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Radio ads expected to grow at 12% per annum

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Radio ads expected to grow at 12% per annum

According to industry sources radio’s share in the total advertising budgets of companies is likely to grow from 2 per cent to 5 per cent in the next three years with expected growth rate of about 10-12 per cent every year. In fact, the fortune of radio advertising is likely to change with the advent of private players like Star India, Bennett, Coleman & Co., Living Media etc.

With the advent of FM channels, with slick programming as its USP, things are likely to change for the better.

Several brands like Tanishq, Kwality Walls, Airtel and Spice are already active on radio. Interestingly, the private FM players have a huge opportunity in grabbing a bigger chunk of the radio advertising pie as despite All India Radio’s enormous reach (it covers 97 per cent of the population), its revenues have declined from Rs 84 crores to Rs 74 crores in 2000-2001.

Advertising professionals feel that radio is especially suited to advertise local brands. Besides, it is a great medium for mass-based products and brands like Rin, Wheel, Liril etc.


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