TechSci Research has come up with a report ‘India FM Radio Industry Forecast & Opportunities, 2019.’ According to the report, Indian FM radio industry is expected to witness double digit growth during 2014-19. Increasing number of FM radio listeners coupled with the growing expenditure on advertisement campaigns by real-estate, pharmaceutical, education, healthcare sectors, etc., are resulting in strong growth of the FM radio industry.
ImageManagement brings you an exclusive interview of Karan Chechi the Research Director of TechSci Research. Interview is no less than a sneak peak to the extensive research report forecasting the FM radio market of India.
Q1. Why a report on Indian FM industry? What’s so special happening with the FM radio in India?
Indian radio industry is moving towards its third phase of auction, where the government has plans to auction 839 radio channels in 227 new cities in addition to existing 86 cities. This Phase III auction is offering embryonic opportunities for radio industry with major focus on tier-II and tier-III cities. The study elaborates the impact of this auction on the Indian radio industry with growth potentials.
Q2. What are the prospects of Indian FM industry in the Tier-2 & 3 cities? Is it going to be as remarkable as the story of FM channels’ rise in metros?
Tier-2 & 3 cities are an untapped market offering latent growth opportunities for FM radio market. Today Radio is considered as an additional advertisement medium in these cities over TV and print media, due to its limited reach. During Phase-II auction which was mainly focused on tier-I and tier-II cities, resulted in an auction of 245 channels, of which only 221 are operational today. The Phase-III auction covering all cities with a population of 100 thousand or above is expected to transform radio industry by positioning it as an important advertisement medium. The strong positioning in metro and non-metro cities is anticipated to position radio as a strong medium for major advertisements such as product launch, etc.
Q3. What is it that the marketers need to be prepared for? What kind of challenges will the future poise? What’ll be the key to the marketing strategies of the future?
The demonstration of return on investment is the key challenge for FM radio operators. Inability to reflect the return on investment for advertisers is the big challenge for FM radio companies. The radio stations are dependent on surveys and listeners measurement by third parties to show the number of listeners associated with a particular radio stations, and most of the players don’t rely on these surveys, due to the inaccuracy of the claims. The radio stations and survey companies are required to finalize a countrywide acceptable sample size and methodology to measure the listeners and effectiveness of a radio stations.
Q4. What kind of growth is expected?
The Indian FM radio market is projected to witness exponential growth reaching USD656.33 million by 2019. The expansion in tier-2 & 3 cities is posing embryonic opportunities for the industry during the coming years.
Q5. How important will be the role of rural market?
Rural cities are an untapped market for FM radio industry. Phase-III auction by expanding radio reach in 227 new cities with 839 new FM radio channels is expected to position rural cities as an emerging and booming market for FM radio industry.
Q6. How do you see the importance of LIVE events?
Live events are an important advertisement medium for FM radio companies. Live events such as musical award shows, regional musical award shows, etc., helps radio stations in gaining brand awareness while offering advertisers with a strong advertisement medium.
Q7. What kind of prospects are expected for Internet radio. Will it fall victim of the FM expansion and be a thing of past?
The growing youth population coupled with the adoption of smartphones are propelling the demand for internet radio in India. This segment of radio industry caters to the niche listeners base out in urban cities. Though the market is still at nascent stage, it is exhibiting a healthy growth. The growing smartphones penetration coupled with declining bandwidth consumption prices are fueling internet radio market in the country.
Karan Chechi is a seasoned market research and consulting professional specializing in creative and innovative strategies and methods of new market penetration, new product development, and product introductions with over a decade of experience. This experience coupled with research and interfacing with customers, gives him the ability to spot new market and product opportunities for his clients. Mr. Chechi is an avid speaker in many conferences such as Asian Tyre and Rubber Conference, Cold Chain Industry Conference, India Food Processing Conference, Nanotechnology Awards and much more.
TechSci Research is a global market research and consulting company that provides market research consulting services in various verticals. The company uses proprietary innovative business model that focuses on improved productivity, that also ensure the creation of high-quality reports. With more than 100 client engagements with fortune 500 clients, TechSci Research enjoys the status of a premium market research services provider in the industry. For more information about the report visit www.techsciresearch.com