Gujarat leads with a 20% share of radio ad volumes: TAM AdEx report

The first half of 2024 has witnessed significant changes in radio advertising, reflecting the evolving strategies of advertisers across India. A closer look at the TAM AdEx report provides insights into the sectors, advertisers, and cities driving growth, as well as the types of ads and time slots most favoured by advertisers.

Ad Volume Trends

Radio ad volumes saw steady growth in the first half of 2024. Compared to the same period in 2023, there was a 3% increase in ad volumes, marking an ongoing upward trend in radio advertising. Notably, when compared with Jan-Jun 2022, ad volumes experienced a cumulative growth of 9%.

This growth indicates a resurgence in radio as an effective advertising medium, particularly post-pandemic, where advertisers are exploring cost-effective ways to reach mass audiences.

Sector-Wise Contribution to Ad Volumes

The Services sector remained the top contributor to ad volumes, holding a 31% share during the Jan-Jun 2024 period. This sector has consistently performed well, driven by categories such as real estate and healthcare. The Auto sector climbed to the second position with a 10% share, showcasing the industry's increased reliance on radio for reaching potential consumers.

Other major contributors included:

- Banking/Finance/Investment 8%

- Retail: 8%

- Food & Beverages 8%

- Education: 8%

Together, the top three sectors (Services, Auto, and Banking/Finance) accounted for nearly half of the total ad volumes, demonstrating their dominance in radio advertising.

Top Categories and Growing Segments

The Properties/Real Estate and Hospital/Clinics categories held the top two spots, contributing 16% and 7% of ad volumes, respectively. Cars showed growth, climbing to third place with a 6% share, up by 57% compared to last year. This growth aligns with the broader resurgence of the automobile industry in India.

Other key categories included:

- Retail Outlets - Jewellers 29% growth

- Retail Outlets - Clothing/Textiles/Fashion

- Retail Outlets - Electronics/Durables

New entrants into the top 10 categories included Schools, reflecting increased advertising spend from the education sector.

Leading Advertisers

LIC of India retained its position as the top advertiser on radio during the first half of 2024. Maruti Suzuki India followed closely in second place, while LIC Housing Finance, Reliance Retail, and GCMMF (Amul) rounded out the top five. Interestingly, six new entrants made it into the top 10 list, reflecting a shift in advertising strategies across sectors.

The top 10 advertisers accounted for 12% of total radio ad volumes, showing a concentration of spending among a few major players.

Top Brands

On the brand front, LIC Housing Finance emerged as the leading brand, followed by Alishan. Other brands included LIC Jeevan Utsav, Acko General Auto Insurance, and Madhur Sugar. The Banking/Finance and Auto sectors were well-represented in the top 10, with three brands each making it to the list. These top 10 brands contributed 7% to the overall radio ad volumes.

Ad Length Preferences

In terms of ad duration, commercials lasting 20-40 seconds were the most popular, making up 67% of the ad volumes in Jan-Jun 2024. Ads shorter than 20 seconds increased their share, accounting for 28% of the total. Together, these two ad lengths constituted 94% of radio ads, indicating a preference for shorter, more impactful messages.

Preferred Time Slots for Advertising

The evening time band (5 PM to 9:59 PM) emerged as the most preferred slot for radio advertising, capturing 38% of ad volumes. This was followed by the morning (6 AM to 10:59 AM) and afternoon (11 AM to 4:59 PM) time bands, which together contributed 69% of total ad volumes.

Advertisers clearly prefer times when listenership is at its peak, particularly during commuting hours, making these slots highly sought after.

City and State Contributions

Geographically, Gujarat led with a 20% share of radio ad volumes, followed closely by Maharashtra with 19%. In terms of cities, Jaipur topped the list with a 9% share, retaining its position from the previous year, while Nagpur came in second. The top 10 cities accounted for 69%of total radio ad volumes.

Growth in Categories

Certain categories saw significant growth in the first half of 2024. The Computer Printers category, for instance, grew 8.3 times compared to the previous year. Automobile General Insurance also witnessed an increase, growing 6.8 times. These categories, along with others like Milk (74% growth) and Retail Outlets Jewellers (29% growth), showcased growth momentum across a range of sectors.

The first half of 2024 has been marked by positive growth in radio advertising, with a diverse range of sectors contributing to this resurgence. Advertisers are increasingly turning to radio for its mass reach and cost-effectiveness, with shorter ads and prime time slots dominating the landscape. With continued growth in ad volumes and new categories emerging, radio remains a critical medium for brands looking to connect with their audience in a highly targeted and impactful manner.