ADPR 3100 1st Edition Lecture 12 Outline of Last Lecture I Magazines Newspaper Outline of Current Lecture II Radio a Strengths and Weaknesses b Buying c Verification Current Lecture Lecture 12 Lecture 2 of test 2 material Radio People realized they wouldn t have to wait for the newspaper because of the radio within 2 years nearly 400 radio stations sprung up in the country used to not have commercial interruption it never occurred to them to use radio for advertising first used to advertise the radios themselves with radio all the consumer had to do was turn the radio on believed hearing the commercial advertising increased people wanting to buy the product Wheaties was the first to use a jingle Profile Reach radio per station is pretty low but pretty high per medium as a whole Frequency radio is really good at delivering frequency o May hear the same ad within 30 minutes of listening to your show Cost impression radio is actually pretty cheap Radio is really good at dealing with audiences that are very precisely defined narrow as well as one that is mobile out and driving These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute It is largely a supplemental medium Drawbacks of the radio Audience o Audiences are comparatively small per station o Distracted people are paying attention to traffic not really paying attention Lack of precise market research o Print knows exactly who is reading it subscription but radio doesn t know specifically who is listening No visual impact Strengths It segments a market very well o Target market narrow Mobile market proximity to purchase Flexible and immediate o You can have an announcer can create a scene etc Personal relationship High reach As a category of media radio has a high reach Almost everyone listens to the radio at least once a week that is a very high reach Best uses It is a local retail medium Buying o Speaks to local markets about local businesses How do they pick which stations to advertise in It is a multi step process o First general choices about radio overall o Then specific choices among specific stations Buying Choose platform AM or FM AM attracts 20 of listening audience o Older listeners because it is news talk nostalgia sound quality is okay large signal area signal bends and reflects FM attracts 80 of listening audience o Younger because music is the primary format and this is because of the superior sound of FM much smaller signal area signal line of sight So attracts people in terms of interest but also geography signal areas Buying Choose format This is the next step Format continuous show o What kind of format Most popular radio formats o Country music about 2 000 stations This is because you have kids and adults listening to it o Then adult contemporary 1 500 o Then talk 1 300 Buying Choose daypart When during the day do I want my ads to be heard Morning drive time 7 10 AM talk news o Here you have the highest reach of audience size Midday 10 am to 3 pm station format o People are working so it goes back to format Afternoon drive time 3 7 talk news o Highest listenership Evenings 7 12 station format Overnight 12 6 AM station format You pick this based on who you want to target o If you want people relaxing at night do evening o If you want to reach people who work do midday Buying Ratings Pick relevant population boundaries Metro Survey Area MSA o This is the central city or town where the radio station is and the immediate surrounding counties o This is where the highest concentration of listeners is Total survey area TSA o Includes the metro survey area plus more distant surrounding counties Ratings Audience units How do you define your audience Who counts as a listener Someone who listens for 2 minutes 10 minutes They came up with two definitions for who is a listener o 1 Average qtr hour persons AQH this is someone who listens to a radio station for at least 5 of 15 minutes so they are an average quarter person so if listen from 12 to 12 15 you are counted then if you listen to it for five minutes during 12 15 12 30 you are counted again o 2 Cume persons more of a general definition it is the number of DIFFERENT people who listen to a radio station for at least 5 minutes over a longer time span usually a week Measures of reach for individual stations 3 possible measures o AQH Rating size A rating is a percentage of market How large is this station s audience at any specific point in time AHQ Rating answers this AQH Rating AQH persons listening to this station x 100 Area population Ex at this point in time 2 5 of area population is tuned into this station AQH Rating of 2 5 o AQH Share popularity How popular this station is compared to other stations on at the same time How much of the current audience is listening to this station vs others AQH Share will answer this AQH Share AQH persons listening to this station x 100 How many people are listening to any radio station at this point in time Ex 40 of people listening to radio right now are listening to this station AQH share of 40 o Cume rating size How large an audience does this station have generally Use Cume Rating to answer this Cume rating how many cume persons this station has Area population Then x 100 Ex This station attracts 3 of market population Cume Rating of 3 Totals for single radio buy Radio spots are sold in packages So you want to know the performance of all the radio buys how good this package works compared to this one o GRPs tells you this AQH rating x number of spots bought on a particular station o GI gross impressions AQH persons x number of spots bought on a particular station Cost effectiveness of all buys How cost effective is this package vs this per GRP total cost of radio buys GRPs delivered by radio buys per GI total cost of radio buys GIs delivered by radio buys these calculations tell which package of spots is most cost efficient for media planners Verification How does a media planner know this stations is attracting this many people Arbitron Inc o Independent company that does all the research on radio audiences and publish every few months Media planners buy this and so do radio stations o They hand out diaries to listeners in 300 local markets Schedule you write in which station you listen to and how long what times of the days then you send it back to Arbitron and publish it o Portable People Meter More comprehensive than the