations local rating Arbitron is a company developing semiannual projections (through testing methods) on what stations are being heard, on which days, on what time of day and who is listening Price is then based on cost-per thousand people age 12 and up who listen to the station 21

22 If the base rate is $7.00 per thousand, and XYZ-FM has an average audience of 10,000 in the afternoon hour, rate will start at a minimum of $70.00 ($7.00 * 10) for a radio spot 22

23 Include the following: time of day morning drive lunch hour afternoon: rush hour, drive home these times are very high traffic times, which means there is a higher rate of listeners» higher rates of listeners yield a more expensive spot day of week Thursday and Friday are the most expensive days for a radio spot due to the higher rates of listeners on these days of the week 23

24 Includes three main elements common to all radio advertisements: attention grabbing opener draw in listener catch attention before the listener changes the station major content retain interest so the listener will receive the actual message call to action 24

25 Should grasp the attention of the listener the listener is usually occupied performing another task while listening to radio, so full attention is not given to the radio to capture listener s attention create a tie to emotions mystery, humor, fear/concern, love, hope 25

26 Should inform the listener of why they should be interested Should inform the listener of why they should want the product Should inform the listener of what advantages the business/product offers 26

27 Prompts the listener to take action go out to buy a product, go into a store, call a number for more information, search a website for more information Information should be given at this point in the advertisement address, telephone number, web address, days and hours of operation, names of contact people, etc. 27

28 Ensure the radio station best fits your target customer Decide whether the radio advertisement should be changed to a different time Decide if it would be advantageous to run the advertisement on more than one station Obtain feedback concerning public opinion of the advertisement Prevent running the same advertisement for too long 28

29 Of the efficiency of radio advertising is escalating in technology PPM, or the Personal People Meter is a new device used to detect a consumer s exposure to an audio broadcasting This device recognizes the stations being heard by the consumer The device sends the information to Arbitron for evaluation daily 29

30 Should include the following considerations: voice should be enthusiastic look for originality avoid the typical repetitive radio voice 30

31 Is a key factor in capturing and retaining the attention of the consumer emphasize specific jargon to gather the attention of a specific group ex. one would use different vocabulary when conversing with a politician than with a junior high school student should concentrate on telling a story rather than listing facts and information should be expressed in a casual, conversational manner jargon: specialized language differing in groups, professions and cultures 31

32 To bring in more customers provide vivid examples which will stay in the listener s mind be distinct, separate yourself from all other ads convince the listener your business/product is better than the competition 32

33 May be used to add creativity to an advertisement and draw listener s attention background music and tunes if tune is catchy, it will stay in consumer s mind can create brand awareness if consumer associates tune/song with the business sound clips ex. a radio spot advertising a water park might use the sound of splashing water 33

34 By adding other creative elements to the radio spot on-going theme gives the listener something to look forward to is a way to keep the interest of the reader as they become familiar with the advertisement create a custom jingle an advertisement and commercial in one What commercials or radio advertisements can you name with an on-going theme? 34

35 Demeaning the competition or inaccurately portraying a competitor Using deception and lies this may seem like a given, but many businesses attempt these practices listeners know when they are being sold to Forgetting legal disclaimers or forgetting to add in the fine print can get your business into legal trouble 35

36 Enables digital broadcasting of AM and FM stations Is the most momentous change in radio broadcasting in the last 50 years Allows for many more format/channel choices Generates higher quality sounds on both AM and FM stations Contains more specialized stations which have the ability to more accurately target a certain consumer 36

37 Is also known as digital radio Is satellite based radio transmitted from space Broadcasts CD-quality music Offers hundreds of channels Provides 100 percent commercial free radio on most music channels Requires monthly subscription fees 37

38 Requires purchase of a receiver unit in most cases Channels remain uninterrupted when traveling from state to state or city to city Was made available by the two largest providers: XM Satellite Radio and SIRIUS Satellite Radio merged in 2007 as Sirius /XM Satellite Radio 38

39 Is satellite radio broadcast over an Internet enabled computer Does not require an actual radio device Offers several commercial free music channels Offers CD quality sound Requires monthly subscription fee 39

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