Year 2010 is expected to be a fulfilling year for the radio medium in India. The growth for this will not just see sheer improvement in numbers of advertisers coming on board but also regulatory intervention.

The Pitch-Madison Media Advertising Outlook 2010 projects the medium to hop back to better growth numbers. The study expects the medium to grow at the rate of 20 per cent in 2010 and reach Rs 817 crore, in the projected ad pie worth Rs 21,145 crore. Based on the projections, radio is expected to also increase its share in the ad pie, though marginally, to reach 3.9 percent from the present 3.6 percent.

The radio industry is expecting the much delayed third round of radio licensing to finally come into being - adding as much as 700 more frequencies to the existing number of over 250, taking the medium beyond from being just a big city phenomenon. It hopes that issues related to music royalties will be resolved, which would aid the financial health of the radio media in the country.

Moreover, if the government accepts the long standing demand of operators and advertisers for more content options, advertisers can increase their spends to match their product with variety of content. Many players in the radio segment feel that in 2009, many first time advertisers came onboard because of increased pressure on ROI. The trend would translate into better ad revenues in 2010 as the ad rates are set to improve in coming times. Radio Mirchi's CEO, Prashant Panday puts things in perspective. "All of media has seen price erosion in 2009. Good news is that volumes on radio have surged. Why would volumes surge if advertisers did not get results from radio?" he asks, adding, "So that's really good. Going forward, these high volumes of 2009 will stay - and pricing will improve - thus improving the revenues of radio again." Red FM's, Head Marketing, Anuj Singh also feels that radio has helped in plugging the gap, allowing last mile customer connect to its clients in a measurable way. Singh feels that the radio players have already realised the efficacy of this and are now offering this to the clients. Singh says, "In 2010 the trend will only grow stronger with more product and service categories experimenting with this concept and in turn expanding stagnant or shrinking market places."

Mirchi's Panday expects the industry to clock a better growth rate against the rest of the mediums. "Radio will grow faster than other media. In 2010, however, the growth differential may be smaller. Radio may grow at between 14-18 per cent. In the years to come, the growth differential will increase again as the full benefits of Phase III come into play."

Fever FM's Business Head, S Keerthivasan feels that radio will clock a growth rate of 10 to 15 per cent in 2010. He also expects the medium to expand its share in the overall advertising pie to four per cent riding on a better recovery from slowdown. Apart from the fact that new advertiser categories are expected to continue their increased spendings on the medium, most of the radio operators are pinning their hopes on the phase III of licensing. As Big FM's Tarun Katial shares, "The Phase III of radio licensing, expected to happen in early 2010, will allow broadcasters to expand their footprint and offer advertisers even greater reach across the country. The industry will further reach to over 200 cities in the next phase."

Also, it is expected that issues related to music royalty will be resolved; and news and currents affairs based programmes will be allowed to air, giving radio an opportunity to diversify into niche content - making the medium extremely attractive for newer advertisers who wish to target spcific audience class. Harrish M Bhatia, COO, My FM is positive that with the excellent performance of radio in the past year, more and more advertisers will return to the medium and make optimum use of its advantages. "As radio continues to expand its horizons, there is definitely much to look forward to in 2010," he says.

Singh of Red FM feels that as radio listernership is showing an upward movement, the marketers are set to catch them up with an increased ad budget. Singh opines, "Favourable demographics across markets and establishment of robust audience measurement tools would further catalyse growth in radio ad spends." The star spenders in 2010, on radio are expected to be auto, telecom, financial service brands and service brands.

Radio players are also confident that in coming times integrated solution is only bound to get even bigger and thus more ad revenues for the radio medium on the whole. As Big's Katial shares, "The way forward is to offer holistic solutions combining on-air, on-ground, outdoor and digital to make it a one stop shop for marketing requirements." Katial of Big FM sums up the mood of the industry saying, "While 2009 heralded a change in mindset forever, the year 2010 promises to fortify the industry with the needed resources and ability to meet and manage this new mindset."