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Spending on radio ads on the rise

Sayeda Akter
Spending on radio commercials rose almost 6 percent to Tk 44 crore in the six months through June from the same period a year earlier, according to a report published by Ryans Archive, a media-monitoring agency.
Major brands spent Tk 81 crore on radio commercials in 2011, with Grameenphone being the largest advertiser.
Three of the top five advertisers were mobile operators, and the top ten advertisers accounted for around 56 percent of the total spending. Mobile handset maker Samsung also made it into the top ten.
The mobile operators, including Grameenphone, Axiata (Bangladesh) Ltd, Airtel Bangladesh and Orascom, spent around Tk 23 crore on radio ads in 2011, according to the report.
Apart from telecoms,
Unilever, Pran Group, Square Group and Akij Group featured among the top ten advertisers with personal care products, such as soap, shampoo, hair oil and tooth paste, and food and drink items that include noodles, soft drinks, energy drinks and juices.
A total of 470 companies advertised their products and services through five radio stations -- Radio Today, Radio Amar, ABC Radio, Radio Foorti and Bangladesh Betar, during the period.
Spending on radio commercials by major brands has been increasing fast, as the FM (frequency modulation) radio stations have emerged as the newest and quick-reaching media among the urban people, especially the youth.
The cost of advertising on radio is much less than on television, which is another important factor behind the growth
both in number of commercials and the spending by major brands, sector people said.
They estimate the total market size of the local advertising business atTk 1,500 crore a year, with steady growth of 15 percent.
The print media still remains the largest advertising vehicle, grabbing around 43 percent of all spending, while TV commercials account for 39 percent,
they said.
Radio accounts for only around 10 percent of the total advertising expenditure.
“Radio is an emerging media with a fast reaching effect," said Syed Tahmeed Azizul Huq, head of corporate communications of Grameenphone.
Nowadays investment is more focused, which requires correctly identifying the target
group and getting a result within a short time, he said.
“As we have many services for the young consumers, and most listeners of radios belong to this group, we find radio a very effective tool for marketing any product or service."
Grameenphone, the country's largest mobile phone operator, spent around Tk 8 crore on radio ads in 2011. The operator was also the largest spender on TV and newspaper ads.
At present, the average cost of per minute frequency in FM radios ranges from Tk 5,000 to Tk 7,000, said Sohrab Hossen, marketing executive of Radio Amar.
“The competitive rates attract major brands to advertise products and services on radio. At the same time, the earning from adverts is a major source of revenue for all the radio stations,” he said.
“It's a win for both sides.”