Thanks Dhwanil for BQ insights/investment note.
one thing i want to bring to notice is that during weak economy, advertisers move towards radio because of low cost and to focus on local/target customers.
Below is from AR 13.
” It is a well known fact that FM radio fares well when the economic times are bad. There are two major reasons for this. First, clients who have been bred on a diet of TV and Print are forced to re-evaluate their media mix when advertising budgets come under pressure. A re-evaluation brings to the fore, radio’s core strengths, often not well known to clients. Radio’s reach for example is far higher than print’s. Radio’s pricing is far more reasonable than both print’s and TV’s. It is this combination of high reach and affordable pricing that makes radio so attractive as an advertising medium, especially during periods of economic slowdown.
Second, clients tend to shift focus from nationwide pure brand-building to more tactical, local, sales-generating “promotional” activities. Radio, being a local medium and being the last one consumed before a brand purchase, is ideal for such activities. Both these factors have contributed to FM radio’s fast growth in FY’13.
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