After Radio Mirchi, Red FM and My FM, Radio City on September 23 announced a 15-20 per cent hike in ad rates in their select key markets, that according to Ashit Kukian, Executive Vice-President and National Head-Sales, Radio City, “are the critical RAM markets”. The hike will come into effect from October 1. The radio station is targeting a 40-50 per cent revenue growth, which is higher than the previous year.
The hike comes on the back of increase in listenership, reach and listener equity, and is adequate with the delivery of quality SEC AB audiences to advertisers. The hike in the ad rates shows that the radio industry has reached to a level where it is ready to experiment and take risks for further growth.
Apurva Purohit, CEO, Radio City, said, “RAM has consistently shown that radio delivers. Be it having the lowest CPT, having as high as a 15 per cent multiplier effect used in conjunction with a TV campaign or being 3/5th as effective as TV in raising awareness at 1/7th the cost, the power of radio is truly one of reckoning. As clients increasingly look at improving the delivery of their media rupee, there is no longer any doubt that radio is repeatedly proving its efficacy. Radio City’s increasing reach in the RAM markets and its robust TSL, clearly makes it one of the best mass media vehicles for clients to invest in today.”
Sharing his thoughts on the increase in ad rates, Ashit Kukian said, “We are targeting a vibrant 40-50 per cent revenue growth incremental of our numbers last year, which we are well on our way to exceeding.”
Elaborating on the implication to advertisers, Kukian added, “As a category leader, we remain committed to deliver the very best to both our constituencies – the listener and the advertiser. Our airtime in key markets is already saturated. This move lets us maintain a healthy ad-content balance to avoid sonic clutter. Low clutter ensures a listener-friendly environment, which translates to sustained stickiness and lower ad-avoidance for the advertiser.”
After print players, radio industry too hikes ad rates