MUMBAI: Radio Mirchi has announced a hike in its advertising rates for its network’s radio stations with effect from September 15, 2008.
Announcing the price rise, Radio Mirchi COO Nandan Srinath says, “Almost every media plan today has radio in it. With independent listenership in each city radio is a far larger medium than print and in some cases TV in terms of reach. Our reach has increased in each city in the RAM measurement over the previous ILT measurement. Our new prices are in line with increased deliveries in terms of reach and engagement. In other cities, we had kept our prices at the same level for the last 12 – 18 months. Radio now considered an established medium in each of the other 28 cities; hence we have decided to make a slight increase in prices. We have kept prices constant for last 2 years to ensure that the medium gets established – in CAGR terms this price increase is really a small one.”
Kaushik Ghosh, National Sales Head adds, September to December represents a four month period of heightened retail sales across categories due to festivals and the marriage season. Radio is a medium that has a finite inventory since too many ads spoil the listening experience. Radio Mirchi has always kept both listener and advertiser interest in mind by providing the best and least cluttered environment among all radio stations. The pricing structure is designed to maintain the low clutter on our station.”
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Quizzed whether the hike would make radio advertising less attractive, Ghosh opines, In spite of the price increase, Radio Mirchi will continue to be the most attractive medium in terms of cost of reach, especially compared to local mediums like print and outdoor. A two week threshold campaign in print for any of the 6 metros would cost between Rs 50 – 100 L at current prices. A threshold outdoor campaign for 2 weeks in any of those 6 metros cost between Rs 40 – 75 L. It continues to amaze us how so much money is poured into outdoors – which is not measured at all! In comparison, a threshold radio campaign on Radio Mirchi for 2 weeks in any of the six metros will only cost between Rs 9 – 12 L.”
Analyzing the increase in the advertising of Radio Mirchi, Lodestar COO Nandini Dias says, If a radio station increases its price in isolation, it doesn’t mean anything as media buying mainly depends on the position the radio station holds in the market. It sounds feasible if the hike in the rate is a result of change in any parameter otherwise this might not be easily accepted. If there are stations which are cost effective and deliver in a better way, it might prompt the advertisers to divert their investments in other brands. Also, deals are not finalized sticking to the rate card and media buying is relative to what other radio channels do….
