The Indian government has now made it mandatory for private FM radio stations to furnish third-party audit of government ads aired on their networks as a criterion for payments.

“All empanelled Pvt. FM stations shall provide Third party verification/Authentication report as a proof of broadcast of spots as per release order issued by BOC (Bureau of Outreach & Communication) along with physical bills for release of payment,” the Ministry of Information and Broadcasting has said in a note.

The MIB has further said, “They (FM radio stations) have to mandatorily give an undertaking to BOC that they would provide Third Party Verification/Authentication report along with physical bills. Without Third Party Verification/ Authentication reports, bills will not be processed.”

The government, though, hasn’t provided any reason for making these changes in the policy relating to government ads given to FM radio stations.

In case of the empanelled FM radio stations immediately unable to provide third party verifications, they would continue to provide broadcast certificates till the time third party audit “service is made available to their respective cities”, the Ministry has added.

There are 384 operational private FM radio stations in India as of mid July 2021, according to government data, which does not include the stations operated by pubcaster All India Radio.

Radio Mirchi, owned and operated by Entertainment Network India Ltd., part of the Times of India group, is present in over 140 cities (not exceeding 150), the Ministry of Information & Broadcasting (MIB) had stated earlier this year.

A FICCI-E&Y media entertainment report, released earlier 2021, stated that radio revenues, which had fallen 7.5 percent in 2019, fell by over 50 percent again on account of both ad rate and volume drops as key advertiser segments (regional and retail) were unable 
to run their businesses at their usual scale owing to the pandemic and slowing economy.

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