Reliance Anil Dhirubhai Ambani Group’s (ADAG) Reliance Media World Ltd (RMWL) that owns radio station Big FM is no longer just a radio broadcaster. The company has transitioned into an integrated platform offering media solutions in digital, out-of-home (OOH), below-the-line (BTL), radio, rural marketing and more. Under the banner of RMWL, it has floated four new companies including the existing radio station Big FM, Big Street?the OOH division, Big Live?the experiential marketing arm that offers services like brand activations, events, rural brand initiatives and others and Big Digital that offers mobile and online solutions.
The transition started about three months ago and the company feels that it will be able to leverage the existing clients who are seeking a holistic solution in this cluttered environment. And in line with the new business model, Reliance Media World Ltd., post receiving shareholder approval, is in the process of getting re-christened as Reliance Broadcast Network Ltd. subject to regulatory approvals. And sources disclose that ADAG will soon roll out its most ambitious television channel venture under this.
Tarun Katial, chief executive officer, Reliance Media World, says, ?About 3-4 years ago when we started this company we realised that radio could be a good anchor medium but we wanted to create platforms all across and create a value approach for the advertisers and the marketing community. In the first 18-24 months the focus was on building the radio business, building the stations and building the brand. When we finished the rollout and moved to the next step, the economy had slowed down. And we have seen the challenge over the last 18 months. Even then we started to build newer business platforms.?
The first company that was rolled out was the Big Street business. ?We started an activation BTL business because we realised that for most advertising the budget equally split between ATL and BTL. And radio works well in conjecture with the BTL business and it’s a highly fragmented business without any organised players. We have used technology as the driver there. And we got into creating some very unique inventories,? said Katial.
?One driving force is the fact that the urban landscape is changing very rapidly and so is the public transport. It now gives an opportunity for good looking inventory. Also our metro project is coming up and we are closely working with ADAG’s infrastructure project to create advertising opportunities there.?
Besides this, Big Live, the experiential marketing division which was launched two years ago is now getting a fresh impetus. ?We also realised that the consumer?s life is changing hugely. And consumers are not what they were five years ago. And so when you are a radio station you won?t wait for the song to get over before you answer a text. Or you are watching a TV programme and you have an email on your mobile or a Facebook alert or a scrap, you won?t wait for the show to get over to answer these. Therefore the exclusivity of a media is non-existent now. And there is so much media you are consuming them all at the same point in time,? said Katial.
The company now prefers to call its radio business as its audio business. ?We are now deploying audio content across various platforms. So we have moved into creating a whole set of interactive voice system where we deploy content?Bollywood content?every single day. We are working towards creating a mobile radio platform in 17 languages which will be deployed across the world. And we will be launching it in India with a couple of telecom companies very soon,? said Katial.
Currently, its presence spans across 45 cities, 1000 towns and 52,000 villages reaching more than 200 million Indians across India.
And the fourth business that they have launched is Big Digital. ?We are also working on online and digital solutions for the clients. We have invested in creating a good podcast platform on our own website. We underst and the importance of the digital medium in the lives of today’s consumers.?
Media analysts claim this rollout is a good move and there is good revenue potential for RMWL. A senior media analyst who did not wish to be named said, ?For RMWL, in the next five years the radio business is expected to grow by around 30% and this too is a conservative estimate, since phase III is expected to provide an excellent boost. The OOH business with its infrastructure projects should see around 50% growth.?
The symbiotic relationship between different media platforms is spurring RMWL?s new strategy. ?The potential for the integrated offering is immense. Between experiential marketing, OOH and digital the opportunity is in excess of Rs 5000 crore. Growth will be fuelled by BIG Street, predominantly due to growth in the infrastructure segment, powered by Reliance ADAG. The synergies not just within the company but also Reliance ADA group companies, where we can bring to the table BIG Cinemas, Zapak Gaming, BIG ADDA, BIG Home videos, BIG ND Studios, BIG Synergy which will trigger growth,? said Katial.
Other broadcasters too are recognizing the benefits that an integrated offering can ensure. Several of them are looking at expanding their service offerings. Red FM has launched its activation division called Red Active that offers event management, celebrity handling, brand communication and others. B Surendar, senior vice-president and national sales head, Red FM, said, ?As a media company, our services go far beyond radio and into 360-degree solutions for our clients. Our advertisers understand the value proposition we offer and come to us because of a differentiated brand. And I believe our activation business will contribute at least 30% of the total revenue in less than three years time.?