Melbourne Poised to Become Australia’s Largest Radio Revenue Market
Despite radio advertising revenues growing by only 0.2% to reach $205m in the fiscal year (FY) ending 30 June 2012, Melbourne’s metropolitan radio advertising revenues were just $5m, or only 2.5%, less than Sydney’s, according to industry-sourced statistics compiled by accounting firm Deloitte and published by the commercial radio’s industry representation group Commercial Radio Australia.
Melbourne’s annual radio ad revenue growth rate only needs to exceed that of its northern rival by about 2.8 percentage points for one more year in order for it to snare the metro radio revenue crown, and such a result may well be achieved given that over the past decade Melbourne enjoyed a compound annual growth rate (CAGR) in radio advertising revenues of 5.7% compared with Sydney’s much lower growth rate of only 1.6% per annum (pa).
Below Trend Growth in 2012
As with the other four metro markets, Melbourne’s 0.2% increase in radio ad revenues in FY 2012 was well below the 5.7% CAGR which was experienced in that city over the past decade between FY 2002 and FY 2012.
And also as in the other metro markets, the Global Financial Crisis (GFC) in 2008 had a noticeable adverse impact on Melbourne radio advertising revenues, leading to a decade of two distinct parts.
After having grown at a strong 8.0% CAGR between FY 2002 and FY 2008, Melbourne radio ad revenues, post the GFC, slowed to an average 2.4% pa rate between FY 2008 to FY 2012.
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