Radio as a Powerful Advertising Tool in a Recession Hit Economy

chillibreeze writer — Jasneet Sandhu

Ever since its first broadcast in 1916, the radio has grown, and has today become one of the most powerful tools of advertising across the world. Over the years, there has been an increase in the number of FM stations, with new ones coming up every now and then. Due to its large reach which cuts across a lot of barriers, radio has become advertisers’ favorite tool.

The media and entertainment industry in India is growing at a rate of 12.5 percent per annum and is expected to touch US$ 20.09 billion by the year 2013. The radio industry, which was US$ 170.87 million in 2008, is expected to grow at a rate of 18 percent to reach US$ 391.15 million by 2013. The advertising share of radio is projected to grow from 3.8 percent to 5.2 percent between 2009 and 2013. Going by these numbers, it is easy to see how the radio industry has weathered recession and how radio is raring to go as a powerful advertising tool.

In times of recession, where profits have been steadily declining, advertisers are trying desperately to attract customers. Their task has been made difficult by people becoming cautious about over spending. Advertisers are now working on shoestring budgets. They are on the look out for inexpensive tools to grab attention. One of the main reasons for the popularity of radio is that it has an extensive reach. One single spot has the capacity to reach a million listeners. Compared to other media, Radio does not prove to be as expensive. The ‘CPT’ or the ‘Cost per thousand’ is the cost incurred by advertisers to reach a thousand listeners. By having the lowest CPT compared to print and TV, Radio does prove economical to advertisers.

Radio is also known by some as ‘theatre of the mind’. The reason for this is simple. Radio as a medium uses sound in the form of voice and music to ignite images in the listener’s mind. Another good thing about it is that it can be heard everywhere. One can be at home, can be driving a car or could be waiting outside the doctor’s chambers, and still be listening to the radio. Once it is playing in the background the chances of it being heard exist, even with people engaged in doing something else at that point. Since most people listen to the radio while doing other things, the chances of switching channels is few. This can prove advantageous to advertisers. All they need to do is ensure that the listener is hooked, once that happens, their purpose is solved. That is the main reason for FM stations to look in to their content very closely. Crisp programming of shows and good ‘jock talk’ is of prime importance.

The industry’s hopes are pinned on mediums like radio, which have the ability to make advertising more interactive and innovative. Time slots are divided depending on the target audience. For example people driving to work, tune into Radio every morning, whereas teenagers look forward to the late night shows with music and talk that they can relate to. With new products and services being launched everyday, consumers are spoilt for choice. Amidst all the information floating around making a buying decision is mind-boggling. The need of the hour is a clutter breaker, which can reach out to consumers. Radio does seem to fit the bill. It can be said in conclusion that the radio is a powerful advertising tool, and is here to stay.

Chillibreeze's disclaimer: This is a contributed article and was published on Chillibreeze in February, 2010. The views and opinions expressed in this article are those of the author(s) and do not reflect the views of Chillibreeze as a company. Chillibreeze has a strict anti-plagiarism policy. Please contact us to report any copyright issues related to this article. The relevance of the facts and figures cited (if any) could change after a period of time.

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