In 2020, Radio advertising taken back by Brands
TAM AdEX data shows that radio is decreasing in commercial prominence, as volumes have been lowering steadily since 2018...
According to data provided by research firm TAM, radio has seen a steady decline in ad volumes over the last few years. The medium saw ad volumes decrease by 9 percent in the period of January-March 2019 compared with the first quarter of 2018, and by 34 percent in the first quarter of the current calendar.
The services sector led the list of top 10 sectors with a 30% share, followed by a 14% share of the banking/finance/investment sector. The top two sectors were followed by food and beverages and retail, each with a 9 percent share. 68 percent of all radio advertising volumes from January – April 2020 were attributed to the top 5 sectors. For the same era, the top 10 sectors reported 80 percent of ad volumes on the radio.
The top 10 radio advertisement groups comprised 40 percent of all medium ad volumes. The top category of radio advertising was real estate, with a 9% share, followed by life insurance at 5% and four-wheelers (cars) with a 4% share.
However, for the period Jan-Apr 2020 LIC was the top radio advertisement brand, followed by Indian Oil Corporation and PhonePe. Interestingly, in 2020, 9 of the top 10 radio advertising brands were new entrants, with the only exception being LIC.
Gujarat was the most active state in radio advertisement brands with an 18% share followed closely by neighboring Maharashtra (17%). 61% of ad volumes on the radio were attributed to the top 5 states while 28% of ad volumes on the radio were accounted to the 5 southern states combined.
Although Gujarat led the States in terms of the radio advertising volume share, when it came to top cities with a 7 percent share by advertising on the medium, Ahmedabad was ranked number 5. Bengaluru, along with Mumbai, took the top position with an 8 percent share.
While the medium has seen a year-on-year decline in ad volumes since 2018, it has also suffered a sharp de-growth from March 2020 to April 2020 due to the COVID-19 pandemic's economic slowdown. The medium saw the count of advertisement categories falling by 40%, and the count of advertisers falling by 65 percent.
In March 2020, the number of brands advertising on the radio was 2000 +, which in April 2020 dropped drastically to 650 +. That is, in April 2020, nearly 110 categories and 1300 advertisers went off the radio.
Notwithstanding the overall volume decline, 12 new categories and more than 240 new advertisers came on the site to advertise compared to March 2020 in April 2020. Furthermore, the decline in radio ad volumes tends to have arisen from national brands. The national to regional ratio of ad volumes improved from 74:26 (March 2020) to 82:18 (April 2020) month by month.
About Creative Thinks Media
Based in Delhi, Creative Thinks Media a single-point advertising company based that provides advertising and branding services. They specialize in Radio, outdoor, and Online Media services.
Having created the perfect combination for modern marketing and commercial advertisement services, Creative Thinks Media specializes in advertising in radio, advertising in TV, commercials, print advertising etc.) and also in modern internet and social media advertising including Facebook, Twitter, Instagram, e-mail etc.
Since 2008, the advertising company has helped many businesses to reach their target audiences.