Faced with shrinking advertisement pie due to an increase in number of players, the top few FM radio stations in the country are planning for a hike in advertisement tariff.
The stations are also planning to add value-added service such as packaging advertisement with on-ground campaigns to battle competition.
Taking the lead, the Sun TV Network-owned RED FM, which operates in Mumbai, Delhi and Kolkata, will be taking a 15-20 per cent hike in its advertisement tariffs with effect from October 1.
“We are rationalising the rates after almost one-and-a-half years,” Mr Abraham Thomas, Chief Operating Officer, told Business Line.
RED FM is also offering on-ground campaigns along with advertisement for its clients.
Industry sources said the advertisement market in the radio segment, including All India Radio, is estimated to be Rs 750 crore.
The market grew last year with new stations coming up, with the total number of operating stations presently being about 250.
RED FM was ahead in Mumbai circle according to the latest RAM (Radio Audience Measurement) by Neilson’s.
RAM data shows that RED FM clocked a weekly average of 44.89 lakh listeners over the last 52 weeks, with a 7.3-lakh lead over its nearest competition.
Thanks : Hindu Businessline