“Radio was expected to die out when TV came up. It did not.”Radio is everywhere. And radio cannot be ignored. If you are within the hearing distance you will hear it whether you like it or not.
Current size of Industry is Rs 1200 crore (Private FM 850 crore + AIR Rs 350 crore). Radio’s average consumption time in India is 145-150 minutes per day, as compared to TV’s 140 minutes per day. FDI investment limit in Radio stations has been increased from 20% to 26%.
Currently there are 248 FM channels. Post phase III FM radio coverage will increase to 85% of the entire country. Radio’s share is little over 4% of Rs 30,000 crore total ad spending in India. FM radio reaches out to 40 million listeners in the four metros and 350 million in 91 cities. Each radio station shells out Rs 600 per hour – for the music they play- to the Indian Performing Rights Society and Phonographic Performance. Overall, a station pays 12-15% of its revenues as royalty. Global royalty payments are lower. Expected share of ad pie by 2015 is likely to be 8%.
Advantages of Radio Advertising:
Radio is selective — ability to reach segmented audiences.
Radio is economical due to large penetration and rates.
Radio is fast – Short lead times.
Radio is participatory (FM Station) – Local personalities.
Disadvantages of Radio Advertising:
Audience fractionalization means to advertise on many stations.
Listeners can’t go back to the ads to have a look over some important point.
Radio is a background medium and most listeners do something else simultaneously, which means your ads do not get the required attention.