Whether it is a housewife cooking lunch, a professional driving to his workplace or the carwash boy hooked to his cell phone radio; radio is everywhere. It is an ‘anywhere-anytime’ mode of entertainment and information that reaches lakh of people. Radio still manages to outsmart newspapers and television, especially in remote parts of India, which remain shrouded by illiteracy and deficient power supply. Despite these facts, radio has a meager share of 4.4% of the overall advertisement budget in 2010, and is estimated to reach only 5.5% in 2015. Surveys indicate that out of total radio ‘listenership,’ 73% comes from tier II and tier III towns. This clearly presents a golden opportunity to advertisers to reach the masses. Many of them are already exploiting these opportunities.

In an effort to promote its flagship cola among rural masses, Coca Cola combined radio with some TV and cinema advertising to successfully penetrate almost 53.6% of rural households. Its memorable catch-phrase, ‘Thanda Matlab Coca Cola’ captured the interest of folks in hinterlands and cities alike. To ensure adequate supply of their beverage, Coca Cola went the extra mile to strengthen its distribution channels with a hub and smoke model, while a range of vehicles including rickshaws and bullock carts were apparently used to transport the consignments. The success of Coca Cola has prompted other brands like Idea to employ catchy tag lines like, ‘What An Idea Sirjee!’ to evoke the same sentiment through the radio medium. Traditionally, FMCG brands like Godrej have always used the AIR broadcast network in local languages to connect with their target groups.

Diverse radio content and emergence of regional channels to cater to niche audiences, is the need of the hour for advertisers. For instance, in metros, Meow 104.8 FM, which targets women, provides the right ad spot for cosmetics, personal care and home appliance companies. Likewise, Fever 104 FM, a youth channel, is an ideal platform for educational institutes and apparel companies. By employing such flexibility offered by radio to marketers, high-value consumer offerings like Nokia 1100, LG Sampoorna TV and HUL’s Pure-IT were able to appeal to rural India. Offering small product packs added to the allure of FMCG products such as Cavinkare’s Chik shampoo, Britannia’s Tiger Biscuit and Marico’s Parachute oil; all reaped resounding success.

Last year, the Indian Government launched the highly awaited third phase policy guidelines for FM Radio broadcasting services. While allowing private radio operators to carry news bulletins of All India Radio, the government has also cleared the road for awarding licenses to FM channels more freely, expanding coverage to 227 new cities in addition to existing 86 cities. The FM Phase-III Policy resulting in 839 new FM radio channels in 294 cities provides radio the ability to reach a population of more than 100,000 people through private FM channels. So, the scenario is also ripe for introducing 24*7 local radio news channels since that would be an excellent way to grab active listeners and market a suitable array of brands. At the regional level, such channels can also be a lucrative way to attract local advertisers. Local radio advertising in India exploited only a fraction of its true potential has a long way to go and several significant milestones to cross.