MUMBAI: Red FM has decided to increase the FCT (Fixed Commercial Time) rates by 20 per cent with effect from 1 July 2014. As reported by Radioandmusic.com on 2 April 2014, Red FM South COO, Balakrishnan Surendar had confirmed the hike in ad rates before the festive season. The decision was taken considering the high demand of inventory in metro markets and other key cities.
Commenting on the decision, RED FM, COO, Nisha Narayanan, said, “We realised that the existing balance between demand, supply and pricing is not balanced and optimum. To address the demand and supply situation and properly service brands, a rate correction was required. There is an inventory crunch in most of the developed and emerging markets and that has made the rate increase inevitable for us. In Metro markets and in most of our Tier II and III cities Red FM is very strong and is a prominent local brand. A strong brand backed by an efficient sales force has helped these markets to show better than average market growth in volumes whereas the value share needs to improve.”
Adding to the rationale, Red FM, National Sales Head, Minal Sharma, said, “As a media company, our services go far beyond radio and we are today offering 360 degree solutions for our clients. Our initiatives like RED Live, RED Active and RED Digital have also shaped up now and we are able to present to our clients complete advertising solutions. Our advertisers understand the value proposition we offer and come to us because of a differentiated brand, a proven track record, the strength of our network and our ability to provide customised communications solutions. All of this has tilted the balance between demand and supply and which we are looking at correcting with the rate hike. We are hopeful that they will continue to support us and give us this desired increase”.
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The radio network last increased their ad rates on 24 May 2013.
