93.5 RED FM, India’s largest and most awarded radio network today announced an increase in their advertising rates across all the stations.
Known for being a station for expression to the common man and playing only superhit music, RED FM increased the ad rate by 35 %. The new ad rate will be effective from Monday, 21stSeptember, 2015.
Commenting on the decision, Ms. Nisha Narayanan, COO, RED FM said, “We have not had a rate hike for a while now. Today radio as a medium is growing at a Compounded Annual Growth Rate (CAGR) of 18 per cent and attracts a large number of advertisersas consumption of radio is on an overall high.The demand and supply scenario has a huge imbalance with demand way beyond the inventory that we can play on Red FM. Also the advertisers have shown faith in us to provide customized solutions for their brands and do not have an issue in paying premiums. With Phase 3 and newer cities we plan to venture into, we have decided to go ahead with rates hike of 35% across the network. With strong hold in Metro cities as well as Tier II and III cities, we will continue to provide customized quality solutions for all our clients across the network and hope to receive their support for the desired increase.”
Commenting on the scenario, she added that this is a very interesting time for FM radio space as the advertising community has been showing its faith in the medium continuously which is evident fromthe overflowing radio inventories. Demand across most of major metro’s and big cities has seen growth which is equivalent to festive season rush and thus there is an eminent reason for the rate hike which have been stagnant for almost 2-3 years now. She goes on further to also talk about Red as a brand having a very distinctive offering with the power of celebrity RJs like Malishka, Raunaq, innovative shows and distinctive music offering planners at the media houses definitely include RED FM to deliver the last mile connect within the TG of 18-35yrs. Also she added thatin the wake of Phase 3 auctions and an overall optimism within the industry isalso going to put pressure on the operational expenses. Thus the rate hike is one of the steps that have become a necessity to optimize the demand and supply and offer best of entertainment and mileage to our advertisers and stakeholders. More& more volume is also coming from lot of new categories and it’s good to see their trust in the medium by planning campaigns with FM stations.