Commercial radio and audio has renewed hope for a full recovery to pre-pandemic levels of ad revenue, following figures released by the industry’s peak body yesterday.
Ad revenue for metropolitan commercial radio stations grew by seven percent to $62.91 million in the month of October, compared with $59.06 million a year ago, according to Commercial Radio and Audio (CRA).
The revenue figures were compiled by media data analytics company Milton Data and include agency and direct ad revenue.
This result makes it the 20th successive month of year-on-year growth. It reflects strong ad spending across the categories of insurance, home furnishings and electrical retailers, travel, sport and education.
Commercial radio ad revenue growth was prompted by the strength of the Melbourne and Sydney markets, which account for nearly two-thirds of total revenue.
Melbourne led the way, increasing by 22.3 percent to $21.53 million, while Sydney increased by five percent to $18.76 million.
The other three metro markets showed small revenue decreases.
Brisbane stations declined by 5.7 percent to $9.16 million, Adelaide by 3.8 percent to $5.38 million, and Perth was down by 2.5 percent to $8.06 million.
The retail sector is holding up well, according to CRA, but government spend on commercial radio advertising is softer compared with the high levels during the peak of the pandemic last year.
“Overall commercial radio revenues continue to deliver solid year-on-year growth and the market had bounced back strongly, with further scope to complete a full recovery to pre-pandemic levels,” says CRA CEO Ford Ennals.
“The commercial radio industry is continuing to evolve and digital audio is one of the fastest growing media markets, offering unique opportunities for advertisers as we lead into the Christmas shopping season.”
The ad revenue reported yesterday follows the domination of radio stars on Mediaweek’s Star Week 25 in October. This list ranked the top 25 most powerful talent on screens and on air, considering factors such as the average number of listeners/viewers, influence to shape the future, and commercial value.