Sumantra Dutta, COO, Radio City
"The radio industry needs to completely open up, more players should join in and radio stations in the new cities should become operational."
"The radio industry needs to completely open up, more players should join in and radio stations in the new cities should become operational."
Radio is fighting on far too many fronts, ranging from the license fee issue to low ad revenues and lack of research support. Sumantra Dutta, Chief Operating Officer, Radio City, who has been championing the cause of FM since its inception in India, is emphatic in stating that the issues need immediate attention. At the same time he is truly upbeat about the medium’s growth prospects. In an interview with Shakir Sheikh of exchange4media.com, Dutta talks about the license fee issue, radio’s power as an ad medium, differentiation in content and lots more. Excerpts: Q. At present, the radio industry is enjoying 2 per cent of the total ad spend, which is estimated at Rs 9,600 crore? Can this share be increased and by what percentage?
Well, when you compare the percentage of ad spend of any particular category from the total ad pie, the first thing that you take into consideration is that is it well represented. Radio currently is not well represented. In the first stage of radio, 110 frequencies were auctioned and only 30 were taken up since, and today, three years after the first radio station was put up by Radio City, there are only 22 FM stations in 12 cities.
For radio to get a larger percentage of the total advertising pie, you will need at least the top 50 cities in the country to have radio so that they are able to service a larger percentage of audience. Advertisers will then target these ears or audiences that radio is delivering. For growth you need enlargement of network, which means that many more cities need radio connectivity.
Secondly, I think radio is going to grow organically also like most of media. This is because India is quite a media-savvy market with a huge explosion of media, be it television or any other medium. Advertisers are using radio for advertising. They are doing so as everybody wants a bigger bang for the buck and radio is the most cost-effective medium available today. More the advertisers use this medium, more they will notice how effective it is to advertise on radio.
Advertisers spending larger budgets are the first ones to come on radio, others see its impact and follow. For instance, if you have one FMCG company advertising on radio, the other companies will automatically follow; if you have one retailer coming in, the others in the same category will follow. It is just a matter of time.
I would say the percentage share of radio is not 2 per cent but getting to 2 per cent and even the figure of Rs 9,600 crore is an estimated figure and my guess is that it is closer to Rs 8,800 crore.
Last, but not the least, I think the institution of syndicated research is necessary; it helps to ascertain how many are listening to radio, what gender they are, what SEC they belong to, what time of day do they listen to radio, so as to figure out the effectiveness of radio vis-à-vis other mediums. When syndicated research data is made available, it will lead to the growth of radio as far as media plans are concerned. Radio will find a much stronger base in media plans on the basis of syndicated research.
Q. When will syndicated research data for radio be available?
In Mumbai, AC Nielsen began research a year ago and have come up with six studies. This has now been taken over by MRUC and they have tried to extend it to Mumbai and Delhi. However, compared to the kind of currency that TAM has for television and ABC for print media, radio has none. Radio is lumbered heavily with license fee charges. Till such time that the license fees are not taken away or rationalised, it will curb radio's ability to invest in research. With the new government coming in, we are hopeful that a decision on the impending rationalisation of licence fees would be taken up shortly. This in all probability could lead to more stations coming up which in turn will lead to lesser burden on the existing radio stations. All the radio stations will understand the importance of investing in syndicated research.
Q. What are your views on the revenue-sharing proposition at 4 per cent of gross earnings made by the Amit Mitra committee?
The Task Force recommendations are extremely thought-through and they have made recommendations on a variety of issues and revenue sharing is one of the key issues. We are totally in agreement with the fact that revenue sharing should be at 4 per cent.
The revenue sharing model has been adapted somewhat from the telecom model. However, their shift to the revenue sharing model is a little different from ours because first their service is chargeable to the end-consumers, so for every subscription sold they have monies flowing in. In the case of radio it is different. What we do is to sell on an incremental basis, hence the level of revenue needs to be of a nominal percentage. One of us made a representation of 2.5-3.0 per cent but the Amit Mitra committee felt it was prudent to cap it off at 4 per cent and we are all agreeable to that. The government will be able to maximise its revenues at 4 per cent revenue share of a number of broadcasters rather than a few broadcasters.
The reason why the government has not come out with a formal announcement is because when TRAI stepped in it was election time. Once the new government and ministry come into power the decision will be taken. The decision is expected to be taken by end-June, as TRAI has committed that the entire policy on radio will be announced by then.
Q. Should the restriction on news and current affairs be lifted? If yes, how will it help the industry?
My question is, why should there be restrictions on news and current affairs. There are no restrictions on news and current affair in other mediums. Masses have a right to know, right to access news and information on the move, and if radio has the ability to provide that news and entertainment, it is incumbent on the authorities to allow and lift the restrictions on news and current affairs and provide a level-playing field.
The radio privatisation policy is new and there will always be room to renew and review in the process of liberalisation. Hence I will attribute it that radio is getting liberalised and we are also learning—we, as in government and private FM radio players.
Q. Going forward, how does the future of radio look like?
Listening to radio is a habit. And as with any other habit, it has got to be formed over a period of time. The answer lies in understanding what listeners want from a radio station and giving it to them. It is a question of positioning your brand to cater to this segment. The introduction of private FM radio has just started in India. For a commercial medium that has flourished in the rest of the world for around 75 years, it is reasonable to expect that it will take a couple of years and not just months for radio to achieve its potential here. Radio is just getting started, and boy, will it rock?
Q. How is the ad spend on radio expected to increase in the next two years?
If rationalisation of license fees does not take place, the same number of stations may or may not be there and also no new players would enter the fray. The radio industry needs to completely open up, more players should join in and radio stations in the new cities should become operational. Once rationalisation takes place and new stations are allowed to operate in the top 40 cities in India, radio will garner a market share in the region of 5 per cent of the total ad spend.
The reason for citing 40 cities is because more than 25 of these have a million-plus population and this is a seriously large number we are talking about. Given the fact that it is private commercial radio and all the players are in for a commercial purpose, I reckon that it will be logical that they go first for the commercially-viable cities, which are also the cities where the licenses were auctioned in the first place. If radio becomes operational in these 40 cities then the golden days for radio will slowly begin to arrive.
Q. What are your views on holding multiple frequencies in the same city?
The Task Force Committee has proposed that committed radio players should have multiple licenses. If Radio City has multiple licenses in any one city, it will not air the same content on both the frequencies. There will be plurality of content, hence there will be different segments of the market being addressed and the consumers will get the type of programming that they want. If they want English, they will get English, if they want Hindi, they will get Hindi, if they want a chat radio, they will get one. It all depends on what is commercially viable and what is the listener’s choice.
Q. Should there be any stipulation on the type of content to be carried on each license or the choice should be left to the licensee?
The first killer of private FM radio was the license fee. Stipulations on the type of content will be the next killer. It is similar to running a restaurant in your neighbourhood and someone would come and say that you could run only a Chinese restaurant or a Mughlai or a South Indian. We have a democracy and everybody should be given a choice as we all know the competitiveness and quality that are keenly associated with the private sector.
It should be solely for the licensee to decide which content he or she would like to choose to air as they are doing it for a commercial purpose. We have made it very clear to the Task Force Committee too that there should be no stipulation on content.
Q. Will more companies joining the business help the segment grow? If yes, any likely entrants?
In the print segment, there are around 5,200 publications in India (give or take 5 per cent), and there are about 180 TV channels. Television or print would not have been perceived the way it is today had there been no competition. Competition helps any market grow multifold.
In the radio segment too there is a need for more radio stations leading to lot more content and variety. We will have a greater number of teams going out and educating the advertisers and the local retail environment about the efficacy of radio advertisement and hence growing the Radio's share of the pie. So, it is imperative that more radio players join in, experience the medium and enable it to grow.
Q. Will radio affect the revenues, reach and impact of other mediums?
Radio complements other mediums extremely well and it is a known fact that when radio is used along with TV or print effectively within the same budget, the advertised brands also get more bang for the buck. This is primarily because radio is popularly known as 'The theatre of the mind'. Sounds or sonic triggers make people visualise pictures, and sometimes these pictures are not even possible to capture in a camera or may be just too expensive to do so. Radio also has the power to recreate images seen on other media and when the same is blasted on radio, the multiplier effect kicks in giving the advertised brand an omnipotent feel.
Q. The differentiation is very low in the current radio stations’ offerings. How do
I do not agree that the differentiation is low. Radio City has contracted with STAR which is Asia's pacesetter in the entertainment media, with wide expertise in the area of programming, marketing and sales. We have brought a huge lot of variety into radio programming because we are the only station that presents hit Hindi music, dramas, sitcoms, serials, etc. There is a huge lot of comedy programming on Radio City coupled with a lot of Bollywood and infotainment-led programmes. So it is totally unfair for anyone to make a comment that there is no differentiation in content.
Yes, there is no differentiation in content amongst the other stations, but Radio City clearly stands apart. That is the reason why research--whether it is syndicated research that AC Nielsen ORG MARG have conducted consistently over wave 5 and wave 6, or commissioned research that AC Nielsen has conducted for us--they clearly indicates that Radio City is the undisputed number
one station, which is so solely on the back of the variety in programming that we have.
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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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