Why tomorrow’s radio ratings really matter
Tomorrow is radio ratings day, and radio executives, marketers and media buyers will be paying extra attention this time around.
So too will ratings powerhouses Kyle and Jackie O, and 3AW’s Neil Mitchell.
Here’s why.
The advertising environment is tough right now. Looking back at the latest earnings season, ARN, Southern Cross Austero (SCA), and Nine Radio all released their results. The recorded drop in revenue and profit clearly show trading conditions are short and competitive.
The overall metro radio commercial revenue is also showing an overall trend of decline.
According to data from Commercial Radio & Audio (CRA), overall revenue was $803 million in FY 2018. This declined to $800 million in FY 2019, and fell severely with COVID to $643 million in FY 2020 and $627 million the next year. It recovered to $685 million in FY 2022, and FY 2023 was a tale of two halves: July to October 2022 demonstrated good growth, before the decline set in for the rest of the year.
Sales teams at radio networks around the country will be watching tomorrow’s GfK Radio360 survey closely because they’ll be carrying these numbers into the two of the heaviest-traded months in audio. September and October really stand out on the trading calendar, partly due to major events including footy finals.
Short-term sales pressure is one thing; long-term planning for the success of a station or a network is another. And with speculation around the future of some of radio’s biggest names, strong survey results will have a bearing on the path ahead.
There’s been plenty of talk around Sydney’s Kyle and Jackie O potentially returning to their old home at SCA, when their ARN contract concludes at the end of 2024. These two have delivered extraordinary numbers (both ratings and revenue) for ARN, and will be looking to continue that on the ratings scoreboard tomorrow. Another cracking result will raise the stakes even further.
And in Melbourne, 3AW stalwart Neil Mitchell is reportedly weighing up his future with Nine Radio. He’s signed until the end of the year, and radio bosses at Nine will be watching tomorrow’s figures with high interest. Mitchell doesn’t need another good result tomorrow to prove his worth to the company – but it may just serve as another reminder of the value of a loyal audience built over decades.
It’s an exciting day for the radio industry.
Mumbrella will have all the radio ratings right here.
