AN EMPRICAL STUDY ON FM RADIO ADVERSITING
Advertising of products and services is the route to rope in more customers and improve a company’s image. Radio is an effective, low-cost medium for advertising a company’s products. FM radio has today enabled advertisers to reach out to the audiences cost-effectively. In July 2005, the union cabinet approved the second phase of FM broadcasting in private sector, in which more emphasis was given to the growth of services than generating revenue for the government. The government has allowed foreign companies to venture into setting up of private FM stations within in the present ceiling of 20% foreign capital. Now the Government expects to take a final view in two to three months on the third phase of expansion of FM radio and about 806 radio licences are expected to be issued and the Government plans to take FM radio to about 283 towns. (News from business line New Delhi, March 28 by Mr. Rajiv Takru, Additional Secretary, Ministry of Information and Broadcasting) Currently, as for as advertising is concerned only one –and – a- half % of total advertising spending can be attributed to radio. In other countries around the world, the average ranges from 5-15%.In srilanka, for example, 21% of total advertising expenditure is spent on radio. This shows the vast potential of the radio as a medium of advertising it is said that radio covers almost 89% of country in terms of area and 97% in terms of population. However, this medium has taken a back seat because of penetration of the television into the households. But now the conventional programs of the early days have been replaced by the trendy programs where there is greater communication between the people and the RJs.
As a medium, the FM radio provides a great opportunity for the advertisers to advertise their products and services. The FM broadcasts have