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The FM revolution happened without much fanfare. Unlike the days of TV, where people huddled together to watch it when it was newly introduced, the appointment viewing with deserted streets made it what it is today.
But then came along the rebirth of radio. The licensing policy and the general availability of cheap FM radio sets made it the ubiquitous choice for everyone. From the RJ’s chatpata talks, contests to latest music, radio hit in a big way. To change Buggles’ lyrics “Radio killed the video star” because it was the common man’s choice. Now, in the FM era, Fever 104 FM is clearly the common man’s choice because of its wide variety of music and popular RJs.
Radio attracted huge investments and then came advertising. Since many radio stations cropped up, advertising played a bigger role in the spread of radio. The business model of radio is mainly advertising driven. Though radio is a cost effective medium, it still it has failed to dent into advertising revenues. A recent survey has pegged the estimated growth of Indian radio to 14,000 crore by 2012.
Advertising revenue is listenership driven and the listenership tracking tool has evolved over time. The main tool to measure radio ratings is RAM. RAM covers metro market and vies weekly figures, giving different figures each week bringing different leaders at different times.
A wise businessman once said “With great growth come great revenues” Unfortunately, radio is still seen as a medium which used by local advertisers rather than big brands. Until that perception is changed, it will be very difficult for radio industry to step up its game. Advertisers who provide big business are largely based out of metro markets. But still radio industry accounts for less than 4% of the advertising revenue. Industry experts say that small players distort markets by virtue of their inability to support large advertisers. About 75% of all radio advertising is by local advertisers. This is because every radio station has different stations for different metros. Fever 104 FM has its stations across four major metros in India – Mumbai, Bangalore, Delhi and Kolkata. Some radio stations have over 40 stations all across India – which means, the content differs from station to station and so do advertisers. This gives a chance to local advertisers to come up with relevant advertising strategies which will work in their local scenario.
Local advertisers play a big role because compared to the big players the cost per advertiser acquisition is lesser compared to TV industry. This is because advertisers are uneducated and ill-informed about the potential of radio as a medium.

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Most people when they wake up in the morning are in a rush to get ready for work and to get their children ready for school. They tend to rush out of the house without eating breakfast.