Gujarat tops radio ads with 18% share, Maharashtra follows at 16% : Report

The TAM AdEx report for January to September 2024 reveals notable developments in radio advertising, with an overall growth of 2% in ad volumes compared to the same period in 2023. This analysis delves into the key sectors, categories, advertisers, and time bands that shaped radio advertising trends in this timeframe.

Key highlights

Ad volume growth on radio advertising observed a 2% increase per station compared to January to September 2023. Life Insurance Corporation of India (LIC) retained its top position as the leading advertiser, underlining its consistent investment in radio. Over 11,000 exclusive brands utilised radio advertising during this period, showcasing its broad appeal. Geographically, Gujarat led the states with 18% of the ad volume, followed by Maharashtra with 16%. Jaipur retained its position as the leading city, contributing 8% of the ad volumes, while the top five states collectively accounted for 62% of the ad volumes. Evening (5:00 PM–9:59 PM) emerged as the most preferred time slot, capturing 38% of the ad volume, followed by the morning and afternoon slots. Ad commercials with durations of 20 to 40 seconds were the most preferred, accounting for 68% of the total ad volume.

Sector and category analysis

The services sector dominated with a 30% share of ad volumes, retaining its first position from 2023. The auto sector followed with a 10% share, while the BFSI sector climbed to third place with 9%, up from fifth position in 2023. Retail and food and beverages sectors each contributed 9% and 8% of the ad volumes, respectively, while education and personal accessories each accounted for 8% and 7%. Other key sectors included building materials and personal healthcare, with 3% each, and durables with 2%. Properties and real estates continued to lead among categories, with hospitals and clinics maintaining their second position. Schools and coaching centres emerged as new entrants in the top 10 categories for the first time. Retail outlets for jewellers and electronics, as well as clothing and fashion, played significant roles, alongside life insurance and automobile general insurance, the latter of which saw the highest growth among categories, expanding by 3.6 times. Collectively, the top 10 categories accounted for 51% of the total ad volume.

Advertisers and brands

LIC of India led the advertisers, followed by Maruti Suzuki India and LIC Housing Finance. New entrants to the top 10 list included GCMMF, Hyundai Motor India, and Renault India. Among the top brands, LIC Housing Finance emerged as the leader, followed by Vimal Pan Masala. Notably, LIC Jeevan Utsav and Maruti Suzuki Arena joined the top 10, displacing brands like Patanjali Wellness. Out of the top 10 brands present in 2024, three belonged to LIC of India. In total, 8,500 advertisers and 11,000 brands leveraged radio advertising during this period, compared to 8,400 advertisers and 10,000 brands in 2023. The brands LIC Jeevan Utsav, Maruti Suzuki Arena, Manappuram Loan Against Gold, Acko General Auto Insurance, and Malabar Gold and Diamonds featured in the top 10 list for 2024, but not in the top 10 of 2023.

Growth trends

Automobile general insurance witnessed the highest growth among all categories, expanding by 3.6 times compared to 2023. Corporate and brand image advertising grew by 2.9 times, while mortgage loans experienced a 3.2-times increase. Cars recorded a 60% increase in ad volumes, while retail outlets for jewellers grew by 50%, properties and real estates grew by 11%, and hospitals and clinics saw an 18% rise. Other notable categories included multiple courses and life insurance, which saw growth rates of 30% and 34%, respectively, and retail outlets for electronics and durables, which increased by 29%.

Advertising preferences

Evening and morning slots collectively accounted for 69% of the total ad volume, underscoring their importance for reaching audiences. The evening slot alone captured 38% of the share, followed by 31% for the morning and 29% for the afternoon. Shorter commercials, particularly those between 20 and 40 seconds, were the most preferred, contributing 68% of the total ad volume. Commercials shorter than 20 seconds added another 27%, while longer formats of 40–60 seconds and over 60 seconds made up 4% and 1%, respectively.

Conclusion

Radio remains a vital advertising medium, demonstrating resilience and adaptability. The steady growth in ad volumes and the introduction of new advertisers and brands underline its relevance in the evolving marketing landscape. With sectors like services, BFSI, and automobiles continuing to invest heavily, and newer categories like schools and coaching centres gaining prominence, radio advertising is poised for sustained growth.

The full report can be accessed here.