Indian radio segment revenues fell 54% in 2020 to INR 14.3 billion, while ad volumes fell 27% and skewed towards non-metros, while rates fell over 37% on an average, according to the Ficci-E&Y Indian media and entertainment report.

As live event revenues faltered due to the pandemic, radio companies increased their focus on creating online IPs and content production.

Some of the highlights of the report relating to the radio industry are as follows:

► The revenue fall was highest (81%) in the April to June quarter but revenues recovered to 54% of 2019 levels by the October to December quarter.

► The report expected revenues to recover to INR 23.3 billion in 2021.

► Radio adex volumes fell 27% in 20201. The fall was highest in the April to June quarter, but had largely recovered by December to prior year levels.

► Radio generated 61% of its volume in the second half of 2020, showing continued quarter on quarter volume growth.

► As share of ad volumes shifted away from the larger metros,

Maharashtra and Gujarat remained the states with the highest ad volumes.

► UP, MP and Rajasthan improved their volume ranks by four each as they were less impacted than Maharashtra, Delhi, Karnataka and West Bengal, all of which saw their ad volumes fall much more.

► The top 10 cities generated 68% of total ad volumes, led by Indore, Jaipur, New Delhi and Nagpur.

►  Mumbai, Delhi, Bengaluru, Kolkata and Chennai all saw a fall in their volume rankings to make place for Indore, Jaipur, Nagpur, Surat and Vadodara.

►  Local advertisers’ share of ad volumes decreased 2% over 2019 to reach 36% of total ad volumes in 2020, while national advertisers contributed 64% of ad volumes.

► India had 1,097 operational radio stations in 2020.

► India had 31 private FM broadcasters in 2020, across 111 cities who operated 385 FM radio stations.

► In addition, public broadcaster Prasar Bharti’s All India Radio service operates 479 stations in 23 languages reaching 92% of the country’s area and over 99% of India’s population.

► India had 251 operational community radio stations as on September 2020.

Doing some crystal gazing the report said about the future the following:

► Revenues will continue to recover in 2021.

► the report forecasted radio revenues to continue recovering and reach INR 23 billion in 2021.

►  Recovery will be driven by resumption of travel, revival of retail footfalls and growth in local services brands.

►  The sector can recover its 2019 revenue levels by 2024 from core broadcasting operations.

►  While radio is an important element of most media plans and extremely effective at a local level, the market for audio products has changed significantly as consumption patterns have evolved.

►  Radio companies need to adjust to the new realities and invest in the future.

►  Radio companies’ core strengths include a deep understanding of music, creation of audio content which resonates with communities and building brands.