MxMIndia

Tag: Rabe T Iyer

  • Pankaj Vassal has been appointed as Vice President (Regional Business Head – West and East) and working closely with him will be Neeti Virmani, Station Head, Mumbai

    Big FM makes two new appointments

    By a Correspondent

     

    Rabe T Iyer

    Reliance Broadcast Network Ltd. (RBNL) announced the appointments of two business heads at BIG FM. Pankaj Vassal has been appointed as Vice President (Regional Business Head – West and East) and will report to Rabe T Iyer, Business Head, BIG FM. He will be responsible for business growth and overall P&L for the business vertical. Working closely with him will be Neeti Virmani, Station Head, Mumbai and helping ensure revenue targets are met. The duo as a team are all set to ensure the targets are met and floor is set to usher phase III of the radio revolution.

     

    Rabe T Iyer, Business Head, BIG FM said: “In our continuing quest to constantly bring more of the “Outside” In, we are happy to have two very talented associates join us in critical positions. Both Vassal and Virmani come with vast experience in driving revenue, operations and execution in different but relevant ecosystems. Their depth and width of business understanding will not only build better ROI, but also build a higher listener affinity for our large network of stations.  I wish them the very best.”

     

    Mr Vassal’s key focus area will be to grow the radio business – expanding the West and East Zones of the network from the revenue point of view. He is said to bring with him close to 15 years of experience. Mr Vassal has worked across organizations like Amway, Motorola, Asian Paints and Essel Packaging wherein he is said to have been instrumental in growing the business and leading improvements in areas such as gross margins and profitability while growing new markets.

     

    Pankaj Vassal said: “I feel incredibly proud and excited to have joined a growing and vibrant organization like RBNL at a time when it is transitioning into a media giant. I respect the vision and culture of the organization, and look forward to taking on new challenges and to contributing towards helping RBNL reach greater heights.”

     

    Working closely with Vassal will be Neeti Virmani, who joins as Station Head for Mumbai, who brings close to 14 years of varied experience across General Management, Marketing and Sales at Mass Consumer focused organizations like Aircel, Pepsi, Airtel, Aptech and STG Ltd. As Station Head, her role will involve – managing overall business and operations of the Mumbai Station while managing the P&L, by driving functions including sales, programming, and marketing. Her key forte is said to include driving growth and share blueprint through market insights and in driving business through large teams.

     

    Neeti Virmani said: “I am delighted to have joined the dynamic RBNL family. The world of multi-media entertainment has fascinated me and I am eager to the take up this challenging role, and learn and contribute to the best of my ability.”

     

  • Presenting the first of our half-yearly reviews where we asked industry captains to tell us how the first six months of 2012 have been

    The Half-Year That Was

     

    By A Correspondent

     

    It’s July 2 today, and the first six months of the year have passed. While the slowdown has impacted spends in a major way, most of the 182 days from Jan to June have been eventful. On the positive side: new television channels, new agencies – media and creative, consolidation, people and account movements, government issues, digitization, awards… the list could go on. And on the negative: a channel being shut, pink slips, pay cuts, appraisals deferred, digitization delayed… the list could go on here too.

     

    We have already embarked on the second half of the year, but as we do that, here’s a quick look at how industry captains review the half-year. We present you the half-yearly review in two parts… the first today and the second mid-week… on Wednesday.

     

    As you would gather, there is much gloom in the industry, though no despair. Not yet.

     

    ADSPENDS:

     

    Nagesh Alai, President, Advertising Agencies Association of India (AAAI) & Executive Director, India Operations, Draftfcb Ulka Group

    Nagesh Alai

    If I were to summarize the indications of the economy, then one has seen softness beginning last November and December leading to a situation of downturn. The macro-economic indications like rupee falling, impact in production and fall in demands have also reflected in the consumer behaviour in a negative way. The last quarter of 2011-12 (Jan-March) has seen a fall in GDP to 5.3 per cent. All this have impacted the manufactures as well as service providers, with the mood being that of postponing a decision. While some would have thought that the situation would not impact FMCG, but that one has seen a resistance from that sector too.

     

    So in terms of advertising, the impact being in terms of ad outlays and remuneration; while the latter has been up for constant negotiation and any further would only impact the quality of service being provided, it’s the latter that is being hit now. I think this year one would see a growth of maximum 10-12 per cent as compared to 14-15 per cent in the past. While print and TV still comprise 80 per cent of the spends, but advertisers are looking at newer mediums, where the spends is not high and get better mileage for monies being spent.

     

    I personally believe that even if government were to take corrective measures, one will only begin to see the recovery by mid-2013. The mood can be aptly summarized as being that of cautious approach.

     

    PRINT:

     

    Narendra Kumar Alambara, COO, Thanthi Group

    Narendra Kumar Alambara

    In terms of the regional publications, I would say that the past six months have been good and bad. If one looks at readership and circulation, the regional dailies have seen an increase vis-à-vis the English language publications. However, there is a need to be bold and unconventional when it comes to regional publications, both by those selling this space and advertisers themselves. In today’s time when every paisa has to be accounted for in terms of returns, I think regional publications would have been an excellent answer to have targeted reach because of the value they provides for the money and reach.

     

    However, we have failed to do that. Today when most media houses are not restricted to being uni-dimensional and have different platforms for advertisers be it television, print, digital and even regional newspapers and channels under their umbrella; I think the solution lies in integrating various offerings, including the regional to get a better value and growth.

     

    Krishna Prasad, Editor-Outlook

    It’s difficult to put a number as yet on the kind of growth that has been witnessed, but you will always see print being challenged by television and other mediums. As far as the past six months are concerned, I would say the growth of print has been at par. By this I mean that even though most advertisers have huge monies, they are shying away from advertising with this medium. This is somewhat similar to what was observed during 2008, where companies didn’t have any reason to opt for cost-cutting, but were up for it. Many advertisers are seeing this downturn as a reason to go easy with their spending and not be too extravagant.

     

    Most newspapers today, especially in Delhi like Delhi Times, Hindustan Times and others appear chunky in their appearance, which gives you a sense that all is well but that may not necessarily be the case. Most of them are actually going slow with their spending and are trying to play it safe. I expect things to look better from October onwards – around the festival period. So largely, the growth of media will be dominated by how the economy transforms itself; it’s not operating in a vacuum. That’s the best case scenario.

     

    But the worst case scenario is that it may take a little bit longer for things to get better; perhaps with the elections coming up soon, with the country seeing a new Finance Minister and the markets going topsy-turvy, the print industry may still take some time to stabilise itself.

     

    RADIO:

     

    Prashant Panday

    Prashant Panday, CEO, Radio Mirchi

    The radio industry has been hit just as hard as any other segment. Maybe a little less than print and a little more than TV. The economic slow-down and the policy freeze has made advertisers a little wary. They are not exactly cutting spends, but they are demanding more from broadcasters. A broadcaster can either cut prices or offer more for the same. In some sectors, the advertising cut has been more severe like telecom, real estate and so on. But there are other segments that have done better – like core retail, and even auto.

     

    Given the economic conditions, and the lack of new frequencies, radio has done as well as it possible can.

     

    Rabe T Iyer

    Rabe T Iyer, Business Head, BIG FM

    The last financial year was alright, but the last three months have been pretty flat. The reason for that is because categories like BSFI, Auto and some of the campaigns of the usual summer categories were a bit slow. Nevertheless, we expect the next three to six months to be a good run. This is because people ultimately want to keep their goods moving, and hence the next three to six months are going to be good. The last three months were flat for the industry because the dollar exchange hit the sentiments and some categories which were expected to fire up in the month of May-June have taken some more time, mainly because of the overall economy conditions and the sentiments attached to it, and also because of the fluctuating dollar prices. This has directly impacted the ad spends, not just on radio, but across the portfolio on media brands.

     

    Ashit Kukian

    Ashit Kukian, COO, Radio City

    The last six months has been very good for the radio industry. One of the reasons I would say is because the core advertising categories in radio namely: Telecom, FMCG, and Entertainment channels to name a few, had increased their advertising spends on radio.

     

     

    DIGITAL:

     

    Chhaya Balachandran Aiyer, CEO and MD, BCWebWise

    Chhaya Balachandran Aiyer

    More and more brands are getting ready to seriously look at digital media and those who have been using it already, are increasing their spends. Digital is expected to deliver more cost-effectively. Amazingly, even production charges of films are expected to be cheaper, if they are being produced by digital agencies. It would help if brands which see real value in digital and see it delivering, also realize that results won’t come if they tighten their purse strings so much. Fortunately, there are a few clients who have realized the quality v/s quantity value and are waking up to the real digital age and extending their budgets.

     

     

    Rajiv Hiranandani

    Rajiv Hiranandani, Co-founder and Executive Director, Altruist, Mobile2win

    I think the mobile industry has underperformed in last six months, as per the overall outlook was supposed to be, in terms of number of handsets sold and amount of value-added services (VAS) consumed. Mobile industry has seen its slowest growth, and this has been also because of the negative outlook in the economy. Some of the reasons have been people waiting for better handsets models, the overall mood of economy not being good, and mobile VAS seeing a lot of restrictions in terms of TRAI guidelines.

     

     

    OOH:

     

    Noomi Mehta, Chairman and Managing Director, Selvel One Group

    Noomi Mehta

    The last six months have not been good for the out-of-home (OOH) industry. The month of June, however, has seen a significant improvement, which is perhaps because the IPL campaigns in the months of April and May have fructified. Otherwise, I believe, the industry figures have been down. The markets, by and large, seem to be in a depressed state, along with the economy. Going forward, one of the basic steps needed to improve the industry’s performance is the need for a common currency for measurement. OOH is part and parcel of the country’s economy, and hence it will also be subject to the same pressures as the economy.

     

     

    Image: Rafiq

     

  • FM radio stations are one of the most popular entertainment mediums, offering millions of Indians a great mix of shows

    Why FM is more than just a recall medium: Rabe Iyer

    By Rabe T. Iyer

     

    Old media don’t die! They just bounce back in new avatars. Not so long ago, radio had been written off as dreary, downmarket and not so cool. Television and, later, “new media” were touted as being media of the future. Thanks to advancements in technology and a change in lifestyle, radio has made an incredible comeback.

     

    FM radio stations are one of the most popular entertainment mediums, offering millions of Indians a great mix of shows covering music, contests, discussions, humour and gossip, delivered in local flavour by popular young radio jockeys.

     

    Radio is a medium of the senses, bringing the listener’s imagination to life and taking him into an exciting new world of his own. Thanks to local FM stations, marketers have been able to connect with their target group, especially the youth, like never before.

     

    According to industry experts and analysts, there are 250-300 million radio users today. This penetration is surprisingly more than that of newspapers, known to be the oldest among present day media. In addition, at 145-150 minutes per day, the consumption time of radio is more than that of television, which stands at 140.  Today, 80-90 per cent of mobile users access the radio on their phones.  The fact that the medium is mobile has clearly helped to increase its usage and popularity.

     

    With the rollout of Phase III licensing, the Indian radio industry is optimistic of huge growth. The industry, which currently brings in around Rs1,100 crore revenue, will see 800 new radio stations across 300 towns coming up.

     

    Here, radio-based advertising can be used effectively for communication and positioning. It is to be used well since it can target a large audience because of its immense reach. It is useful in increasing awareness about a brand or business and helps in enhancing the brand image. The past couple of years have witnessed a flurry of activity in the FM sector. Not surprisingly, the radio industry of today can be compared to television in the early and mid-nineties, and one that is all set to boom further.

     

    With carefully worded scripts, brilliantly created situations, and tailor-made strategies, radio advertising is getting more innovative and effective day by day. It is perhaps one of the simplest yet most cost-effective and powerful means of communication in today’s world.

     

    Studies indicate that instead of two back-to-back commercials on television, one commercial on television and another one on radio give about a 20 per cent higher brand recall. Also, a television commercial, if aired on radio, works very well as the listener can then visualize the entire advertisement. Hardly surprising that over the years, print based publications and television channels have been using radio as a support medium, as a reminder medium, and as a mean to building up frequency.

     

    As mentioned earlier, another interesting facet of the Indian radio story is the mobile phone explosion and its convergence with FM. This has exponentially increased the width and depth of the market.

     

    Radio offers tremendous opportunities for advertisers and media planners who need to explore various options, following which they can effectively use the medium in their media mix. Conversely, broadcasters need to develop the market by being more responsive to an advertiser’s needs. This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium inIndia.

     

    Rabe T. Iyer is Business Head, 92.7 BIG FM

     

  • A vibrant market for regional as well as national music, the FM radio scene in South India still has immense potential for expansion and revenue.

    FM Radio rocks in South India… and how!

    By Robin Thomas

     

    The FICCI-Deloitte report on Media and Entertainment in South India says that radio in South India will grow with a CAGR (Compounded Annual Growth Rate) of 20 per cent by 2015. The reach of FM radio is said to be far higher in South India than its counterparts in other parts of the Country. According to Ms Nisha Narayanan, Senior VP Projects and Programming Red FM, South India has 28 per cent share of existing radio channels and it will have 28 per cent representation in FM phase III as well.

     

    Besides the larger FM stations like Red FM, Big FM, Radio Mirchi and Radio City, there are many local or smaller FM stations as well, such as Radio Hello, Club FM, Best FM, Suryan FM and Radio Mango, to name a few. Unlike the North, FM radio stations in the South play music in multiple languages as prominence is given to the local language. Big FM for instance plays only Kannada music in Bengaluru whereas in Hyderabad it plays Telugu and Hindi music. Club FM, a Kerala-based FM station, plays mainly Malayalam music with a mix of Tamil and Hindi music whereas Red FM in Andhra Pradesh mainly plays Telugu.

     

    Rabe T Iyer
    Nisha Narayanan

    Rabe T Iyer, Business Head, Big FM, the radio arm of Reliance Broadcast Network was of the opinion that compared to the rest of the country, the reach of radio in south India is much higher. Mr Iyer was also quick to point out that in some key markets like Bengaluru, Chennai and Hyderabad the reach of radio is significant, higher than most news channels, and is on comparable terms with leading GECs.

     

    “Given the inherent strengths of the region backed by a strong film and music Industry, added to its rich cultural diversity, it is not surprising that radio in South India has relatively higher penetration than other regions. The south of India has done some innovative radio over the years. It continues to be a huge focus area for all players given that it has three big metros which are important from both listenership ratings and revenue perspective,” he added.

     

    Nisha Narayanan of Red FM said, “South has been an integral part of radio and its growth in India. Radio is more close to people’s lifestyle here than any other part of India. Radio Ceylon had created a strong base for radio even before the advent of FM radio in India. FM radio penetration is the highest in South India, particularly in Tamil Nadu. In the long term, obviously there is tremendous growth and we are in the early stage of that growth.”

     

    Shaan Menon, Manager Content, Club FM noted, “FM in South India is going to take a huge leap as it is waiting for the next bidding. Even the smaller cities and small townships in Kerala will get a chance to taste the feel and warmth of FM culture. South Indian film music is the strongest music industry in terms of production. Although CD sales are deeply affected due to rapid downloads, FM industry is full of the new genre of music and music directors.”

     

    Challenges and Opportunities

    Some of the key advertisers in the south are retail, textile, jewellery, real estate, hospitality, FMCG, consumer durables etc. Big FM claims its advertising and content ratio to be 1:4, while Red FM says it plays 45 minutes of music and 15 minutes of ads every hour during off peak season whereas in peak season the inventory time is slightly more. One of the reasons why radio is said to be doing well in the south is because of its strong regional film and music industry. “Given the diversity, there is tremendous potential for localization which radio can capitalize on and deliver. The opportunities to create a unique brand identity in this market are immense,” explained Mr Iyer.

     

    He further said, “A challenge any product faces in its life cycle is finding the ‘differentiating quality’ after the market matures. The same applies to the radio industry and its many players. With a market that has matured and grown manifold and poised to grow further, novelty and innovation in content will be a key component for success and will decide further growth of the category.”

     

    Ms Narayanan on the other hand observed that time has come for radio to look for new revenue streams. She was also of the view that radio stations must experiment beyond the traditional programming formats, and that music royalty still remains a challenge. “Content has to evolve a lot as most of the programming strategies are music based. We are still into traditional programming formats and the time has come to take it to the next level. The ability to create new revenue streams is ideally needed at this hour, as the only source of revenue for radio stations has been advertising sales. Music royalty is another area of concern as we pay needle per hour, whereas the international markets follow the revenue sharing model. These are the challenges faced nationally too.”

     

    The road ahead

    The much awaited FM Phase III policy seeks to extend FM radio services to about 227 new cities. Phase III will cover all cities with a population of one lakh and above, simultaneously there will be a total of 839 new FM radio channels in 294 cities. The local players in particular expect to further expand their radio station into the southern markets. However, one of the possible challenges after FM phase III is launched could be to attract listeners to the medium and then to sustain its listenership.

     

    Mr Iyer of Big FM observed, “We foresee huge growth in the radio industry in the coming years. There will be more stations leading to more innovation in content and communication. This will result in more revenues and hence more profitability for all players.”

     

    Ms Narayanan remarked, “South India has 28 per cent share of existing radio channels and it will have 28 per cent representation in phase III as well. Radio will be a national medium and the true mass medium with the number of channels coming in Phase III. In the south 75 to 80 per cent of the licenses are for the ‘D’ and ‘C’ cities which will be a great boost for advertisers as a medium breaking across demography.”

     

    Mr Menon stated, “The challenge during FM Phase III is to convince the small town public that FM radio is equally or more entertaining than TV. It will be difficult to make them taste the sample, but the current popularity of FM industry in the main towns will definitely help to fight the difficulty of convincing the new public.”