Political advertising has not just contributed to the growth of big FM radio channels but also for the small players.
Bhubaneswar’s leading FM Channel, Radio Choklate, which has 70 per cent marketshare in Orissa has seen a 100 per cent increase in revenue from political advertisements in the month of April. Monica Nayyar Patnaik, director, Eastern Media Ltd, the parent company for Radio Choklate 104 FM, said, “Compared to April 2008, revenues in April 2009 have increased by 400 per cent. Sequential revenues for the month of April 2009 over March 2009 have increased by 100 per cent.”
Private FM players both in metros and in Tier II and Tier III cities have benefitted on account of political advertising being aired on the channels in the past one month, say industry players.
“FM Channels are expected to gain revenues of Rs 25 to 30 crore from political advertising during the March to May period,” Prasant Pandey, chief executive officer of Radio Mirchi told Business Standard. In the last one month, players like Big 92.7 FM, Radio City 91.1 FM and local FM channels have seen their revenues rise by 10-15 per cent.
This is helpful especially in an adverse business climate, CEOs say. Praveen Malhotra, senior vice-president (sales), BIG 92.7 FM, which has one of India’s largest network stations in Tier II and Tier III cities like Vishakhapatnam says: “We have seen a substantial growth in revenue — 15 to 20 per cent — from political advertisements."
Rana Barua, executive vice-president and national head programming and marketing, Radio City 91.1 FM said: “Both metros and non metros are earning revenues from political advertising.”
This is the first time political advertisements have been permitted to be aired on private radio stations.
Earlier, in all general elections, only All India Radio was allowed to air such campaign.
"Political parties have to advertise according to the card rate. This helps in revenue generation. Exclusive shows featuring political parties, which are ancillaries, also help in adding revenue" said Patnaik of Radio Choklate.
Political advertisers on FM channels include local political parties like the Biju Janta Dal (Orissa), Prajarajyam (Andhra Pradesh), Jharkhand Mukti Morcha (Jharkhand) and Loksatta Party (Vishakhapatnam and Tirupati), besides national advertisers like the Bharatiya Janata Party and Congress.
