Radios do more than just playing music

New Delhi: Radio channels have stolen the bread and butter of the music industry. Now they are trying to encroach on the livelihood of ad agencies. But they may not pose a significant threat.

Radio stations are doing more than just playing music. They creating jingles and advertising promotions as well. What started out as a way of getting get companies advertise on radio, is now helping the radio stations grab a bigger share of the advertising pie.

Almost half the radio ads that go on air are created by radio stations themselves. They not only conceptualise the creative part, but also execute the ideas.

According to radio channels over 70 per cent of the clients come back for more. But there is a catch. They can play the ads only on the station that created it. Which simply means more ad spots.

While a single ad spot costs can cost anything between Rs 1000 to Rs 13000, 5-6 RJ mentions a day would mean would set the advertisers down by Rs 10,000.

Radio Mirchi has over 400 clients and Big FM that launched recently is serving 60.

Big FM 92.7 National Sales Head Praveen Malhotra says, "It can develop into a revenue stream for radio stations. I would say give another six months, more stations will come up in smaller markets, then till will be a better time to address it."

This does not pose a big threat to advertising agencies as yet. Most of the clients are small ones, who cannot afford the services of the big ad agencies. Radio stations like Radio Mirchi and Big FM have a team of copywriters to help out the advertisers.

HP Head-Marketing, PSG, Shuchi Sarkar says, "As they understand the listener much better than all other top line agencies they give you great program integration brand solutions, creative solutions".

According to the AdEx, a tracking agency, ad spending has grown by a third in the first quarter of this year, compared to the same period a year ago. With about 280 radio stations across 91 cities and more to come, this industry will only see more advertisers tuning in.

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