Red FM hikes ad rates by 35 per cent

The increase in rates is effective across all stations from September 21.

Red FM has announced an increase in its advertising rates by 35 per cent across all stations. The new rate has been effective since September 21.

Commenting on the development, Nisha Narayanan, COO, RED FM, says, "We have not had a rate hike for a while now. Today, radio as a medium is growing at a compounded annual growth rate (CAGR) of 18 per cent and attracts a large number of advertisers, as the consumption of radio is on an overall high. The demand and supply scenario has a huge imbalance, with demand way beyond the inventory that we can play on Red FM."

She continues, "Advertisers have shown faith in us to provide customised solutions for their brands and do not have an issue in paying a premium. With Phase III and newer cities we plan to venture into, we have decided to go ahead with the rate hike."

"The demand across most of the major metros and big cities has seen a surge which is equivalent to festive season rush. This is one of the reasons for the rate hike; the rate had been stagnant for almost three years," she says. The Phase III auctions and an overall optimism within the industry, she believes, will put pressure on the operational expenses.