Radio is Thriving in India!

by
TajMahalPhoto

Radio stations are popping up everywhere in India these days, and as they do, the ad revenues the medium is earning in that country are escalating rapidly. Current predictions are setting some pleasingly high numbers for the coming four years or so as the Indian news portal Sify reports:

Mumbai: With new FM stations mushrooming by the dozen in India, a study says radio advertising industry will gross Rs 1800 crore ($450 million) by 2012 from the present Rs 620 crore ($155 million).

Now those look like some pretty solid numbers. How do they fare within the context of the medium and its growth?

Radio advertising was a mere Rs 500 crore industry in 2006, said the joint report by the Federation of Indian Chambers of Commerce and Industry of India (Ficci) and Pricewaterhouse Coopers (PWC) released on Tuesday.

That looks like it should provide a nice return on investment. The industry has more than tripled its size in only two years or so. By almost any measure, that is positive news. Since India, much like the United Kingdom with its BBC Radio, has state-owned broadcasting as part of the equation, let’s see how the numbers break down between that and the private stations:

“Approximately 60 per cent of the revenue of the radio advertising industry comes from the private FM broadcasters and the balance from the state broadcaster All India Radio (AIR),” said the report released at the Ficci-Frames forum.

Expectations are that radio will continue to take over more of the available advertising funds as time progresses. Currently, the Indian Radio Advertising industry is responsible for 3.2% of all advertising revenues. That number is projected to increase to a solid 4% over the next five years.

It certainly looks as though the medium is experiencing explosive growth in the Indian markets, especially when you take into account advances such as Spice Mobile’s new line of cell phones for the Indian market that include FM receivers (I wrote about them in the early days of this blog), which make it vastly easier for broadcasters to reach their audience.

Photo courtesy of voobie, used according to its Creative Commons licens

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