FM revenues to reach Rs 3,900 crore by 2020? Industry leaders take stock

In a new report, Crisil said that the FM radio industry has the potential to nearly double revenues in the next 5 years from an estimated Rs 2,000 crore in 2015

e4m by exchange4media Staff
Published: Nov 3, 2015 8:11 AM  | 5 min read
FM revenues to reach Rs 3,900 crore by 2020? Industry leaders take stock

In a new report, Crisil said that the FM radio industry has the potential to nearly double revenues in the next 5 years from an estimated Rs 2,000 crore in 2015 to reach around Rs 3,900 crore.

The global analytics company said ad volume would get a fillip as Phase III regulations will help radio cover a proposed 294 cities, from 86 at present, and reach 85% of India’s population.

Crisil estimates an internal rate of return (IRR) of 11-14 per cent, and a payback period of 7-9 years for the big radio companies in metros. In the large ad markets the top radio companies are already operating at peak utilization and, an addition of one or two incremental frequencies, would keep their ad inventory utilization as high as 60-65 per cent in the first year.

"The ad rates in Tier II cities such as Kanpur and Lucknow are as low as Rs 250-660 per 10 second slot compared with Rs 1,150-1,900 in Delhi or Mumbai. Tier II cities will have to attract more local advertisers who do not buy in bulk," the authors of the report noted.

The radio industry has even earlier stressed the importance of local advertisers as a revenue stream.

For example, Prashant Panday, MD and CEO of ENIL (which operates Radio Mirchi), informed us that local advertising comprises 50 per cent of ENIL's ad revenues and around 60 per cent for the radio industry (Crisil puts it as 30-40 per cent). “It remains the strongest support base for radio. I see that growing to nearly 80 per cent in the years to come, in line with worldwide patterns," he said.

Harish Bhatia, CEO of MY FM also said that radio ad spends would continue to be split 60:40 between local and corporate advertisers, respectively, for the foreseeable future. He also agreed that with new stations expected to begin operations soon, a 15 per cent growth rate seems quite possible.

Similarily, when asked about his thoughts on Crisil's report, Panday agreed with Crisil's estimations but said that the growth rate could be as high as 18 per cent as opposed to Crisil's 15 per cent CAGR prediction.

"Crisil's projection is accurate provided industry raises rates YoY by 10 per cent minimum as the radio industry is underpriced resulting in huge inventory exceeding 30 minutes every hour in almost every station," opined Vineet Singh Hukmani, MD of Radio One.

This underpricingcould be a reason why Crisil predicts a flat 5 per cent YoY growth in ad rates (in large metros) for the next 5 years. However, it says that given the low set-up cost for players with already established operations, any new frequency will be EBITDA positive from the very first year.

“In large advertisement markets such as Mumbai and Delhi, the top players are operating at peak utilisation of 90-100 per cent. Therefore, an addition of one or two frequencies would keep their ad inventory utilisation as high as 60-65 per cent during the first year,” the authors stated. Crisil expects inventory utilization to increase every year and be 100 per cent by 2020.

A Radio City spokesperson said ad revenues for FM industry would grow at 15-18 per cent YoY; which could rise if economy exhibits buoyancy. 

“Larger number of brands and categories are investing more on FM, which means that advertisers are leveraging the power of this medium better. This means a couple of things; greater belief and larger investment. Once the new players launch new cities, the footprint of FM is just going to get bigger and better. With the addition of the 11 cities we bid for in Phase III, our network presence would be in the important cities with high concentration of high profile audience. We are very bullish about the growth,” said the spokesperson.

However, the authors of the report caution that a lot depends on the health of the economy. “The industry has seen economic shocks such as those after the global financial crisis when ad rates fell 10-15 per cent across the board. Indeed, the rates have still not rebounded to levels seen in the second half of 2008 when players were charging anywhere between Rs 1,500 and Rs 2,500 per 10 seconds in the large ad markets. Any recurrence of economic slowdown would impact IRRs,” the report stated.

With lower ad rates in the Tier III cities, Crisil suggested that operators will need to look for local advertisers who do not buy in bulk. “Players that offer bundled portfolio of national and local frequencies as well as other advertising options such as print to advertisers would fare better,” it said.

Interestingly, Crisil suggested that established brands like ENIL could drop advertising rates to gain volume in case of competition, with marginal impact on profitability. It would be interesting to see if that actually turns out to be the case with operators like ENIL, who are known to charge premium rates. In an earlier interview, Panday had suggested that we would actually see an increase in ad rates given the investments made in Phase III and the fact that ad rates have not increased substantially since 2008. This is also a view shared by most other operators.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

RAM Ratings Week 47 '22 - 50 '22: Fever FM ahead in Mumbai and Delhi

BIG FM led in Bangalore and Radio Mirchi in Kolkata between 20th Nov and 17th Dec'22

By exchange4media Staff | Jan 23, 2023 10:18 AM   |   1 min read

ram ratings

According to RAM Ratings for Week 47'22 - 50'22 (between 20th Nov'22 and 17th Dec'22), Fever FM topped in Mumbai and Delhi charts. BIG FM and Radio Mirchi took lead in Bangalore and Kolkata.

In Mumbai with over 12.2 million listeners above the age of 12, Fever FM continued to stay on top with an 18.2% listenership share. Radio Mirchi was in the second spot with 16.3%. Red FM took the third spot at 15.6%. Listenership peaked between 10 am and 11 am.

In Delhi, in a universe of 16.5 million listeners above the age of 12, Fever FM peaked with a 21.8% share. Radio Mirchi FM stayed steady with a 14.6% share. Punjabi Fever ranked third with a 13.2% share. Most listeners tuned in between 9 am and 10 am.

Big FM took the lead in Bangalore with a 32.2% listenership share. The second spot was bagged by Radio City with 28.9% share. At the third spot was taken by Radio Mirchi 13.4% share. Most listeners tuned in between 7 am and 8 am.

Kolkata yet again saw Radio Mirchi topping the charts with a 28.2% share in a universe of 9.1 million listeners. Big FM came second with 23.9%. Fever FM had a 14.7%. In Kolkata, the listenership peaked between 9 am and 10 am.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

8 out 10 people are listening to radio in Tier II & III markets

The findings are as per Toluna’s study across 30 markets

By exchange4media Staff | Jan 20, 2023 12:24 PM   |   2 min read

Toulna

Tier II and III markets are showing some enlightening trends for the radio medium, according to Toluna’s recent study across 30 Tier II and III markets, with a sample base of over 1200 respondents. The detailed interviews were conducted among FM radio listeners belonging to 18 to 50 years, who are a part of the Toluna panel across genders, socioeconomic classes and employment status. The data collection was conducted between 19th December, 2022, and 2nd January, 2023. Toluna covered markets in North and West, including Ahmedabad, Jaipur, Indore, Chandigarh, Nagpur, Bhopal, Surat, Ludhiana, Udaipur, and Aurangabad, amongst others.

The study highlights that FM listenership is quite high in these markets, as 80% of the respondents claim they listen to Radio. The listenership is higher amongst working professionals, where 9 out of 10 consume it. Amongst students, a lesser number (66%) tune to the radio as compared to housewives and working professionals. Another big revelation from the study is 33% of radio listeners ranked FM Radio as the preferred medium for daily entertainment, followed by video/music streaming apps.

The highlights of the study are:

1. 74% of radio listeners tune in more than three days every week. Radio listening is a part of a daily routine for around 1 out of every 4 in the decision-maker group.
2. 7 out of 10 radio listeners tune in to Radio for between 30 minutes to 2 hours every day.
3. Another important highlight 6 out 10 people consume Radio at Home

Adding to the insights, Dixit Chanana, Country Director, Toluna India, says “Our study on radio listenership in tier II and III shows some interesting data points. 33% of radio listeners ranked FM Radio as the most preferred medium of daily entertainment. This is consistent with the study that we did in 2020. Apart from consumption on the go, more than 60% consume radio at home. The way people consume Radio in these markets is amazing, and I am sure the Radio fraternity will be very happy to see such kind of findings.”

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

RAM Ratings Week 46'22 - 49'22: Fever FM tops again in Mumbai and Delhi

Between 13th Nov and 10th Dec last year, BIG FM led in Bangalore and Radio Mirchi in Kolkata

By exchange4media Staff | Jan 13, 2023 8:32 AM   |   1 min read

RAM Ratings

According to RAM Ratings for Week 46'22 - 49'22 (between 13th Nov'22 and 10th Dec'22), Fever FM topped in Mumbai and Delhi charts. BIG FM and Radio Mirchi took lead in Bangalore and Kolkata.

In Mumbai with over 12.2 million listeners above the age of 12, Fever FM continued to stay on top with 18.1% listenership share. Radio Mirchi was in the second spot with 16.3%. Red FM took the third spot at 15.5%. Listenership peaked between 10 am and 11 am.

In Delhi, in a universe of 16.5 million listeners above the age of 12, Fever FM peaked with a 21.8% share. Radio Mirchi FM stayed steady with a 14.5% share. In the third position was Punjabi Fever with a 13.2% share. Most listeners tuned in between 9 am and 10 am.

In Bangalore, Big FM took the lead with a 31.9% listenership share. The second spot was bagged by Radio City with 28.9% share. At the third spot was Radio Mirchi went down a few notches with a 13.6% share. Most listeners tuned in between 7 am and 8 am.

Kolkata yet again saw Radio Mirchi topping the charts with a 28.1% share in a universe of 9.1 million listeners. Big FM came second with 24%. Fever FM had a 14.6%. In Kolkata, the listenership peaked between 9 am and 10 am

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

RAM Ratings Week 45'22 - 48'22: Fever FM maintains dream run in Mumbai, Delhi

Between Nov 6 and Dec 3, BIG FM took and Radio Mirchi took lead in Bangalore and Kolkata respectively

By exchange4media Staff | Jan 4, 2023 8:37 AM   |   1 min read

RAM Ratings

According to RAM Ratings for Week 45'22 - 48'22 (between 6th Nov'22 and 3rd Dec'22), Fever FM topped in Mumbai and Delhi charts. BIG FM and Radio Mirchi took lead in Bangalore and Kolkata.

In Mumbai with over 12.2 million listeners above the age of 12, Fever FM continued to stay on top with 18.1% listenership share. Radio Mirchi was in the second spot with 16.2%. Red FM took the third spot at 15.5%. Listenership peaked between 10 am and 11 am.

In Delhi, in a universe of 16.5 million listeners above the age of 12, Fever FM peaked with a 21.8% share. Radio Mirchi FM stayed steady with a 14.5% share. In the third position was Punjabi Fever with a 13.%4 share. Most listeners tuned in between 9 am and 10 am.

In Bangalore, Big FM took the lead with a 32% listenership share. The second spot was bagged by Radio City with 28.3% share. At the third spot was Radio Mirchi with a 14.1% share. Most listeners tuned in between 7 am and 8 am.

Kolkata yet again saw Radio Mirchi topping the charts with a 27.9% share in a universe of 9.1 million listeners. Big FM came second with 24%. Fever FM had a 14.6%. In Kolkata, the listenership peaked between 9 am and 10 am

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

RAM Ratings Week 44'22 - 47'22: Fever FM maintains top spot in Mumbai and Delhi

In Kolkata and Bangalore, Radio Mirchi and BIG FM topped the charts respectively

By exchange4media Staff | Dec 28, 2022 8:59 AM   |   1 min read

ram

According to RAM Ratings for Week 44'22 - 47'22 (between 30th Oct'22 and 26th Nov'22), Fever FM stayed on top in Mumbai and Delhi charts. BIG FM and Radio Mirchi led in Bangalore and Kolkata.

In Mumbai with over 12.2 million listeners above the age of 12, Fever FM continued to stay on top with 18% listenership share. Radio Mirchi was in the second spot with 16.3%. Red FM took the third spot with a slight dip at 15.2%. Listenership peaked between 10 am and 11 am.

In Delhi, in a universe of 16.5 million listeners above the age of 12, Fever FM peaked with a 21.7% share. Radio Mirchi FM stayed steady with a 14.5% share. In the third position was Punjabi Fever with a 13.5% share. Most listeners tuned in between 9 am and 10 am.

In Bangalore, Big FM took the lead with a 32.2% share. The second spot was bagged by Radio City with 28% share. At the third spot was Radio Mirchi with a 14.5% share. Most listeners tuned in between 7 am and 8 am.

Kolkata yet again saw Radio Mirchi topping the charts with a 27.9% share in a universe of 9.1 million listeners. Big FM came second with 24.1%. Fever FM had a 14.3%. In Kolkata, the listenership peaked between 9 am and 10 am

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

Ranveer Singh to play 'sutradhar' to Radio One's travel show with ICICI Lombard

‘Get Some Sun’, now in its 7th edition, covers the 7 wonders of the world, the remarkable travel journeys of influencers while building awareness about international travel insurance

By exchange4media Staff | Dec 26, 2022 5:44 PM   |   2 min read

ranveer singh

As we are witnessing an exponential rise in international travel - a phenomenon termed ‘revenge travelling’, we are consequently seeing a higher demand for Travel Insurance. In line with this trend, ICICI Lombard has collaborated with Radio One’s travel show – ‘Get Some Sun’. The flagship show has roped in Bollywood superstar Ranveer Singh, who will be lending his voice to speak about his travel bucket list across geographies globally and share his sun-chasing experiences.

This is the sixth year that Ranveer has been associated with this property. The show will be hosted by Radio One’s Host - Hrishi K. The company aims to increase awareness about its international travel products through the radio platform by reaching out to a very niche audience across major metro cities in India. A recent survey conducted by ICICI Lombard revealed that over 94% of globetrotters purchase travel insurance for their trips - giving rise to a new breed of 'safety-first' travellers.

Speaking about the new campaign, Sheena Kapoor, Head – Marketing, Corporate Communication and CSR, ICICI Lombard, said, “Today, more and more people are returning to international travel for both business and leisure alike. The spike in this travel trend has led to a higher number of cancellations and visa rejections. Hence, we want to amplify the importance of travel insurance as a basic item in people’s travel checklists. With Ranveer Singh as a sutradhar on ICICI Lombard sponsored ‘Get Some Sun’, we would like to urge the country’s voyagers to take preventive measures and cover, to protect their travel escapes so they can have a seamless and worry-free experience.”

ICICI Lombard has been associated with the radio show ‘Get Some Sun’ since its inception. The show enjoys a good positioning amongst the office-goers and executive populace, which comprises an important target group for ICICI Lombard. The brand is one of the leading insurers in travel insurance that provides a gamut of coverages and plans to suit every individual’s needs. ICICI Lombard’s travel insurance assures quality health care with a medical cover of up to 5 lakh USD. The various offerings of ICICI Lombard cover travellers from 3 months to 85 years without any medical check-up for policy issuance. The policy covers your safety and provides value-added services for your family back home.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

Ram Ratings Week 43'22 - 46'22: Fever FM tops Mumbai, Delhi charts

BIG FM and Radio Mirchi led in Bangalore and Kolkata

By exchange4media Staff | Dec 23, 2022 12:14 PM   |   1 min read

Ram Ratings

According to RAM Ratings for Week 43'22 - 46'22 (between 23rd Oct'22 and 19th Nov'22), Fever FM stayed on top in Mumbai and Delhi charts. BIG FM and Radio Mirchi led in Bangalore and Kolkata.

In Mumbai with over 12.2 million listeners above the age of 12, Fever FM continued to top the charts with an 18.3% share as Radio Mirchi trailed in the second spot with 16%. Red FM took the third spot with a slight dip at 15.2%. Listenership peaked between 10 am and 11 am.

In Delhi, in a universe of 16.5 million listeners above the age of 12, Fever FM bagged the top position with a 22% share. Radio Mirchi FM stayed steady with a 14.6% share. In the third position was Punjabi Fever with a 13.5% share. Most listeners tuned in between 9 am and 10 am.

In Bangalore, Big FM took the lead with a 32.2% share. The second spot was bagged by Radio City with 27.6% share. At the third spot was Radio Mirchi with a 15% share. Most listeners tuned in between 7 am and 8 am.

Kolkata yet again saw Radio Mirchi topping the charts with a 28% share in a universe of 9.1 million listeners. Big FM came second with 23.9%. Fever FM had a 14.2%. In Kolkata, the listenership peaked between 9 am and 10 am.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube