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Radio One to hike ad rates by 20% from 20 Feb
MUMBAI: Private FM radio brand Radio One is set to increase its advertising rates by 20 per cent from 20 February.
There will be a 20 per cent average increase in rates across all seven markets of Mumbai, Delhi, Bangalore, Pune, Kolkata, Ahmedabad and Chennai.
Radio One MD and CEO Vineet Singh Hukmani told TelevisionPost.com, “Owing to our focus on educated upscale audiences, our investment in our differentiated product and digital connect has gone up. The increase in price will be used to further ensure product upgrade and engagement of listeners.”
Radio One chief sales officer Saurabh Sehgal explained, “The advertiser today has evolved and is looking to pay higher for ‘better targeting’ and it is for this reason that client digital spends have gone up. Radio inventories have been peaking at over 30 minutes an hour of advertising, resulting in a high clutter and increase in ad rates is the only way to balance the revenue and listenership equation. Just filling up inventory at current rates is a mindless commodity-creating exercise as it causes more clutter for the advertiser and upsets listeners who tune out of any station due to heavy advertising.”
The radio network had earlier hiked its ad rates in February last year. Hukmani added that the advertisers are supporting the station given the positive results posted by the network in the third quarter of the FY15.
Radio One’s revenue in Q3 grew 25.6 per cent, EBIDTA went up 42 per cent and PBT was up by 167 per cent, compared to the corresponding quarter last year.
Sehgal stated, “Agencies have always supported us in our journey into differentiation and better targeting, and we look forward to providing the best solutions for clients.”
The network runs content in both prime and non-prime time, weekdays and weekends, day and night, and on-air and online.
“We also have the maximum number of celebrities involved in commercial station initiatives. These help break the clutter and need to have a premium price. Our host brands offer better impact and engagement and the innovative integrations are far more effective as a result of expertise within this defined audience set,” Hukmani stated.