Rise of Frequent Modulation Radio

The Frequent Modulation Radio industry in India is entering into a golden era now and it is heading for INR 12 billion revenues by 2010. India’s radio industry is projected to post a healthy growth of 32% over the next few years. The Frequent Modulation Radio industry piggyback on the second FM radio policy is growing towards 300 radio stations as compared to 21stations two years back. The FM radio will reach 91 cities compared to 21 cities and over 40 companies will be operating in the industry as compared to seven two years back. If I read the data are right, FM radio coverage is expected to increase from the present 15% to 60% of the Indian population, after the third phase of licensing.

Not all well with Frequent Modulation Radio

However, not all is well for the private FM radio stations in India. The high license fee is a deterrent for many new entrants in the industry and is pulling down the profitability of the existing radio channels. Moreover the new FM craze has failed to make significant inroads into rural India and small towns. But the days are not far when FM Radio will be prominent feature of the smaller towns and rural India. The FM radio station in India is facing another major challenge in terms of insufficient number of advertisers and thin advertiser base.

Advertising Medium – Frequent Modulation Radio

Radio advertising was a mere Rs.5 billion industry in 2006, said the report by the Federation of Indian Chambers of Commerce and Industry of India. In terms of share of ad pie, it is projected that the Indian radio advertising industry will be able to increase its share from 3.2 percent in 2007 to 4 percent in the next five years.

All said, FM Radio as a medium which offers great opportunity for the advertisers to advertise their products and services to masses and classes as it is broadcasts in buses, tea shops, residences, bus stations etc. The Frequent Modulation Radio Advertising format include – jingles, theme conceptualization, mnemonics, voice casting, recording, sound effects, and editing.

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Idea Cellular New Campaign “Education For All”

Idea Cellular has launched its new Ad Campaign with its Brand Ambassador Abhishek Bachhan. The ongoing campaign with a spotlight on “education for all” has attracted many eyeballs. It is one of my favorite advertisements.

The campaign highlights the power of Mobile telephony to address the socially relevant theme of education. Campaign has been promoted through print, television, out of home, digital and on ground activities.

Storyline

In the campaign Abhishek Bachchan has played the Head of an educational institution – a priest and the principal of the school. When challenged by the traditional, physically bound classroom methodology that prevents reaching out to many who are in need of education, he uses mobile telephony to overcome the barrier.

Campaign Phase One – Teaser: In the first phase which is a 10-second teaser Abhishek Bachchan is shown as sitting and wondering how to educate the country’s children who can not manage to go to school. He suddenly looks up with a confident smile on his face and says ‘Idea’.

Campaign Phase Two – The Message : The second campaign which is a 90-second TVC opens with a village girl. The commercial shows that the village girl did not get admission in a school as there were no vacancies. The priest and the principal of the school, Abhishek Bachchan, looking for a solution suddenly comes up with an idea of starting mobile classrooms where teachers have mobile phones with them on their desks and children are shown in the ground and listening to the classes through mobiles. The campaign came to me as a great idea with strong social message. Idea Cellular, as a company, in its previous campaign also focused on social issues with the theme of bringing people together like in the campaign’s of caste war, and cultural differences SMS.

Campaign Phase Three – Impact : The third phase of the campaign has impact of education for all. It shows how the parents of the school going students are behaving. They are also learning through their children.

Idea Cellular as a company believes that an Idea can change lives and this is the central thought of the brand which they have been following since beginning. The company to increase the impact of the campaign has tied up with Nanhi Kali, an NGO and NDTV to promote this campaign of education for all, especially girl child.

Company – Idea Cellular
Brand – Idea Cellular
Theme – Education for all
Creative agency – Lowe IndiaFilm – Chrome Films

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Aamir Khan is Jhingalala For Tata Sky

Aamir Khan has been in the news these days, heavily promoting his latest production, Jaane Tu… Ya Jaane Na, which is also his nephew, Imran Khan’s debut film. Recently, he has started endorsing Samsung and Parle Monaco. He has been the Titan brand ambassador for a while now.

Tata Sky is a joint venture between the Tata Group, and STAR TV. In this venture TATA owns 80% and STAR TV owns a 20% stake. Tata Sky was incorporated in 2004 but was launched only in 2006. The company uses the Sky brand owned by British Sky Broadcasting.
Tata Sky, has roped in Aamir Khan as its brand ambassador. Bollywood star Aamir Khan has entered into a long-term contract with Tata Sky. Aamir Khan will be used extensively for communicating the benefits of Tata Sky to the Indian consumer. It is definitely a strategic move as the rival dish TV has signed Shah Rukh Khan. Tata Sky would use Khan to take the brand forward. He is not the first brand ambassador for the 21-month old DTH service provider. Hrithik Roshan was used during the Cricket World Cup in 2007 for select campaigns and other film stars like Kiron Kher and Paresh Rawal were also used for some campaigns which basically testimonial ads.

Khan will feature in all the Tata Sky ads in print, TV, outdoor and radio with the popular Tata Sky tag line Isko laga dala, to life jhingalala.

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Creative Process Outsourcing – The New Buzz Word

The Indian advertising industry is valued at about Rs 17,000 crore and is growing about 20 per cent a year. Today the situation of Indian advertising agency is similar to that of the business process outsourcing industry in the information technology sector a decade ago. Initially, the software talent and cost differential available in India were attractive but costs went up as the sector progressed in India.

Catching up with the growing trend of outsroucing, some specialised agencies, such as Eon Premedia and Basil, have sprung up in India. Publicis India, the country’s sixth largest advertising agency by revenue, is planning to set up an outsourcing division to cash in on the offshoring trend. Moreover the significantly higher margins of the business and a growing demand in the developed countries for Indian creative work, the leading agencies such as Lowe, McCann Erickson, Ogilvy & Mather and Mudra, are mulling over outsourcing operations.

According to industry estimates, agency commissions in India are about 15 per cent, whereas margins in outsourcing work are as high as 30 to 40 per cent. Outsourcing in India could cut costs for clients by as high as 50 to 70 per cent. The outsourcing units would consist of a 24×7 studio or a set of studios that could deliver content with a faster turnaround time and comparatively lesser costs like in the IT BPO sector.

Anyone listening!