Red FM has announced it plans to hike its ad rates by 20 per cent from April 1. Senior officials at the radio station, however, prefer to term it as rationalising its rate card.
Enumerating the reasons for the rate hike, Abraham Thomas, COO, Red FM, said, "We have successfully consolidated and strengthened our position as the station for _expression for the common man in Mumbai, Delhi and Kolkata. This has happened primarily due to Red FM connecting with the listeners through our differentiated positioning as a station for _expression and consistently delivering on our promise of offering 'only hit music'."
"The bold new avatar of Red, captured by our tag line 'Bajaate raho' has definitely struck a chord with listeners and advertisers alike. Our increasing advertiser base, national presence and our commitment of continuously bettering our very own standards of great radio presentation prompts us to re-align our rate structure effective the April 1, 2006," Thomas added.
Red FM last revised its ad rates two years back. In the present scenario, the average increase is in the vicinity of around 20 per cent over the existing rates. Senior officials, however, said that the hike was not across the board. For Thomas, the rate rationalisation could not have come at a better time since the network had gone through a transition phase.
According to Thomas, the new rate card was designed keeping in mind the 'radio revolution' that had just begun. Commenting on the market reaction to these changes, he further said, " Many advertisers have acknowledged the improvement in our brand and have been supportive about the decision."
Apart from the ad rates, Thomas also revealed that the station had started offering 360-degree marketing solutions to some of its clients and had achieved resounding success. He exemplified this by citing the case of Ford Fiesta, wherein the station had partnered with Ford in on-ground activation across shopping malls in Mumbai and Delhi.
Said Thomas, "Radio's potential is yet to be exploited fully. We already have some very creative advertisements on our channel and we believe we will see more of this very soon. The scope for innovation and interactivity that it can allow will bring about a sea change in radio advertising."