Radio ad spends to rise by 8 -12% post phase III
Since most of the new frequencies are in tier III and IV towns, radio will become a significant medium for advertisers in reaching media-dark regions; players expect moderate growth in next three years
The radio industry is upbeat and rightfully so. But what exactly will be the effect of Phase-3 in radio advertising?
With over 800 additional frequencies up for grabs in across 290-plus cities, in terms of reach, radio can now perhaps match the likes of print and TV. In fact, since most of the new frequencies are in tier 3 and 4 towns, it is safe to say that radio will become a significant medium for advertisers in reaching the media-dark regions.
However, whether operators will start seeing business gain in the near future is debatable. As many cities will get FM for the first time, a lot of evangelising will have to be done. It is akin, as one FM operator puts it, to the situation that existed in the early days of FM.
Tanaya Patnaik, Director at Kanak TV and Radio Choklate 104 FM, Eastern Media, agreed that though Phase-3 would ensure the reach of FM radio to grassroots, it might not be very attractive business-wise. “For a regional player like us, acquiring licences for smaller cities will help establish a wider presence in a state and we will be in a position to demand better rates. But individually, these smaller stations might not be a financially-viable outfit,” she said.
“The top 10 revenue markets are all in for a rate increase by all players averaging upwards of 20 per cent. This will ensure that pricing of smaller markets also goes up. Tier 3 cities will, therefore, have a great business foundation to start from. For this, the players must shift their thinking from commodity to value and implement rate increases quickly. The smaller the town, the better live local radio entertainment will be -- as the literacy rate drops so print loses its edge, digital does not engage in local regional language, television is not live. So once players play to the strength of the medium, tier 3 cities will be a boon,” opined Vineet Singh Hukmani, MD of Radio One.
There are challenges in terms of monetisation perhaps, but the opportunity is there as well -- of opening up a whole new segment of the population to radio.
“The growth in India is going to come from tier 2 or 3 towns more and more. Radio is perhaps the best medium to reach this audience and so for many brands this could increase the relevance of the medium,” says Ashish Bhasin, Chairman and CEO (South Asia) of Dentsu Aegis Network and Chairman of Posterscope and psLive (Asia Pacific).
He projects that radio advertising might grow in the range of 8-10 per cent in 2015. However, one thing to consider is that the sector broke all estimations by growing at 18 per cent in 2013, according to certain estimates, and post Phase 3, there is no reason why this growth rate cannot be sustained.
“It (growth) will be in the range of 12-14 per cent in the next three years. But thereafter, one will have to see that technology is changing fast and we are yet to migrate to digital broadcast and face the challenges that internet and mobile will put across to us,” said Nisha Narayanan, COO of Red FM.
According to her, Phase-3 will increase the market size and create new opportunities. “However, as the auctions are going in a batch-wise format and all these are Phase-2 leftover frequencies, these are the markets that have seen radio evolving. Hence, we expect a moderate growth in terms of industry size,” she added.
Hukmani also expects ad spends to shoot up to 9 per cent of the advertising pie as compared to current 5 per cent of the ad pie. He said clients, expecting better ROI are clubbing digital and radio spends as these are the only low-cost ‘live’ media. “Print and TV spends are reducing due to lower engagement and since content is not ‘live’,” he says
“The overall share of FM in the advertising pie will definitely go up by a considerable margin. More stations mean more spending. Also, Phase-3 will give an opportunity to small, local businesses to advertise on radio. For bigger cities, inventory is already an issue. So, newer and more creative ways of earning revenue like events and content marketing will play an important role,” said Patnaik.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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