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This first study focuses on the key revenue sources for the Radio Industry
vis-à-vis TV & Print and for the first time substantiates the conventional wisdom that local advertisers reign supreme on Radio |
The past couple of years have witnessed a flurry of activity in the radio sector. An industry that accounted for nearly Rs. 150 crores worth of advertising surely needs to be studied closer than ever before. The current situation of the radio industry is akin to that of the TV industry in the early and mid 1990s. Further, with the possibility of a revenue sharing regime being brought in by the Govt. and the sector getting liberalized further, we need to be prepared for a revolution that is staring at us in the face. With the FM stations giving the local press a run for its money, a need gap still existed as far as the monitoring and evaluation of ad spends on radio was concerned. It was with this purpose that TAM Media Research launched the First Radio Advertising Monitoring service – Radio AdEx in technical collaboration with AirCheck India Pvt. Ltd. (Subsidiary of RCS Inc. USA) that monitors 13 radio stations across the 4 metros.
Radio today accounts for close to 2% of the Indian advertising industry. However, if we have a look at the top 10 product categories in terms of ad spends on the 3 main media, TV, Press and Radio, we see that only 2 categories – Cellular phone service & Cars/Jeeps are present among the top 10 on each of the media. The most striking fact is that local advertisers and independent retailers account for close to 3/4th of total advertising on radio. Another interesting fact is the second heaviest advertiser on Radio are TV channels promos that account for close to 13% of the advertising duration on radio.
Radio today accounts for close to 2% of the Indian advertising industry. However, if we have a look at the top 10 product categories in terms of ad spends on the 3 main media, TV, Press and Radio, we see that only 2 categories – Cellular phone service & Cars/Jeeps are present among the top 10 on each of the media. The most striking fact is that local advertisers and independent retailers account for close to 3/4th of total advertising on radio. Another interesting fact is the second heaviest advertiser on Radio are TV channels promos that account for close to 13% of the advertising duration on radio.
The next chart gives a clear indication about the potency of radio as a local medium. Across the four metros, the local advertisers account for nearly 75% of the total advertising on radio and a market like Chennai is even more skewed towards the local advertisers.
Clearly, the numbers suggest that radio can no longer be a pushover in any media plan. For the radio industry and us at AdEx India, such information that brings in accountability to such a huge medium of advertising, this is just the tip of the iceberg!
We at TAM AdEx will be coming out with more such analyses in the future and keep enriching you with information on radio advertising – an area that remained unexplored till now – BUT NOT ANYMORE!!!
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