Radio City, the country’s first private FM radio station, is planning to hike the rates in October. The advertising agencies find the rate of the nascent service nearly three times higher than AIR FM.
According to media buyers, for the same rate, they could easily buy a spot on a music channel, which will give them the advantage of national coverage vis-à-vis radio, which has limited coverage.
Radio City is charging Rs 4,900 for the 7 a.m. to 10 a.m. and 7 p.m. to 10 p.m. slots during the week. The lowest rates are Rs 1,100 for the late night timings – from midnight to 7 a.m. on Sundays. The radio station has 10 minutes of commercial time per hour.
Among the advertisers that Radio City has on board are national brands like Hindustan Levers, Colgate, Titan, other local brands and cellular service brands.
The industry analysts are of the opinion that the number of advertisers which stay on after the novelty of the new service wears off will decide the rates for the FM service throughout the country as Bangalore is considered to be a test market.