Is radio ready to switch to other ad revenue channels?       

The FICCI Frames report released in April states that radio ad volumes have increased by 25% in 2022 as compared to the previous year although ad rates remained 20% below their 2019 levels.

Market players have taken note and there is talk about expanding radio advertising revenue streams to create a stable presence in the market.  

To understand how radio channels plan to escalate the advertising business and the best alternatives available for multiplying the revenues in the radio industry, e4m spoke to industry experts. 

As for Nisha Narayanan, Director & COO, of RED FM & Magic FM, “Being a 69-station radio network, we have ascended our revenue avenues beyond radio as a medium. It is because of Red FM’s 360-degree approach with various verticals that we have been able to add to the growth fund. We have been working on a holistic approach to providing our clients with a unique blend of Audio, Digital, and on-ground experiential entertainment. While FCT is gradually returning to its normal state, these innovative business initiatives have opened up new horizons and contributed to incremental revenue generation.”

According to Ashit Kukian, Chief Executive Officer, Music Broadcast Limited, Radio City said, “Radio City has continually adapted to innovative formats to maintain relevancy and credibility among listeners. We have, therefore, developed a strategic roadmap that includes the convergence of radio plus digital solutions through 'Radigitalization'. By leveraging digital expansion, we have been able to tap into a broader audience base and offer advertisers more targeted and personalized advertising solutions. These alternative revenue streams are set to aid further growth of radio stations.”  

Talking about availing the opportunity provided by audio streaming platforms, Abraham Thomas, Chief Executive Officer, of Reliance Broadcast Network says that the availability of radio content on audio streaming platforms and voice-enabled speakers has played an instrumental role in increasing its reach and accessibility. In line with this, radio campaigns are now focusing on automation through bots, gamification, podcasts, and other new media initiatives. This shift in approach is evident as more digital brands, such as Online games, Fintech, and Edutech, are riding on the radio for enhanced reach and engagement. 

Sharing a different approach, Chief Executive of MY FM, Rahul Namjoshi feels that the primary revenue source for radio will always be space selling, all efforts are in the direction of getting the right price/rate recovery to pre-covid level. If Radio can do that the industry would be in the right & healthy direction.

Emphasising on how digital media is multiplying the overall investments by brands and advertisers in radio, Thomas, said, “The radio industry is set to see further advancements in the digital space, which will significantly multiply overall investments by brands and advertisers. Currently, approximately 20% of business for private firms comes from NFCT, with digital playing a major role. Radio is transforming into a digital-first media platform, leveraging RJs, online presence, social media marketing, influencer marketing and engagement strategies.”

“By offering comprehensive media solutions and competitive digital plans, radio enables advertisers to upgrade from radio-only campaigns. According to the EY M&E 2023 report, the NFCT business is projected to grow by 36% from 2022 to 2025, with digital driving this growth. Advancements in the digital sector will open new opportunities for brands and advertisers to reach wider audiences, enhance engagement and optimize their investments in the radio industry.”