Metropolitan commercial radio stations suffered a 3.28% drop in advertising revenues in the year to June 2009, Commercial Radio Australia (CRA) has revealed.
The radio organisation’s figures, sourced by accountancy firm Deloitte, showed that of the five major metro markets, Sydney fared worst, with a 9.44% slump in ad income.
Adelaide’s radio market fell by 3.44% and Brisbane dropped by 2.43%, but there was good news for the Melbourne and Perth markets, with increases of 1.68% and 0.93%, respectively.
Despite its worrying drop, Sydney remains the largest market for radio advertising, with a $198m annual income. Melbourne is second, with $189m in advertising turnover, with Brisbane third with $101.9m.
The CRA said that the figures showed that the Australian radio industry has weathered the global financial downturn better than other media. The organisation also pointed to 2008 figures from the UK, which showed that radio ad revenue dropped 6% and the US, where income fell by 9%.
Joan Warner, chief executive of the CRA, said: “The industry is working hard to promote its strengths, particularly in these tough economic times. The latest advertising campaign called, “Radio Advertising, Economically Sound”, highlights the need to trade through the economic crisis and advertise on radio and is part of our ongoing, multi million dollar brand campaign.
“The switch-on of digital radio over the past few months in the five capitals around Australia should also help in attracting new advertising opportunities in future years.”
