Tag: AROI

  • AROI conducts listenership study during lockdown

    By A Correspondent

     

    People trust FM stations as credible sources of info. According to the latest research by AZ Research, people across a sample size of 3300 people among 18+ urban agglomeration population, 82 per cent people have been tuning in to radio during Covid-19, with FM channels emerging as the second-most credible source of information for the masses. As per the research, radio has a credibility score of 6.27, second only to the internet which is at 6.44 and TV at 5.74.

     

    Infact, the radio industry witnesses a listenership of 51 million people, which is nearly as much as television’s reach of 56 million and social media’s reach of 57 million. A few more noteworthy highlights of the research include radio’s at home listenership which has increased by 22 per cent and has grown from 64 to 86 per cent. The time that people spend listening to radio has increased by 23 per cent to 2.36 hours everyday during the lockdown, second only to television. (* Source: All SEC 18 + UA : Mumbai, Delhi, Bangalore, Kolkata, Pune & Hyderabad)

     

    Said Anuradha Prasad, President of the Association of Radio Operators for India (AROI): “Radio has always been a powerful medium to reach the masses at all times. The findings of this study go on to show how important radio is, especially in a country like India. I am immensely grateful for the constant love and support that we have received all through the years. We will collectively keep trying to do our best, even in tough times like these.”

     

    Added Nisha Narayanan, Director and COO, Red FM and Magic FM: “Radio has been playing a much bigger role, it has been able to unite the linguistic and ethnic diversity and connect people from all backgrounds with its numerous arrays of frequency. Radio offers last mile connectivity and the latest findings have proved once again that it’s a powerful and trusted medium to deliver messages to the audience. We would like to thank all our listeners who have supported us and believed in the power of radio.”

     

     

  • FM players reach out to govt for bailout

    By A Correspondent

     

    The Association of Radio Operators (AROI), the apex body of radio broadcasters in the countyr, has reached out to the Government of India seeking a bailout package in view of the severe impact of the Coronavirus outbreak on the industry.

     

    All private FM radio players have written to the Union minister of Information and Broadcasting, Prakash Javadekar about industry going through a tough phase with advertising revenues shrinking over the past year, coupled with a steep fall in government ads, and hoped the government will consider its requests for certain concessions it had sought in December 2019. The impact had worsened with the sudden outbreak of pandemic Covid-19 globally leading to services sectors and brands cutting back on advertising spends.

     

    The industry has collectively asked for a three-pronged bailout package till the economy stabilises. This included a one-year moratorium on all licence fees and charges by the government and Prasar Bharti, and restoration of government advertising on radio, besides clearing the long-pending payments from the Directorate of Advertising and Visual Publicity.

     

     

  • Indrani Sen: Radio Rumblings & Selling without Currency

    By Indrani Sen

     

    Currently radio is the fastest growing traditional medium in India. Why the Radio Industry is not feeling the need for a valid media currency after investing a whopping Rs 3,000 crore (including the migration fees) in the Phase III of FM Radio expansion? Why is RAM, our only syndicated radio listenership study, limited to only four cities since 2007 when six years back in 2009 (after the Phase II auction), 91 cities formed our Private FM Radio Network? How can the Radio channels be so indifferent to RAM that some of them have stopped subscribing to it? As per the FICCI KPMG 2015 report, radio revenue will increase from Rs 1,960 crore in 2015 to Rs 3,950 crore in 2019. Are the advertisers buying radio time blindfold or is there a hidden card which is helping radio stations to sell effectively without the help of a regular currency?

     

    What is ailing our Radio Audience Measurement studies?  We had a good start in radio research in late 1990s. The advertising industry felt the need of radio listenership measurement even before the advent of private FM channels and the pressure which mounted on AIR resulted in Audience Research Unit starting its Radio Programme Listenership (RPL) ratings in 1998. In early 2000, MRUC started Indian Listenership Track (ILT) in partnership with AC Nielsen ORG- MARG based on yesterday’s listenership (YDL) which is also referred as Day After Recall (DAR).  MRUC commissioned a research to evaluate which of the two radio research methodologies (between DAR and Diary) was the most robust in Indian context and the Diary Method scored above DAR.  ILT was discontinued after 2006 as TAM announced the launch of RAM from 2007.

     

    A joint service between IMRB International and Nielsen Media Research, RAM is an independent division of TAM Media Research and provides listenership data based on the Diary Method on a weekly basis. RAM started with a lot of promise in Mumbai, Delhi and Bengaluru in 2007. Kolkata was soon added as the fourth city. The panel size of 600-plus individuals each in Bengaluru, Delhi, Mumbai and Kolkata has been static over the years though new listening devices have been included in the diaries.

     

    RAM was criticised soon after the first ratings were released for using the 2005 NRS universe estimate without proper corrective measures. The universe estimate was finally corrected in 2011 (two years after Phase II auction) showing huge growth in population in all the four cities. Certain demographic distributions based on the new universe estimates and other findings were also challenged by radio industry experts. Large FM radio organisations found that they had to invest in independent research to understand the behaviour of the listeners in the markets beyond the four RAM cities. They chose to rely on their own research across all markets and began unsubscribing to RAM. The limitations of RAM drove some of the advertisers to conduct their own research to understand the efficacy of radio as a medium for their target audience and they stopped using RAM.  It became a Catch-22 situation.

     

    The exodus of FM Channels from RAM resulted in lack of financial support to the syndicated research. Apathy of the radio industry is the reason for RAM getting stuck to only four cities over eight years though they announced periodically their intention to add on more cities. It is probably too late now to revive and revamp the syndicated radio listenership research in its present format.  A new audience metrics needs to be set up in India based on a proper sampling structure for covering the entire FM Radio network (AIR and Private) and providing useful information to the radio and advertising industry.

     

    The Association of Radio Operators in India (AROI) should collaborate with BARC for setting up the structure of the radio audience research. BARC has been set up with the intention of providing measurement of “Broadcast Audience” including both TV and Radio. After setting up the TV audience measurement system successfully, BARC needs to focus on radio audience measurement system.  AROI would have to ensure complete support by the radio industry to the new avatar of the syndicated listenership study.

     

    The question which needs to be addressed is can the radio industry afford a large scale sophisticated radio listenership study based on audio meters? As per the FICCI-KPMG 2015 report, against industry size of 543.2 INR billion for TV and 284.5 INR billion for Print, the size of the radio industry is miniscule at only 19.6 INR billion. It is obvious that unless advertisers and media agencies actively support the syndicated research on radio listenership study, it would not be financially feasible.

     

    A number of media planners are now using IRS data for preliminary analysis of penetration of FM Radio in their target audience and selection of radio channels. However, the analysis often cannot be conducted due to inadequate sample size in the selected target audience. While MRUC is planning the new IRS, can they examine the scope of providing additional information on penetration of FM radio as a medium?

     

    Meantime, regardless of the coverage provided by RAM, the FM radio industry continues to thrive and grow at a compound annual growth rate of 18% (FICCI-KPMG Report, 2015). What is the secret of the success of this medium? Radio operators in India are today selling radio time based on a 360 degree approach which is helping in the growth of radio advertising.  No deal happens without ground activation and digital support through mobile texts and social media interactions. Often TV or Print or OOH support from the same media house is also solicited through FM Channels.

     

    The advertisers are satisfied as they have an indirect measure of the radio listenership through social media sites and the success of activation programmes are reflected in the sales graph. Recently, in a media seminar conducted by Calcutta Media Institute in Kolkata on October 9 and 10, 2015, Jimmy Tangree of 91.9 Friends FM said “We also do radio” while moderating a panel discussion.  He explained that no radio show happens today without the digital/ social connection. This is the hidden card behind the success of the medium and explains how the radio industry is successfully marketing radio time without the support of a regular media currency.

     

  • Anurradha Prasad re-elected AROI president for 2nd term

    By A Correspondent

     

    Anurradha Prasad

    The AROI (Associations of Radio Operators for India) has re-elected Ms Anurradha Prasad as its President for the second consecutive term. Ms Prasad was re-elected unopposed at the Governing Body Meeting of the AROI held earlier this week.

     

    Talking to MxMIndia about her immediate plans as President AROI, Ms Prasad said her basic agenda would be about brand building for the radio industry. “Radio in India is one medium that has been completely ignored,” she noted. The third phase of FM radio which is expected to kick-start shortly will also be among her key focus areas and part of her agenda. She further stated, “I will endeavour to placing the radio industry on the correct roadmap of the advertising world. We must evangelise and educate the advertisers about the benefits of using radio as a medium and how they can effectively reach out to their consumers.” Ms Prasad is also the Chairperson cum Managing Director, B.A.G Network.

     

    In addition to this development, AROI has also created four initiatives for further enhancing the future growth of the Indian radio industry.

     

    The ‘Self Regulation and Content Complaint Redressal’ initiative will be led by Apurva Purohit, CEO, Radio City.

     

    The second initiative which deals with the ‘Measurement System’ will be led by Tarun Katial, CEO, Reliance Broadcast Network.

     

    ‘Brand Building’ of the radio industry will be jointly led by Harrish Bhatia, CEO, MY FM and Harshad Jain, Business Head, Fever 104 FM.

     

    Prashant Panday, CEO and Executive Director, ENIL (Radio Mirchi) will be leading the setting up of ‘Outstanding Policy Initiative and Control Agency Accreditation’.

     

    AROI will also be forming an initiative which deals with the ‘Copyright and Music Royalty’ issues. This initiative is to be led by Rahul Gupta, Director, Radio Mantra.

     

  • Radio stations (except AIR & BIG FM) can’t commercially exploit T20 World Cup: ICC

    By A Correspondent

     

    Radio stations and brands planning to commercially exploit the T20 World Cup that starts in Sri Lanka next week (Sept 18-Oct 7) need to beware.

     

    According to an official communication sent by the International Cricket Council (ICC) to the Association of Radio Operators for India, the exclusive rights holders for radio/audio stream services across all mediums, including the internet in India are BIG FM and All India Radio (AIR).

     

    The biggest rider is that “member agencies (of Association of Radio Operators) may not undertake any unlicensed commercial exploitation or selective commercialization of ICC Proprietary Content through third party sponsorship and presentation of the same”.

     

    A point in the statement reads, “Other than International Management Group (IMG) and its licensees, BIG FM and AIR, no entity operating or making available radio/audio stream services is entitled to use ICC Names, ICC Marks and ICC Proprietary Content, claim official association or commercially associate in any other way, either expressly or impliedly, including through marketing promotions, contests, advertising, score updates or other commercial activity (including by monetizing any of the ICC Proprietary Content), with the ICC or the ICC World Twenty20 Sri Lanka 2012.’

     

    It further states, ‘Should your member agencies fail to adhere to the above, the ICC will engage with them to bring to their attention the permissible parameters of activity and work with them to resolve the matter. However, should such activities persist, your member agencies will be deemed to have knowingly breached the exclusive rights granted by the ICC to IMG and its licensees, BIG FM and AIR, and the ICC will have no other option but to initiate further action, including legal recourse.’

     

    Lauding the initiative, Tarun Katial, CEO, Reliance Broadcast Network said, “In an extremely encouraging move, ICC has decided to come down on anyone misusing content to offer packages to advertisers. As radio partners, we look forward to offer consumers the best possible entertainment package with exclusive and highly engaging content, while offering marketers an approved and ethical platform by which they can reach out to their audiences.”

     

    Strict action against channels which do not adhere to the stipulations laid down by the governing body will be taken this year.

     

    A source close to the development said that the ICC diktat doesn’t mind score updates interspersed in the programming, but radio stations can’t get these get sponsored.

     

  • Paritosh Joshi: Everything I had to know, I heard it on my radio

    By Paritosh Joshi

     

    Three times this last week, radio has crept into my conversations, with three quite different people. Let me cite just one. We were talking about our preferences between playing music from our CD collection and dialing up a radio station. My guest was enthusiastic in his approbation for the radio, for a very simple reason too. “When you play music from your collection, you always know what’s coming up next,” he said, adding: “and what makes radio fun is it’s an endlessly unfolding sequence of surprises.”

     

    To which I would add that there is something rather relaxing about leaving the hard work of choosing what plays next to someone else, indeed someone else who is specialized in the art and craft of assembling and running through playlists.

     

    Got me thinking about radio, so it was the obvious next step to check out what the industry association offered up. Wasn’t hard to locate the website of the Association of Radio Operators for India (AROI). Promptly went there to discover – well, not a lot. Had to get something on the industry and thankfully, the good people at KPMG and FICCI had the latest “Indian Media & Entertainment Industry Report” available for download, which I swiftly proceeded to do. Here’s what I found.

     

    The Radio industry in 2012 is worth a mere Rs13 billion, ~ US $ 240 million and represents a mere 1.6 per cent of the overall industry of Rs 823 billion, ~ US $ 15 billion.

     

    In five years, it is projected to grow to Rs 29 billion, still just ~ US 540 million but representing a slightly more respectable 2 per cent of the overall pie. Evidently, this will require it to grow faster than the overall pace, which it is projected to do, clipping along at a 21 per cent CAGR even as the overall number doesn’t quite get to a 15 per cent CAGR.

     

    Dig deeper and you will find that a lot of the enthusiasm stems from FM Radio Phase III which will introduce private FM to as many as 227 new towns. So that is all it takes to make radio exciting, is it?

     

    Let’s take a look elsewhere and find out what radio is really about. A good place to start is any of these: Last.fm, “tunein.com” Radio or “shoutcast.com” Radio Directory. All of them are aggregators, like the portals of yore in some ways, which offer you an endless variety of radio stations from across the planet. An important aspect of what is on offer is the range of ‘genres’ by which the stations are classified. Here’s a list of the genres under the broad category, ‘Music’ on TuneIn:

     

     

    Adult Contemporary Country Hip Hop Rock Top 40-Pop
    Blues Decades Jazz Soul World
    Classical Easy Listening Oldies Spanish
    College Electronic-Dance Religious Specialty

     

     

    Just in case you might think this was a bewildering choice, I have news for you. ‘Sports’ offers a choice of 21 genres, including, trust me, ‘Fantasy League’.

     

    The point I’m making is quite simple really. Radio is all about precise choices and tightly defined audiences. Stations have an unapologetic and uncompromising commitment to their audiences and are only able to attract them because they stick to playlists that reflect the choices of their highly differentiated audience.

     

    What does the picture look like inIndia? Our earliest templates from what radio stations must sound like came from Akashvani, the one channel that catered to our teeming millions long before the brash youngsters arrived on the scene with FM Phase I.

     

    Akashvani was the ‘one size fits all’ / ‘any colour so long as it is black” radio station. From programming in two, even three, languages to carrying everything from mythologicals through adventure serials (anyone remember Inspector Eagle here?), to the News and various topical features, radio did everything – catered, as it were, to the lowest common denominator.

     

    Look at where we are now. Barring one station that chooses to play a purely Western playlist, all our major metros run a whole bunch of stations whose content is largely interchangeable, mainly because their music and even anchoring style – chatty, hip youngsters doing their clever, irreverent thing, are right out of a cookie cutter.

     

    Now before I get flamed out by radio folks pointing to the compulsions of recouping sizable licence costs, I must beg forgiveness and hide behind the defence of ignorance. What I do know, however, is this cannot possibly be the best way for radio to go forward.

     

    Radio must target tightly and then programme obsessively to that chosen audience. “Let me be just like everyone else” is not good marketing in any category, least of all radio. Keep in mind that radio will shift away from airwave frequencies to the Internet. That’s when the same-same (known, I believe, as Adult Contemporary) content will die anyway.

     

    I began by invoking Queen’s Radio Gaga and can’t help but quoting again from the same, wonderful song at the end.

     

    “You’ve yet to have your finest hour Radio – radio”

     

    Paritosh Joshi was until recently CEO, Star CJ. He has been a marketer, a mediaperson and a key officebearer on industry bodies. He is Strategic Advisor, Ormax Media. He can reached via his Twitter handle @paritoshZero
  • Industry gears up for India Radio Forum 2012

    By A Correspondent

     

    It is that time of the year, when radio players across the country meet to discuss issues pertaining to the industry, listen to ideas from advertisers and agencies, celebrate creativity in radio advertising and commemorate the medium itself. The seventh edition of India Radio Forum (IRF), organized by Partners in Media Asia (PIM), will be held on May 22 at JW Marriot Hotel in Mumbai.

     

    Amitabh Srivastava, Country Manager – South Asia, Radio Netherlands Worldwide who has been attending the IRF since the last four years and plans to do so this year, explained that radio is still at a nascent stage, thus such forums on radio are good for the industry as it discusses critical issues, it provides a good platform for all stakeholders, and in the long run, such forum on radio will benefit the industry. He further said that in the last four years that he has attended the annual event, he observed that IRF has ensured that every stakeholder participates in the event. He also said that smaller stations have been given their due weightage and their issues have also been discussed at various events.

     

    George Sebastian, COO, Club FM and GM Marketing, Mathrubhumi and Ravindran Nair, Director Programmes, Radio Mango would also be among the attendees at IRF 2012. When asked whether smaller stations have been isolated at the IRF this year, Mr Sebastian said that he has been attending the IRF since its inception and found that even the issues of smaller stations are addressed at the IRF. “IRF used to be a full day event, now it has been reduced to a little more than a half day. This is the only regret I have towards IRF. Such events most certainly benefit the industry, particularly the awards which recognizes good talents.”

     

    Mr Nair of Radio Mango said: “IRF helps maintain the vitality of radio stations, it gives one insights into how radio has developed in other parts of the world; it also provides ideas and new ways to monitise contents as well as gives us the client perspective about the medium. The only irony, however, is that the IRF has been reduced from a two day event to merely one day.”

     

    Unlike previous years, Mr Naval Toshniwal, CEO Tomato FM and Vice President, Pudhari Publications will not be attending the IRF this year. Ms Monica Nayyar Patnaik, Joint Managing Director at Eastern Media Ltd is also among the few industry veterans who would not be attending the IRF this year for personal reasons.

     

    Speaking to MxMIndia, Ms Patnaik was of the view that such forums do benefit the industry as it helps one learn from each other, helps find solutions to overcome issues and challenges, provides creative ideas and that awards also contribute in a bigger way in recognizing ones creative talents.

     

    Another industry player who did not wish to be mentioned was of the view that such events do help the industry positively, however, it all depends on implementing the lessons learnt from the various presentations made and panel discussions. “IRF is a good forum, but the industry must learn to implement what is discussed at such events, which has not happened so far. There has to be an action plan to implement all that is discussed at such events, only then will we see the industry grow even further.”

     

    Anurradha Prasad, President of Association of Radio Operators for India (AROI) and Chairperson cum Managing Director, B.A.G Network will also not be able to attend the IRF this year due to prior commitments. She, however, added that right now everything boils down to the passage of the Copyright Bill in the Lok Sabha. It has already been passed in the Upper House (Rajya Sabha), and once it is passed in the Lower House (Lok Sabha) too, and becomes law, it will significantly improve the growth of the Indian radio industry.

     

    The speakers list at IRF 2012 comprises of industry veterans not only from the radio industry, but also advertisers, and veterans from the creative and media agencies. IRF 2012 will kick-start with the CEO Roundtable, wherein industry biggies will discuss the current strength and weaknesses of the radio industry, and strategic options to improve the business and their vision for the industry in the coming three years. The panelists will include Apurva Purohit, CEO, Radio City; B Surendar, Sr. VP & National Sales Head, Red FM; Harrish Bhatia, CEO, My FM; Harshad Jain, Business Head, Fever FM; Joy Chakraborthy, CEO, Oye FM; Prashant Panday, CEO, Radio Mirchi and Rabe Iyer, Business Head, Big FM. This session will be moderated by Atul Phadnis, CEO, What’s-On-India.

     

    The second session at the forum – ‘It’s the Message, not the Medium: Growing your Advertising Revenues,’ will delve on important creative attributes that make radio commercials more effective and the unique qualities of radio as an advertising medium. Jason Brownlee, Founder, Dollywagon Media Sciences will be the speaker of this session.

     

    Another interesting session at this year’s IRF is ‘Radio and Social Media’, a panel discussion on the effect of social media on the listeners and the radio industry. This session will be moderated by Suman Srivastava, Founder & Innovation Artist, Marketing Unplugged. The panelists of this session include Premjeet Sodhi, COO, Lintas Media Group; Raj Nayak, CEO, Colors – Viacom18; Satbir Singh, Managing Partner and Chief Creative Officer, Euro RSCG; and Tushar Vyas, Managing Partner, GroupM South Asia.

     

    There will also be a session on ‘Maximising Radio’s Asset: How to Gain Share of Market Spend’. This session will be moderated by Apurva Purohit, CEO,RadioCity. The panel members are Ajit Varghese, Managing Director – South Asia, Maxus and Motivator; Arpita Menon, Head – Media Planning & Buying, STAR TV; and Shubha George, COO, MEC. This session aims to provide the client point of view and that of media planners and buyers on radio’s critical role in meeting market challenges and opportunity it presents in achieving a better ROI and sales goals.

     

    ‘The Radio Pitch Challenge’, the last session just before the 2012 ‘Excellence in Radio Awards’, will see planning teams from media agencies invited to pitch a compelling and effective presentation to the judges. Each team will talk about a product or service in five minutes or less. They will present 16 slides with only 15 seconds per slide, ending with a radio promo not more than a minute long. The winning team will be awarded two tickets worth over Rs1,00,000 to the 2012 Singapore Formula1 Grand Prix.

  • The Anchor: Tarun Goyal on 4 things that should change in the radio industry today

    By Tarun Goyal

     

    1. Radio must have full-fledged news:

    Radio should be allowed to air news freely. By allowing the private radio stations to air news limited to only AIR is not sufficient, radio is a local medium, it must be given a free hand to broadcast news.

     

    2. Copyright issue must be resolved:

    The Government of India must make the copyright policy clear. The government should come out with a formula on revenue share basis as this will change the way the dynamics of the industry. We are sharing 4 per cent of the revenue with the government ofIndia, so why can’t we share the revenues with the music companies? I believe this model can solve most problems facing the radio industry today especially in programming.

     

    3. Government must be more supportive:

    The government should be more supportive in formatting their policies for radio because the government spending on radio is not sufficient enough for the growth of the industry.

     

    4. AROI should be more assertive

    Although the AROI is functioning well, the change I would like to see is that AROI should pursue be more assertive in meeting the needs of the radio industry. The AROI must function more aggressively and the government should also take the body seriously as AROI is a body which was formed by the radio broadcasters.

     

    Mr Tarun Goyal is the Founder, Director of Radio Chaska

     

  • The Anchor: 5 ‘must-do’s for the future of radio in India

    By Uday Chawla

     

    #1 A level playing field is needed

    Under Phase III, content freedom is still severely restricted. Only AIR-provided news capsules can be broadcasted. Current affairs and even sports commentary are restricted. There is no such restriction on print, television or even the internet. The government’s view is that a central monitoring system is needed to be put in place before news on FM is freely allowed. With the process on, early lifting of restrictions should be expected. (Even in Nepal, news on FM is freely allowed.)

     

    #2 DAVP rates should be rationalised

    Government advertisement rates need to be equal across all media, but currently they are heavily skewed against FM. For instance, local newspapers are given a rate of Rs.159 per column cm per lakh reach, while for FM it is over 10 times less even for a 10-second spot. There has been a high listenership growth in FM and on an average FM now reaches 70 per cent of populations in metros. In smaller towns it should be higher. The criterion for relative ad rates within a city amongst different FM should be logical and transparent.

     

    #3 A transparent system for license extension is needed

    Under the phase II policy, licenses were issued for 10 years, while under Phase III they will be issued for 15 years. A license period of 10 or15 years, with absolute darkness or renewal parameters, discourages away investors and bankers. Even now, phase II players have no idea on what or when is the license extension criterion, and thus making it extremely difficult for them to raise funds for even FM phase III bidding. The solution therefore lies in having prefixed and transparent extension criteria even at the time of allocation of first licenses.

     

    #4 Developing and regulating human resources

    With 800-plus new radio stations to be set up under Phase III, a four-fold increase, there will be a huge demand for radio journalists. Emerged and emerging content freedom means that a more trained and disciplined RJ resource would be required.

    I believe content freedom brings greater responsibility on radio and incidents like the Darjeeling violence (caused by a derogatory remark by an RJ) puts national security and unity under risk. Therefore a self-regulatory content code needs to be formulated and implemented.

     

    #5 Building Brand Radio

    Currently Brand Radio is not top-of-mind, be it government or shareholders or even advertisers, and this is not because radio has less reach or is less effective than other medium. In fact radio is the only medium that can be simultaneously consumed along with other activities. Besides, it is also the only medium that can reach the most remote areas of the country and I believe that there is an emerging India in smaller cities and towns, which can be opened up through FM.

     

    Uday Chawla is the Secretary General, Association of Radio Operators for India (AROI).

    Â