India's largest network by location, Red FM has announced an increase in its ad rates by 12-15 per cent, effective from today. The company took the decision following the recent re-branding of S FM as Red FM.
Commenting on the hike, B Surendar, senior vice-president and national sales head, Red FM, says, "It is not only ad hike, but also ad rationalization. We had rationalized our ad rates during the slowdown; now, we are correcting it. In the past year or so, we have consolidated our position as the largest network, with a spread of 50 stations across India and a total listenership of 34 million."
On the issue of ad-rates hike, an industry expert says, "A lot of radio channels had slashed their rates; and this is merely a correction."
Surendar says, "The re-branding exercise has helped us increase efficiencies and reap the benefits of scale; while offering cost-effective solutions to our clients." S FM or Suryan FM took over Red FM in August 2009 and re-branded its all stations to Red FM, except in Tamil Nadu.
Commenting on the effect of the rate hike on advertisers, Surendar says, "Our advertisers understand the value proposition we offer and come to us because of a differentiated brand, a proven track record, the strength of our network, and because of our ability to provide 360 degree communications solutions."
He says the company has retained its clients in the past four years or so, because "We provide value for money to our clients and our clients understand that."
The radio channel recently bagged nine awards at the India Radio Forum.