Radio platforms tune into activations and branded content for festive season revenue boost

New Delhi: Radio platforms are doubling down on on-ground activations and online content creation to jingle in extra revenue beyond the usual ad spots this festive season.

Radio players shared with BestMediaInfo.com that they plan to cash in on content IPs, branded solutions, influencer marketing, and both on-ground and digital activations to boost festive season revenue.

Radio plus digital plus on-ground is an imperative approach, leading radio platforms to plan numerous on-ground activations well in advance, according to Abe Thomas, CEO, Reliance Broadcast Network.

He commented, “The demand for a mix of on-air, digital and on-ground engagements is rising. Big FM has customised and integrated various elements to create comprehensive campaigns. Our team specialises in crafting tailored campaigns that either enhance existing properties or develop new concepts aligned with a brand's needs.” 

Nisha Narayanan, COO and Director of Red FM and Magic FM, noted how brands are now turning radio jockeys into influencer stars lately. 

She said, “More and more listeners are connecting to us as the reach and visibility of RJ content is also increasing through social media. We are now emerging much stronger as a two-way communication window between listeners and radio, aided by digital apps. Brands are maximising ROI by using our RJs as top micro and nano influencers, adding regional flavour to their campaigns.”

Radio stations will also employ festive-themed content and promotions, creating interactive and engaging ad formats, and leveraging data analytics to provide targeted advertising, according to Ashit Kukian, CEO, Radio City.

Deepika Bansal, AVP, Investment, Amplifi, the media investment and innovation arm of Dentsu Aegis Network, added that radio advertising during the festive season maximises brands' ROI by delivering culturally relevant and engaging content that resonates with listeners.

“Themed content and programming, including playlists with popular festive songs and carols, will also contribute to creating a festive atmosphere. To enhance volume and revenue, leveraging digital platforms and offering multimedia packages that include cross-platform advertising across radio, online, and social media components are effective strategies. Additionally, partnering with influencers and creating UGCs to amplify campaign reach and engagement is another key method for maximising volume and revenue,” Bansal said.

“Collaborations with local businesses and leveraging popular cultural and festive events will further boost ad revenues,” as per Kukian of Radio City. 

Last year, brands allocated significant investments to the World Cup, which consequently reduced spending on other mediums and led to a decline in radio ad volumes during the 2023 festive season.

“This year, we anticipate that the redirected funds will return, presenting a growth opportunity for the radio platforms during the festive season, particularly in categories such as consumer durables, automotive, and e-commerce,”  said Bansal. 

Radio segment revenues grew 10% in 2023 to Rs 2300 billion on the back of more retail and local advertising, and alternate revenue streams. Ad volumes increased by 19% in 2023 as compared to the previous year, though ad rates remained below their 2019 levels, as per an EY-FICCI report.

Red FM’s Narayanan suggested that the radio industry needs to reevaluate ad rates to match the ad volume growth. She commented that when comparing the volume growth with revenue growth, one can see that we are giving away more for less. 

“To grow the industry, we need to control that. The categories that are driving the volume growth are also the ones that have been getting the best rates, but now we need to look at some of these propositions and see if these are bringing enough value,” she said. 

However, as per Thomas, the diversity in revenue sources is helping to stabilise and grow the overall financial landscape for radio. “Advertisers are seeking more creative and integrated ways to reach the audience. As advertisers seek more creative and integrated ways to reach their audience, radio stations are well-positioned to benefit from this shift, ensuring a robust end to the year,” he added. 

It is expected that real estate, auto, FMCG (fast-moving consumer goods), BFSI (banking, financial services and insurance) and consumer durables would lead the advertising growth during the festive season. E-commerce and health and wellness are a few of the categories that would also witness participation during the festive season.

Industry experts mentioned that the biggest markets for radio advertising are shifting away from metros. Cities like Bhopal, Indore, Surat and Jaipur are witnessing substantial radio advertising activity.

“The anticipation of higher consumer spending will drive these categories to invest more in radio advertising to maximise their reach and engagement. Increased engagement with ad volumes is a good enough reason that radio rates should be revised on the higher side,” Kukian added.