Mumbai : Radio Network 93.5 Red FM has said that it has increased its advertising rates by 35 per cent across all the stations with immediate effect.
“With Phase 3 and newer cities we plan to venture into, we have decided to go ahead with ad rate hike of 35 per cent across our network,” Red FM Chief Operating Officer Nisha Narayanan said in a statement.
Red FM operates around 50 stations across the country and is owned by Sun TV Group’s associate company Digital Radio Broadcasting.
It has won a single station in Mumbai (Red FM Mumbai), while Digital Radio Broadcasting Delhi (Red FM Delhi) won two frequencies in Jodhpur and Srinagar in the recent phase 3 round of FM radio licensing auctions.
Sun Group was prevented by government from participating in the FM radiowave auctions, but was later allowed by the Delhi High Court.
Demand across most of the major metros and big cities has seen growth, which is equivalent to festive season rush and thus there is an eminent reason for the rate hike, which have been stagnant for almost two to three years now, she said.
“We have not had a rate hike for a while now. Today, radio as a medium is growing at a CAGR of 18 per cent and attracts a large number of advertisers as consumption of radio is on an overall high,” she added.
She further said it is an interesting time for the FM radio space as the advertising community has been showing its faith in the medium, which is evident from the overflowing radio inventories.
She added the Phase 3 auctions and an overall optimism within the industry is also going to put pressure on the operational expenses.
“Thus the rate hike is one of the steps that have become a necessity to optimise the demand and supply and offer best of entertainment and mileage to our advertisers and stakeholders. Volume is also coming from lot of new categories and it’s good to see their trust in the medium by planning campaigns with FM stations,” she said.
