Community radio could be a good revenue opportunity: Ashish Pherwani
“At some point community radio will start picking up and this will largely be funded by the large FMCGs who want to reach out to small villages and tier 4 cities,” says Ashish Pherwani, Partner (Advisory Services) at Ernst & Young, as he talks about the radio ecosystem which is one of his focus areas
Ashish Pherwani is the Partner (Advisory Services) at Ernst & Young. One of his focus areas is the radio industry and with Phase III auctions expected soon, we sat down with him to get his thoughts on what the brave, new world that the Indian radio ecosystem has been waiting for so long will look like. Excerpts.
After a long wait, the radio sector is in for an exciting year. Your thoughts.
In terms of growth there is a normal growth of 8-10 per cent, maybe 12 per cent depending on the company. It is pretty much inflationary and that is going to continue. Once the Phase III has happened there will be some growth in radio because of the organic nature of the medium but by the time the auctions happen, everything is set up and revenues start coming in, it might take 6-9 months.
There are going to be two kinds of impact—one is starting of additional stations in larger cities, which this will put pressure on the incumbents. Even today if you are an operator in a city like Mumbai, you do not make money unless you are in the top 3-4. So, this is going to put more pressure on existing operators. However, there is a lot of space in Tier 2-3 cities and it might lead to overall growth of the radio industry in India.
This is really needed and before digital music makes an impact. When music consumption actually starts getting digital at a very, very fast pace, at a very affordable price; then people will start consuming more and more customized music. When that happens there could be a loss of incremental audience and even existing audiences can move to that side. We cannot say the exact impact because it has never happened before. Right now, streaming is really expensive but if streaming becomes affordable then it will definitely take audiences to that service.
So, I think it is very important that the radio licensing happens quickly so that people start getting onto FM rather than the whole thing (radio) becoming redundant. Having said this, there is always going to be a market for mass radio. Even globally it is an 8-9 per cent industry whereas in India it is about 2-3 per cent of the total media industry. This 2-3 per cent will always exist but the incremental growth opportunities, which we have seen in the US, has been held back due to the delay in radio licensing and expansion.
How much business sense does expanding into Tier 3 and Tier 4 cities (which form the majority of licenses available in Phase III) actually make?
It does make sense, because whenever you buy a license you do not look at it in an individual sense. You always look at it as a bouquet. For example, if someone wants to launch a product in Maharashtra he will always look at TV and print because it gives you reach. Radio would probably give him 7 stations in Maharashtra but with Phase III, brands can now create focussed radio campaigns reaching out to 25 different cities in the state. Suddenly, it becomes a viable alternative to print. So, that’s how you build relevant bouquets—either you build a bouquet of metros and Tier 2 towns or statewide bouquets that matter to advertisers.
Even if the stations are very small, the rates will accordingly be less. With networking allowed, I can make my costs even lower. Therefore though the revenue is low, the cost is also low and my overall revenue increases because of the volume as my bouquet is relevant to the advertiser.
So I think it is all about the strategy with which you manage the stations.
We have been seeing a lot of consolidation in the market. There are also some operators who seem to be planning on exiting as soon as their current licenses expire. What do you think the Indian radio ecosystem will look like, say, 2 years down the line?
I think the radio market will break up into a number of different types of operators. First, the independent radio operators who are doing only radio and are going to the market with a 100 odd station bouquet. The second will be radio operators who are an extension of print, where both businesses grow simultaneously so as to keep advertisers in their core markets with them on both radio and print.
And the third will be very small, regional players who are going to run one or two stations because they are very focused on the town and these are low cost stations. This is how I think the long-term radio ecosystem will pan out—large, national players, print extensions and small, regional players.
What I also think will happen is that at some point community radio will start picking up and this will largely be funded by the large FMCGs who want to reach out to the small villages and Tier 4 cities. Many of the people in these areas are not reachable by television and because of low literacy; print is not a very good option but FM radio is a way to reach to these people.
I actually feel there is a good revenue opportunity for Tier 4 and community radio as well.
We have not really seen a lot of things happening on the community radio front. What is holding it back?
It is the revenue part. There are very small guys who want to start community radio and most of them do not have ad sales experience. How will they sell ads? Unless we put together something that will help community radio sell ads, it will never do well. They are not allowed sponsorship of programs, there are a whole bunch of revenue restrictions on them.
Since you mentioned digital earlier, there have been complaints that we need to get the policies and rules governing digital radio to be put in place. What is needed for digital radio to grow in India?
Lower broadband cost. The minute broadband cost becomes affordable, it will work. The other thing that might happen in the industry, and this is subject to Doordarshan playing its part, is digital terrestrial transmission. It hasn’t been tried till now but the advantage of it is that the quality is better and you can have above 20 stations in a city. From a frequency perspective it is fantastic but the only thing is that the mobile handset ecosystem has to be digital terrestrial friendly.
Once that happens, I think digital radio from a terrestrial mode can also have a great future. Right now you have 8-10 frequencies in the market, with this, you can add another 20. It is very good for large cities so let’s hope they do it in the top 10-15 cities like they have been talking about.
A number of radio operators have also been requesting the MIB to reduce frequency gap to accommodate more stations in each city. Is this feasible right now?
If it is feasible it should definitely be done. I think the government is carrying out some tests on it right now. The way I am looking at it is that it will help to grow the market.
Today, there are a wide variety of people who listen to very different music. In Mumbai, of all the channels you have, barring 1-2, everyone else plays the same kind of music—Hindi Bollywood. Suppose you increase the available frequency then you provide a chance to create more niche categories. More choices mean more listeners who want to hear their kind of music. There is enough space so there is no reason to worry that the mass channels will take a hit.
Reducing frequencies is good but the only problem is that companies have paid for those frequencies in a time of scarcity; so the amounts have been humongous. Now, if the government opens up more frequencies then the value will come crashing down. There are two sides to the story but my point of view is that, from a consumer perspective, there should be enough channels for everyone. There is enough demand for other content and music but we are restricting ourselves. This will not grow the industry. A small city like Abu Dhabi has 25 stations, while Mumbai has 8!
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
TOP STORIES
TRAI releases Consultation Paper on reserve price for auction of FM radio channels
The regulatory body has asked for written comments on the consultation paper from the stakeholders by November 6
The Telecom Regulatory Authority of India (TRAI) has released a Consultation Paper on "Reserve Price for auction of FM Radio channels".
The Ministry of Information and Broadcasting (MIB) sent a reference dated August 22, seeking recommendations of TRAI on reserve prices for 283 cities (260 new + 23 existing) under FM Phase-Ill Policy.
Accordingly, this Consultation Paper has been prepared to seek the comments and views of the stakeholders on issues related to estimation of the reserve prices for auction of FM Radio channels.
As part of the consultative process, the Consultation Paper has been uploaded on the TRAI website.
The regulatory body has asked for written comments on the consultation paper from the stakeholders by November 6. Counter-comments, if any, may be submitted by November 13, the paper said.
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
ShareRadio Mango Nerolac ‘Pulikkali’ celebrates the essence of Onam
Radio Mango in association with Nerolac Healthy Home Paints flags off an Onam folklore-themed roadshow in Kerala
Radio Mango in association with Nerolac Healthy Home Paints launched ‘Pulikkali’, an Onam folklore-themed state-wide roadshow that resonates with the ideology of unity among all people, regardless of their caste, colour or religion.
The road show brings to life the most vibrant and eye-catching ritual of Onam, the Pulikkali (Tiger Dance). The campaign also fondly recalls the popular Onam folk song ‘Maveli Naadu Vaneedum Kaalam, Manushar Ellaarum Onnu Poley.’
It is designed around the ancient folklore of the golden reign of King Mahabali when there was no discrimination on the basis of caste or class and there was neither crime, nor corruption.
The dynamic crew of entertainers, dressed as Pulis (Tigers) accompanied by Chenda Melam (traditional percussion) artists will travel across Kerala for 15 days as part of the campaign to emphasise the fact that no matter what, we all are one and whatever the colour, we must unite to make this Onam colourful.
The flag off to the ‘Pulikkali’ roadshow was conducted in Kochi by Malayalam actor Saiju Kurup in the presence of Ravindran Nair, Programme Director, Radio Mango, and Rajesh C., Kerala Regional Sales Manager, Nerolac Healthy Home Paints, at Malayala Manorama’s Panampilly Nagar office.
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
PM Modi lauds Fever FM’s #PlasticSeBreakUp initiative
In a tweet, the Prime Minister congratulated Fever FM for its innovative campaign to ensure reduced usage of single-use plastic
As part of the Fever Voice of Change CSR initiative, Fever FM launched the ‘#PlasticSeBreakUp’ campaign to make India free from single-use plastic.
Drawing inspiration from Prime Minister Narendra Modi’s message this Independence Day, the initiative urges all shopkeepers to do away with single use plastic bags.
PM Modi too tweeted in support of Fever FM’s Bharat Positive initiative. He said ‘I congratulate Fever FM for their innovative campaign to ensure reduced usage of single use plastic. I urge shopkeepers to take part in this campaign with vigour. Such efforts will add valuable momentum to the Swachh Bharat Mission.’
I congratulate Fever FM for their innovative campaign to ensure reduced usage of single use plastic. I urge shopkeepers to take part in this campaign with vigour. Such efforts will add valuable momentum to the Swachh Bharat Mission! @FeverFMOfficial
— Narendra Modi (@narendramodi) September 12, 2019
Talking about the initiative, Harshad Jain, CEO – Radio and Entertainment, HT Media Ltd and Next Mediaworks Ltd., said, “We are extremely grateful to our honourable Prime Minister for his encouragement and appreciation of our latest Bharat Positive campaign, and assure him of our unending support. This encouragement gives us motivation to continue our work with greater zeal to bring about a positive change in the country. We are committed, with our latest campaign against single use plastic, to drive the citizens towards a plastic free India. Bharat Positive is a Fever Voice of Change (FVOC) initiative, the biggest CSR in the history or radio.”
Gautam Gambhir, cricketer, MP and face of Bharat Positive initiative, said, “Credit to team Fever and the listeners of the radio station. PM sir noticing the campaign is no mean feat, it just gives a shot in the arm. Of course when Mr Modi talks, the world listens. There’s substance in his thoughts and him putting the weight behind ‘Plastic Se Breakup’ campaign will only galvanise the whole movement. The fact that his following cuts across age groups is another huge plus. Through PM’s support, the youth, the mid-aged and the elderly, everyone will know about this campaign.”
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
RED FM's ‘Pride Ki Side’ campaign highlights LGBTQIA + issues
To celebrate the first anniversary of repealing of Section 377, the initiative will provide a platform to share stories and highlight challenges faced by the community
93.5 RED FM has launched a brand-new initiative – ‘Pride Ki Side’ to celebrate the first anniversary of repealing of Section 377. The initiative will provide a platform to share stories and highlight the various challenges faced by LGBTQIA+. The concept of this campaign majorly aims at educating the masses about the pride community.
RED FM has joined hands with Naz Foundation and Breaking Barriers – a project by students of Tagore International School, Vasant Vihar, Delhi, to sensitise the society at the grass root level.
RED FM is targeting the children at a young age so that they become compassionate and kinder towards LGBTQIA+ children.
To support this belief, various workshops are being conducted in schools to provide a safe and respectful learning environment for everyone. Trained and certified counsellors accompanied by RED FM’s team and RJs are conducting the workshops.
Speaking about this campaign, Nisha Narayanan, COO and Director, RED FM and Magic FM, said, “Looking at the status of LGBTQIA+ community in India, it is high-time we start educating the people about them. Everyone should have the right to openly appreciate and practice who they are and love who they want. At RED FM, we believe in supporting this movement through our humble initiative ‘Pride Ki Side’. We want to raise awareness in the public about the challenges faced by them. We hope more people will come forward, share stories and help empower each other. Our vision is to create an inclusive environment and encourage our audience to adopt a progressive and compassionate outlook towards the LGBTQIA+ community.”
Commenting on the association, Anjali Gopalan, Founder and Executive Director, The Naz Foundation Trust said, “I am so happy that RED FM has taken this step to highlight LGBTQIA + issues. The Naz Foundation (India) Trust is proud to be part of this journey.”
To ensure maximum outreach, RED FM has also introduced a daily special morning show on their radio channel with a counsellor. This engaging and interactive format of the show will address queries and problems of the community who face bullying, hatred and discrimination at institutes or workplace.
Besides this, RED FM has also invited a well-known LGBTQIA+ influencer at their studio who will share stories of courage in dealing with cyber trolls, verbal harassment, and how they moved-ahead and dealt with such situations.
The campaign, which began September 4, runs till September 13.
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Dia Mirza supports BIG FM’s green Ganesha initiative
To spread awareness about using eco-friendly Ganesha idols, BIG FM held a two-week-long contest and 15 winners were felicitated with a Tree Ganesha by Mirza
For the 12 th year in a row, BIG FM has brought to light the importance of celebrating festivities in an eco-friendly way through Ramky’s BIG Green Ganesha.
The initiative promotes the use of eco-friendly Ganesha idols and its celebration with minimum environmental damage. RJ Rani, the face of Ramky’s BIG Green Ganesha initiative, hosted the event, which was graced by actress Dia Mirza, Sujiv Nair from Ramky Enviro Engineers Ltd and Ram Kharpuriya, Director - Greenland Farms.
15 lucky contest-winning listeners were felicitated with a Tree Ganesha by Mirza, at the BIG FM office.
To spread awareness about using eco-friendly Ganesh idols, a two-week-long contest was held and it resulted in widespread response from listeners across Mumbai. BIG FM Mumbai associated with Tree Ganesha as they create eco-friendly idols which are made of natural soil and also melts completely after immersion in water bodies as compared to non-biodegradable options that create pollution.
Commenting on the initiative, a BIG FM spokesperson stated, “BIG FM has always tried to bring about a positive change in society. BIG Green Ganesha has been our on-going initiative for the past twelve years which is amplified through on-air and digital channels. We at BIG FM believe in ‘Change starts with you’ and through this campaign tried to raise awareness on the environment pollution created with non-biodegradable idols. The campaign has been very successful till date and we are happy and proud that we as a medium can offer our listeners entertainment with purpose.”
Nair, Chief Human Resources Officer of Ramky Enviro Engineers Ltd, commented, “The Green Ganesha initiative is our contribution to the environment. Being in the space where we closely experience the hazards that affect the environment, we are trying to make Green Ganesha an awareness campaign and save the environment from the use of harmful products. Through this we urge the people to acknowledge an environment-friendly celebration by adopting the use of eco-friendly products.”
Mirza added, “I am very happy to be here. Moreover, I am extremely grateful to BIG FM for this campaign that has been raising awareness over the last 12 years. For the past few years, I have been associating with beach clean ups post the Ganpati Visarjan and it’s very disheartening to see the remains of the idols washed back ashore. Three years ago, Dattadri (Kothur of Tree Ganesha) and I made one of these tree Ganeshas together and it was a beautiful feeling. The happiness you feel while doing something for the better good just elates you to a whole new level. I urge more people to opt for eco friendlier methods, for not just their Ganpati celebrations, but in their day-to-day activities as well.”
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Radio Adex: Ad volume sees 8% decrease in indexed growth in Q2 2019
Paytm.com continues to be the top brand to advertise in the services sector in the first half of both 2018 and 2019
The recent Radio Adex report for ad volumes in the medium for the first and second quarter of 2019 shows 8 per cent decrease in indexed growth.
In the first quarter (Jan-March), the service sector had 31 per cent share which came down to 26 per cent in the second quarter (April-June). The retail sector saw increased share in the second quarter. From 8 per cent in the first quarter, the ad volumes from the retail sector increased to 11 per cent. This was the time when IPL, General Elections and World Cup were ruling the roost.
Interestingly, Banking/Finance/Investment sector which was one of the top advertising categories in the first quarter with 12 per cent share, doesn’t find a place in the top five super categories in the second quarter. Education makes an entry in the top five list for Q2 with 10 per cent share. Auto jumped from 8 per cent to 10 per cent, while food beverages declined from 10 per cent to 9 per cent.
If we consider the ad volume in Radio for the first half of 2019 vs the first half of 2018, the indexed growth saw a decline by 9 per cent. Services continue to take the maximum share. In 2018, it was 30 per cent share while in 2019, it is 29 per cent share. Retail, Food & Beverages, Banking, Finance and Investment saw similar shares this year as was in 2018. Auto moved from 8 per cent in 2018 to 9 per cent this year.
Paytm.com continues to be the top brand to advertise in the services sector in the first half of both 2018 and 2019. Google Pay takes the next spot this year as compared to Amazon.in in 2018. Google, Cars24, Yahoo Cricket were the other brands which were a part of the top 5 brands in the first half of 2018. This year, Cars24 remained constant while there has been an addition of Hotstar and Phonepe in the list.
In the retail sector, except for Home Centre (Koz), all the brands that advertised on Radio in the first half of 2018 are missing from the top 5 brands list of 2019. While last year there were Great Eastern Trading, Central (Pantaloons), Max Retail, and South India Shopping Mall, in 2019, they are replaced by Alishan, Reliance Trends, The Chennai Silks and Lifestyle. In the Food and Beverages category, the Pan Masala brands continue to make a mark.
The cars category has jumped from 5 per cent to 7 per cent shares on radio, when compared to the first half of 2018 vs the first half of 2019. Properties/Real Estates have the maximum share of 8 per cent in 2019 compared to 9 per cent in 2018.
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
FM Tadka goes for makeover with ‘Apni Suno’ campaign
Apart from the new positioning statement, FM Tadka also sports a new logo indicating dialogue within for a positive change
Three months ago, management at the Patrika group decided to go for a makeover of FM Tadka. And just two weeks back, the revamp exercise reached a climax at film studios in Jaipur with RJs all across the country practicing steps for the new jingle video having both an aspirational and inspirational feel to it.
The radio network, spanning six states and 18 cities, started its teaser campaign on August 1 with a mascot named Mr. Mannki who ignited people's minds on the new message hidden in its pose which became quite a hit amongst listeners.
The campaign garnered praise from celebrities across the spectrum. Singers Sukhwinder Singh, Hariharan, Tochi Raina, Aastha Gill, and Hindi film industry stars like Tusshar Kapoor, Mallika Shehrawat, Urvashi Rautela, Sonali Kulkarni, director Nitish Tiwari, Super 30 founder Anand Kumar, comedians Shekhar Suman, Sunil Pal, Raju Shrivastav and sports stars appreciated the concept when it was shared with them during their visits to FM Tadka. The campaign, Apni Suno, talks about making a transformation in life.
“As a country, we have always followed Gandhi ji’s three monkeys, but now the fourth monkey Mr Mannki came with a message- to bring a positive change in your life and to the destiny of the country- Apni Suno. This network philosophy was aptly revealed on Independence Day,” the network said in a statement.
“From students as environment crusaders, young innovators to reality stars from smaller cities- there are many examples of people listening to themselves and carving a new life for themselves. It is this clarion call that FM Tadka is bringing to its listeners and propagating through roadshows, cinema, mall tie ups and artists across the country,” the statement read.
Gaurav S Karrir, the National Programming Head, further reveals, “The prospect of a product change around was quite exciting. We took innovative ways like making Mr Mannki our mascot, mask inserts in newspapers, celeb led Apni Suno life changing stories and using Patrika power in digital, outdoor, print and tv to make people notice the new message of Apni Suno”.
Saurabh Bhandari, National Head Marketing, Patrika Group, who has seen the radio product evolve over the years, applauded team Tadka and shared his vision, saying, “We at Patrika Group always believe to bring change in people’s life. Our endeavour FM Tadka's ‘apni suno’ positioning is yet another step in same direction, there has been a deep study and long research behind this, we are confident listeners and our trade partners will continue their love n support to FM Tadka.”
Apart from a new positioning statement, FM Tadka also sports a new logo indicating dialogue within for a positive change. Shades of blue pointing at freedom of expression. The core TG now is 16-30 with music starting from 2008 and the playlist focused on melody. FM Tadka's flagship Jaipur station now has a new team of RJs making the entire station live with focus on social impact plus technology and sports segments.
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 onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp