MUMBAI: Keeping in mind the increasing demand for on-air inventory in metro markets, Radio One has announced a 30 per cent hike in its advertising rates across stations, with effect from 15 April 2013.
Announcing the hike, Radio One Ltd MD and CEO Vineet Singh Hukmani said, “This rise comes in the wake of huge demand for on-air inventory in metro markets. The radio industry has filled up its ‘super prime time’ way beyond the level of comfort for listeners and advertisers should be worried as a result. Our responses with new deals in the last two weeks on the improved rates and innovative deliverables are bang on with our expectations.”
He further added that the peak inventory at 25 minutes in super prime coupled with RJ talk, means that no more than three to four songs can play in an hour.
Radio players believe that it makes the listener tune away, and is thus not good for the advertiser. The need of the hour is pushing inventories even on other time slots comprising of high engagement properties, instead of just targeting vanilla FCTs.
“Also distribution of inventory ‘all day long’ is a good strategy as radio is an ‘all day long medium’ as compared to print and TV. Currently most non-prime inventory is filled with ‘junk/free inventory’ from the ever increasing off-air activation deals which devalue the radio medium severely. Radio players must consciously oppose this trend. The era of ‘using volume’ to depict growth or leadership is over. On-air ‘yield’ is the only measure that will fuel further investment into improved content,” he stated.
The rate increase will help the network create ‘preferred clients’ in super prime and give them a less cluttered environment. This will help brands engage and innovate better with the listeners. The station aims to take their inventory to healthy levels from the current excessiveness with this measure and super prime time becoming a good listening experience for the listener and advertiser.
He also mentioned that other radio players increasing their rates will be a positive sign for the industry which is slowly getting commoditized. Value improvements will prove to be a win-win situation for competitive and ROI seeking clients and discerning listeners. Even most media agencies have grown their radio earnings by focusing on valuable innovations and not just focusing on reduction of prices. There are now an increasing number of ‘pure radio clients’ who don’t use any other media and are willing to pay a premium as long as they get the right value and response.
Hukmani highlighted, “Clearly media agencies that have peddled the ‘rate decrease - increase volume’ approach have seen their radio earnings shrinking year on year in some cases to the tune of 30 per cent. And as a result have created nothing memorable for their clients. A 30 per cent increase in radio rates is easily funded by a 1.5 per cent media budget saving from print and TV spends. A small price to pay for superior targeting, engagement and all day long connect.”
Given a weakening economic scenario, every advertiser will seek economical media choices. With radio commanding only four per cent of the advertiser’s budget, Radio One is continuously investing in product engagement to ensure the best value to the listeners, and therefore the advertiser.
“No other medium but Radio One offers an automatic 95 per cent connect to online audiences at all times. We have added the largest number of clients this year on to Radio One stations across the metros and have delivered great response,” he said.
Radio One runs international stations in Mumbai and Delhi, Hindi retro stations in Ahmedabad and Kolkata, Bollywood stations in Bangalore and Pune and the only 100 per cent request station in Chennai.