Advertisment

Red FM hikes advertising rates by 20%

The hike, which comes into effect from June 10, 2013, has been necessitated by rising operational costs and inventory pressures

author-image
BestMediaInfo Bureau
New Update
Red FM Delhi refreshes programming

Red FM hikes advertising rates by 20%

The hike, which comes into effect from June 10, 2013, has been necessitated by rising operational costs and inventory pressures

BestMediaInfo Bureau | Delhi | May 27, 2013

publive-imageRadio network Red FM has announced a 20 per cent effective increase in its advertising rates with effect from June 10, 2013. Inventory crunch due to heavy demand in most of the developed and emerging radio markets as well as inflationary pressures have made the rate increase inevitable.

Commenting on the increase, Nisha Narayanan, COO, Red FM, said, “Red FM as a brand has always believed in delivering true value to its advertisers and has commanded premium/leadership rates. It has maintained a position of a market leader in terms of volume and value share so far. The rates have been constant for a very long time and it's time to take them up keeping in mind the inflationary pressures. The costs have been escalating northward; as a result, an increase in rates had become imperative. Inventory crunch due to heavy demand in most of the developed and emerging radio markets also made the rate increase inevitable.”

Renuka Iyer, National Sales Head, Red FM, commented, “Most of our tier 2 and 3 city stations are now very strong and prominent local brands as we have been constantly investing in content and talent. A strong product backed by an efficient sales force has helped these markets to show volume growth in advertising. The demand and supply situation requires that rates should be corrected to properly service brands and take them to the next level.”

Iyer added, “Metro markets are overflowing with inventory utilisation and it's high time that we correct the demand-supply situation here too. Traditionally, in metro markets we have been leaders in terms of both popularity amongst listeners and popularity amongst advertisers. Now, tier 2 towns are also moving in that league as well. With the rising operational costs and inventory pressures, the rate increase was inevitable.”

Info@BestMediaInfo.com

Info@BestMediaInfo.com

Advertisment