Why Regional Radio Stations are the Next Target for Brands and Advertisers

Over the last few years, the radio industry is witnessing a huge amount of rise in advertisement volumes especially for top-tier cities. According to a recent report released by TAM AdEx, Gujarat is the leading state in this field with over 21% share of ad volumes for the first quarter of Jan-Mar, 2023. It was quickly followed by the other states in India such as Maharashtra and Uttar Pradesh. Cities like Surat, Hyderabad, and Lucknow are receiving a huge demand for radio ads which confirms only one thing the maximum growth is coming from the regional market only.

LIC of India and LIC Housing Finance are the top two advertisers in this case and only the top 10 advertisers are claiming more than 18% share of ad volumes. TRAI Performance Indicators Report shows that revenue earned from the radio stations is increasing significantly as it grew 11% to Rs 385.86 crore as against Rs 345.12 crore for the last quarter. Chief Revenue Officer Neeraj Saraswat said, “The regional market was always going higher than the metro markets and they have bounced back much faster. This is the reason why we have a lot of brands, both local and national, inclining towards the small markets.”

The CEO of Radio City, Ashit Kukian expressed, “Radio stations offer regional brands and advertisers a low-cost, high-impact value proposition making it a captive marketing channel.” Rahul Namjoshi, Chief Executive Officer from MY FM, said, “The phenomenon which is prevalent in all smaller towns of India is the democratization of technology leading to information access that was not there a few years back. If we coupled that with higher disposable incomes & increased aspirations, the same will result in demand.”

Talking about the prospects of the radio stations, COO & Director of Red FM and Magic FM, Nisha Narayanan said, “Our focus is on developing diversified content that reflects our regional strengths. In the past couple of years, we have successfully created regional podcasts and digital and on-ground IPs that are well-received by the audience. We bank on our strength that lies in the regional market space to expand our vision into the vast culture of India.”

With these insights and market growth, Digital radio is on its way to bringing more vibrancy to this field. With this digital radio, “broadcasters and listeners alike will now have an improved multimedia experience. Radio stations can now precisely target audience segments while providing for their core audience,” said Mitesh Kothari, the Co-founder and the Chief Creative Officer of White Rivers Media.

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