New Advertising Rates Approved for Private FM Radio Stations

October 10, 2023

The Ministry of Information & Broadcasting has announced the approval of revised advertising rates for government policies and programs on private FM radio stations. This decision comes after seven years and is based on the recommendations of the Rate Structure Committee established by the Ministry. The move signifies a significant step towards establishing an equitable and sustainable pricing framework for private FM radio stations.

Rate Revision Reflecting Market Dynamics

The new rates, approved in September, incorporate a 43% increase in the base rate. This adjustment is in response to changing cost dynamics observed from December 2015 to March 2023. With this change, the gross base rate for FM radio advertisements will rise from Rs. 52 to Rs. 74 per ten seconds.

Benefiting Community Radio Stations

The Ministry emphasized that the rate adjustment aims to maintain alignment with current market rates. Additionally, it will have a positive impact on over 400 community radio stations operating across the country. These community radio stations serve as crucial communication channels for local communities.

Continuation of City-wise Pricing Formula

The Ministry has decided to retain the existing pricing formula used to calculate rates based on city-specific factors. This formula takes into account parameters such as city population and listenership data from the Indian Readership Survey (IRS) of 2019.

Benefits for FM Stations and Clients

The Ministry stated that the combination of the enhanced base rate and the existing pricing formula will bring advantages to both private FM radio stations and their clients, including the Central Bureau of Communication (CBC). The impact on FM stations will vary depending primarily on their listenership.

Impact on Stations

According to the Ministry, based on the formula, approximately:

Rates for 106 stations will increase by 100%.
Rates for 81 stations will see an increase between 50% and 100%.
Rates for 65 stations, for which listenership data is available, will increase by less than 50%.

These adjustments aim to create a more equitable advertising pricing structure for private FM radio stations while ensuring that government policies and programs can effectively reach a broader audience. The move reflects the Ministry’s commitment to keeping the media landscape vibrant and responsive to evolving market dynamics.

« Previous Post Next Post »