Radio City renews sales alliance with Friends FM

16 May,2012

By A Correspondent


Radio City, the FM radio brand promoted by Music Broadcast Private Limited (MBPL) has renewed its strategic sales alliance with the Kolkata based Friends FM, the FM radio arm of ABP (Ananda Bazar Patrika) for another one year term. The strategic sales alliance between the two stations has completed nearly three years.


Of the 20 cities, Kolkata remains the only big market where Radio City is not present, thus the sales alliance allows Radio City to extend its sales reach to Kolkata as well. Besides Friends FM, Radio City is also in sales alliance withGwaliorbased FM radio station, Suno Lemon.


Speaking to MxMIndia, Ashit Kukian, COO (Chief Operating Officer), Radio City said: “Strategic sales alliance has worked for us. We are already in our third year of strategic sales alliance with Friends FM and have, in fact, renewed it again. It helps a single station to sell their brand nationally because it is very difficult to sustain the cost of placing people nationally. As for Radio City , this alliance helps us reach out to a critical market – Kolkata where we are not present. Besides Friends FM, we also have a strategic alliance with Suno Lemon inGwalior, and once the third phase is rolled out, we will strategize how to reach out to rest of the markets.”


Radio City had recently announced its decision to increase its ad rates by 15 to 20 per cent, which it believes will result in better ROI for its clients. Some of its telecom clients include Tata Docomo, Vodafone, Idea, and Airtel, while FMCG, Consumer Durables, Automobiles, Realty Estate and media are some other advertising categories that advertise on radio. The retail versus national advertising ratio in Radio City is currently around 35:65 per cent – 35 per cent from retail and 65 per cent from national advertisers.


Currently, Radio City is present in 20 cities namely, Mumbai, Delhi, Bangalore, Chennai, Ahmedabad, Pune, Hyderabad, Lucknow, Jaipur, Vadodara, Surat, Sholapur, Nagpur, Sangli, Coimbatore, Vizag, Ahmednagar, Akola, Nanded and Jalgaon.


In the last couple of years, Radio City is said to have established and rolled out a lot of 360 degree marquee campaigns. Following the season one success of its property, Gully Premier League (GPL), Radio City is back with the Season 2 of GPL. Season two of the GPL is said to have already registered more than 14,000 teams for the tournament. Mr Kukian also pointed out that BTL (Below the Line) activations which has been witnessing growth over the years, have contributed significantly to the overall revenues of Radio City : “Our BTL activations have also been growing from strength to strength, moreover our activations last year contributed significantly to our overall revenues. From a radio industry perspective, BTL activations could be around 12 to 15 per cent of the overall revenues, whereas the BTL activations of Radio City alone contribute around 10 to 12 per cent of its overall revenues.” Therefore we are very much in sync with the contribution of BTL activations in the overall revenues.


Mr Kukian was also of the view that besides FTCs, a radio station, and Radio City in particular, has multiple sources of revenues, activations and on ground propositions are a couple of them. He was also of the view that in the long run, he expects to see further growth in the contribution of these other revenue sources in a radio station’s overall revenues. “Since the medium is high on reach and content, customised syndication of content can be another source of revenue for the industry. In addition to this, we can also look at digital content syndication and monitisation as an extended source of revenue for Radio City .”


“As of today, 15 per cent of our revenue comes from other sources but, over a period of time I believe these revenue sources could contribute to around 22 to 25 per cent of the entire revenue,” he added.


Mr Kukian said that 2012 has been the best year so far for the FM station since the last three or four years. He went on to add that Radio City has been consistent in its leadership position in both Bengaluru and Mumbai. In Delhi too, it witnessed an increase in listenership numbers: “According to IRS, Q4 2012 we are ranked first or second across most of the non-metro cities in which we are present in. So from a product perspective, it has been a great year. As far as the revenues are concerned, we have always been doing well, in fact this year we have almost doubled the growth over the market category. Even in terms of talent, we have witnessed consistency in the low attrition rates. And with phase III coming up, we are clear about expanding our network to many more markets and increase our foot print panIndia” he said.


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