The rate hike will be implemented from February onwards.
The joint venture between Next Radio and BBC Worldwide, Radio One, has announced that it will hike its advertising rates by 20 per cent across markets effective February, 1.
The radio channel claims that it is investing comparatively higher amounts on programming and digital engagement, which have resulted in an exponential increase in audience engagement across markets. The ad-rate hike is a result of these investments.
Radio One claims that Bollywood is a very small part of the total spoken-content on the channel. Music still comprises 60 per cent of the channel's content.
Hukmani further adds, "While most large networks have started to create only 'commodity pricing' based on 'empty' reach and package many stations free. Their prices and profits, and therefore impact, are being driven downwards. This happens in the absence of proper targeting/segmenting and product up-gradation is absent."
It is also learnt that 30 per cent of the channel's advertisers do not advertise on any other radio station. "We have stopped doing on ground activations as our prowess and competitive edge is in the 'on air product'," adds Hukmani.
Radio One's Delhi and Mumbai stations play international music, while the Bengaluru and Pune stations play a lot of Bollywood music. Ahmedabad and Kolkata have a lot of Hindi retro content with a 100 per cent request station in Chennai.
"In the last one year we have begun to offer noticeable engagement in the online streaming (of the international music channels, Bombay and Delhi) audience. Continuous up-gradation of this service is the need of the hour and we are willing to make this investment for our advertisers," adds Hukmani.