RADIO INDUSTRY Business model is mainly advertising driven.
Growth in the last two quarters of 2008 was slow.
Radio is a cost effective medium as it has more penetration.
Controlled by few business groups having sizable stake.
Phase II licensing made the business viable.
Has huge infrastructure setup costs.
Oligopolic and witnesses price wars.
Overall growth rate is impressive.
Brief History of Radio Broadcasting in India
1935: Radio broadcast begins with AIR.
1977: First FM service in Madras.
1993; AIR sells time slots for private FM radio
broadcasting in five cities.
1999: Privatization of FM - Phase I Policy.
2001: Licenses given to private radio broadcasters.
2005: Announcement of Phase II Policy of privatization
Five key Things About Radio Today
2. Radio is hyper-
4. People’s attention
slips in and out of the
1. Music and
Information/ traffic updates
Songs ..for all
Happenings .. youngsters
Dial Ins/ Contests
3. Listening habits
led by time and
Lively songs during day,
slow songs in evening
with radio varies by
intruding on space
alone, connection to
background filler with
points of engagement
“”you get to know the traffic update”
“You are given current affairs
news…what's happening around Delhi”
“They tell you about the weather, where
to go in the weekend”
“you know the songs that are
coming on radio…and you sing
along with it…”
courses Friends Family
6 a.m 10 a.m 2-3 p.m 5 p.m 8 p.m 10 p.m8 a.m
Out of home activity. Family
6 a.m 9
7-8 p.m 10 p.m10
6 a.m 10 a.m 1 p.m 5 p.m 8 p.m 10 p.m6 p.m
How people use radio
Part of daily routine
Companion whilst alone
Indulgence for self
Energising, off-set stress
Fill monotonous journey
ENVIRONMENTAL ANALYSIS: 98.3 FM
EXTERNAL: PEST ANALYSIS
To enter in the industry, high one time entry fee has to be given
Up to 15 % annual hike In licensee fee
Only 10 year of license is valid.
RJ’s mainly attracted by package that has been offered to them by
Showing responsibility towards various NGO
Help in June 2005 Mumbai flood.
Before 2000, there were only two music stations, but after that radio industry
came up with private Channels with different frequencies. Today ENIL has
Internet radio is introduced.
Modern equipment and highly technical transmitters are used.
Visually appealing materials are also associated.
Name at times not
Radio OneNot spontaneously
imagery AIR FM
Old and boring
high-tempo and English
New but fast gaining
Popular once upon a
time but losing out as
not very dynamic
Playing enjoyable, new
music and also fun
programming Radio Mirchi
Strong imagery…that of spicy, young
Well known RJs and programmes…
Plays music resonating with young
Respondents placed stations on a ladder, based on
their perception of how successful they are…
Name at times not
ON-AIR DELIVERABLES: The range of Services to clients:
Free Commercial time:
@ SPOTS: Information about the brand recorded once and is repeated for a
number of times.
@ R.J. Mentions: R.J’s keep mentioning about the brand/client, live during a
show, it’s not pre-recorded.
@ ON-AIR CONTESTS: Contests played during an on-air show like best recipe
with Hamdard Roohafza.
Activation: (ATL + BTL)
@ PRE-HYPE PROMOS: Promos specially created to create hype before the
@ Activity Promos: On-air announcement of all the details of the on-ground
activity, along with the brand name.
@ Winner Bytes: Recordings of the winners of the on-ground activity for on-air
broadcasting telling about the brand & the activity.
@ RJ Mentions: RJ is present at the activity venue & does live mentions about
the activity on-air.
@ Special Properties: These are properties owned by Radio Stations which
are sponsored by the client accordingly as client’s brand can leverage that
Maruti Suzuki being an automobile company sponsor the “Mirchi Traffic Beats”
property of Radio Mirchi.
Brand Driven – Activation
Multiple clients on each activity
Typically 1 PS & 2-3 AS, Execution is outsourced to an agency
Activity wise P&L, Costs broken up into on-ground & (on-air) costs
Cost to revenue ratio – 1:2.5
Interactive medium Fragmented Audience
Penetration in remote villages Less Differentiation
Low content cost Creative compromise
Difference in prime time in comparison with TV Short commercials
Excellent complementary & background medium
Cost effective to advertisers
Govt. owned channel – AIR Fastest growing segment of the media and
Government Policies entertainment industry
Technology Beneficiary of the buoyant growth of
Huge Sunk cost major advertisers
Talent issues Reduction in license fees
Awareness & growth
RADIO is a step towards evolution, a strategy, a podium that is flexible &
adaptable assuring that the clients Product/Service/Brand/ Message
reach to maximum TG
Conclusion FM market – 5 things to take away
1. FM radio programming is based on fun and entertainment, with all programes
centered around music
2. Radio listening is mood led, and people tend to stick to a certain time of listening
which fits in with their lifestyle
3. Few RJs have resonated with listeners, but those most successful have developed a
strong relationship with the listeners as empathetic, friendly and person-next door
with persona as fun, lively, youthful, smart and cool
4. Other than the government owned channel (AIR) which is associated with being
boring and old, all other channels are fighting in the same space with little
differentiation – Mirchi is currently top.
5. FM has changed the market and radio is now unrecognizable from the old time
1. Planning: Specialists to handle timeline creation
through comprehensive checklist & manage every detail
of the pre-event planning.
2. Preparation & Programming: The programming
team has to be well trained & has skills that they ensure
a powerful radio plan, creating an impact at the TG &
further fulfilling the client’s requirements.
3. Work on the principles: of excellence, price
performance, and integrity, should be committed to
achieving success for its clients by applying the full
power of communications as an extension of business
strategy and execution.
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Thank You !!!