Radio suffered due to pandemic, and its estimated revenues of Rs.2750 crore by 2023 would be smaller than Rs.3110 crore it earned in 2019. Though radio ad rates were just Rs.100 for a 10-second spot, advertisers felt regional TV gave them better reach. Thus even pre-pandemic radio was facing tough times. It is possible radio revenues may recover but the digital advertising is gaining mileage, and is giving tough competition to radio. Radio requires reinvention.

Besides, there is no credible evaluation of the effectiveness of radio advertising — there is absence of third party audit.

Radio was a preferred medium for small and local advertisers, but these have diverted to the digital media such as Google. Digital has the advantage of being targeted advertising. And the visibility of digital media is higher.

Radio should create live feeds and market them aggressively. They should experiment with podcasts on radio. Radio jockeys should promote radio listening on cell phones. They should focus on live events and content production. They can think of producing original audio/video content. Clients love solutions, and these are one third of radio’s total revenues, and two-third revenue comes from FM. This should be 50:50 in the coming years.

There are opportunities in online concepts, influencer marketing, brand advocacy, podcasts and audio solutions in smart speakers.

Non-advertising business could increase its share in years to come. Radio stations have survived by massive cost cuts and reductions in pays, infrastructure and overheads. However, the need of the hour is the reinvention of the medium itself sooner rather than later.