Commercial radio hit by falling advertising revenue in the March quarter

The nation’s largest commercial radio outlets have been hit by falling advertising revenue, new figures by Commercial Radio & Audio show.

KIIS 101.1FM promoting the Kyle and Jackie O show in Melbourne inside Flinders Street station.

The radio industry’s advertising revenue has been badly hit by tough economic conditions, falling to its lowest level since the pandemic.

New figures from industry body Commercial Radio & Audio showed in the March quarter the total broadcast revenue in the five major metro markets was $146.75m, compared to $158.37m in the same quarter in 2022.

This is a fall of 7.3 per cent.

Since the beginning of 2022 the Reserve Bank of Australia has lifted the cash rate 13 times, climbing from 0.35 per cent in May that year to now sit at 4.35 per cent.

Advertising revenue reached a high of $190.85m in the June quarter of 2022, which compares unfavourably to the March quarter this year when it was $146.75m, a fall of 23 per cent.

CRA’s chief commercial officer Jo Dick labelled the results “steady” and noted the financial challenges impacting advertising spend by radio companies and other media outlets.

“The media market has been tough for some time now, so we are pleased that radio is still remaining relatively steady,” she said.

“We remain positive about the year ahead, as agencies will continue to rely on radio to get the most from their investment, as the reliable, effective, and affordable choice.

“It is also pleasing to see spending in categories such as automotive and government returning, and we expect to see this continue especially as we head towards an election period.”

ARN Media chief executive officer Ciaran Davis and Southern Cross Media Group managing director and CEO John Kelly.

CRA has 260 members that represent 100 per cent of commercial radio licensees nationally.

Radio executives have spoken out about the tough economic conditions, including high inflation and the impact of interest rates rises on the economy.

ARN Media is run by chief executive officer Ciaran Davis who is also the chair of CRA.

In February, Southern Cross Media Group managing director and chief executive officer John Kelly noted in SCA’s biannual results for the six months to December that it had been a “difficult” period for the industry – SCA reported a 71 per cent drop in net profit to $4.4m.

In the same month Mr Davis said the company had been “fighting hard for revenue” against other media platforms and rival radio networks, and in its annual results it reported a fall in revenue by 3 per cent to $334.3m.

CRA faced upheaval last month following the sudden exit of Ford Ennals, who announced his resignation after two years.

The hunt continues for a permanent replacement and Ms Dick remains as caretaker CEO.

The third radio survey results of the year – eight are published annually – will be released on June 4.