Red FM, managed by Digital Radio Broadcasting Ltd bagged three channels in the recently concluded Batch One, Phase three auctions – one each in Mumbai, Srinagar and Jodhpur. It is the channel’s second frequency in Mumbai, giving it an opportunity to come up with a differentiated station in tried and tested Mumbai market. A more prudent buyer than other biggies in the FM space, it has decided to take a rather aggressive stance in ad sales space. It has increased its ad rates to the tune of 35%.
Nisha Narayanan, COO, RED FM Says, “As we venture into newer markets and add more frequencies to our portfolio post phase III rollout, it was necessary to rationalize our ad rates. From industry standpoint too, phase III auctions have revived positive advertiser sentiment and it will encourage other player also to take a relook at the rates. We are sure than sooner or later most of others will also revise their operating rates.” She adds, “Rates are always a mechanism of market forces of demand and supply which is currently growing at a CAGR of 12-14%. Our rate increase is keeping in mind the high inventory levels in most of our stations. At a time when radio popularity and effectiveness is increasing, why not the rates be revised? After all we are in a medium which is constantly jostling with limited inventory.”
RED FM believes that its key strength is its loyal listeners who throng to the channel due to its balanced and healthy product without compromising on content quality. Narayanan expresses, “It is the faith in our product and our reach that advertisers stick with us and we deliver. RED FM is not only about the strength of the network, proven track record and strong brand salience, but also about our capabilities to provide best customized solutions for their brands and innovative approach which is liked by advertisers. And for a quality product and solutions that work for their brand they would not have an issue in paying some more money. Also, being a differentiated FM brand, we provide 360 degree communication solutions to our advertisers and they understand limitation of ours as we face inventory crunch. All this without any compromise and also with an assurance to our channel partners that we will continue to provide them best and customized quality solutions and hope to receive their support on the desired ad rate hike.”
The rate hike is effective in all Digital Radio Broadcasting managed stations including Suryan stations. It is a revised rate structure for the entire network. She informs, “Our rates have always been a market determined phenomenon. We determine ad rate hike on the basis of the demand and supply of advertising volumes in that area.”
Narayanan Believes that though every medium has its own benefits in terms of reaching to target audiences, radio has an edge on the basis of number of people it reaches out to. She says, “Most importantly it’s a free to use medium which can be consumed by all at any time. The fact that accessibility to radio is not limited to time and place ads to the benefits of advertising on radio. It is very local and regional in connect yet very global in its sound and ability to communicate. Not to forget here is that Radio is mother of all social media- it is first of interactive and engagement driven mediums that helps to build a connect with brand.”
She promises exciting times ahead, courtesy the new programming strategies to be unveiled in the days to come.