MUMBAI: Although radio occupies four to five per cent of the total advertising spend in the country, the medium is gaining ground in the media mix. The radio session at Ficci Frames 2010 on day two, focused on the evolving role of radio in the media mix and the panel moderated by ENIL CEO Prashant Panday discussed issues like underselling inventories, lack of differentiation, lengthening of license period and convergence of mobile and radio.

Referring to radio today as a non-differentiated medium, Times TV Group MD and CEO Sunil Lulla said, Commercial FM radio when arrived was interesting with the way it borrowed brands like Big FM used Abhishek Bachchan as their ambassador but today no efforts are being put by entities in the brand building exercise. The radio stations aren't doing enough to create distinctiveness as they have become revenue phobic and are concentrating on their bottomlines....

To which, Midday Multimedia (owners of radio venture Radio One) managing director Tariq Ansari said, Thinking about differentiation in a scenario where you pay hefty license fee is a risky strategy. At the end, buyers look out for numbers and if radio stations paying the same One Time Entry Fee make more profit with no differentiation, why should I risk my bottomlines?...

On the lack of brand building exercise by radio stations, Ansari replied, The key here is for the government to lengthen the licensing period from the current ten years for the radio operators to invest in brand building. Why would radio stations invest in brand building if they have only seven years of operation left?...

To which Reliance Media World CEO Tarun Katial insisted that radio stations can't afford to be anything but revenue phobic. Some radio players attempted to be different and got paid back. Although radio stations play the same kind of music, consumers understand the difference and make a choice....

Madison India CEO Punitha Arumugam insists that differential content isn't essential to create differentiation. Music channels in the TV space create differentiation by packaging innovatively although they play same music. Also, media agencies back players with better numbers, so they should focus on differentiation....

TAM media research CEO L V Krishnan related that radio players should realize that differentiation need not be a channel perspective but in specific day parts 

Krishnan reinstated the listenership peak in the afternoon, the fact he dwelled upon at India Radio Forum last year. Providing more insights in the radio listenership pattern, Krishnan asserted, Although on the move listenership forms an important part of radio listenership, 70 per cent of the listenership is home driven. Car listenership is skewed towards males, with the majority being youngsters....

Bringing in his experience of radio stations in Netherlands, Fun X CEO Willem Stegeman said, Radio was popular than television and today internet is booming. 25 per cent of our listenership is IP based and we are finding ways to better monetize it....

Idea Cellular has been utilizing radio inventory innovatively in its media mix and CMO Pradeep Shrivastava maintained that it is willingness of radio to experiment that hooked Idea to the medium  Radio players are keen to co-create ideas, play around with properties, as compared to TV owing to its restrictive format. Beyond experimentations, radio amplifies our brand through integration. Radio being local creates localised connect for our brand in the interiors. "

Star CJ CEO Paritosh Joshi noted that unlike television, radio should not undervalue its inventory. Radio is still a young medium and should create a benchmark for itself by not bending to market forces. Katial agreed that radio was responsible for its lower pricing and insisted that radio is a fulcrum around all brand integrations. Radio amplifies the brand building exercise and adapts with internet and mobile better than other mediums.... Katial also touched on the fact that the small-medium enterprises exploit radio innovatively than the corporate advertisers who dwell on numbers.

Questioned if cross ownership has helped Radio One in getting more revenues, Ansari disagreed saying, It hasn't helped us in raking revenues as when bundled, advertisers tend to demand discounts on both.... Arumugam chips in adding that the advertisers can invest in national television at the same cost of investing in radio, so why should they invest in the medium?

Katial affirmed that radio isn't nascent anymore. The medium is going to make revenues and simple matrix don't have role in today's integrated solutions, he said. Panday concluded the session focusing on the role of convergence of mobile with radio providing impetus to growth of radio is industry in India. With radio players going the convergence way, radio sector is just getting more interesting.

Send in your comments to: anita.iyer@indiantelevision.co.in