MIB hikes CBC ad rates for private FM radio channels
The new rates, approved by the ministry in the month of September 2023, includes a 43 per cent increase in base rate
The Ministry of Information & Broadcasting has approved new rates for advertisements to be issued on private FM radio stations for the government policies and programmes based on the recommendations of the Rate Structure Committee set up by it.
“This marks a significant milestone in the ongoing efforts of the Ministry to ensure a fair and sustainable pricing framework for private FM radio stations,” the ministry said in a press statement.
The new rates approved by the Ministry in the month of September 2023, includes a 43 per cent increase in the base rate taking into account the rising costs dynamics for the period of December 2015 to March 2023.
With this increase, the Gross Base rate for FM radio advertisement will increase from 52 to 74 rupees per ten seconds. This adjustment is intended to maintain parity with current market rates. The increase in Gross base Rate will also be beneficial for more than 400 Community Radio Stations that are currently operational in the country.
Further building on the base rate, the Ministry has also decided to continue with the existing pricing formula for calculating City Wise rates. The pricing formula takes into various factors like city population and listenership data from the India Readership Survey (IRS) of 2019.
Based on this formula along with the enhanced base rate almost all Private FM Radio Stations will benefit from the new recommended rates at varying percentages depending largely on their listenership giving value for both FM stations and the clients of CBC, according to the I&B Ministry.
The rates for 106 stations will increase by 100 per cent, a 50 to 100 per cent increase for 81 stations, and a less than 50 per cent increase for 65 stations for which listenership data is available.
