Radio One hikes ad rates by 20%

The increase comes in the wake of higher investments in programming and digital engagement which have resulted in an exponential increase in audience engagement

BestMediaInfo Bureau | Delhi | January 16, 2014

94.3 Radio One has decided to hike its advertising rates by 20 per cent across markets effective February 1, 2014. A joint venture between Next Radio Ltd and BBC Worldwide, Radio One runs seven differentiated formats in the metros.

The rate increase comes in the wake of higher investments in programming and digital engagement which have resulted in an exponential increase in audience engagement across markets.

Vineet Singh Hukmani

Vineet Singh Hukmani, MD and CEO, Radio One, said, “In the last two years, our 'product first' approach has ensured unparalleled engagement of our listeners and therefore huge value to our advertisers. It is imperative to continue on this path of product upgrade. Our well-profiled, intelligent and educated listener expects this. Complementing on-air content with simulcast digital conversations with the same TG does cost us. However, advertisers gain most as a result of this continuous up-grade as they can get access to supremely engaged audiences.”

Radio One bases its content on the three core values of Intelligence, Involvement and International quality. “We rely on far more mature and relevant spoken content which impacts our audience's lives. Bollywood therefore is a very small part of it. Music still comprises 60 per cent of our content. However, we package it differently based on the needs of the well-profiled audience that we cater to,” Hukmani added.

“Most large networks have started to create only 'commodity pricing' based on 'empty' reach and package many stations free. Their prices and profits and therefore impact are being driven downwards. This happens in the absence of proper targeting/segmenting and product upgrading is absent. Our strategy has always been different. We offer far better targeting of an educated, intelligent and comparatively higher net worth audience. Thirty per cent of our advertisers do not advertise on any other radio station. More than 25 per cent of our revenue comes from highly targeted 'high impact/engagement' on-air and digital conversation properties. This is what sets us apart. We have stopped doing on-ground activations as our prowess and competitive edge is in the 'on-air product,” explained Hukmani.

Radio One was the first station to begin 'Online rebroadcast' of its International Delhi and Mumbai stations all over India. “In the last one year we have begun to offer noticeable engagement in the online streaming audience and continuous upgrading of this service is the need of the hour and we are willing to make this investment for our advertisers,” Hukmani said.

Radio One runs International stations in Delhi and Mumbai; upmarket Bollywood stations in Bangalore and Pune; upmarket Hindi Retro stations in Ahmedabad and Kolkata; and the only 100 per cent request station for educated audiences in Chennai.  “We are happy that in Q3 all our seven stations were EBIDTA positive and this is the best proof of our strategy based on continuous product improvement,” Hukmani said.

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