Advertising revenue for metropolitan radio fell by 12.4% in the March quarter to $159.404 million, according to Deloitte figures released by Commercial Radio Australia (CRA).
This is compared to $182.025 million a year ago, with the coronavirus having a significant impact on the market.
“Radio is usually resilient in downturns but the coronavirus has had a bigger initial impact than the GFC,” says CRA CEO Joan Warner.
“The real and full effect of business closures on revenue won’t be known until the June quarter.”
Sydney was the hardest hit, with revenue down 16.4% to $47.360 million, while Melbourne stations were down 11.3% to $52.220 million.
Revenue for Brisbane stations fell 8.3% for the quarter to $25.321 million, Perth was down 14.5% to $19.819 million and Adelaide was 6.5% lower at $14.684 million.
The industry’s advertising holdings platform RadioMATRIX indicated falls in agency ad spend in March across categories including live entertainment, motor vehicles, restaurants and property.
“Radio has evolved to stay competitive, but these results have magnified the issues facing free-to-air broadcasters,” Warner says.
“We’re now competing for ad revenue with global tech giants that do not operate under the same rules and regulations as we do, and this needs to be addressed quickly by regulators.”
The advertising market had already been impacted by weakening economic conditions prior to the pandemic, with Deloitte figures showing radio ad revenue over the nine months of the financial year to date totalled $528.943 million, an 11% decline over the same period a year ago.
Earlier this week, the Australian government revealed a relief package for media owners, including tax relief for commercial TV and radio.
The Deloitte figures report actual revenue received by metropolitan commercial radio stations in the five major capital city markets and include agency and direct ad revenue.
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