News

Melbourne becomes Australia’s biggest radio market as Sandilands effect sends Sydney backwards

Sydney no longer holds the crown as Australia’s biggest radio market, with one factor behind the change being the commercial reverberations of the Kyle Sandilands controversy.

The Melbourne market has overtaken Sydney for only the second time in recent years, Commercial Radio Australia data on adspend for January released this afternoon has revealed.

Last month saw ad spend in the Melbourne market rise by 6.07% on January 2011 to $13.729m.

Meanwhile the Sydney market fell by 0.15% to $13.689m.

One factor behind the change was the continuing woes of 2Day FM’s Kyle & Jackie O Show, which is Sydney’s top rating FM breakfast show.

Although the  show is a relatively small part of the overall market, the value of advertising pulled from the show since Sandilands’ controversial comments late last year is significantly larger than the $40,000 dollar difference between the markets, meaning the row made the difference between Sydney losing its crown.  

Campaigners against Sandilands on online platform Change.org claim that more than 30 brands have indicated they will not advertise on the show.

There were mixed results in the other metro radio markets:

  • Brisbane was down 1.4% to $7.304m;
  • Perth was4.4% to $6.235m;
  • Adelaide was up 6.1% to $4.415m.

Overall, the national metro radio market was up on the same time last year by 1.38% to $45.372m in January.

The numbers – submitted by commercial radio stations and including both agency and direct revenue – are compiled by Deloitte.

Joan Warner, the CEO of the CRA, said: “Melbourne has had a strong January and Adelaide has continued to perform well, after recording the strongest growth out of the five metropolitan markets for 2011.”

In the first seven months of the financial year, the metro market was down by 0.14% compared to the previous 12 months, with the market worth $398m.

Warner said: “The resilience of radio as a cost effective and efficient advertising medium is a great asset during tough trading conditions,” Ms Warner said. “The industry must continue to promote the benefits of radio and its ability to deliver for advertisers in tighter economic conditions.”

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.