Were brands in tune with spending on radio this Diwali?
As per industry heads, brands have been cautious but there has been an upward swing compared to the last quarter
At the onset of the COVID-19 pandemic, the radio industry suffered a massive hit due to the slowdown in various markets. The Pitch Madison Advertising Report Mid-Year Review 2020 reported that Radio de-grew by 90% in the months of April-June. However, taking cautious steps the radio industry turned lockdown into an opportunity and delve further into innovation.
During the lockdown, most radio channels integrated with OTT music streaming apps making their content more accessible to listeners. Amplifying the digital experience, selected FM channels used social media to engage with consumers, organized digital concerts and hosted live chats with celebrities.
As economic activities started to revive during Unlock 1.0, local advertising started gaining traction again on Radio since the medium allows brands to reach the last mile consumer, especially in rural areas.
Now with the festive season in full swing, radio industry leaders say they saw traction from sectors like Electronics, BFSI, Automobile, FMCG, Consumer Non-Durables and e-commerce. Radio industry experts forecast Q3 to be better in terms of profits for the overall industry.
e4m spoke to industry leaders on the brands that have invested on the medium this Diwali season, the campaigns they curated for this festive season and how the festive spends will boost the revival.
Brand Investments
According to Abraham Thomas, CEO, Reliance Broadcast Network Limited there has been an upward swing as compared to the last quarter. “This season sees purchases of goods from certain categories being accumulated during this period. Marketers do leverage this opportunity as there is a significant surge in ad volumes. The surge in listenership across different segments (male, female, young and older demographics) has also driven ad volumes in targeted categories,” shared Thomas.
Talking about why the medium is perfect for brands to reach the last mile audience, Thomas says, “Radio is a preferred partner for brands owing to its mass local reach and high engagement. RJs being credible influencers, advertisers look at leveraging the strengths of the medium to reach out to their target audience.”
Ashit Kukian, CEO, Radio City believes brands have been cautious but there has been a slow recovery. “With the festive season around, brands have started showing an uptick in revenues and begun putting resources into Radio. Due to the impact of COVID-19, brands have been judicious about their spending. Hence, the response this year is less as compared to last year. However, having said that, it is still better than what we anticipated during the lockdown phase. With festive spends picking up, I believe that radio is prone to observe improvement in terms of both volumes and revenue in the rest of the year.”
Sharing further insights was Preeti Nihalani, the Chief Revenue Officer, Radio Mirchi. “Volumes that were dulled by the pandemic in the last 2 quarters, are back during the festive season. In the 30 days leading up to Diwali, volumes on radio have grown over the same period last year. Thanks to the success of the ‘Vocal for Local’ initiative, coupled with the ‘innovative solutions’ approach we provide our clients, many new brands have latched on, beyond the traditional ones that come back to advertise every season.”
Nihalani also shared some of the solutions that they have come up with. “At Mirchi Brewery, as we call it internally, we work on marketing challenges faced by brands. Every advertiser has challenges in different cities, for different brands. Most media companies sell ad inventory. At Mirchi Brewery, we work on providing customized, hyper-local, multi-media solutions for brands. The emphasis is on generating results for the client, whether it is generating footfalls, creating buzz, inducing trials, etc. We provide end-to-end solutions, all under one roof.”
Aside from their strong radio presence, Radio Mirchi has 73 frequencies across 63 cities, 12 YouTube channels with 10Mn+ subscribers, 33 online radio stations hosted on Gaana, and 19Mn+ followers across social media platforms. Put together, they nearly reach out to a 100 Mn+ audience a month. They offer the above-mentioned media platforms to provide marketing solutions to their clients.
“We have been able to surpass the social media revenue of all of last year, in the first 7 months of this year. We have seen repeat advertisers who want to work at the back of the strength of our RJ’s as influencers. Clients like Hamdard, Amul, Maruti, Dabur, ITC, Mother Dairy, and many more use the services of Mirchi Brewery to create multi-media solutions,” remarked Nihalani.
Diwali campaigns
Sharing about the campaigns BigFM conceptualized for the Diwali season, Thomas said, “Keeping in line with the spirit of the festival, we have been doing a fun and engaging game for Diwali called ‘BIG Family Jackpot’. Through this, listeners and their families can participate in exciting games and interesting contests from the comforts of their homes. Winners are being rewarded with a range of coveted prizes. Additionally, we have also collaborated with Birla TMT for the campaign #MazbootRishte that encourages listeners to strengthen their bonds with loved ones during this festive season. We have other campaigns and activations as well lined up for the coming weeks, announcements about which will be made in due course.”
Radio City too has had it share of Diwali campaigns. “We recently launched the second edition of ‘City Ki Tech-Shaala’ campaign. This campaign aims to provide laptops/tablets to students who find it difficult to afford them. The campaign has been executed across all the shows in Mumbai, RJs have been urging listeners to come forward and share their stories of why they need the laptop and post thorough analysis of each request, we shortlisted students who will receive the laptops/tablets,” Kukian said.
“In addition to City Ki Tech Shaala, we have also launched, ‘Iss Diwali gale Nahi, Dil Milne do’ campaign to spread the message of safe Diwali during the pandemic. Since a lot of people are away from their families and friends keeping social distancing in mind, we decided to make up for this and help people send Diwali messages to their loved ones. The campaign is live across all our 39 radio stations where RJs have been encouraging listeners to share their stories of how they are celebrating Diwali away from home and share a short message for their families.”
With regards to Radio Mirchi’s campaigns, Nihalani said, “Samsung wanted to create a Festive Centric Engagement (Radio+Digital). The prime objective was to bind an umbrella campaign around the festivities where the brand could act as an enabler in bringing joy to people's lives. Also, to include gratification for Samsung's Dealer Community, the idea we came up with was #KhushiyonSungSamsung, a campaign focusing on making people's festivities happy. This is by bringing happiness into someone's life this festive season and rewarding oneself with exclusive Samsung Gift Vouchers.”
Radio Mirchi also came up with a campaign ‘Khushboo Apnepan Ki’ for Mother Dairy Shudh Ghee. The brand wanted to establish the core proposition around that and increase the recall value of Mother Dairy Shudh Ghee. They created a nostalgic and feel-good campaign. Starting from a radio series on ‘shudh ghee’ dishes and ‘Khushboo Apnepan Ki’ that brought about digital videos of RJs sharing the recipes of life and cooking food made with shudh ghee, reminding them of their loved ones. They finally summed up the campaign with a funny ‘Murga Video’ and a fabric show.
Brands on board
Thomas remarked that their channel has seen engagement from categories like electronics and BFSI. “Other than these, categories such as Automobile, FMCG, Consumer Non-Durables and E-commerce are expected to be active during this period.”
Sharing his insights, Kukian remarked, “During the lockdown, we witnessed advertising requests come in from healthcare and pharmaceutical brands, owing to health and hygiene becoming a key priority. Now, with the opening up of markets and the start of the festive season, we have seen brands from different sectors like retail, auto, consumer electronics, real estate, and FMCG using the power of radio to advertise during the festive season. To give you an example, we will be engaging with retail brands and set up seller driven activities to build footfalls in the actual stores of these brands.”
Radio Mirchi’s Nihalani saw a surge in volumes across categories, led by FMCG, Auto, BFI, Real estate, and OTT players.
Will Diwali be a benefactor to revive spends on Radio?
Thomas shared, “In India, the festive season sees tremendous growth in business as about 40-45% of annual business occurs during this period. With a wide reach that radio offers, marketers are known to leverage the medium to expand their audience reach and engagement. The festive season also sees customers indulge in pent-up shopping and bulk-buying, which they have been deprived of since the onset of lockdown in March. We are looking forward to new launches and huge offers to capitalise on the consumer’s mood change.”
For Kukian, Diwali was bound to bring sme cheer. “We expect Diwali to kickstart and boost the consumption cycle which will lead to brands investing across platforms. While every industry is in the recovery phase, I believe Radio will be amongst the first ones to come out of the woods stronger. In terms of profits, due to the impact of COVID-19, we did see some amount of strain on our profit margin in Q1 and Q2 but as we know, Q3 is the biggest and most anticipated quarter of the year for most industries, I foresee this quarter to be better for us.”
Nihalani too had similar views with hopes that the momentum in the market stays. “Certainly, the festive season surge in advertising demand will help in the profitability overall. However, the effect of the pandemic will be felt for a little longer. We hope to maintain the momentum in the market and are cautiously optimistic about the demand post-Diwali. There is a brief lull post-Diwali before demand surges again in December.”
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Radio ad vol grew 25% in 2022 over 2021
As per TAM AdEx data, more than 10K advertisers tuned into radio in 2022 with LIC leading the list
By exchange4media Staff | Feb 7, 2023 8:48 AM | 2 min read
The advertising volume on radio grew by 25% in 2022 compared to 2021, shows data from TAM AdEx - Rewinding Y 2022 for Advertising on Radio.
The report stated advertising on radio witnessed 29% growth in 2021 over the COVID-hit 2020. Average ad volumes increased by 18% in the fourth quarter of 2022 compared to the second quarter of the same year. In 2022, March and October recorded the highest ad volume share.
The service sector registered 33% of ad volume, followed by retail at 12%. Also, services, retail, banking/finance/investment together contributed to 50% share of ad volumes. In terms of overall percentage share, the report shows properties and real estate led with 14% ad volume share in 2022, followed by hospitals/clinics, retail outlets-jewellers, and cars. More than 410 categories advertised on radio in the last year.
The report further states LIC India topped both advertisers’ and brands’ lists in 2022. Also, Vicco Laboratories, Reliance Retail, SBS Biotech, and Sobek Auto India observed a positive rank shift as compared to the previous year.
Meanwhile, more than 10,000 advertisers and 13,000 brands tuned in to radio in 2022.
In the growing categories, the report stated that properties/real estates were among categories that saw the highest increase in ad secondages with a growth of 80% followed by hospital/clinics that grew 73% in 2022 as compared to 2021. In terms of growth, the face wash category witnessed the highest growth among the top 10.
Focusing on the most exclusive advertisers in the year 2022, Rochaldas Sons stood as the top exclusive advertiser in 2022 as compared to 2021. More than 6,000 advertisers were aired during 2022 as compared to 2021.
The report also focused on the cities and states, which contributed majorly to the radio sector in 2022. Gujarat and Jaipur had the highest share in terms of radio advertising in 2022.
Out of all the creative trends, ad commercials with 20-40 seconds were the most preferred for advertising on radio during 2021 and 2022.
Also, evening was the most preferred time band on Radio followed by morning and afternoon time bands. As per the report, evening and morning time bands together added more than 65% share of ad volumes.
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Radio ad revenue up by 11% in Sep quarter to Rs 385.86 crore: TRAI
As of 30th September 2022, there have been 388 operational private FM radio channels in 113 cities run by 36 private FM radio operators, according to data reported to TRAI
By exchange4media Staff | Feb 6, 2023 5:21 PM | 1 min read
According to the Telecom Regulatory Authority of India (TRAI) Performance Indicators Report for the Quarter ending September 2022, radio advertisement revenue grew 11% to Rs 385.86 crore as against Rs 345.12 crore of 388 private FM radio channels for the previous quarter ended on the 30th June 2022.
The advertising revenue for the 31st March 2022 quarter was Rs 362.63 crore and for 31st December 2021 was Rs 421.74 crore.
Apart from the radio channels operated by All India Radio, there are 388 operational private FM Radio channels in 113 cities run by 36 private FM Radio operators.
According to the report, as of 30th September 2022, 374 Community Radio stations are operational as compared to 366 for the quarter ended 31st June 2022.
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ENIL posts 20% consolidated revenue growth YoY
The growth has been led by strong growth in non-FCT revenues, the company has said
By exchange4media Staff | Feb 3, 2023 10:11 AM | 1 min read
Entertainment Network (ENIL IN) has reported rebased consolidated revenue growth of 19.7% YoY, up 14.6% QoQ, but down 15.9% against Q3FY20 (pre-COVID level).
The growth has been led by strong growth in non-FCT revenues (up 55% YoY) along with radio business’s growth by 8% YoY.
Traditional media continued to face headwinds leading to radio volume growth deceleration but despite that, volumes grew 15.8% YoY.
ENIL has reported a rebased consolidated profit of Rs 7.3 crore, down 29.2% YoY (up 9x QoQ; down 26% versus pre-pandemic).
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RAM Ratings Week 49 '22 - 52 '22: Fever FM tops charts in Mumbai and Delhi
BIG FM topped in Bangalore and Radio Mirchi in Kolkata
By exchange4media Staff | Feb 3, 2023 8:37 AM | 1 min read
According to RAM Ratings for Week 49 '22 - 52 '22 (between 4th December and 31st December 2022), Fever FM maintained its top spot in Mumbai and Delhi charts. BIG FM and Radio Mirchi also held on to their leading positions 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 18.3% listenership share. Radio Mirchi was in the second spot with 16.3%. Red FM took the third spot at 15.7%. 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 14.7% share. Punjabi Fever ranked third with a 13.3% share. Most listeners tuned in between 9 am and 10 am.
In Bangalore, with 5.5 million listeners, BIG FM took the led with a 32.5% share
Big FM took the lead in Bangalore with a 32.4% listenership share. The second spot was bagged by Radio City with 28.2% share. At the third spot was taken by Radio Mirchi 13.2% 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 14.4%. In Kolkata, the listenership peaked between 9 am and 10 am.
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News broadcast licence, govt ads: Listening in to radio sector’s expectations from Budget
Rationalisation of GST structure, relief in import duty on broadcast equipment are some of the other demands
By Tanya Dwivedi | Jan 31, 2023 9:10 AM | 4 min read
The year 2022 was the year of recovery for all industries after facing multiple waves of Covid. As we enter 2023, all sectors, including the media, are expecting some relief measures in the upcoming Union Budget to boost their revenue. We spoke to senior leaders in the radio industry to understand what they are looking forward to. Take a look at what they shared.
Rationalisation of GST structure
Industries across sectors are skeptical about the complex GST structure that came into force a few years back. Radio industry too expects rationalisation of the tax.
According to Ashit Kukian, CEO of Radio City, “The radio sector has been experiencing a steady economic recovery post Covid. With the Budget for 2023 to be announced soon and the Finance Minister laying the foundation of India’s economic growth revenue, the radio sector has certain expectations for the same. One of the most important expectations is re-examination and rationalization of GST. This rationalisation can help the radio industry generate higher revenue and focus on a stronger growth trajectory.”
Advertising support from government
Industries across sectors have been witnessing stagnancy in business for the last couple of years. They all are looking at the government for some support in the form of advertising.
Nisha Narayanan, Director & COO, of RED FM, and Magic FM, said, “Radio has always been loved by the advertising industry for a multitude of reasons. The R in the radio stands for the recall value. It has been and will be the first preference for advertisers even in the upcoming years. This is because radio presents content wrapped in creativity that stays with the listeners for a longer period as compared to other mediums. However, all the benefits fall flat on the face if not supported by the required policies by the government.”
“The radio industry is in dire need of opportunities that are equivalent to other industries, especially in terms of advertising support from the government. Radio has the last-mile reach. It possesses the potential of assisting through natural calamities and much more. Despite the many strengths of radio, the government expenditure on the medium has remained stagnant in recent years and advertising rates have been the same as well,” she shared.
Integration of technology to bolster audience base
Talking about technology integration and media advancement across undeveloped areas, Kukian said, “Additionally, we hope that the government draws attention to the integration of technology and digitization across hinterlands as it will help strengthen the radio & media industry in bolstering the audience base. Leveraging this reach, the radio industry can continue to be one of the most preferred media of communication and offer relevant information across the length and breadth of the nation.”
Talking further about technological development and licence issues in the radio industry, Narayanan said, “We seek allowance in terms of networking, resolving music royalty concerns, and creating an IT policy for streaming digital content. Moreover, relief in terms of investing in the licencing or OTEF at lower infrastructural costs to create original content is expected to be a game changer for the radio industry. With the amended policies and support, the radio industry will continue to be a medium for the masses that uplifts other industries along with it.”
She further asked the government to boost radio infrastructure and create policies that assist in the expansion of the industry into newer markets.
“The radio industry has the potential to thrive if abetted with a level-playing field, especially when it comes to operating in the digital ecosystem. This can be achieved by allowing news and current affairs on radio. This can further encourage more players to join the ecosystem and make it less monopolistic,” she explained.
Promotion of Atmanirbhar Bharat
Talking about the import of equipment used in the radio industry, Rahul J Namjoshi, Chief Executive Officer, My FM Radio, Dainik Bhaskar Group, said, “Import duty on transmitters and broadcasting equipment should be exempted as these equipment are not manufactured in India and we are dependent on imports only.”
He added that in indigenous manufacturers should be encouraged.
Licensing Private FM Radio
Furthermore, bringing up the topic of focusing more the license private FM Radio, Abhay Ojha, CBO Zee Media Corporation Limited, said, “Private FM Radio should be given news Broadcasting license for the overall growth of the media.”
Echoing the idea, Kukain, said, “While the recently announced new radio phase III guidelines will boost the radio industry, we believe that the government should also provide an extension on the licence period and streamline the annual licence fees.”
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RAM Ratings Week 48 '22 - 51 '22: Fever FM tops charts in Mumbai and Delhi
BIG FM led in Bangalore and Radio Mirchi in Kolkata between 27th Nov and 24th Dec'22
By exchange4media Staff | Jan 27, 2023 3:52 PM | 1 min read
According to RAM Ratings for Week 48 '22 - 51 '22 (between 27th Nov and 24th 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 18.3% listenership share. Radio Mirchi was in the second spot with 16.4%. Red FM took the third spot at 15.7%. 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 22% share. Radio Mirchi FM stayed steady with a 14.5% share. Punjabi Fever ranked third with a 13.3% share. Most listeners tuned in between 9 am and 10 am.
Big FM took the lead in Bangalore with a 32.4% listenership share. The second spot was bagged by Radio City with 28.2% 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 28.1% share in a universe of 9.1 million listeners. Big FM came second with 23.8%. Fever FM had a 14.7%. In Kolkata, the listenership peaked between 9 am and 10 am.
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Radio City records 64% EBITDA growth for Q3
The 9M FY23 top line stood at Rs 147.5 crore
By exchange4media Staff | Jan 25, 2023 11:15 AM | 1 min read
Music Broadcast Limited (MBL)’s Radio City has reported 64% growth in EBITDA for Q3 of FY23.
The 9M FY23 top line stood at Rs 147.5 crore, a 20% growth YoY.
The company also maintained a strong Position with 19% volume market share.
Commenting on the results, Shailesh Gupta, Director said, “We are pleased to report healthy growth in EBITDA QoQ, with margins improving to 26.6% in Q3 FY 2023 compared to 18.3% in Q2 FY 2023. As per a recent research report – 8 in 10 are listening to Radio in Tier-II and Tier-III cities, which being our key growth market, gives a reason to be optimistic about the effectiveness and growth of our medium. In terms of market share, we stand at 19% as against 18% last quarter and having established a strong omni-channel presence we are in a good spot to leverage our deep networks and relationships and offer maximum value to our customers.”
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