Radio ad revenue flat in August
Ad revenue for the radio industry fell a fraction in August, down 0.22% to $59.02m.
Commercial Radio Australia CEO Joan Warner said the slip reflected a softening ad market overall. The total figure for Australia’s five metropolitan areas suffered from downturns in Sydney, Brisbane and Perth.
In Melbourne, revenue for August compared to the same month in 2010, was up 3.71% to $18.4m and in Adelaide grew by 2.33% to $5.619m.
However, in Sydney revenue was down 1.52% to $18.03m, in Brisbane fell 3.58% to $9.35m and in Perth fell 3.65% to $7.6m.
“The market appears to be reflecting the economic uncertainty being felt at the moment in many sectors, a fall in retail sector spend and a general overall softer advertising market,“ Warner said.
Radio takes around 7% of Australia’s total advertising market.
Not convinced!
Looking at all the changes at DMG & Austereo the last couple of months would suggest that perhapse the decline has nothing to do with the economic uncertainty, rather the uncertainty within these radio network (and the flow on effect on staff moral & performance).
This is also evident in the growth achieved by other networks (even in declining markets like Sydney)
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To determine the key factor to their shrinking market as “economic uncertainty” is such a lame excuse. What they have failed to mention is that with the rapid growth of the group buying industry, their clients have now discovered a guaranteed marketing tool in terms of customer acquisition and exposure that doesn’t cost them several thousands of dollars with no clear indicator of ROI.
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