| 23 Sep 2023
Radio advertising grew by 17 per cent in 2014

MUMBAI: Due to the five state-level elections and the General Elections in 2014, radio advertising grew by 17 per cent, which is two per cent higher as compared to last year’s projection of 15 per cent. The data was revealed during the annual Pitch Madison Media Advertising Outlook 2015.

Indian advertising grew by 6 billion in 2014. Print held the highest market share of 41.2 per cent, followed by Television, which enjoyed a share of 38.2 per cent. Madison World chairman Sam Balsara commented that print advertising has marginally widened, which is good news for the medium. Digital advertising held 10.7 percent in the total growth of the advertising pie. However, radio maintained an overall stand with 3.5 per cent. According to  the report, 2015 projects a slight dip in radio's share in the advertising pie by 0.2 per cent to 3.3 per cent.

Radio, the traditional medium, was able to grow by 17 per cent which was due to the 2014 elections. However a projection from last year, stated that there would be a 15 per cent growth in 2014, forecasted around the Phase III expansion plan, which did not come into play last year. With the confidence that the government will finally launch Phase III expansion by September 2015, a large number of stations are expected to open up and the new stations should pull in at least Rs 70 crore of additional advertising revenue in the last quarter of the year.

Balsara pointed out that local media was extensively used by political parties during the election and is expected to continue.

Today, radio has been used tactfully by the e-commerce as well. The contribution by e-commerce players is expected to grow by 321per cent in 2015. Balsara touched upon the inventory issue in India. He said that higher inventory sold by all radio stations had resulted in cluster in the medium.

Balsara added that with Phase III coming into the picture, there would be new local retail advertisers who would be first time advertisers.

In 2014, radio advertising saw a total revenue of Rs 1285 crore, by adding Rs 190 crore. Real Estate and Home improvement has been the highest contributor for the radio industry, which is followed telecom and DTH.

However, overall advertising in India has grown steadily in the past ten years. Indian advertising grew by 16.4 per cent in 2014, while the global advertising space grew by a little more than 4 per cent.

Balsara took his time to advice advertisers, stating they should focus on effectiveness rather than efficiency. He added- experimentation should be the mantra and that the media can move mountains. Additionally, he warned advertisers not to underestimate any market, and that the corner room required attention.