MxMIndia

Tag: Radio

  • Sanjeev Kotnala draws insights from the recently released Listen Up! report in the UK

    Leverage right brain creative elements in radio ads

     

     

     

    By Sanjeev Kotnala

     

    Sanjeev KotnalaWhy can’t they play some nice music instead of RJ talk and these repetitive silly ads?

     

    We all have complained while playing the radio. The problem has magnified with time. I know people who now carry their favourite music on USBs. On the other hand, advertisers keep complaining about the decreased effectiveness and efficiency of the medium.

     

    Radio stations bank on advertising money. They must balance advertising on radio and entertainment and audience engagement through songs and other programmes. The advertisers have also decreased budgets for creating and running radio commercials, which has driven the returns on a downward spiral.

     

    Radio

    One still believes that radio, with its wide reach and local connections, is a potent medium, only if it can play a lot more music and keep the audience engaged, from switching to other modes and channels. Until it happens, advertisers using the medium must work to enhance the effectiveness of their communication.

    Nothing has changed, and the more we seek changes, the more things remain the same.

    The basics of advertising and advertising on radio do not change. A recent research report published in ‘Listen Up!’ revalidates the thinking.

     

    Listen Up!

    Listen Up! is a publication dedicated to the power of radio advertising. It explores how audio advertising can compete in an ever-evolving media landscape.

    The research report published by Listen Up! points towards ways to create effective radio advertising. It is based on effectiveness and emotional data of 131 spots across 13 categories from over 50K radio listeners. The research looked at broad categories of creative devices appealing to the right and the left brain. The research is UK-based, but I don’t think the results would be any different if it was carried out in India.

    The ads were measured using System1’s ‘Test Your Ad’ platform and Radiocentre’s ‘Radiogauge’ campaign effectiveness measurement service.

    The report findings are not new. A revisit can help advertisers unlock the power of radio advertising and inspire a new generation of memorable, effective radio advertising with enhanced brand recognition and a long-term impact in a visually and screens-dominated world.

     

    System1 and Radioguage – The more people feel, the more they buy

    Feeling or a positive emotional response to an ad is the most crucial element determining its long-term impact on brand growth. System1’s ‘Test Your Ad’ measures the intensity of the advertisement, the key takeaway, words and phrases association, and the reason for the emotion felt.

    Radiocentre’s Radiogauge helps understand the effectiveness of the radio campaigns, compares results against relevant category benchmarks, and access guidance on improving effectiveness through creative development. It compares the differences in ad awareness, brand perceptions, purchase consideration, and claimed response between a sample of commercial radio listeners and a matched sample of non-listeners to commercial radio to understand the impact of the radio activity. The scores are delivered on Radiocentre’s 5i parameters of Involvement, Identity (memorable), Impression ( positivity association), Information and Integration through consistent and recognisable use of voice, music, slogan and/ or catchphrase. It has been coding radio advertisements and campaign data through 23 individual creative characteristics, such as music, voice, humour, etc. – for enhanced understanding. Today, after measuring the effects of over 1,000 UK radio advertising campaigns, it comfortably claims to be the world’s most extensive radio advertising/creative effectiveness database.

     

    Listen Up! The report is directional

    The Listen Up! report and its insights can help advertisers and creative teams refocus on crafting more effective audio ads that emotionally resonate with the listeners, thus creating stronger short-term impact and longer-lasting brand effects.

     

    The SIX key take-outs

    Radio advertising can produce long-term brand effects (help Brand Building) on par with, or greater than TV advertising.

    Audio ads that make listeners feel more positive (or less negative) dramatically change consumer behaviour and deliver longer-lasting brand effects, including brand purchase and use.

    Well-branded (engaging and with strong brand association) radio advertising helps create trust-building.

    Audio ads with more right-brain features have long-term effectiveness.

    Radio is as likely to cause long-lasting effects through an emotional response as TV advertising. Feel-good audio ads make advertising campaigns more famous. They also see high Word-of-Mouth mentions and social sharing.

    Optimised audio advertisements attract attention and form strong memories, increasing short-term effects.

     

    Action Lines

    Incorporate More Right-Brained Creative Features in Radio Ads: Right-brain features (Not only the ‘Buying mode’) make radio ads interesting and enjoyable. Audio advertising that uses features like character, story unfolding, sense of place, and dramatic intimacy creates more positive emotions and attracts the attention of broader audiences, something that is key for lasting brand effects.

    Keep The Listener in Focus: Listeners prefer to know which and what the brand is speaking. To make an advertisement relatable, start with a creative strategy that solves a consumer problem or goal or focuses on consumer insight. Focus on the narrative and branding to stimulate a stronger emotional response whilst limiting excessive details like terms and conditions. It may not be legally possible in some places, but the aim should be to decrease such things.

    Don’t Zig, Zag Zag Zag: Audio ads must be distinctive. They need to sound different from other brands but consistently sound like themselves. Maybe not following the category norm is a way out. Create and consistently follow the brand’s cross-media distinctive style for higher attention and emotional intensity.

    Embrace the Power of Music: Music is an essential part of radio, and it is something that keeps on keeping radio advertising alive and true to the medium. It can help increase engagement and emotional intensity.

    Use melodious music to the pace of the advertisement. Music should not be an afterthought but a critical part of the creative process. Brands with exclusive identifiable melodic audio assets score higher on emotional connect and are known to have long-term impact and memorability. Thus, brands consistent with the cross-medium audio property stand to gain.

    Brand Early and Often: Introducing the brand’s distinctive audio assets early in the ad can help listeners process the wider ad content/message more effortlessly. It can help enhance both short-term and long-term ad effects.

     

    Net-net

    Many people have said ‘radio is a highly visual medium’. Unfortunately, most forget this truth while creating radio/audio advertising.

    Radio advertising can help build brand and brand trust. It can create a long-term impact with enhanced association and involvement with the audience.

    The Listen Up! research reports point towards what one would consider obvious. However, the users of the medium seem to forget it. The difference is that the report identifies the right brain elements that can further enhance the impact.

    In the end, I quote Matt Payton, CEO, Radiocentre: ‘In terms of creative impact, audio-only advertising can be just as effective as audio-visual advertising when the creative content of the ad is executed in an optimal way’. He adds, ‘It’s the perfect time for advertisers to take it on board and harness the true power of sound, engage listeners more deeply, and deliver better brand effects’.

    Maybe brands which integrate and leverage digital data to better plan the creative strategy, developing and implementing radio advertising as per the programme mix, time of the day, programmes and regions will have an extra advantage.

    It is time to relook and focus on the highly visual medium and create brand-associated positive images in the listeners’ minds.

     

    Note: This is my take on the LISTEN UP! Research report shared by System1. You can access the report here.

     

  • Radio fascinates visually impaired people, because they can easily relate to it and there is no discrimination there, writes Shruti Pushkarna

    Time to welcome Diversity in Radio?

     

    By Shruti Pushkarna

     

    Shruti PushkarnaAs you read this, commercial and state-owned radio stations all across the world are celebrating this day on air. Yes, it’s World Radio Day today.

     

    Surely a medium that has managed to stay relevant for over 120 years (since the first radio device was invented by Guglielmo Marconi in 1899) calls for celebration.

     

    With new technology and increasing penetration, the content development business is more dynamic than ever. Radio too has been experimenting with various avatars when it comes to programming models or expansion on digital platforms.

     

    But what hasn’t changed is its devoted listenership, which cuts across culture, age, ethnicity, gender, religion, economics and so on. I start my day with tuning in to my favourite station every morning as I drive to work. You can hear the radio blaring in the local chaiwallah’s shop (no reference to our dear PM here!). Cab drivers, hawkers, housewives, college students, senior citizens, all take in their daily diet of radio content.

     

    Another ardent group of listeners are millions of visually impaired citizens living in different nooks of our country. Did you know that 20% of the global blind population resides in India? That’s around 63 million people according to the World Health Organisation.

     

    And this large section of the population depends on radio for not just entertainment but information. Like several persons with disabilities, blind people are often treated as a burden by their families. Confined in the four walls of their homes, they remain isolated from the society. Deprived of education, they have little or no access to information.

     

    They find a friend in the RJ, solace in music and in that moment, the impairment ceases to be.  As part of my work, in an interaction with a parent, I learned that his 14-year-old blind boy who was absolutely tucked away from the outside world had no skills of communication or the ability to carry out any activities of daily living. But he could sing and dance because he listened to radio for most part of the day.

     

    In this cricket-loving nation, sighted fans may have moved on to mobile devices for live video streaming, but a visually impaired fan still tunes in to the good old radio commentary.

     

    Radio fascinates visually impaired people, because they can easily relate to it. There is no discrimination there, in terms of lack of access.

     

    The question is: are radio producers aware of this audience and their needs? Are they devising any content that is targeted towards the average visually impaired listener? There are a lot of social campaigns various stations undertake. They align with a cause, person or an organisation and garner support through their wide reach.

     

    I feel radio can contribute a great deal by initiating a campaign to sensitise people about the challenges faced by visually impaired people. Or let’s say how to offer help to a blind person you may encounter on a street, on the metro, in a bus or at an airport.

     

    Radio also has the potential to offer employment to blind people. India’s first visually impaired radio jockey K Srikanth started off his career with All India Radio and later worked with the BBC. There are private and non-profit institutions that offer courses in storytelling and radio jockeying. Among the section of blind people that has access to mainstream education and technology, there are many students who opt for media courses.

     

    Not long ago, I’d engaged with a graduate in mass communication from Bengaluru who wanted to become an RJ. He found no luck because he was blind. This young boy was well verse with technology, had acquired all skills of scripting, editing etc. He needed professional training like all newbies do, that’s all.

     

    This year the theme of World Radio Day is ‘Radio and Diversity’.  Perhaps a cue for the radio industry to promote inclusion and educate the society about ‘diverse’ needs of people who are just as equal citizens of India as you and I.

     

    Shruti Pushkarna is a former journalist (part of the founding team of MxMIndia) who has now moved full-time to the social sector. She heads operations of the New Delhi-based Score Foundation where she works as Director-Programmes & Communications. She writes for MxMIndia every other Thursday. Her views here are personal. She can be reached via Twitter at @shrutipushkarna

  • Presenting RAM Ratings for Week 25 of 2019 – Jun 16- Jun 22, 2019

    RAM weekly report for Week 25- 2019

  • Here are policy recommendations for the growth of radio broadcast sector in India, as per FICCI

    How radio can grow: FICCI

     

    Presenting policy recommendations for the growth of radio broadcast sector in India, as per FICCI. Excerpts

     

    1. Restriction on ownership of licenses

    Current policy Regulation

    A permission holder cannot run more than 40% of the total channels in a city subject to three different operators in the city.

     

    No entity shall hold permission for more than 15% of all channels allotted in the country excluding channels located in Jammu and Kashmir, North Eastern States and island territories.

     

    While such policy restriction may have been designed to address concern around creating monopoly and promoting competition, such policy restriction is actually prohibiting the Industry players to leverage economies of scale and holding them back from making greater investment in technology and content. The Industry believes that there may have been sufficient rationale for such restrictions when the Radio Industry was in its infancy stage.

     

    However, as the Industry has matured, it is right time that such regressive regulations can be removed to allow the Industry players to scale up their operations and technologies. The Industry bonafide believes that there are sufficient regulations and regulatory bodies such as Competition Commission of India (CCI) which can address the concerns of creating monopolistic market or other unfair trade practices. In view of the above, it is humbly submitted that the government should reconsider its current policy and remove all such arbitrary caps.

     

    Recommendation:

    It is recommended that the cap on ownership be removed such that national players and strong regional player can emerge that can consolidate operations, bring in economies of scale to the industry, reach grass roots level and acquire more frequencies.

     

    2. Three Year Lock-in Period

    Current Provision

    The current policy mandates that the shareholding of the largest Indian shareholder in a Radio Broadcasting company cannot be reduced below 51% till a period of 3 years from the date on which all the channels allotted to the company holding permission stand operationalized.

     

    Existing Radio Broadcasters have already served a lock-in period in previous regime of Phase I and/or Phase II. Further, Phase III imposes a fresh lock-in from the date of operationalisation of all the channels which could possibly extend during batch II auctions.

     

    Recommendation

    It is recommended that the said condition for three year lock-in period should be waived for new allotments done in Phase III to the existing radio broadcasters as such broadcasters have already served the lock-in period in earlier phases. Additionally, lock-in should not apply to Phase I and/or Phase II broadcasters who have migrated into Phase III. The Lock-in period should be imposed only once.

     

    3. Sourcing of news & current affairs

    Current Policy Regulation

    Based on the current regulations, the permission holder will be permitted to carry the news bulletins of All India Radio (AIR) in exactly same format unaltered. Consequently, exclusive radio interviews, debates and content sourcing from any other source are not allowed. In the current age of internet access and converged media platforms, access to news and information has become unrestricted. Under phase III, the medium will penetrate deeper into the newer cities.

     

    Recommendation

    Radio being a free to air medium for masses should not be restricted in terms of sourcing of news and information. It should be considered as the primary medium for dissemination of information at national and local level which will assist in formation of pluralistic opinions and higher awareness amongst listeners.

     

    Similar to television, radio industry should be liberalized to broadcast independent debates and local news sourced from any wire services, or independently, as they desire. Standard rules of checks and balances as applicable to other news media should apply to FM radio as well.

     

    4. Service Tax/GST levy on Advertisement

    Advertisement on radio is liable to Service Tax levy. Radio competes with newspaper at local level. There is no levy of service tax on advertisement in newspaper. It is recommended to remove service tax on advertisement in Radio to provide level playing field to Radio. It is recommended that Services Tax and GST should be lowest in radio as it is a free to air medium.

     

    5. Auction Rules

    In the first Clock Round, the Auction Activity Requirement (AAR) will be set at 80%. Subsequently, the Auction Activity Requirement will be increased in two steps as the Auction progresses, from 80% to 90% and then to 100%.

     

    In Phase III Batch I Auctions, the AAR went to 80- 90 % after many rounds and then arbitrarily to 90 -100% after many rounds which led to gaming, parking and artificial rate increase.

     

    Recommendation

    It is recommended that the increase in AAR should be in accelerated manner in Phase III Batch II auctions. AAR of 100% should be reached after a few rounds of 80% and 90%.

     

  • The priority being flagship brands 92.7 Big FM, Hindi GEC Big Magic and regional foray with BIG Magic Bihar and Jharkhand, as per an RBNL statement

    RBNL recasts broadcast play, ends jv with CBS

    By A Correspondent

     

    Reliance Broadcast Network Limited has issued a statement on the recast of its broadcast portfolio and consequently the dissolving if the joint venture with CBS Studio International. This follows unconfirmed reports that the Reliance ADAG group firm had shuttered the three channels operating as part of the CBS jv.

     

    The Company has issued a statement to this effect. “Reliance Broadcast reorganizes and recasts strategy for it’s broadcast portfolio, with increased focus on local and original content along with IPs. The priority being flagship brands 92.7 Big FM, Hindi GEC Big Magic and regional foray with BIG Magic Bihar and Jharkhand.”

     

    “Radio continues to be the growth driver and will further benefit from the upcoming Phase 3 FM radio auctions. Similarly, Big Magic has successfully increased its footprint across the Hindi speaking markets demonstrating over 200% viewership growth in the last three months, and is gearing to fortify its position in the Hindi entertainment space. These also offer complimentary offerings to our advertisers and synergies in content and promotion,” the statement continues adding that the company has reviewed its portfolio of niche English Channels and the JV with CBS Studios International. Reliance Television Private Limited, a wholly owned subsidiary of Reliance Broadcast Network Limited and CBS Studios International have mutually decided to dissolve their Joint Venture, the statement added.

     

  • AdoRoi Marketing Science has introduced two new product offerings – Response Led Media Planning and Ad Insertion-to-Sales tracking

    AdoRoi launches response-led media planning

    By A Correspondent

     

    Mumbai-based AdoRoi Marketing Science has introduced two new product offerings – Response Led Media Planning and Ad Insertion-to-Sales tracking.

     

    Amit Nevrekar

    Said Amit Nevrekar, Chief Operating Officer, AdoRoi, “It’s a scientific way to study the effectiveness of the media plan through Response per Spot (RPS) and Cost per Response (CPR)”. Explaining the concept, Mr Neverkar said: “The Ad exposure/ response are identified through unique Ad-Tracking codes for each media vehicles across TV, Print, Radio and Internet.” The response is analysed through a proprietary real time reporting software and Client Dashboard. The main advantage of this methodology is it provides Advertisement Exposure for a particular issue/insertion as against the current Media Vehicle Exposure based on Reach & Frequency model. The responses can further be analysed by media, creative, spot duration, placement, Ad-size, page no etc. The model, according to Mr Nevrekar, is beneficial for brands, which don’t just carry out brand awareness creation exercise but aggressively practise direct marketing for instant conversions through call for action or promotional offers.

     

    In this method, the dealer panel in PAN India Print campaign is replaced by AdoRoi’s unique Ad-Track tele code per media vehicle, thus saving the effort and also cost per sq cm. When any customer calls for an enquiry, his/her call is directly patched with the nearest dealer basis his Geo-position and the dealer database through our patented technology. Each customer enquiry is provided with a promo-code linked to media vehicle which can be tracked against sale. The responses generated per insertion across media vehicles can be analysed on real-time client dashboard. The learnings can be efficiently used for optimizing the media plan for better ROI by maximizing RPS and minimizing CPR.

     

  • Asheesh Chatterjee, CFO, 92.7 Big FM is positive about Phase III of FM radio licensing and the new spectrum being freed

    Jaldi 5 with Asheesh Chatterjee: FM will grow five times

    Asheesh Chatterjee, CFO, 92.7 Big FM is positive about Phase III of FM radio licensing and the new spectrum being freed. MxM India caught up with him recently to talk about the FM industry, pre- and post-Phase III.

     

    01. With Phase III coming into play, do you think that the issues such as royalty, taxes etc that the FM industry has been struggling with, will be sorted?

    I am very optimistic. If you look at the efforts the government has taken towards digitization, the intent is to have a consensus and resolve the issues and make the industry grow. Most of these issues have been identified, and yes, there will be solutions. The phase III guideline itself solves many issues. We tend to look at the glass as half-empty, why not look at it as half-full? There were many things which have been addressed, and some which need to be addressed which I am confident will happen soon.

     

    02. Does the current RAM measure the listenership of FM radio appropriately?

    Ratings and measurement requires investment. So once you have strong players with a pan-India footprint, they will have the necessary revenues for the investments to make these measurements appropriate.

     

    Yes, today the measurement is restricted to the top markets, and this is set to expand. You do not need daily or weekly measurement to tell you that radio reaches where literacy has not reached yet or where, because of electricity problems, TV does not work. It is enjoyed as a passive medium, even while you are working. Radio does not really have a prime-time at all. So research will capture all this and much more. I am sure with phase III, and stronger players, there will be sweeps that will be done to bring out the statistics.

     

    03. Prashant Panday of Radio Mirchi recently said that FM radio will have strong competition from internet radio. Do you agree?

    Digital is one of the areas, which by no means implies that FM radio has little future. FM radio is itself going to grow five times from its current numbers. There is immense future in FM radio. And also, yes, digital radio with its uniqueness to be able to search, social networking, and customize, will offer another product. FM players who have the understanding of the audience, as well as content, will be able to monetize internet radio better than anybody else. However, if you are going to make it a paid service, there are not going to be many takers for it.

     

    04. Phase III: Challenge or opportunity for FM radio industry?

    I see only opportunity: to make good use of the spectrum that will be freed after the Phase III auction happens, and to execute on product innovation and product differentiation to make a profitable business model for all stakeholders, whether it is the advertisers who will look at this medium for its cost-effectiveness or listeners who will look at it as a passive medium for enrichment and entertainment, and us as radio operators who like to reward both investors and employees. It is going to be a work-work solution for everybody. The opportunity is right there at the section point and we need to execute it to the plan.

     

    05. Are advertisers taking this medium more seriously in their traditional media mix?

    Advertisers have always taken this medium seriously. Nobody buys you cheap, you sell cheap. The fractured spectrum that some us have had, because we are there in two towns in Gujarat, does not mean that no advertiser can do a Gujarat-plan with you. So those are the problems that will go away, and you will have the spectrum to reach the targeted region or TG. I think once that gets corrected, advertisers will start using FM as the primary medium.

     

    As told to Ananya Saha

     

  • Even as advertisers are yet to take this medium seriously, the industry players are waiting for Phase III with anticipation. MxMIndia finds out what their expectations are

    MxM Monday: Expectations from Phase III FM radio licensing

     

    By Ananya Saha

     

    FM Radio is set for exponential growth. Even as advertisers are yet to take this medium seriously, the industry players are waiting for Phase III with anticipation. The industry is positive that the third phase would result not only in differentiated content but will also interest the advertiser and listener alike.

     

    We speak to private FM players for their expectations from Phase III of licensing.

     

    By Ananya Saha

     

    Harrish M Bhatia, CEO, DB Corp Ltd - Radio Business (94.3 My FM)

    We all want Phase III to happen. It is an industry’s requirement to grow. But it is important for the government to remove hurdles like the issue that happenedinChandigarhor not allowing us to carry news. What is the objective of taking AIR news? If it the issue of keeping tab or administering the news we carry, they can ask us to keep our news recordings for 30 days and they can review it. How does the government control cable telecast? Why cannot they trust us?

     

    From the advertisers’ front, I am sure that the advertising in the medium’ will continue to grow. What is required is proper decisions by the government to ensure that the private FM players also gain.

     

    Asheesh Chatterjee, CFO, Reliance Broadcast Network Ltd (92.7 Big FM)

    The more number of Spectrum licenses in Top A, B cities will only benefit the industry. It will add to content loyalty. Phase III licensing will result in closure of music royalty issues when the tariff rates will resolve the ambiguity issues that exist at the moment. And yes, the FM players will be investing in Category C and D towns. Kozhikode, Chandigarh and the South will make the things uncomparable. Those areas need a bit of correction.

     

    These three are broadly the issues, apart from smaller issues such as news. Even while protecting the identity of your brand, we will be able to cover news in the same manner or better manner. Otherwise you are too restricted in communicating it in the same manner.

     

    Harshad Jain, Business Head, HT Media (Fever FM)

    The highest bidding of Phase II will becomes the lowest bidding price in Phase III and that is a cause of concern. I hope the government understands the fact that the cost of doing business is high. And I hope they do pay attention to this fact apart from solving the issues such as transmitter and infrastructure.

     

    It is no doubt that the Phase III is going to do better to the industry, but the back-end processes will have to be taken care of and sorted.

     

    Anurradha Prasad

    Anurradha Prasad, President, AROI and CMD, BAG Networks

    We want the processes of Phase III radio licensing to begin as soon as possible. We, as an industry, do not want something that becomes unviable. Hence, we are awaiting the process to begin soon so that industry gains. You cannot compare telecom and radio spectrum together. The consumer does not pay for radio. The medium requirements are different.

     

    It looks like the issue of music royalty will get sorted as Phase III licensing comes into play. However, I am concerned that in Phase III, the bidding prices might go haywire and people will not be able to pay, nor would they be able to make it profitable.

     

     

    Prashant Panday, CEO, Radio Mirchi

    The objective of any policy should be to ensure growth of the sector. In the case of FM radio, Phase-3 policy should attempt to expand FM in a big way.

     

    The Phase-3 policy as it stands today only partially addresses the objective. It does seek to expand geographically into some 250 new towns. However the auction methodology (electronic ascending auctions) and high reserve fees (highest bid received in Phase-2 in a similar category town in the same region) will frustrate this goal. The radio industry believes that FM auctions will be a flop with most new cities not being taken up. The industry prefers electronic tendering, just like done successfully in Phase-2. This would also take care of the problem of reserve fees, since they are set post-auctions (25% of the highest bid).

     

    The policy allows for networking across the network, which should help cut operating costs in small towns. It also allows broadcasters to operate more than one channel in the bigger cities, which should help in consolidation. The policy also allows news broadcast, but limits the content to AIR feeds. This is blatantly unfair, since news without restrictions is allowed to all other media.

     

    However, the biggest problem is conducting auctions under scarcity conditions. There is only 1 channel in Delhi, Bangalore, Chennai, Ahmedabad and Pune and 2 in Mumbai. This will lead to exorbitant “desperate” bidding. Further, this high bidding will become the base for the next round of auctions, which will put the radio industry into a cost spiral. Instead, the government should accept TRAI’s recommendation of halving “channel separation” to 400 KHz and doubling the number of channels. This way, the government will get more overall license fees, the public more programming variety and the broadcasters reasonable license fees.

     

    Suresh Sanyasi, National Sales Director, Radio Indigo

    Our expectation from Indigo are fairly simple: we are looking at larger market space in terms of international quality music available pan India. We current fall into very niche A+ segmentation. We are looking at Mumbai,Delhi as a market and may be a couples of Town A and B where we see potential like the way we got Goa where we can harness our brand and give listeners good music. Invariably connecting them with good brands and advertisers and giving them pan-India reach. Currently, if any advertiser wishes to advertise with us, they have to locally listen to our station in Mumbai and Goa. Once, we get license, the advertisers will be able to connect with our brand pan India. We already have offices in Delhi and Mumbai and once we get license, we will start expanding horizontally. We have, maybe about 20%, of business coming out of Mumbai and Delhi irrespective of the fact that they do not have touch-and-feel of Radio Indigo and they have only heard about our brand.

     

    Once Phase III begins, the market will grow. More radio stations coming in, licensing will become larger, the government is definitely going to get lot of revenues and a lot of employment will be created. There is huge amount of growth that we are looking at.

     

    However, radio in India has not reached maturity yet. By maturity, I imply, consumption of radio is not a very-well accepted norm right now. I say it comparing it to more mature medium like a television. People buy in terms of brand and advertising people do not know how to use radio. Radio is a very tactical medium. Advertisers do not understand the medium since it is not a visual medium, even as it remains the most cost-effective medium to advertise and there is a definite return that comes through. With larger number of stations coming in, people would like to try out and understand the value of radio in itself.

     

    We are looking at Phase III with much positivity and optimism.

     

  • CII organised the CEOs Roundtable on Radio in New Delhi last week, to discuss and chart the growth of the radio industry with the Phase III auction of the FM spectrum coming up

    FM Radio: Facing challenges, embracing growth

    By Ananya Saha

     

    The Confederation of Indian Industry (CII) organised the CEOs Roundtable on Radio in New Delhi last week, to discuss and chart the growth of the radio industry with the Phase III auction of the FM spectrum coming up, though dates are yet not out, and the ministry is said to be tweaking the loopholes. The conference saw private FM operators being critical of govt policies that did not allow them to carry news on their stations. The event also saw the release of CII- E&Y report – ‘Poised for growth: Fm radio in India’ (Read about it here: http://www.mxmindia.com/2012/12/fm-radio-will-generate-rs-14bn-in-coming-year-ey-report/)

     

     

     

    Prashant Panday

    Amit Khanna, Chaiman, CII Committee on Media & Entertainment and Chairman, Reliance Entertainment, requested the government to encourage diversity in programming by giving incentives. He said, “The existing policy has created clones of same station and has stalled the exponential growth of FM that could have happened.” He also spoke about how the cost of reach of radio was much higher than the cost of reach of radio, thus pushing the FM operators to stick to mainstream genre of Bollywood music to generate revenues.

     

    Prashant Panday, CEO, Radio Mirchi advocated multiple channels, 25 or more for cities such as Delhi and Mumbai for efficient usage of spectrum and diversification in genres. He pointed out, “FM gets only 40 lakh listeners per week. And daily only about 25 lakh people tune into FM. Why is that we reach 25 percent of population? The population needs variety, and we are often compared to TV when it comes to programming.” He also said that in 4-5 years FM radio will lose business to digital radio as consumer moves to internet radio. “The numbers are clearly growing. Saavn currently commands 10 million listeners. FM spectrum has finite life span. It is important to re-consider spectrum policy before broadcasting goes kaput,” he said.

     

    Anurradha Prasad

    Anurradha Prasad, President, AROI and CMD, BAG Networks, opined that the all stakeholders related to FM industry are missing the larger picture. “We sell airspace one-hundredth of TV ad revenue. It is clear that nobody is taking it seriously,” she said. She pointed out how advertisers look at radio as a ‘bonus’ medium and not as a serious medium.

     

    However on a positive note, Ashish Pherwani, Partner, Advisory Services, M&E, Ernst & Young, said, “Phase 3 is going to be imperative for growth of the industry. There are good things happening in the industry that will allow consolidation. Yes, it is important to extend licensing by 10-15 years. The lack of inventory is happening because of lack of licensing. But even then, one out of two campaigns currently use radio is a medium, even when ROI is not as well-defined in this medium.”

     

    Uday Varma, Secretary, Ministry of Information & Broadcasting, began on a very candid note. He quipped, “If the industry itself is calling a 10-12% growth bleak, what percentage of growth will make it look bright? The industry in itself is not clear what it wants – whether it wants fast growth or slow growth. Of course, the business aspirations of the industry and national interest will not go hand in hand and meet, and it should not for good.” He also pointed out why there is a delay in the auction of Phase III licenses, “There was an issue of migration fee. The process and auction will be done in very transparent manner. There are trade-offs but I am sure we will sort them out with the industry and other stakeholders like TRAI.”

     

    Mr Varma on a lighter note said, “If you as an industry player are sure that it will die, why expand at all? And if it is so, the government should re-look at the FM policy. We, as an industry, need to begin on a far more positive note. Of course, you cannot wish government away. There is a divergence of motive here – the industry is working for profits and we have to look at the working of the industry as a whole,” while responding to Mr Pandey’s statement that the FM industry will face the music the next 4-5 years. On the question of allowing private FM to air news, Mr Varma asked the industry to begin with AIR news feed and give it a time of 4-5 years.

     

    The Secretary and Rajesh Kumar Singh, Joint Secretary) Broadcasting (MIB) assured the delegates that Phase III was on the top of their agenda. Mr Singh said, “My agenda was to get the Phase III rolling by March 2013. But we hope to work on the areas that cause concern and do it thoroughly.”

     

    Harshad Jain

    Harshad Jain, Business Head, HT Media (Fever FM) said, “The market size is roughly Rs 12-1500 crore, for a medium (radio) that is absolutely free for the consumer. Compared to overall media industry, this is the fraction of revenue. The bidding cost for Phase III is unfair to the industry that is so small. While the numbers might look impressive when you see CAGR, the prices of this medium have actually declined keeping inflation in mind.”

     

     

     

    Anil Srivatsa

    Adding to the debate was Anil Srivatsa, CEO Radiowalla Network who said that the reserve price will deter new entrants into the industry. He recommended more frequencies with lesser space between two frequencies. To this, Wasi Ahmad, Advisor (B & CS), TRAI, responded that number of FM channels should be consummate to how many channels can a market absorb while Harrish Bhatia, CEO, My FM wished to make the industry more investor-friendly while pointing out “stations that are backed by news media houses should be allowed to carry news.” On an optimistic note Mr Jain of Fever FM wished that “radio industry becomes a $ 2 billion industry,” while Uday Chawla, Secretary General, AROI, wished for a level-playing field between radio, print and TV.

     

     

    Harrish M Bhatia

    The panel and delegates also pointed out how the industry is facing the dearth of good talent. On a positive note, Asheesh Chatterjee, CFO, 92.7 Big FM concluded, “We are going to grow at 30% in Phase III when 245 FM stations would result in four times in inventory with more comprehensive spectrum. Radio is set for huge jump. The ad revenues are falling because we are selling cheap. We, as an industry, have to focus on good content. The growth and the ability to grow lies within us. We need better and concurrent movement.”

     

     

    A Must Read for every Professional in Media Industry ….

    Extracted with permission from Authors of ‘The Advertising Mess’

     

    Universe Projections and a well-known Listenership Survey

    The existing Radio listenership survey from a ‘credible and trustworthy research organisation‘has shown utter carelessness and total lack of responsibility which has hindered the growth of this nascent medium.

     

    The listenership survey, which launched in 2007, used NRS 2005 universe estimates without applying growth rates for the intervening two years, which means its figures were two years out of sync with reality. This lethargic output was produced after charging humongous fees from the client for subscriptions.

     

    Logically, in any such media currency, the critical factor is the ‘estimation of the universe’, which needs to be done as accurately as possible. This can be done by using the latest available census figures and applying the intermediate growth rate to arrive at the current universe, OR by using IRS figures (since IRS provides updated universe estimation by demographics on a quarterly basis.)

     

    Moreover, this listenership survey continued to report these wrong universes for the next 3 years till the end of 2010. Not only was the universe underestimated but the radio penetration figures were also wrongly reported as compared to the baseline.

     

    When this ‘credible and trustworthy research organisation‘ finally updated the universe in January 2011, some markets showed growth in population by 143% over the previous year. (Obviously, since for five years, the research agency had not bothered to update universe, now there was a sudden leap).

     

    The basic demographics such as gender ratios changed almost inversely for male : female from 57 : 43 to 41 : 59, socio-economic classes observed stark differences. For example, upper socio-economic class demonstrated a drastic drop where as lower socio-economic classes showed significantly unrealistic rise over the previous year.

     

    Conventional wisdom says that the demographic proportion takes almost one full decade to show the kind of change in proportion that this listenership survey showed in a single year. Such drastic changes in gender ratio were last witnessed during World War II, when millions of members of the male population were killed in a single year of warfare at the front. They cannot radically change in just one year.

     

    Can we expect such blunders from an organisation which is looked upon as the ‘Messiah’ of media research in India? Unfortunately, YES.

     

    Such are the follies of these surveys which are unfortunately highly respected by the industry and form the basis on which most of the MarCom investments are made today.

     

    Different methodologies lead to different results with disastrous consequences (Diary v/s DAR)

    Different methodologies for the same objective appear to provide different results in research surveys. Each of these methods has their own disadvantages and advantages and that includes how the market perceives them. The different numbers emanating from the usage of different methodologies mean different opportunities to advertisers, broadcasters and agencies for revenue impact, visible return on investment and content formulation.

     

    Obviously all these methodologies cannot be giving the accurate results. Let’s take an example of MRUC which started India’s first radio listenership survey, ILT (Indian Listenership Track). MRUC had conducted a research to evaluate which methodologies out of DAR (day after recall) and Diary were the most robust and with minimum error. It was found that DAR reported a 55% inaccuracy, whereas Diary reported 85% inaccuracy.

     

    Post the results of these findings, TAM media research released the first round of Radio Audience Measurement with Diary methodology, pitching hard for real-time capturing of data.

     

    The radio station which according to ILT was the undisputed market leader for two consecutive years, suddenly dropped to number four position according to RAM, whom do we believe ILT or RAM? Further, this discrepancy occurred when there were only a total of 7 private FM stations available.

    The question is whether real time capturing of data (Diary), which was developed to overcome the inaccuracies of the previous methods (DAR), truly presents the actual picture.

     

    Another example which can be looked at is a famous radio station which recently converted from 100% Hindi content to 100% English content in Mumbai. When comparing three months of Hindi content (Pre-Launch) with 3 months of English content (Post-launch), the existing listenership survey conducted by a ‘renowned media research agency’ reported NO significant changes in either demographic consumption of the station across age groups, gender and socio economic class OR in tune-ins and time spent. On the contrary, lower socio-economic class showed growth for 100% English content for the same radio station.

    This either shows that all listeners are deaf or it shows how real time capturing of data could mislead due to some lesser known reasons or leakages in validation process or it shows that the data capturing and analysis are being done in a thoroughly unprofessional manner. Or could it be that there is a short-coming in the methodology itself and that fresh, new methods are urgently needed?

     

     

     

  • The CII-E&Y report on India's private FM radio segment, 'Poised for Growth: FM radio in India', will be released in the capital today

    FM radio will generate Rs 14bn in coming year: E&Y report

    By A Correspondent

     

    India’s private FM radio segment is expected to generate revenue of around Rs 14 billion in 2012–13. With 245 private FM stations operating in 86 cities, the sector has been growing at a CAGR of 14 percent annually. Furthermore, the sector is expected to grow to INR 23 billion, at a CAGR of 18 percent, within three years of Phase III being rolled out, according to ‘Poised for Growth: FM radio in India’, the latest study by CII and Ernst & Young. The sector accounts for around 4 percent of the country’s total ad industry. Globally, radio’s average share of the total ad industry is between 5 percent and 10 percent.

     

    According to IRS 2012 Q2 data, radio has an estimated audience of 158 million people (out of which FM radio accounts for 106 million), as compared to 563 million in the TV segment and 352 million in the print sector. Advertising revenues comprise more than 85-90 percent of the total revenue generated by FM radio companies; non-FCT sales can contribute up to 20 percent of a radio company’s total revenue today.

     

    Ashish Pherwani

    Ashish Pherwani, Partner, Ernst & Young said, “The report is a compilation of the views of 23 industry stakeholders including radio companies, regulators, music labels, etc. It highlights the need for a speedy implementation of Phase III, which can grow the radio industry from INR14 bn to INR23 bn in three years, subject to enabling networking and cost management, development of a measurement metric which supports the industry, and ensuring license fee prices during Phase III auctions are not irrational. The report also highlights operational, tax and technology implications of the industry.”

     

    Current state of the industry

    Radio is not considered a primary advertising medium due to its limited number of stations. While larger cities are mostly covered by it, advertisers interested in regional ad campaigns prefer using regional print (which can enable them to reach several more cities and towns than radio currently can) or regional TV, which has grown significantly since 2005. Therefore, radio is only used as a back-up medium for most ad campaigns. However, with the implementation of Phase III, with 839 frequencies being made available for auction, radio is expected to provide advertisers with a much deeper reach.

     

    More than 50 percent of FM radio consumption is in homes, followed by people listening in transit (on mobile phones and in-car listening) and out-of-home listening at restaurants, offices, shops and so forth. Around 25 percent of total radio listenership is now on mobile phones, fuelled by handset manufacturers that have made FM radio a standard feature in most of their models. Some radio companies claimed that their research indicates that mobile phone listenership in metros comprises more than 75 percent of their total listenership.

     

    The study highlights the fact that the key challenges faced by this industry today include limited inventory, inability to demonstrate ROI and slow recovery of ad effective rates (ERs). Therefore, the need of the hour is for radio industry is to collaborate and implement a measurement system that supports the growth of the industry.

     

    Phase III

    Phase III of FM radio licensing promises further growth opportunities for the Indian FM radio industry, since it covers 294 cities and 839 licenses.  However, only 52 of these licenses are in high revenue-generating category A+, A and B cities.

     

    They expect the share of local retail advertising to increase from current levels to more than 50 percent of the total revenues generated in the segment, and activations and other below-the-line marketing initiatives to play a more important role in generating revenues. The margins of radio stations are projected to decline in the short run, stabilize in three to five years and then rise. The growth in mobile and internet ad spends could, however, pose a threat to the rise of FM radio.

     

    Phase III is also likely to make the industry more conducive to M&A due to proposals such as reduction of the license lock-in period from 5-3 years, an increase in the license period from 10 to 15 years, significantly more networking between all the stations to enable cost optimization, ownership of multiple frequencies in a city and an increase in the foreign investment limit to 26 percent from the current 20 percent. The industry needs to push for parity with the FDI norms of other media segments such as broadcast TV.

     

    In the long term, significant growth for the private FM radio industry will only be possible if several thousand stations are operationalized, burden of high licence fees is removed by increasing the variable component and reducing fixed costs, and news dissemination is equated with other media.

     

  • On December 24, 2012 Ms Kapoor will debut as an RJ with FM radio network 92.7 Big FM for a women-centric radio show called Big Memsaab, through a specially conceptualized segment, 'Big on Style'

    Karisma Kapoor debuts as RJ on 92.7 Big FM’s show

    By A Correspondent

     

    Actress Karisma Kapoor has taken on the mantle of an RJ with FM radio network 92.7 Big FM.

     

    On December 24, 2012 Ms Kapoor will debut as an RJ for a women-centric radio show called Big Memsaab. Through a specially conceptualized segment, ‘Big on Style’, she will play the role of a beauty and style guru who will share her expertise on fashion and trends. The segment will air on Big Memsaab every day between 11am and 12noon across 31 stations of the radio network.

     

    Apart from a multi-media marketing campaign across radio, television, outdoor, on ground and social media, contests will also be hosted on air, wherein lucky listeners from across the 31 cities stand to win a personalized grooming consultation with Ms Kapoor.

     

    Speaking about her association, Karisma Kapoor said, “Having worked in movies and television, I was extremely keen to try a new medium – so I decided to do radio. The Indian media scenario is constantly evolving and radio is the perfect medium for me to be closer to my fans than ever before. I am very excited about my radio debut on 92.7 Big FM’s afternoon show, Big Memsaab. I am confident that my fans will enjoy the show thoroughly and will continue to support me as I undertake this new journey.”

     

    Commenting on the occasion, Manav Dhanda, Network Programming Head, 92.7 Big FM, said, “Ms Kapoor makes a daily appointment with radio listeners, which is a pioneering move. The features of the show will be the first across media, which is very exciting. The format of the show, the pegs that we will touch upon and the innovations planned are what makes the show unique and appealed to her. Radio is a live medium and highly engaging allowing for direct interaction with crores of Indians and fans across the country for a celebrity.”

     

  • The station won 'Radio Station of the Year' at the Asian Leadership Awards, Global Awards for Brand Excellence – Brand Excellence in Media & Entertainment, and Mobbys Awards for Best Mobile Application

    94.3 My FM wins three awards

    By A Correspondent

     

    Harrish M Bhatia

    In an award-winning spree, radio station 94.3 My FM has bagged three major awards recently. It won the Asian Leadership Awards in Dubai, in the category ‘Radio Station of the Year’. It also won the award for ‘Brand excellence in Media & Entertainment’ category in the Global Awards for Brand Excellence organized by the World Brand Congress Awards in Mumbai. 94.3 My FM shared the award with SAB and Movies Now in the category.

     

    The station was also recognized for its new and innovative initiatives in the mobile application space. 94.3 My FM bagged the Best Mobile application in the media category award at the Mobbys Awards held recently in Mumbai. The mobile application from My FM which won the awards has unique integrated features for listeners to connect and engage with the station.  Features like My Connect allow users to go to their city-specific social media platforms. Other features include My Message where one can send a song request or contest participation SMS to My FM with a one-touch key and My Download where end users can download My FM tones as their mobile ringtones.

     

    “I am elated at the recent award wins and the industry recognition for the brand. It not only showcases the growing preference of the brand among its listeners but also strengthens our belief in the localized approach we take in the markets we operate in to reach out to our listeners. I would also like to thank my staff which has worked seamlessly for us to reach this level of excellence. With the recent award wins,  94.3 My FM has not only spelt out its brand pull but also the prominent position that it has taken in India’s radio market,” said Harrish M Bhatia, CEO, 94.3 My FM.