The CEO of India’s seven-city Radio One network has hit out at the way his competitors price radio advertising, describing it as “commodity pricing, based on empty reach”.

Vineet Singh Hukmani made the comments as he hiked the cost of advertising on his channels by 20 percent.

Hukmani said: “Most large networks have started to create only ‘commodity pricing’ based on ‘empty’ reach and package many stations free.”

He said prices, profits and therefore impact were being driven downwards by other players’ strategies which he thinks happens “in the absence of proper targeting/segmenting and (when) product upgrading is absent.”

“Our strategy has always been different,” he added. “We offer far better targeting of an educated, intelligent and comparatively higher net worth audience. Thirty per cent of our advertisers do not advertise on any other radio station. More than 25 per cent of our revenue comes from highly targeted ‘high impact/engagement’ on-air and digital conversation properties. This is what sets us apart.”

The price increase, which comes into effect on February 1, comes after what the company claims is an exponential increase in audience engagement following higher investments in radio programming and digital platforms.

94.3 Radio One is a joint venture between Next Radio Ltd and BBC Worldwide and runs seven differentiated formats in the metros of Mumbai, Delhi, Chennai, Bangalore, Pune, Ahmedabad and Kolkata.

The company runs international stations in Delhi and Mumbai; upmarket Bollywood stations in Bangalore and Pune; upmarket Hindi Retro stations in Ahmedabad and Kolkata; and the only 100 per cent request station for educated audiences in Chennai.