Financial Daily from THE HINDU group of publications
Monday, Sep 19, 2005
Industry & Economy - Radio/TV
Marketing - Marketing Research
The good old radio draws advertisers
New Delhi , Sept 18
PRIVATE FM radio companies may be bleeding due to the high licence fee, but advertisers seem to have taken to the medium. The country's biggest advertiser, Hindustan Lever Ltd (HLL) has been the largest spender on radio during the first six months of the current year.
According to data by Radio AdEx, launched by media research agency TAM India in technical collaboration with AirCheck a wholly owned subsidiary of RCS Inc for the January-June period, HLL has a 5.7 per cent of the advertising spend on radio followed by the Star TV network.
The study, which covered 13 stations in the four main metros, indicated that broadcasting companies such as Sony and Zee as well as print media companies were in the top 10 list.
Besides these, Dr Batra's Positive Health Clinic, the Bharti Group and Kimberly Clark Company have been using the radio extensively. However, FMCG companies such as Procter & Gamble, Dabur, PepsiCo and Coca-Cola are dominating the advertising on mass entertainment channels.
A look at the various categories indicated that TV channel promotions had the largest share of the total spends, followed by publications, properties and real estate, music albums, shampoos, mutual funds and independent retailers.
Mr Atul Phadnis, Vice-President, TAM India, said, "Brands normally rely on conventional media such as press and TV. However, it is interesting to note that how print and television companies are using radio to reach out their audiences."
Advertising revenues on radio is expected to grow by 20 per cent this year to Rs 260 crore, up from last year's Rs 220 crore. With the Government set to commence the second phase of FM radio privatisation by inviting bids for frequencies in 90 cities shortly, the interest in the medium is only set to grow further.
"The audience for radio is very focused compared to other mass-media. With youngsters increasingly tuning to FM channels, advertisers find this medium very effective. Internationally, this is the most cost-effective advertising medium," said a Mumbai-based media planner.
Interestingly, the advertising rates on radio channels operating in the metros of Mumbai and Delhi are higher than those charged by some television channels. A 10-second spot in such a radio channel could be as much as Rs 3,000. However, for radio stations targeting the non-metros and smaller towns, the ad rates are as low as Rs 500 for a 10-second spot.
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