BANGALORE: Radio is the most preferred medium for advertisers in South India, according to the Ficci-Deloitte report 2011.
The report states that advertisers in South have greater acceptance of radio as a preferred medium when compared to the rest of the country. The all India gross revenues for the radio industry is estimated at about INR 10-11 billion, of which, about INR 8 billion is generated by the private FM radio industry, and close to 40 percent of this private FM industry’s revenue estimated at INR 3.2 billion is gained from the south.
Tamil Nadu leads the radio market with an estimated size of INR 1.2 billion for FY 2011, followed by Karnataka with INR 1 billion, Andhra Pradesh with INR 600 million and Kerala with a size of INR 400 million.
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The report states that traditionally, South India’s acceptance to radio has been higher. South Indian Radio channels have stayed close to their audience by taking up local issues and being a part of the local city culture and ethos. Owing to the strong vernacular connect in the South Indian states especially Tamil Nadu and Kerala , local music, city centric issues as well as interactive programs have helped in reaching out and connecting with the masses.
The report points out that FM stations have proved to be effective for small advertisers as well. Even prominent sectors such as FMCG, telecom, finance are valuing this medium, leading to a steady increase in their advertisement budgets towards radio.
As Radio establishes itself as the cost-effective medium to reach audiences, ad spends on the medium could see significant growth with innovative ideas tying both on-ground and on-air spaces likely to be the key.
