‘Challenging market conditions’ blamed for declining commercial radio ad revenue in June quarter
The second quarter of the 2019 calendar year was another tough one for commercial radio stations, with a 1.7% decline in ad revenue from the same quarter the year prior. Advertising revenue for metropolitan commercial radio stations totalled $209.223m across the quarter, including income from two stations not previously included in the reporting.
Commercial Radio Australia cited tough market conditions for the drop.
CRA chief executive Joan Warner said the industry is hoping recent income tax cuts and another potential rate cut will help boost ad spending.
Warner: Radio has been relatively resilient
“Radio has been relatively resilient, but advertising market conditions remain challenging for all media businesses,” said Warner.
“The market needs a kick start. We’re hopeful that income tax cuts and lower interest rates will flow through the economy and encourage advertisers to start spending again in the months ahead.”
While Melbourne and Adelaide saw rises in revenue, and Brisbane also climbed slightly, both Sydney and Perth experienced significant losses.
In Melbourne revenue climbed 2.03% to $68.187m, Adelaide it jumped 1.35% to $18.717m, and Brisbane rose 0.60% to $32.786m. But Sydney dropped 5.60% to $63.161m and Perth fell 5.96% to $26.371m.
However, the drop over the June quarter was lower than that in the March quarter, when it fell 2.6% overall to $181.612m.
For the 2018/19 financial year, metro radio ad revenue totalled $800.779m, as reported by Deloitte, which reflects all revenue received by metropolitan commercial radio stations, including all agency and direct revenue.
Well I know that I will be spending my tax cut on a radio ad … said no-one, ever.
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@ The Cynic,
It’s not consumers who buy the radio ads.
It’s businesses who buy the radio ads – to sell products to the consumers who feel they have a little more money in their pocket after a tax cut.
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