Television channel promotions, as per the first study done by Radio AdEx, has a major contribution to advertising on private FM radio.
The study says TV channel promos alone account for close to 13 per cent of the advertising duration on radio.
The first study done by Radio AdEx focuses on the top product/service categories that advertise on private FM radio vis-à-vis television and print, and for the first time substantiates the conventional wisdom that local advertisers reign supreme on radio. The study reveals that local advertisers and independent retailers account for close to three-fourths of total advertising on radio.
Across the four metros, local advertisers account for nearly 75 per cent of the total advertising on radio and in a market like Chennai, the share is even higher with local advertising contributing to almost 81 per cent of total advertising revenue.
Radio AdEx is a radio advertising monitoring service launched by TAM Media Research in technical collaboration with AirCheck India, a subsidiary of US-based RCS Inc., that monitors 13 radio stations across the 4 metros.
The study indicates that while private FM channels give tough competition to the local press, it also attracts a complete new set of advertisers vis-à-vis television. Among the top 10 product service categories in terms of ad spends on television, press and radio, it can be seen that only two categories - cellular phone service and cars/jeeps are present among the top 10 advertisers on each of the media.
And between press and radio, there are quite a few common factors among the top 10 advertising spenders. The list comprises independent retailers, television channel promotions, cars/jeeps, properties and real estates, and cellular phone services.
As per Radio AdEx, the current situation of the radio industry is akin to that of the television industry in the early and mid-1990s. Radio, as of date, accounts for close to two per cent of the Indian advertising industry.
A senior TAM official says, "Clearly, the numbers suggest that radio can no longer be a pushover in any media plan. For the radio industry and us at AdEx India, this information brings in accountability to such a huge medium of advertising. And, this is just the tip of the iceberg."
He adds, "Further, with the possibility of a revenue sharing regime being brought in by the Government of India and the sector preparing for another liberalisation, this could be a new beginning for the private FM channels."
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