Aiming to have 45 radio stations across India: Adlabs Radio

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ADAG has launched its new radio venture Big 92.7 FM. Tarun Katial, COO, Adlabs Radio informs that the radio stations in Chennai, Hyderabad and Delhi will go on air in six weeks. He also says that there are plans to have 45 radio stations across India.

Katial further states that the company plans to enter new markets like  Jammu, Srinagar, Aligarh and Bikaner. Katial sees the share of advertising spends on radio increasing from 2% to 4-5%.

Katial believes that there is scope for advertisers to spend 15-20% more on radio advertising. Katial also informs that the company has no plans of selling stake to a foreign partner for now.

Excerpts from CNBC-TV18's exclusive interview with Tarun Katial:

Q: Can you lay out the roadmap for the next 12 months and tell us what you intend to do and which market you plan to hit first?

A: We have got 45 stations across the country. We first start off with six big metros- Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bangalore. In the first phase Chennai, Hyderabad and Delhi will go on air, and after that the next three metros.

Then we are seeing some very unique tier II markets where we are the only media players who have actually gone ahead and got licenses for ourselves. I'm talking about markets like Jammu, Srinagar, where there is no other private media available, and also markets like Jhansi, Bikaner, Aligarh.

So this will end up making us probably the number one radio network in the country. In the long run we will be eyeing 45 stations.

Q: I believe you have had some thoughts about how you want to price your advertising spots. Do you have any sense of what kind of revenue streams you are looking at in the next four quarters, atleast from the metros when you kick off?

A: We firmly believe that radio is currently at the last end of the spectrum on the priority list of advertisers. It's critical that the pie for advertising in radio increases from the current 2-3% to atleast 4-5%.

The reach of radio will go through the roof with 45 stations from ourside, and overall over 300 frequencies coming into the country, across the countryside. Radio is really the only local medium without any spillage. So advertising will be effective, it will be really targeted well. And I think advertisers will be ready to pay a price for it.

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