The total radio market is forecast to pass $2 billion by 2025, according to a new report by PwC.
The 20th edition of PwC Australia’s annual Australian Entertainment and Media Outlook revealed that total Australian advertising spend contracted by 8% to $15.4 billion in the year to December 2020.
Radio, which declined 8.1% in 2020 to hit $1.5 billion in total revenue, will be boosted by the increase in streaming platforms and subscription services.
While advertiser demand for radio is returning it remains slower than the rate seen for TV, with radio still down 10.6% year-on-year.
Streaming will see growth of 12% compound annual growth rate to 2025 based on the midpoint forecast scenario.
“Much of the audio revenue growth in the forecast period is expected to come from the ongoing increase in subscription revenues in streaming,” the report says.
“Although the sub-segment is disproportionately skewed towards consumer subscription revenue, advertiser spend will also continue to grow as audience targeting and outcome measurement develops alongside the use of digital-only features such as dynamic advertising across the various platforms.”
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