GCap Media’s Ad Revenue Drops

GCap Media’s advertising revenues were down 6% year on year for the quarter ending 30 June 2006, with total revenues excluding Capital Radio down 3% year on year.

The company has identified four key factors it says have affected its ad revenue, including the short-term effects of its inventory policy at Capital Radio; audience declines at its core heritage stations; post merger disruption and weak advertising conditions.

According the to the group, it is confident it can improve audience performance for Capital Radio with improved presentation, music and general content across the station; with the arrival in August of a new programme director and the roll-out of a marketing plan.

A trading statement from GCap Media said: “While we have addressed internal factors affecting revenue performance, trading in the quarter is primarily affected by a worsening advertising market.

“These difficult conditions look set to continue into July and August. July, which is forecast to be down 14% (down 8% excluding Capital Radio), is we believe, like June, an exceptional decrease primarily due to lower advertising spend around the World Cup.”

Recently, the company began introducing a “no more than two-ad policy”, which it claims has dramatically increased advertising impact at Capital Radio (see Capital Ad Breaks Boost Cut-Through), with Planet Rock also now adopting the policy (see Planet Rock To Adopt ‘Two Ad’ Policy).

GCap Media: 0207 663 7000 www.gcapmedia.com