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FM radio ad spends to grow 3-fold

22-December-2000
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FM radio ad spends to grow 3-fold

Advertising industry in India will grow to Rs 12,000 crore by 2003, the share of spends on the Internet will remain a miniscule 3 per cent but radio will see a significant increase in ad revenues thanks to private FM stations. These were some of the interesting findings revealed by the speakers at a seminar organised by the Advertising Agencies Association of India (AAAI) in Delhi. ‘In the west, the spends on radio accounts for over 15 per cent of the total advertising. In India, it is 1.5 per cent now. But, this will see a two to three fold increase in the next couple of years owning to FM being opened to private players” said V Balasubramanium, managing consultant, media development and strategic planning at O&M. Research figures shows an over 20 per cent increase in Television Ratings Points for family/drama soaps on TV between January to November despite gameshows. Commenting on the implications of Direct-to-Home (DTH) on media, Bharat Kapadia, associate publisher, Chitralekha, says that it may still take three to four years before it can make a sizeable penetration in Indian homes. The Media Multiplier Research shows that a combination of press and TV still works best for most brands including FMCGs.

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