It appears the vast majority of us, including media giants Group M and ZenithOptimedia have underestimated the success of commercial radio in 2011.
After the loss of COI (radio’s biggest advertiser), zero growth was expected in 2011 across this more traditional media platform. However, market leaders like Group M and ZenithOptimedia have revised their original forecasts for radio advertising revenue to increase by 5 per cent and 2.3 per cent respectively. Both revisions show radio has successfully managed to generate additional revenue, despite the significant loss earlier in the year.
Results from 2011 Q3 alone show just how much radio sales have outperformed the market. Across this period, 350 brands spent more than £60,000 on their campaigns, indicating a 10 per cent year-on-year increase from 2010. Latest RAJAR figures have also revealed 90 per cent of the population are listening to radio each week – equating to around 47 million UK adults. And it isn’t just traditional listening that is contributing to this success; total internet listening hours for the end of 2011 are up by 15.4 per cent on the last quarter, while mobile phone access also continues to rise, currently at 24.2 per cent year-on-year.
MEC Opinion: Continuing on from the success of 2011, we hope the increases in both listening hours and advertising revenues continue to grow as we begin 2012. In retrospect, Q1 2011 looked very bleak, with revenues struggling to bounce back after a difficult two years during the credit crunch. But as the radio industry continues to simplify its national buying proposition, ultimately attracting new advertisers to the medium, we hope Q4 2011 and Q1 2012 figures show continued growth.
