2GB demographic falls can help advertisers drive more competitive deals
Nine Radio’s Sydney station 2GB has seen significant falls to its key demographics and industry experts say it could result in decreases to their advertising revenue.
Nine Radio’s Sydney station 2GB has seen its key demographics plummet since the departure of Alan Jones last year, and industry experts warn this could empower advertisers to demand more competitive deals.
The 25-39 and 40-54 age brackets are regarded as the most lucrative for advertising spending but significant falls in the listening share in these age groups should be a concern for 2GB executives, sources say.
Breakfast show host Ben Fordham – who took over from Jones in May 2020 – had his worst ratings result to date in last week’s survey, after he was knocked off top spot by KIIS1065 duo Kyle Sandilands and Jackie “O” Henderson.
Fordham rated an audience share of 13.3 compared to Kyle and Jackie O on 15.5.
In Jones’s last survey in April 2020 his share of 25 to 39-year-olds was 6.8 points, but under Fordham’s reign that dropped to just 4.2, while for 40 to 54-year-olds, Jones left with a share of 8.4 but that is now less than half at 3.7.
GroupM interim general manager of investment Claire Butterworth said the 25-54 demographic remained a target for 2GB because “the rationale is they have a higher disposable income”. “They are more likely to be purchasing products and have a higher time spent listening,” she said.
“The scalability and targeting of the audience does infer the cost; there is an intrinsic link between the two and it empowers the advertisers to renegotiate and review the current contractual arrangements you have with a particular vendor – this happens across all media.”
Ms Butterworth said Nine would be examining the falls closely to find the cause. Since February, Fordham has shed 91,000 listeners.
“Each survey does have quite a bit of volatility, so we’d be looking at it over a longer period, given Ben has only been in the role for about 12 months,” she said. During Jones’s tenure the station endured boycotts by numerous advertisers over controversial on-air comments, such as expressing a desire to shove a sock down New Zealand Prime Minister Jacinda Ardern’s throat.
It is expected that during Sydney’s lockdown period there will be an increase in listeners for talkback radio stations including 2GB and ABC as people seek up-to-date information on the restrictions. Talkback radio ratings spiked during Melbourne’s 112-day lockdown last year.
Nine Radio managing director Tom Malone denied Nine had lost ground in key demographics since Fordham took over from Jones, insisting the company was “building a sustainable radio business of the future”.
“Ben’s ratings are still well above where we thought they would be,” he said. “2GB has just recorded its best monthly profit since March 2018 – off the back creating great radio, at the right cost, for the right return.”
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