Australian radio scores 8.95% revenue increase
Commercial radio has continued its advertising renaissance with an 8.95% increase in revenue across major metropolitan markets.
According to figures from Commercial Radio Australia, the radio industry turned over $62.52 million in October, with over 12% revenue growth in both Brisbane and Sydney.
Michael Burrows, a jingle writer and director of radio specialist agency Brand Music, is not surprised the figures, and has definitely noticed an increase in business.
“I have no doubt it’s gone up,” Burrows tells Marketing magazine. “Its affordable, it’s competitive. People are realising the medium still has a reach, you can interact, it works well combined with digital and the programming is really targeted to audiences, so it will keep growing.
Burrows believes radio programmers have responded well to declines in radio audience and the threat of digital radio and podcasting by delivering more targeted programming for niche markets.
“Radio are having to sharpen their tools and make it more audience specific,” he tells Marketing magazine. “There’s no longer the model of just one comedian or one group of entertainers, stations can’t be one trick show ponies anymore. This has made the industry less about clutter and more about targeted programs that reach people, and advertisers are suddenly flocking to it.
Burrows isn’t sold on digital radio yet, though, and says the industry is still in its infancy in Australia.
I don’t know if it’s going to take off. Once you put visuals on a radio, it becomes TV to me. I’m yet to proven the benefits of digital. I think the medium is growing, though.”
The question remains, then, will we see a report about digital radio revenue soon, or is the old model too set to shake?