FM radio operators should cut advt inventory: industry players
DNA , Apr 05, 2017
FM radio operators need to bring down advertising inventory to at least 10-12 minutes for more listener-ship and premium, say industry players.
"The increasing ad inventory has only had an adverse impact. The biggest harm that we have done to the medium is ads. We will look to trim it as it could drive more listener-ship and premium," said Entertainment Network India (ENIL) Managing Director and Chief Executive Officer Prashant Panday at the FICCI Frames here today.
ENIL, the radio arm of Bennett, Coleman & Co which operates Radio Mirchi, is estimated to account for 35 percent of the overall radio advertising spend in the country and is looking at cutting its ad inventory.
"In all of the new stations that we have launched, whether it is the second frequency in Bengaluru, Hyderabad, or new markets in Chandigarh, Kochi or Guwahati, we have a 10 minute cap. We had an advertising cap of 22 minutes fifteen days to Diwali. We have decided to reduce it back to 18 this year," he said.
Noting that such a move could impact its revenues, he said, "We will lose revenue, but we have other ways to report growth. We will cut it down to 18 this year, 15 next year and 12 the year after that. I am sure all of us would be happy to pull it back."
Every hour of programme has some advertising inventory that needs to be sold in order to earn revenue and in case of certain stations it is estimated to be nearly 30 minutes.
"Earlier 3 lakh seconds a month was the number (ad inventory), now it has gone to 10 lakh seconds a month in some cities and some stations, which is equivalent to 35-40 minutes of prime time advertising," Panday said.
Reliance Broadcast Network CEO Tarun Katial said people don't tune into a radio station to listen to ads, so it is necessary to control advertising inventory.