Red FM increases ad rates by 20 per cent
The hike will be in effect from June 10, 2013 and is a result of escalating costs and inventory crunch
Red FM has announced a 20 per cent increase in its advertising rates with effect from June 10, 2013.
Commenting on the increase, Nisha Narayanan, COO, Red FM said, “Red FM as a brand has always believed in delivering true value to its advertisers and has commanded premium leadership rates and has maintained a position of a market leader in terms of volume and value share so far. The rates have been constant for a very longtime 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.”
Renuka Iyer, National Sales Head, Red FM added here, “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. Traditionally, in metro markets we have been leaders in terms of both – popularity amongst listeners and popularity amongst advertisers. Now, tier II towns are also moving in that league as well. With the rising operational costs and inventory pressures, the rate increase was inevitable.”
