Stability in FM radio sector will contain attrition and volatility

While the last four years saw private FM radio turn into a national phenomenon, the current year could see this infotainment vertical being propelled into another league altogether.

This vision can be achieved with the collaboration of the government, the regulatory authorities, industry stakeholders, marketers and the media fraternity at large.

As not only an industry stakeholder, but also as a long-term listener and fan of the medium, I look forward to an era of expansion and growth for the medium. Think about it — despite 2009 being a difficult year for the world economy, brands will continue to look for market opportunities and these will be fulfiled only if they think out-of-the-box.

Based on this premise, I see only an upswing for FM radio in the coming year as more marketers realise the fantastic RoI radio offers them today. A desire to maximise efficiency of their marketing spends will ensure that clients start looking at micro-marketing and focussed market presence in their high potential markets. FM radio will be a key medium to fulfil this need with its ability to create customised communication for pocketed audiences.

Opening up of regulations in 2009, especially by way of multiple frequency ownership and a more liberal offering of news and current affairs on radio allowed in phase III, will encourage radio operators to set up niche and differentiated product offerings. This new surge of content and plethora of choices for listeners will add to the reach of radio. 

Evolving listeners will graduate towards their type of programming. While this will lead to development of stickiness between segments of audiences and specific stations, it will also raise listener engagement levels. The constant drive to remain meaningful will increase the need for radio to evolve as a friendlier and more personalised medium.

While radio networks realise the merits of heritage and equity painstakingly built over the years, a certain amount of stability will seep in. This stability, unlike the flux and volatility of the last two years, will dramatically contain people movement as radio brands increasingly build capabilities around their long-term employees and talent.

Most importantly, the music industry will hopefully realise that the promotion they get on radio stations helps significantly to build the popularity of their music and thus they need to work in conjunction with their counterparts in radio. Mutually-beneficial music royalties will ensure profitability of radio even in smaller cities. The promise of a viable business model, ensured by a progressive business environment, will ensure the success of Phase III and the 780 new licences it proposes to offer.

The Association of Radio Operators for India (AROI) in its second year of operations will strive to ensure the collective interests of Radio Broadcasters in India across all aspects of the business. The apex body will further invest in evangelising radio as a medium, showcasing its merits deeper and wider across the nation.

Today, we have figures and facts which support what evangelists of the medium have been saying for a long time.

It is a medium which delivers great RoI, has a very attractive cost per thousand (CPT) and is able to deliver not only frequency but a national reach for a brand builder.
But more importantly — and this is something no amount of media calculations will be ever able to do justice to — is the fact that because of the personal connect and one-on-one interactions with listeners, FM radio is able to touch their hearts and minds with far more impact than any other medium can ever do.