Radio ads effective in promoting brand image

Star Radio Group senior sales manager Sukhbir Sidhu

DESPITE the competition heating up in the advertising arena, radio advertising is here to stay and will continue to be an effective medium to promote brand image, according to Star Radio Group.

General manager for sales Erin Hwang says radio is an effective medium of advertising as it reaches to all the target audience and is the last “touch point” for consumers in their buying decision.

Based on Malaysian Media Landscape research done by Nielsen last year, she says radio as a tool of communication still commands the highest reach to listeners compared with all the other mediums in the market.

“Radio still has the highest reach and we expect a steady growth in terms of consumption this year. This communication medium reaches everyone, anywhere and anytime. Radio is an effective tool for advertisers as it drives traffic and sales and at the same time builds brand image and awareness. The formula for advertisers is a simple one. With radio, they reach the right customers, the right number of times with the right creative message,’’ Hwang tells StarBizWeek.

By advertising in radio, advertisers will also be able to determine the stations that will most effectively reach the target audience as well as the right business prospect. On top of this, she says they will also be able to save significant costs unlike other communication mediums.

Star Radio Group general manager for sales Erin Hwang.

Senior sales manager Sukhbir Sidhu says the penetration rate of radio which currently stands close to 96%, the highest among all medium of communications in terms of consumption and reach, is a medium where “we dare to say we are under promise but always over deliver”.

He says the same amount an advertiser spend on TV for a day, for example, will give the ad agency a whole week coverage on radio including during prime time. This is truly cost effective and benefits advertisers in terms of garnering stronger brandname for their products and services, he says.

Sukhbir cautions that advertisers should know their audience they are targeting at as radio is formatted and should buy into the right stations. On the “theatre of the mind” effect which radio emanates and how it help advertisers to boost brand image, he explains: “Simple, just like how when you read a book and you start creating a movie in your head. Radio is different, it helps you by including sound effects, a great Morgan Freeman kind of voice for example.

“By listening to radio, it helps create the image of the product. For instance, when a person is driving on a hot day, and when a 100 Plus ad is presented on the radio, the chances are that he or she may decide to buy a can of 100 Plus after that. This push factor heavily depends on the creative scripting of the particular ad on radio,’’ he says.

In terms of radio advertising expenditure (adex), Hwang expects radio spend to continue its growth this year, adding that although overall adex dropped by 1.6% last year, radio still managed to maintain its share of 4% in terms of adex spend.

On the effectiveness of radio “stars or announcers” in endorsing brands and products, she says announcers with a high number of loyal fans is a logical choice for endorsement of products and services as they reach out to their audiences on a daily basis.

Hwang adds: “Listeners generally tends to build loyalty with their favourite announcers. So when the announcer mentions a product, they tend to try it out as well. The announcer is like a personal friend and the advertising is by word of mouth and is effective.”

To a question on how Commercial Radio Malaysia (CRM) will help encourage brands to advertise on radio, Hwang says CRM’s Boot Camp, initiated several years ago by the association, has always had creativity and the effectiveness of radio as a medium as its objective. Due to the tragedies of MH370 and MH17 in 2014, CRM had to postpone its planned boot camp to this year. The workshop, which engages advertising and media agencies to refashion airtime opportunities through innovative campaigns, will be held in the third quarter or fourth quarter this year.

Kudsia Kahar, who is the Star Radio Group chief operating officer, is also the current CRM president. CRM represents 21 commercial radio stations in Malaysia working together to coordinate regulatory issues, listener engagement activities, outreach programmes for undergraduates, and shared resources for research ratings.