Radio Mirchi has announced an increase in spot prices by 25 per cent among its older network of seven stations, including Mumbai, Delhi, Chennai, Kolkata, Ahmedabad, Pune and Indore. While it’s newly launched stations – Bangalore, Hyderabad and Jaipur – have increased the spot prices by 10 per cent from the introductory prices of April when the stations were launched.
Naveen Chandra, Head, Radio Sales, Radio Mirchi, said, “It’s a routine price increase that we undertake every September.”
He claimed that Radio Mirchi had attained leadership status in the Bangalore, Hyderabad and Jaipur markets and added to its significant lead over its competitors in Delhi, Mumbai, Chennai and Kolkata.
Chandra further said, “Radio Mirchi is the only medium to provide large numbers of urban audiences when compared with TV, where audiences are increasingly fragmenting and the reach is significant outside of the urban areas. For instance, Radio Mirchi reaches 15.5 million listeners on a daily basis in its 10 cities of operation compared to a reach of 9.9 million for STAR Plus and a cumulative reach of 10.1 million for all the No. 1 newspapers in these 10 markets.”
It was thought necessary to change the pricing considering that radio is 60 per cent as effective as television in building awareness, while coming at a cost of just 14 per cent. In the April-June 2006 period, Radio Mirchi’s revenues grew by 63 per cent compared to the same period last year.
Radio Mirchi now claims to have the largest network of private FM stations across the country and has been the first among all players to launch their stations post new frequencies being allocated as part of the FM Phase III plan of the Ministry of Information and Broadcasting.