Metro radio ad revenue down 10.2% in September quarter
Media markets were historically weak in the first quarter of the new fiscal year.
Advertising revenue for metro commercial radio stations declined by 10.2% in the 2019 September quarter.
In the same period last year, the radio network’s generated $202.109 million, compared to just $181.432 million this year.
This is according to new data compiled by Deloitte and released today by Commercial Radio Australia, and the first year since reporting has switched from half-yearly to quarterly.
Ad revenue fell across all capital cities, with the major players now feeling the pinch.
Melbourne was down 8.68% to $59.371 million, Sydney down 11.44% to $55.043 million, Brisbane down 6.70% at $28.938 million, Perth down 15.87% to $22.247 million, and Adelaide down 9.39% to $15.832 million.
In a trading update released via the ASX on Tuesday, Southern Cross Austereo reported its September quarter revenue had dipped 8.5% when compared to the same period last year.
CRA chief executive officer Joan Warner said the results were not unexpected given the “challenging overarching economic influences and broader market conditions” facing the media landscape.
“In response to this challenging environment the industry pro-actively launched a marketing initiative in August, alongside major radio advertisers including ALDI, Qantas and Coles Liquor to remind businesses of the effectiveness of advertising and the benefits of maintaining investment in marketing to grow brand awareness and revenues,” added Warner.
“The December quarter leading into Christmas is usually the busiest, and we hope to see the market stabilise before returning to growth.”
The Deloitte figures report actual revenue received by metropolitan commercial radio stations and include both agency and direct advertising revenue.