Commercial radio revenue has dropped by 10.2% year-on-year to £134.3m over the second quarter of 2008. The fall is attributed to the tough advertising market caused by the credit crunch.
National advertising revenue accounts for £71.5m of the overall figure, with local advertising at £37m. Sponsorship and promotions, a key area of growth for radio advertising, bucked the trend rising by 7.3% for the period to £25.8m.
Simon Redican, managing director of the Radio Advertising Bureau, says: “We always knew this would be a tough quarter for all media – as recent results from ITV and the newspaper sector have shown, fortunately for radio, we’re well placed to bounce back.”
He adds that there are “signs” that advertising revenue will improve during the third quarter of the year.
The RAB is currently running a campaign to promote the benefits of using commercial radio to advertising and, in particular, highlights the benefits of the medium during an economic downturn. The ads, which have been created by Hooper Galton, feature actor and comedian David Schneider interviewing three major radio advertising brands, Unilever, Ford and Autoglass.