Advertising revenue at metro commercial radio starts to climb out of the COVID hole

Chris Pash
By Chris Pash | 15 October 2020

Advertising revenue at commercial radio stations in metropolitan areas has started to climb out of the COVID-19 trough created during the three months to June, the depths of the pandemic economic fallout. 

The numbers are still down compared to last year but ad revenue is rising.

Australian metropolitan commercial radio station ad revenue fell 28.15% to $130.402 million in the September quarter from $181.489 million during the same three months last year.

According to figures compiled by Deloitte and released by Commercial Radio Australia, the Melbourne market fell 36.61% to $37.645 million.

Sydney stations dropped 26.9% to $40.241 million, Brisbane 26.75% to $21.204 million, Perth 18.66% to $18.104 million and Adelaide was 16.66% lower at $13.206 million.

However, the numbers are an improvement on the previous quarter. 

Compared to the June quarter, there was an increase of 14.28% from the $114.104 million in revenue recorded during those three months, the depths of the COVID-19 pandemic, a 46.62% decline from the year before.

Brisbane was up 25.26% when comparing revenue from the June quarter, with Perth up 22.27%, Adelaide up 19.35%, Sydney up 18.22% and Melbourne up 1.03%.

“These numbers are not surprising given the revenue results we have seen this year and the ongoing impact of COVID-19, as well as existing weakened economic conditions preceding the pandemic," says CRA chief executive officer Joan Warner.

"The positive trend in all markets from the previous quarter and less of a year-on-year decrease in overall revenue for the quarter when compared to Q4 FY20 is certainly a trend that we hope continues.

“Radio is resilient and remains a competitive option for advertisers. Through RadioMATRIX, the radio industry’s advanced ad buying platform, we are transforming the way audio advertising is bought and sold.

"With new developments set to go live in the coming months, we are making it easier for media buyers to understand the opportunities across radio’s diverse audio ecosystem, so advertisers can have confidence in considering radio for their upcoming campaigns."

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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