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92.7 Big FM: Presented By-Aarti Chauhan Ambreen Ashraf
92.7 Big FM: Presented By-Aarti Chauhan Ambreen Ashraf
92.7 Big FM: Presented By-Aarti Chauhan Ambreen Ashraf
7 Big FM
Presented by-
Aarti Chauhan
Ambreen Ashraf
Background
Radio industry globally is a well established and a mature medium of
communication and used by advertiser affectively in brand building and sales
promotion .the medium also provide entertainment information to its
consumers and hence act as an important business medium of communication
and entertainment.
In india the private radio industry is experiencing rapid growth.
As a part of over all growth experienced in the Indian economy during the last
decades the media and the advertising industry have experienced good growth
while the share of radio industry is 4% is far below the international standards .
Characteristic of FM Radio industry
In India
Business model is advertising driven .
Impact by the global recession.
A cost effective medium for advertiser as it has more penetration and reach compared
to the traditional print and television.
Controlled by few business groups having sizeable stake in different media
properties.
Regulated and recently privatized.
Has huge infrastructure setup costs.
Oligopoly and witnesses price wars.
Overall growth rate is impressive
Analysis of FM Radio industry
In India
The metro market phenomenon
1.18% of all private FM stations in metro markets .
No room for expansion in metro markets.
Witness fierce Competition.
Advertiser driven
1 . Radio globally is optimized for local advertiser but Indian radio industry
vies for advertisers with national presences. The mix currently in the
fevoure of national advertisers.
2. Radio commands 4% of total advertising revenue .
3. advertiser gives maximum business to the market leaders who have
larger presence e.g. Radio Mirchi and big FM.
4 . Industry expert opinion that small players distort market by virtue of
their inability to support large advertiser.
Price wars
Hypercompetative forces in the operation in the industry ,forcing price wars .
Airtime is inventory in the industry .it goes waste if unsold , advertiser play a hardball till
the last minute forcing price wars.
Established players such as radio Mirchi command premium for their brand and not
engaged in price wars .
Listnership driven