Roller-coaster ride for FM radio in India, but the road ahead high on optimism
The advent of FM radio gave a fresh lease of life to the stagnant radio industry in India. That was in 1999, when the Government of India had decided to allow private players to enter the FM broadcasting sector with a 10-year licensing period. Now with Phase III of FM expansion expected soon, exchange4media speaks to industry leaders to find out how the FM journey in India has been, and the road ahead.
The advent of FM radio gave a fresh lease of life to the stagnant radio industry in India. That was in 1999, when the Government of India had decided to allow private players to enter the FM broadcasting sector with a 10-year licensing period. However, it was only after the successful launch of FM Phase II that the industry began to see rapid and robust growth, and even advertisers began to notice the impact of radio on listeners and the cost effectiveness of the medium. Cellular phone services, retailers, television channels, educational institutions, and even election campaigns have been the key advertising categories on radio.
Today, the radio industry still accounts for around 4 per cent of the total ad spends in India. According to a FICCI-KPMG report, radio is expected to grow at a CAGR of 16 per cent over 2010-14 and reach a size of Rs 16.4 billion by 2014.
With the rise of the digital medium, the radio industry is beginning to ride the digital wave across the country. For instance, Big FM had entered into a partnership with VAS provider OnMobile Global Ltd. to launch the radio experience on the mobile platform. Much earlier, Radio City had launched a music portal, Planet Radiocity.com. This apart, Bharti Airtel in partnership with Radio Mirchi launched Mirchi Mobile, wherein Airtel mobile customers can choose to follow their Mirchi radio station from anywhere in India.
The slowdown and after
The second half of 2008 perhaps was the toughest for the radio industry, as the private FM radio industry, too, was affected by the economic slowdown. The ad rates were hit in the second half of 2008 and the industry faced a decline in growth. However, the slowdown also encouraged certain brands to advertise on radio as it proved to be a cost effective medium. It was only in September 2009 onwards that the industry began picking up in terms of growth.
Now, the industry is eagerly waiting for the FM Phase III rollout. However, the industry is divided on this, as some want the music royalty issue to be resolved first and extension of license term from 10 years to 15 years. FM Phase III is likely to see additional 700 FM stations being launched in the country. There is also possibility of the Government allowing news and current affairs on radio and multiple frequencies, which is poised to take radio to a different league altogether.
exchange4media spoke to some industry players to find out their views on FM radio’s journey so far, the challenges and the road ahead.
What they say
According to Ashish Pherwani, Associate Director, Media and Entertainment Practice, Ernst & Young, “The FM industry in India has grown like a Bonsai plant: growing to the best of its potential while hindered by low FDI levels, content restrictions, multiple-license restrictions, music royalty issues, etc. In the absence of sound and widespread measurement mechanisms, there would always be a need for radio evangelists to be able to demonstrate its power and capabilities. Advertisers are beginning to use radio more effectively as a tactical communication tool to support their TV and print spends.”
Their Journey
Apurva Purohit, CEO, Radio City, explained, “On July 6, 1999, the Government of India decided to allow private players in the FM broadcasting sector with a 10-year licensing period. The radio industry took its first tentative steps into a semi-de-licensed environment. In these years, it became increasingly clear that radio had the ability to impact millions of Indians due to its wide coverage and personal connect. Recognising this, the Government announced a very progressive Phase II policy, resulting in the growth of the medium to 90 cities, 280 operating frequencies and a reach of 60 million people.”
She further explained, “Radio has certainly seen robust growth as a medium for marketing and advertising. Advertising on radio is cost-effective, easily modifiable and impacts a larger audience. But just as there are hurdles in every growth path, this medium has also witnessed several obstacles and has been impacted by certain regulations, competition and the slowdown. To overcome these hurdles, there have been certain regulations and licensing parameters that will hopefully be released in the Phase III policy that will give a fillip to this medium.”
Prashant Panday, CEO, Radio Mirchi, observed, “We’ve had our share of failures and successes. Overall, I think we’ve been a successful business and an even more successful brand. We’ve become a core part of the society and that’s a big achievement. Being voted the #1 media brand by IMRB is no mean achievement (we were voted ahead of The Times of India and Star Plus in October 2008). We made a lot of losses in our first five years – fortunately, we have turned around in the last five years.”
According to Soumen Ghosh Choudhury, Business Head, Big FM, “The journey this far has been phenomenal. For Big FM, right from its launch, where we had the mammoth task of launching 45 stations across the country in 18 months, to being the first players to have a brand ambassador – earlier Abhishek Bachchan and now Sonu Niigaam – to programming formats that have never been experienced before, it has been an enriching experience. Within a short span of time, we have been well accepted and are reckoned as the leading player in the market.”
“Private FM in India has made significant strides over the last few years, specifically – post Phase II. Growth of networks, increased acceptance by advertisers, RAM measurement system, formation of AROI, leadership in Bangalore and Kolkata within two years of being operational, and good reach in Mumbai in highly competitive 9 to 11 broadcasters city and being leader in 27 market across India, etc., are all important achievements in the development of the category and with Big FM,” he added.
The challenges
Panday of Radio Mirchi noted, “For most broadcasters, it is profitability. For Mirchi, it’s been positioning Mirchi as a ‘brand’ in a space where there are a lot of ‘products’. Our success is proof that we have succeeded.”
Purohit of Radio City highlighted, “We face challenges such as not being allowed to own multiple frequencies or broadcast news and current affairs. There is no parity in the FDI allowed when compared with other media, and back breaking music royalty payments which we have to make. However, it is imperative that all constituents and partners of the radio industry – the Government, the policy makers, and the music industry – realise that the current unrealistic royalty rates are going to be the single cause for the industry to go through severe crisis if timely action is not taken.”
Big FM’s Choudhury added here, “These challenges have been spoken about for the longest time and range from music royalties to multiple frequencies to news and current affairs, networking opening on radio and more.”
The road ahead - two years from now
Prashant Panday believes that two years from now the radio industry will be much bigger and profitable.
According to Apurva Purohit, “Radio industry is still at a nascent stage in India; we still have to see its full potential. We believe that for the medium to expand, it needs a lot more experimentation, willingness to try new formats, different types of music, and more content innovation. The newer trends of distribution for the medium, whether it is through the mobile phone or Internet, will fuel the penetration of FM in the country. There are several un-chartered new territories in programming to be exploited. We could have multiple genres in FM channels such as news, entertainment, sports, business and so on. With the expansion to more than 500 cities, the footprint is only going to get bigger and better.”
Soumen Ghosh Choudhury pointed out, “The radio industry, while at a nascent stage, has demonstrated tremendous scope for growth and huge business potential. The category will see consolidation of players, with smaller/ single stations possible merging with the larger networks. Phase III will allow the footprint of FM to increase even more dramatically, giving the medium the next impetus of growth and will make radio a must in the marketing plan of every advertiser with the huge reach across India. There will certainly be challenges in the years ahead – sorting out music royalty issues, building advertiser base in smaller stations, training of more professionals for the industry, etc.”
While FM radio is still at a nascent stage, the FM Phase III rollout will decide how far this industry will go. Although FM radio has come a long way since 2001, some of the biggest challenges for the industry remain resolving the contentious music royalty issue, increasing the license period from the current 10 years to 15 years, and reduction in Prasar Bharti rentals, which need to be resolved to ensure the viability of the radio industry.
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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.
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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.
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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.”
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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.
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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.”
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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.
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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.
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