The industry must embrace the obstacle of measuring ROI in the era of performance marketing: Nisha Narayanan

The Indian advertising industry has certainly been through vicissitudes of its own and we owe it all to covid.

 

While organisations have somewhat recuperated from covid-related setbacks in terms of increased volumes, the issue of pricing has stood the test of time in a way, that has only led advertisers to cut back on ads. Therefore, impacting the entire broadcast industry.

 

Since audio content has emerged from the shadows and become a real asset in the content marketing space; radio’s substantial shift towards audio experientials has opened up new avenues for advertisers to connect with audiences.

 

While the world of radio remains a playground full of possibilities and opportunities, limited data availability and the trials and tribulations of measuring campaign effectiveness continue to be the biggest challenges of sustained growth in the radio advertising sector.

 

While TV has TRP ratings and newspapers rely on IRS readership data, radio's dependence on an IRS-based system doesn't align with its needs.

 

As an industry that is bearing the brunt of having no dedicated measurement system, we advocate a consequential change. During recessions, advertising budgets are often the first to shrink, impacting radio as it relies heavily on advertising revenue. To sail through this unfortunate pattern, our 360-degree approach, leveraging activations, digital channels, and engaging RJs as content creators and influencers, serves as our lifeline, allowing us to adapt and thrive even in challenging economic times.

 

Especially for traditional media like radio, the advertising industry must embrace the obstacle of measuring ROI in the era of performance marketing. Moreover, government support is indispensable during the post-COVID recovery phase. I have and continue to urge to our administration to promote competition and offer flexibility in policies, so the industry can fulfill its destiny by boosting advertising revenues and creating opportunities for new industry players.

 

Truly looking forward to seeing the light at the end of the tunnel.

 

The author is director and chief operating officer, Red FM and Magic FM.