Radio revenues tumble 28%, with Melbourne hardest hit
Revenue across Australia’s metropolitan commercial radio stations fell 28.15% in the first quarter of the financial year.
Revenue for July, August and September was $130.402 million, down from $181.489 million for the same period last year.
CEO of Commercial Radio Australia, Joan Warner, aid the numbers are “not surprising” given the economic conditions and challenges radio is facing.
Melbourne was the hardest hit, suffering a year-on-year decrease of 36.61%, taking its revenue figure to $37.645 million.
Sydney was next, with a hit of 26.9%, down to $40.241 million, and Brisbane was not far behind, down 26.75% to $21.204 million.
Perth was back 18.66% year-on-year to $18.104 million, while Adelaide weathered the storm the best, back 16.66% to $13.206 million.
The results, however, were less catastrophic than the previous quarter, which saw radio revenues fall 46.62% year on year. Every city improved its revenues for the September quarter compared to the June quarter.
Given the improvement, Warner said there was hope on the horizon.
“These numbers are not surprising, given the revenue results we have seen this year and the ongoing impact of COVID-19, as well as existing weakened economic conditions preceding the pandemic,” she said.
“The positive trend in all markets from the previous quarter when compared to Q4 FY20 is certainly a trend that we hope continues.”
“Radio is resilient and remains a competitive option for advertisers,” she said. “Through RadioMATRIX, the radio industry’s advanced ad buying platform, we are transforming the way audio advertising is bought and sold. With new developments set to go live in the coming months, we are making it easier for media buyers to understand the opportunities across radio’s diverse audio ecosystem, so advertisers can have confidence in considering radio for their upcoming campaigns.”
The figures are compiled by Deloitte and include agency and direct ad revenue.