INDIA HIGH ON RADIO FEVER

 

(Garima Patel)

Tune in everyone, for Radio as a medium has finally arrived and is here to stay. It has always received a step motherly treatment in the past from Marketing, Media and Advertising fraternity but is now getting some of the recognition long overdue. From the early days of Vivid Bharti and the very popular Binaca geetmala, radio has certainly arrived .Till the late 1970's radio was one of the most accessible entertainment option owing to poor penetration of television but thereafter it lost the race due to increasing popularity of television and other Medias. Just when people were writing off our age old medium, it took a U-turn and rose like a phoenix. After a slow growth till 2001 the Global radio industry is projected to increase from $44.6 billion in 2005 to an estimated 58.8 billion in 2010 averaging 5.7%compound growth annually.

 

Radio Industry in India : After the second FM radio policy, the number of radio stations in India is growing towards 300 radio stations as compared to 21 stations earlier. Now 91 cities will be covered by the new radio compared to 12 earlier. Thus the listeners in over 70 cities largely in B, C and D categories will be listening to Private FM radio stations, earlier served only by state broadcasters. Over 40 companies will be operating in the industry as compared to just 7 in the past. Even though FM phenomenon is relatively new to India, it still has achieved a growth of 58% in advertising revenues and by 2010 the industry is expected to reach Rs.800 crore mark (Economic Times). In the countries of similar socio economic profile as India, the radio has an advertising market of 14% so India still holds a tremendous potential for Radio advertising. According to ADEX India report, radio advertising constitutes almost 3% of the total advertising pie which is estimated to be around Rs.16300 crore .In 2005 radio  advertising contributed around 2.4% of the total Rs.13200 corers generated in advertising revenue. The FM radio market in India is pegged at Rs.360-500 crore and is expected to grow at the rate of 40% annually (Economic Times). It has emerged as an integral part of the marketing communications campaign. The major advertisers on radio are the telecom industry, cell phone manufacturers, educational institutions financial institutions and television channels.

 

Characteristics of FM Radio Advertising : For long the products advertised on Radio were those used by rural people like cycles, soaps and fertilizers etc and were for places with no electricity. But with the advent of FM radio it has emerged as a very popular medium with young consumers who are perpetually hooked on to their cell phones. It is also a part of life of mature consumers who drive to work daily and spend much more hours on road struggling with the traffic jams and traffic signals .FM is gaining acceptance from advertisers as it is very cost effective and holds great potential for local advertising. It is the best low cost option for reaching masses. Radio content can reach from wage earners to students to executives who drive a car and thus cuts across all socio economic levels. The localized nature of the medium helps advertisers to choose specific markets .It is often seen as a supplementary mode of advertising and when used with other mediums, it creates a multiplier effect and builds the recall value of the brand.

 

In spite of these advantages FM radio has bagged only a small portion of the total spend on advertising (around 3%).There are several factors that contribute to low media spend on radio. Its geographical reach is limited to metro and mini metro as there is no national FM radio channel. Each radio channel has a specific listener profile and unless the product you are advertising is a niche product, it does not add to much value and reinforces a message. Unlike other mediums like television (TRP ratings) there are no reliable tools to measure effectiveness of radio advertising.

 

Quality of Radio Advertising in India : In spite of the phenomenon growth in this medium radio advertising does not score very high in terms of creativity and most often the quality depends upon the channel one is tuned to. Seldom one comes across advertisements that are pleasing to the ear as well make some sense(except a few like VIP Frenchie ,Parachute hair oil campaign ,Frooti ,Cadbury's and ICICI bank campaign).Indian radio advertisements are not highly creative and suffer from mediocrity. Most use the same tried and tested tools like humor and film based content. Last year Radio Mirchi instituted the Radio Mirchi Kaan Awards to recognize the best talent in the industry. At this years awards there were 350 entries as compared to 245 last year and the number of categories rose to 20.Two talented youngsters selected from this Year's “Agency of the Year” were sent to the Mecca of advertising awards ,the Cannes Advertising Festival in June. These developments will surely boost the quality of radio advertising in India.         

 

The Road Ahead : The future of the FM radio advertising seems very bright still there are many hurdles that it needs to overcome. Advertising avoidance continues to remain the key challenge for all media companies including radio. In India radio stations not only have to fight competition from other media but also with the radio companies operating in the same network. With around 70 radio channels operating in the country it becomes extremely difficult to stand out in the clutter and carve a niche for themselves. Securing command over local advertising is the key focus area for radio stations as they reach local people. However the emergence of other media players such as the out of home segment (OOH), cable television, film theatre and local print media is providing a further challenge to radio. The exorbitant license fee could prove to be one of the major roadblocks to the growth of private radio services in the country. With the number of stations increasing, the race is on among competitors to provide exclusivity and create properties around advertising. Radio stations are being forced to look beyond mere spots and extend their portfolios to conducting live shows and concentrating on activities. Another problem is that people's attention span is getting shorter thus it is a challenge to make shorter and more effective commercials which will make campaigns more effective. In U.S Radio, stations are selling super short ads which are known as "Blinks" and "Adlets" and are interspersed between music or disc jockey's chatter." Blinks" are of two seconds and the message is of not more than 3 -4 words. "Adlets"  are about 5-6 seconds and they offer  more words(Se Young Lee, Financial Express). These very quick blurbs are the latest in radio advertising as the stations as well as the clients are shying away from 60 seconds or even 30 seconds ads.

 

Indian stations will also have to adopt a similar strategy to cut down on advertising clutter and to make their ads even more effective and interesting. As the medium develops time spent of radio and consequently radio advertising is bound to increase. Competition will drive consumption and the medium will grow further. It's still early days for radio advertising in India. The Information and Broadcasting (I&B) Ministry has agreed to consider allowing the broadcast of news and current affairs program on private FM stations .This is surely a big leap forward and holds immense promise for the industry will make radio a more interactive and authentic medium. If implemented it will change the face of FM radio in India.

 

Garima Patel - Faculty, C-PRAMS,  Makhanlal Chaturvedi National University of Journalism and Communication, Bhopal (M.P.)

 

 

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