Commercial radio ad revenue down 20.39% for 19/20 financial year
In fairly expected news, Commercial Radio Australia has announced a significant dent in yearly commercial radio ad revenue for the 2019/20 Fin Year.
Commercial radio’s peak body announced that revenue for Aussie metro radio stations totalled $643.046 million for the financial year, down from $807.701 million the year prior. It’s a 20.39% drop, with the first six months of 2020 clearly suffering significantly as a result of the coronavirus pandemic.
Ad revenue fell across all five major capital city markets in the 12 months ended June 30. The Melbourne market was down 20.13% to $209.709 million, Sydney was 21.97% lower to $193.571 million and Brisbane decreased by 18.34% to $101.360 million. Perth radio stations reported $80.246 million in ad revenue (down 22.37%), while revenue for Adelaide stations was 16.41% lower at $58.160 million.
“These results reflect the ongoing challenges resulting from COVID-19 and the flow-on effects that have been widely reported as impacting all local media sectors. Commercial radio stations are operating at a time of global crisis and providing an ongoing and vital service to communities across the country, but unfortunately strong growth in listener numbers has not as yet converted into increased ad revenue,” CRA chief executive officer Joan Warner said.
“We know that radio’s resiliency is matched by its influence and we will carry on working with our members to communicate the value of utilising radio advertising in these difficult times, so advertisers can continue to access radio’s live and local positioning to enhance the reach and power of their messaging.”
Ad revenue for the June quarter totalled $114.104 million, a 46.62% decline from $213.748 million in the same period a year ago.
The Melbourne market was down 46.57% to $37.263 million in the June quarter, Sydney was 48.45% lower to $34.040 million and Brisbane decreased by 48.48% to $16.929 million. Perth radio stations reported $14.806 million in ad revenue (down 43.87%), while revenue for Adelaide stations was 40.92% lower at $11.065 million.
The Deloitte figures report actual revenue received by metropolitan commercial radio stations in the five major capital city markets and include agency and direct advertising revenue.