Good advertising times for Radio

As per a FICCI-PwC report, the share of radio as a percentage of total advertising spends, is rising in India even as it is declining globally.

In 2005, radio’s ad spend share in India was just 2.4 per cent; it increased to 3.1 per cent in 2006 and is expected to go up to 5.5 per cent in 2007. The ad revenues of the segment have grown by 58 per cent, from around Rs 316.8 crore in 2005 to Rs 505.3 crore in 2006.

Apurva Purohit, CEO, Radio City, says two important trends have propelled the growth of radio “Earlier television and print used to dominate the media plan. But with their constant fragmentation, advertisers and media planners have realised that they have to spend more on these media to get a far lesser reach than before. Clients are therefore looking for 360-degree solutions, at multiple media including radio and the Internet. TV channels, FMCG’s and consumer durables advertise heavily on Radio City.”

Divya Radhakrishnan, senior Vice-president, TME, adds that retail advertising, promotions for youth-targeted brands and city-specific marketing initiatives are in abundance on radio. “Owing to the high proliferation of FM radio, cumulatively, outlays required for a decent exposure on the medium, are high. Hence, it is important to define the role of radio clearly in the media plan. Planners look at the leverage of activity that the medium has to offer, its local flavour and its more precise targeting, compared to TV or print.”

Radio City, in partnership with Synovate, researched listener habits for more precise targeting and has come up with five groups: relaxation seekers, cool dudes, lonely souls, flirts and time pass. Meanwhile, it has launched a 360-degree media campaign to promote itself. This includes an extension of the “Fun ki nayi bhasha” campaign to two TVC’s (the chor-police “Baal Baal” and the curling moustache-seeking “King”), a “Whatte Fun” micro site along with”Bolo Whatte Fun” music CDs. A “Bolo Whatte Fun” brand video is being aired across TV channels.

In fact, most radio channels have gone for differentiation campaigns. Radio Mirchi continues with its “Mirchi sunne waale always khush…” campaign. Red FM claims at the best RJ’s, best talk shows and the like, asking competition, “Tumhare paas kya hai?”. Reliance ADA group’s Big 92.7 FM continues with “Suno sunao, life banao”.

While more advertising is coming radio’s way, the usage of the medium itself is seeing some improvement. Unlike the typically adapted one-liners from TVC’s, some advertisers have used the medium creatively. Marico, in association with Radio City, conceived and implemented a 45-day hair fall solution challenge for Parachute Therapie. Radio jockey Lavanya, known for experimenting with her hair, was selected as brand ambassador.

The afternoon show, Masala Mix, from 11.00 am to 2.00 pm daily, was used to promote Therapie. In 2005, Saffola, another Marico brand, had partnered with Go 92.5 FM to popularise Saffola Gold with Losorb technology. The radio channel’s overweight RJ, Ashish Jagtiani (Jaggu) of the Good Morning Show fame was roped in to lose 10 kg over three months. A lot of significant changes are happening, taking radio to the next level.

As far as measurement is concerned, TAM, the media measurement company, has come out with RAM (Radio Audience Measurement) based on the diary method as opposed to Media Research Users’ Council’s (MRUC’s) Indian Listenership Track, which uses the day after recall (DAR) measure. Radhakrishnan states, “RAM will help in measuring reach/frequency of the medium, which is currently not possible.”

Purohit feels that the development of RAM will pull more investments to the medium. While radio has managed to attract more advertisers, going ahead, niche players will be able to address specific audiences. These players can differentiate on genre, language or target group. One recent example is Meow 104.8 FM, a radio channel dedicated to women, launched by Radio Today.

Sajjad Chunawala, station head, Fever 104 FM, which has launched in Mumbai, Delhi and Bangalore and is slated to launch in Kolkata soon, agrees, “Moving forward, the future of radio encompasses all niche channels as they would cater more specifically to the listeners’ needs.”

Will the Taj Mahal make it?

With only hours now before a new list of seven wonders is announced in Lisbon, Indians around the world are thinking Taj Mahal at this moment. Will it, won’t it? Did we fail to send in enough votes? Or will the monument of love manage to edge out other competing wonders powered by a huge surge of voting in the last few days?

The campaign had kicked off a few years ago, but most Indians woke up to it only late last year when the New 7 Wonders Foundation, a Swiss non-profit group, was to visit the Taj. In the manner of a beauty pageant marvels from round the world competed to make the top 21. Since then, it has been a massive global exercise from each country to vote its wonder into the final list of seven.

For many months, the Taj trailed badly before a sudden burst of concern that it would be left out of the new list saw frenzied voting from Indians. By late June, 13 per cent of all votes were coming from India. And that would not factor in the army of Indians all over the world.

Individuals and organisations made fervent appeals to cast more votes for the Taj Mahal. On television, hoardings, radio, the Internet. It became fashionable to vote for the Taj and schoolchildren asked each other- “Have you voted?”

At TimesofIndia.com, readers wrote in hundreds asking fellow Indians to ensure the Taj made the list. Like Babita Sharma from Noida who said: “It is really a shame on our part that we are not giving due attention and protection to the Taj despite its worldwide popularity. I would appeal to fellow indians to come forward and save the dignity of Taj Mahal by voting for it.”

Over the months, many readers also wrote in about their deep appreciation of the Taj and their apprehension that it was not being treasured and preserved the way it deserved to be.

A reader, Jayanto Ghosh, said: “The Taj is among the seven wonders. Nobody can stop it. Only Indians can do it.” Another reader, Binu Samuel from Baroda, echoed the sentiment saying the “Taj is one of the Seven Wonders of the World and no other monument can beat it. The problem is that we do not know the significance of it till we lose it.”

Many readers brought up the problems that the Taj has been mired in. Krishna from Bangalore said,”The government has to take measures to prevent industrial pollution, which causes damage to the Taj Mahal.”

Johnson from Kolkata said “Urgent steps should be taken to preserve this beautiful structure, else its days might be From Faizabad,
Deepak Kumar from Faizabad, UP, wrote, “The beautiful Taj Mahal has been caught in politics. But, we should not forget that it’s a building of love. So I wish that it’s always maintained with care.”

Added N P Roy from Faridabad Haryana, “Possibly the greatest structure ever to be built solely on the foundation of love. This epic monument, which took 17 years to build over 400 yrs ago, is truly an international treasure which needs to be preserved for posterity as one of the Seven Wonders of the world.”

Likewise, Allaukik from Dallas, US, sounded a warning: “Civilizations die if they do not preserve their past. Let us not be irresponsible.”

There are of course those who wonder why there is so much hype about a private endeavour. The United Nations Educational, Scientific and Cultural Organisation (UNESCO) has distanced itself from the campaign terming the much-awaited list as the result of a “private undertaking, reflecting only the opinions of those with access to the internet and not the entire world.”

The entire polling for the new seven wonders was on-line, and on phone and SMS.

Even so, when the official declaration ceremony begins at Estadio da Luz in Lisbon after midnight, many Indians will be waiting with bated breath for the announcement.

Among the top contenders for the list are the Great Wall of China, the Inca city of Machu Picchu in Peru, the Colosseum of Rome, the statues of Easter Island and the statue of Christ the Redeemer, among others. Machu Picchu has been a frontrunner through the campaign with the help very active voting from Peru.

ZenithOptimedia launches digital advertising arm

Chennai: ZenithOptimedia, a global media services agency, has launched Zed Digital India, its full service interactive and digital unit.

Zed Digital’s capabilities extend beyond interactive media buying into the full array of digital communications. The applications cover a range of services from online media, search engine and e-mail marketing, to technology development and hosting, interactive kiosks and signage, and e-commerce retail, as well as across the PC, mobile, OOH (out of home) and TV platforms.

The new entity will track all digital activities from conceptualisation to the execution stages and will provide for continuous monitoring and evaluation across each step with corrective action if required

According to Steve King, Worldwide CEO, ZenithOptimedia, “In an increasingly fragmented consumer mediascape where consumers are editors and not passive receivers of media, going digital is an obvious route to enhancing the ROI of our clients marketing budgets, in one of the most exciting markets of the new world.”

By virtue of its international alliances, the company already has HP, L’Oreal, British Airways amongst key clients, working in this integrated arena. Whilst taking advantage of its parent company’s positioning to ensure best in class service for common clients, the new entity is designed to create exciting opportunities for direct business.

Senior vice president Vineet Mathur who will report to CEO India, ZenithOptimedia Ambika Srivastava, will spearhead zed Digital India.

According to ZenithOptimedia recent forecast, global Internet advertising spend will grow by 28.2 per cent in 2007, at the same time ad spending in other media will grow by only 3.9 per cent. In other words, online ad spending will grow seven times faster. Zenith Optimedia also projects that the Internet’s share of worldwide total ad spending will increase from 5.8 per cent in 2006 to 8.6 per cent in 2009, overtaking other media such as radio and cinema.

In India, ZenithOptimedia predicts online expenditure will increase threefold to over Rs. 700 crores within two years.

Google dethrones Microsoft as top global brand

Silicon Valley: Silicon Valley-based search engine firm Google, Inc, with a brand value of $66.4 billion, has overtaken Microsoft as the most powerful global brand, says the UK market research firm, Millward Brown Optimor in its latest annual ranking survey.

Microsoft, with a brand value of $54.9 billion is ranked third behind General Electric, which had a brand value of $61.8 billion.

Coca-Cola, for years the most powerful global brand, ranked fourth with an estimated valued of $44.1 billion.

The study, Brandz Top 100, by Millward Brown said that the search engine’s brand value had increased by 77 per cent since in the last one year.

Joanna Seddon, chief executive, Millward Brown, said that success stories from this year’s Brandz Top 100 demonstrated that winning brands leverage major market trends effectively to create business value.

“Strong brands are capable of extending into areas of opportunity to access new revenue streams and to help businesses respond to market changes,” Brown said.

The ranking attempts to put a dollar value on a brand based on current and expected future earnings. The figure is generated from hard economic data as well as softer variables such as intangible consumer loyalty and perceived growth potential.

4P’s OF MARKETING

“Marketing and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. And you get paid for creating a new dimension of performance, which is innovation. Everything else is a cost center.” Peter Drucker

E. Jerome McCarthy originally wrote his classic book Basic Marketing which defined the 4 Ps of Marketing or as I call them the 4 Principles of Marketing. The 4 Principles of Marketing are a good starting point for developing your marketing plan.

The following are my interpretation of E. Jermone McCarthy’s 4 Ps ( 4 Principles of Marketing )

Marketing Principles #1

Product
Individual goods, product lines, or services.

Strategy: This is obviously the most important part of any business. In order for a product or service to succeed, it must offer clear, distinct and non-arguable value to the buyer. Supply and demand are the judge and jury.

Tactics: Includes features, accessories, installation, instructions, service, warranty, packaging, and brand names.

Marketing Principles #2

Place (Distribution Channels)
Getting the product or service to the customer.

Strategy: The saying – location, location, location holds true for new products more so than any other type of product. If consumers don�t know your product exists – how can they buy it?

Tactics: Channels, distribution systems, middlemen, warehousing, transportation, fulfillment, and shipping.

Marketing Principles #3

Price

Strategy: Price meets it own demand. Price points are a function of the degree of innovation found in the product. The more innovation and thus value added, the more latitude you have in setting a price.

Tactics: Setting a price that serves the customer well and maximizes profits to the company is a must.

Price flexibility, level pricing, introductory pricing, discounts, allowances, geographic terms.

Marketing Principles #4

Promotion
Communication with the customer

Strategy: Communication is defined as: Message sent. Message received. Message acted upon. If the product has been designed with customer desires and needs in mind, the communication necessary for getting a customer to pay for the product is already known and replicated in the media used to reach them.

Tactics: Personal selling, mass selling, sales promotion, sales personnel, advertising, media selection, copywriting.

Principles of Marketing Summary

A marketing plan takes considerable effort to understand and characterize the market, the customer, and the environment in which you are conducting business. The marketing principles are the controllable component of your marketing plan. A final way to look at this is external factors vs. internal factors:

* External / Uncontrollable– The current economic environment includes elements such as consumer confidence, degree of unemployment, new technologies that threaten to displace your own, competitors that suddenly appear on the horizon, government regulations thought up by your favorite legislator, and changing consumer preferences. You can’t control these.

* Internal / Controllable — The 4 marketing principles represent elements of your marketing strategy that you can control. They depend upon such known factors as your budget, personnel, creativity, etc. It is ultimately your responsibility to influence and control these.