Radio ad revenue dips after disastrous September
Metropolitan radio revenue fell 3.6% year on year in the latest quarter, driven down by poor performance in Melbourne, Brisbane and Adelaide and a bad September.
Melbourne and Adelaide suffered the greatest declines for the July to September quarter, dipping by 6.0% and 6.4% respectively. Sydney also declined slightly, dropping by 1.54%, leaving Perth the only market to notch an increase.
CEO of Commercial Radio Australia, Joan Warner says the month of September seems to have been particularly difficult for the media sector.
“Results for September reflect the challenges facing media in a tough trading environment. Some markets are more patchy than others and both first quarter [financial year] and monthly figures reflect this trend,” Warner says.
Advertising revenue for July to September totalled $166.66 million for the five metropolitan markets. Divided by market:
- Sydney declined 1.5% to $52.822 million
- Melbourne declined 6.0% to $49.984 million
- Brisbane declined 5.2% to $25.935 million
- Adelaide declined 6.4% to $15.403 million, and
- Perth increased 0.9% to $22.514 million.
September was a bad month all round with Sydney falling 7.2%, Melbourne down 7.9%, Brisbane plummeting by 10.8%, Adelaide down 9.0% and Perth falling by 2.2%. For all markets combined the year-on-year decline for the month was 7.5%.
“The quarter and month-on-month comparisons of 2012 to 2011 highlight the real impact of poor consumer and business confidence and uncertainty about the global economy, a continuation of a problematical retail environment, insecurity about interest rates and the slashing of advertising and information campaign budgets by both State and Federal Governments,” Warner adds.