All media faced challenges chasing ad revenue in 2019 and for the first time radio taken a hit. In particular in the last quarter of the year where the dollars dropped close to 10% year-on-year.
Advertising revenue for metropolitan commercial radio stations fell by 6.1% over the 2019 calendar year to $760.799 million, compared to the record high of $810.322 million achieved in 2018, according to data compiled by Deloitte and released today by Commercial Radio Australia.
“The results reflected a challenging end to the year for radio and the media industry as a whole, with weak business confidence and the severity of the bushfire crisis having flow-on effects on ad spend,” CRA chief executive officer Joan Warner said.
December quarter advertising revenue totalled $188.049 million, down 9.4% from the $207.527 million recorded in the same period a year ago.
All markets were lower in the December quarter, with the largest market Melbourne down 10.8% to $60.838 million and Sydney 9.0% lower at $57.119 million. Brisbane declined 6.5% to $30.164 million, Adelaide was 5.1% down to $16.565 million and Perth was 13.2% lower at $23.362 million.
One bit of brighter news perhaps, the December quarter revenue did show a 3.6% increase over the September quarter.
Warner said broadcasters would continue to work towards a return to growth in 2020, with plans to work with major advertisers and media agencies to promote the value of radio advertising, and on the development of the next stage of the whole of industry automated trading platform RadioMATRIX.
The Deloitte figures report actual revenue received by metropolitan commercial radio stations in the five major capital city markets and include agency and direct ad revenue.