Metro Radio’s Revenue Revival
Fiscal 2015 was a surprisingly good year for metropolitan commercial radio with advertising revenues growing by a robust 5.1% to reach a record $732 million. Moreover, that revenue rebound has continued in to the current financial year with aggregate metro radio ad revenues up by 6.9% during the first two months of the 2016 financial year, despite a still-subdued overall economic environment.
FY2015’s growth in ad revenues was metro radio’s highest for four years and was comparable to the average annual increases which the sector had enjoyed between FY2000 and FY2008, a period of buoyant economic activity which immediately preceded the commencement of the global financial crisis (GFC).
Metro radio’s ad revenue performance in FY2015 was particularly impressive when compared to the 0.8% decline in metro television advertising revenues and the even larger mid-to-high single digit percentage decline in metro newspaper print advertising revenues over that same period.
Unlike metro TV and newspapers, metro radio’s ad revenues are now comfortably above pre-GFC levels, unaffected by the structural concerns which appear to have retarded renewed advertiser support for radio’s two larger traditional media competitors.
To date, Perth and Melbourne have experienced the strongest post-GFC recoveries, with FY2015 ad revenues being 21.2% and 20.5% respectively above FY2008 levels.
You can download the full repost here: Download