Radio in the US is a medium where local companies dominate the advertising pie whereas in India it is the exact opposite with national companies dominating the advertising pie. With the expansion of FM licenses, this will bring in more local advertisers in to the fold.
Also advertising growth as a whole is dependent on economy growth and as an when economy picks up we will see advertising growth also coming back in. But radio has a hedge even if economy does not get back on track soon. Its rates are lower than competitive media like TV and so even in a downturn to get more bang for your ad spend companies will look towards radio as an attractive media outlet.
Disclosure: Have sold out of ENIL in last 30 days, but still interested and waiting for a decent correction to buy again.
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