The Directorate of Advertising & Visual Publicity (DAVP), the central government agency that looks at advertising by various ministries and organisations of Government of India, has issued a new advisory for radio advertising.
Confirming the news to exchange4media, Ashwin Padmanabhan, COO at Reliance Broadcast Network, which runs Big FM, said, “It is possible that we will see some revision of rates (after the new policy). As an industry we have raised some issues with the DAVP like base rate being too low, usage of data from IRS 2012 which is dated and the fact that Delhi NCR is not considered by the government as one unit, due to which ad rate for Delhi is set low.” He also informed us that the first round of empanelment for existing radio stations is expected to get over by mid-October.
The head of another FM station based in the South said that the process started around 10 days back and is being carried out in a phased manner.
Government spending on radio forms a significant part of revenues for many radio stations and any increase in ad rate could well be a very important milestone for the private FM sector in the country. According to the Pitch Madison Advertising Outlook report for 2016, radio advertising is expected to grow by 18 per cent in 2016. Ad spends in 2015 on radio have been estimated to be Rs 1,545 crore.