The Australian radio advertising market is mature and resilient, but the growth of smartphone adoption and the rise of streaming and internet radio will place growing pressure on traditional broadcasters, according to PwC.
The PwC Entertainment and Media Outlook has forecast the radio advertising marketing to increase at an average compound annual growth rate (CAGR) of 1.8% over the next five years to $1.16 billion in 2017.
It says the campaign for the 2013 federal election will have a positive impact on commercial radio revenue following a softer year in 2012.
According to the report, Australians spent almost 16 hours a week listening to commercial radio in 2012, with breakfast radio remaining the most popular timeslot.
Commercial radio reached over 60% of Australians in cars each week. At home remained the number one place people listen to radio at 48%, followed by in the car at 35%.
PwC says radio will need to evolve its measurement to retain its relevance with media buyers, and that as other sectors evolve in a digital environment, the line between media will continue to blur.
"Out-of-home is now knocking at radio's door as flexible digital panels allow it to target advertisers at a particular time of day in a similar way to radio," the report says.
"Radio will feel the impact less than other media formats, however, as radio is a companion medium and often consumed with other formats such as newspapers and books."
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