Australias metropolitan commercial radio stations attracted advertising revenue of $556.6 million in 2004, a 14.8 per cent increase over 2003, according to new figures released on 17 January by industry body Commercial Radio Australia. The data was compiled by PricewaterhouseCoopers for the five major capital city markets. It showed Brisbane recorded the strongest growth in advertising revenue over the 12 month period ending December 2004 (up 24 per cent), followed by Melbourne (up 18 per cent) and Perth (15 per cent). Sydney, which accounts for about 40 per cent of revenue, grew by 11 per cent and Adelaide by six per cent.
The result was the industrys strongest growth rate in many years, reflecting the buoyant advertising market, said Joan Warner, chief executive officer of Commercial Radio Australia. A lot of new advertisers have been attracted to radio this year because it offers the best value of all main media in terms of reaching large audiences per advertising dollar. Were looking to build on this momentum in 2005 because radio continues to be extremely competitive, particularly when compared with some of the significant rate rises reported for other media.
The PricewaterhouseCoopers data showed strong advertising conditions continued in the month of December, with metropolitan advertising revenue for radio up by 14.7 per cent to $50.3 million, compared with December 2003. The growth rate for the six months ending December 2004 was 13.7 per cent compared with the same period in 2003.
The industry will continue to make a concerted effort in 2005 to sell the strengths of radio as an advertising medium. Its successful brand campaign which has been running for 18 months will be refreshed and kicks off on February 1 with a new batch of 45 second creative spots to be run nationally on all radio networks. The first ads will target the FMCG (fast moving consumer goods) and finance sectors, focusing on radios flexibility and emotive impact, TV ad avoidance and radios ability to reach consumers who are often too busy to read newspapers, Ms Warner said.
Ratings data shows radio increased listeners in 2004, particularly among the key 25-39 demographic in 2004.
The first radio ratings period of 2005 officially commenced this week, with survey results to be released on February 22. There will be eight surveys conducted by Nielsen Media Research during the year in each of the five mainland capital cities. The cities will be in survey for 39 weeks with over 50,000 respondents to be surveyed nationally.