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Radio is going expensive

News Helpline | June, 04 2013

 There were times when Radio was completely out of entertainment industry. Numerous TV channels were ruling the media. But since last few years FM Radio changed the entire scenario of audio industry. Today its become an integral part of our life. This could be one of the reason for hike in the ad rates of 93.5 RED FM.

The radio station has announced a 20 percent hike in its advertising rate with effect from June 10 all over India.

Nisha Narayanan, COO, Red FM, says, "The rates have been constant for a very long time and it's time to take them up keeping in mind the inflationary pressures. The costs have been escalating northwards. As a result, increase in rates had become imperative. Inventory crunch due to heavy demand in most of the developed and emerging radio markets also made the rate increase inevitable." Commenting on the increase, Renuka Iyer, national sales head, Red FM, says, "Most of our Tier II and III city stations are now a very strong and prominent local brand as we have been constantly investing on content and talent. A strong product backed by an efficient sales force has helped these markets to show volume growth in advertising also. The demand and supply situation requires that rates should be corrected to properly service brands and take them to the next level. Metro markets are overflowing with inventory utilisation and it's high time that we correct the demand-supply situation here, too."

Iyer adds, "Traditionally in metro markets we have been leaders in terms of both - popularity amongst listeners and popularity amongst advertisers. Now Tier 2 towns are also moving in that league. With the rising operational costs and inventory pressures, the rate increase was inevitable."

Launched in 2002, Red FM plays a mix of Hindi and English songs. However, the programming is now exclusively Hindi. The channel is owned by Sun TV Network. It was acquired from India Today promoter Living Media in January, 2006.

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