Small towns to boost FM revenues

Kolkata, April 28 | Updated: Apr 29 2006, 05:30am hrs
Operators of frequency modulation(FM) radio expect advertisement revenues to increase as the medium enters small cities and towns in the next phase of expansion.

According to the station manager of a popular FM channel, radio has great potential in smaller towns since there is no other local medium. FM radio could get local advertisements or be used by national players for micro-strategies, he said.

Estimates prepared by e2e, a new research firm, indicate that the overall radio advertising revenue has been growing from Rs 318 crore in 2004-05 to Rs 421 crore in 2005-06, and could touch Rs 686 crore in 2006-07, he said.

We expect that revenues from the smaller towns will start accruing from 2007. National advertisers with a micro-focus would be interested in using this media, he said.