Ad revenue for metropolitan commercial radio stations grew by 7% to $62.91 million in the month of October compared to $59.06 million a year ago, according to figures released by industry body Commercial Radio & Audio (CRA).
This result makes it the 20th successive month of year-on-year growth and reflected strong ad spending across the categories of insurance, home furnishings and electrical retailers, travel, sport, and education.
Commercial radio ad revenue growth was prompted by the strength of the Melbourne and Sydney markets which account for nearly two-thirds of total revenue. Melbourne led the way increasing by 22.3% to $21.53 million, with Sydney increasing by 5% to $18.76 million.
The other three metro markets showed small revenue decreases with Brisbane stations declining by 5.7% to $9.16 million, Adelaide down by 3.8% to $5.38 million, and Perth down by 2.5% to $8.06 million.
The retail sector is holding up well, however government spend on commercial radio advertising is softer compared to the high levels during the peak of the pandemic last year.
CRA chief executive officer Ford Ennals said, “Overall commercial radio revenues continue to deliver solid year-on-year growth and the market had bounced back strongly, with further scope to complete a full recovery to pre-pandemic levels.”
“The commercial radio industry is continuing to evolve and digital audio is one of the fastest growing media markets, offering unique opportunities for advertisers as we lead into the Christmas shopping season,” he added.
The ad revenue reported follows on from an 18% increase in the month of September and weekly commercial radio audiences hitting a record high of 12.14 million.
The revenue figures were compiled by media data analytics company, Milton Data and include agency and direct ad revenue.