Lecture 12Lecture 2 of test 2 materialRadioPeople 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 jingleProfileReach—radio per station is pretty low, but pretty high per medium as a wholeFrequency—radio is really good at delivering frequencyMay hear the same ad within 30 minutes of listening to your showCost/impression—radio is actually pretty cheapRadio is really good at dealing with audiences that are very precisely defined (narrow) as well as one that is mobile (out and driving)It is largely a supplemental mediumDrawbacks of the radioAudienceAudiences are comparatively small per stationDistracted—people are paying attention to traffic/not really paying attentionLack of precise market researchPrint knows exactly who is reading it (subscription), but radio doesn’t know specifically who is listeningNo visual impactStrengthsIt segments a market very wellTarget market, narrowMobile market (proximity to purchase)Flexible and immediateYou can have an announcer, can create a scene, etc.Personal relationshipHigh reachAs a category of media, radio has a high reachAlmost everyone listens to the radio at least once a week—that is a very high reachBest usesIt is a local, retail mediumSpeaks to local markets about local businessesBuyingHow do they pick which stations to advertise in?It is a multi step processFirst general choices about radio overallThen specific choices among specific stationsBuying: Choose platformAM or FMAM attracts 20% of listening audienceOlder listeners because it is news, talk, nostalgia, sound quality is okay, large signal area (signal bends and reflects)FM attracts 80% of listening audienceYounger 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 formatThis is the next stepFormat = continuous showWhat kind of format?Most popular radio formatsCountry music (about 2,000 stations)This is because you have kids and adults listening to itThen adult contemporary (1,500)Then talk (1,300)Buying: Choose daypartWhen during the day do I want my ads to be heard?Morning drive time (7-10 AM): talk newsHere you have the highest reach of audience sizeMidday (10 am to 3 pm): station formatPeople are working, so it goes back to formatAfternoon drive time (3-7): talk/newsHighest listenershipEvenings (7-12): station formatOvernight (12-6 AM): station formatYou pick this based on who you want to targetIf you want people relaxing at night, do eveningIf you want to reach people who work, do middayBuying: RatingsPick relevant population boundariesMetro Survey Area (MSA)This is the central city or town where the radio station is and the immediate surrounding countiesThis is where the highest concentration of listeners isTotal survey area (TSA)Includes the metro survey area plus more distant surrounding countiesRatings: Audience unitsHow 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 listener1. 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 again2. “Cume” personsmore 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 stations3 possible measuresAQH Rating (size)A rating is a percentage of marketHow large is this station’s audience at any specific point in time?AHQ Rating answers thisAQH Rating = AQH persons listening to this station x 100Area populationEx: at this point in time, 2.5% of area population is tuned into this station“AQH Rating of 2.5)AQH Share (popularity)How popular this station is compared to other stations on at the same timeHow much of the current audience is listening to this station (vs others)?AQH Share will answer thisAQH Share = AQH persons listening to this station x 100How many people are listening to any radio station at this point in timeEx: 40% of people listening to radio right now are listening to this station“AQH share of 40”Cume rating (size)How large an audience does this station have generally?Use Cume Rating to answer thisCume rating = how many cume persons this station hasArea populationThen x 100Ex: This station attracts 3% of market population“Cume Rating of 3)Totals for single radio buyRadio spots are sold in packagesSo you want to know the performance of all the radio buys (how good this package works compared to this one)GRPs tells you thisAQH rating x number of spots bought on a particular stationGI (gross impressions)AQH persons x number of spots bought on a particular stationCost effectiveness of all buysHow cost effective is this package vs. this?$ per GRP = total cost of radio buysGRPs delivered by radio buys$ per GI = total cost of radio buysGIs delivered by radio buysthese calculations tell which package of spots is most cost efficient for media plannersVerificationHow does a media planner know this stations is attracting this many people?Arbitron, Inc.Independent company that does all the research on radio audiences and publish every few monthsMedia planners buy this and so do radio stationsThey hand out diaries to listeners in 300 local marketsSchedule, 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 itPortable People MeterMore comprehensive than the diaryMobile device worn by listenersRADARDiaries/PPM for national ratingsKey pointsUse radio to get to localized, highly segmented marketsLocal meaning geographically, your market lives in a specific placeCost efficientSupplemental mediumParticularly effective with newspapers for local campaignsLarge, mass markets are UNREACHABLE via radioADPR 3100 1st