<FONT COLOR="#FF0033"><B>FICCI Frames ’06:</B></FONT> Wake up to the next radio revolution

“Long ago, the first session on radio could not commence at FICCI because there was no audience,” quips AP Parigi, managing director, Entertainment Network India. He was addressing the session on ‘Radio: Tuning in Again’ at FICCI Frames 2006.

Radio, which is the oldest electronic medium, has travelled a long way. But even today, it is faced by the challenge of innovation since it is perceived to be a new medium.

Parigi said, “FM radio will redefine the way media is consumed and handled.” He also pointed out the key developments witnessed in this sector.

He elucidated, “Radio has moved closer to the 4 Cs – creativity, content, conduit and convergence. The last point, convergence, is spoken of in terms of mainly IT, telecommunication and media. But I would add retail to this as it is going to change people’s consumption habits.”

“Secondly, the change in FDI norms has been a big advantage for the radio sector. Many media houses are now seeking listing to raise funds. Mega brands, which were traditionally identified with other industries, have just entered radio,” he said.

Talking about the future, Parigi stressed that more than 200 radio stations are likely to come up in the next 24 months. Private FM will extend coverage from 12 cities to nearly 50 cities. The target population will cross 200 million people.

The sector has slowly established itself in the media plans of advertisers and media planners have started acknowledging radio’s reach. The launch of the 200 radio stations will propel the development of the category. Attracting, retaining and developing talent will be an important agenda. Finally, listenership research will drive revenue growth in new markets.

Parigi, therefore, raised the question: ‘Can we earn, learn and grow?’ or ‘Will we earn, learn and go?’

Talking about the challenges ahead for the sector, Parigi expressed his concern, “When privatisation was undertaken by the government, the original goal was education, information and entertainment. Therefore, there is a need for content on current affairs and news on radio to fulfil the original goals.”

Parigi also said that there was a need for multiple frequency ownership. This will spur the growth of ‘niche’ channels to reach underserved audiences. Currently, talks regarding this are on with the government. There should also be a fair and reasonable price for co-location infrastructure. Fair and reasonable music royalties should also be introduced.

Regardless of these challenges, one factor that should bring some relief to the radio companies is advertising. Media planners pronounce that the verdict is positive.

Raj Gupta, president, Insight, said, “There are various factors because of which advertisers are looking at investing in radio. Television is fragmenting and, with it, the advertiser’s money. Clutter on television is increasing and advertisers are not getting value for their money. There is also the increasing threat of high ad avoidance on other media vehicles. The effectiveness of television is being eroded and the scenario is similar worldwide.”

“As opposed to this,” said Gupta, “radio is doing well.”

The ad avoidance syndrome seems to be more among the younger audience and upper SECs. Around 62 per cent of the Indian population is below the age of 30 years. And 22 per cent of advertising caters to the youth. Young viewers have started spending less time on mass media.

Gupta elucidated, “In this situation, radio has emerged as a new medium for the youth. They have an affinity for the medium. From the background, radio has moved to the foreground. Radio has a growing reach and the time spent on radio is increasing day by day. So, it is but obvious that the youth categories will slowly migrate to radio.”

Gupta signed off with some words of caution, “There is a need to measure and audit radio. It requires a dynamic track. In the future, cost efficiency can crop up to become a major issue. Again, in terms of cost efficiency, radio has proved that it is cheaper at the local level, but its performance might get expensive at the national level.”

© 2006 agencyfaqs!