UK Commercial Radio Revenue Dips 7.7% In 2001, In Line With Display Market
Advertising revenue, including sponsorship and promotions, for UK commercial radio fell 7.7% year on year to £549 million, according to the latest figures from the Radio Advertising Bureau (RAB).
The motoring and finance sectors significantly increased radio investment in 2001. Expenditure from financial advertisers was up 31% due to Abbey National, NatWest, HSBC and Lloyds TSB. Growth of 7% in the motor sector was led by Toyota, MG Rover, Fiat and Ford, says the Bureau.
| Commercial radio revenue annual total | ||
| Revenue (£m) | Year on year growth (%) | |
| 1993 | 178 | |
| 1994 | 220 | 23.6 |
| 1995 | 271 | 23.2 |
| 1996 | 309 | 14.0 |
| 1997 | 354 | 14.6 |
| 1998 | 418 | 18.1 |
| 1999 | 464 | 11.0 |
| 2000 | 595 | 28.2 |
| 2001 | 549 | -7.7 |
| Source: RAB, Radio Authority, February 2002 | ||
Across Q4 2001, commercial radio revenue stood at £142 million. This was dominated by national advertising with a 61.2% share of total spend and activity worth £86.8 million, whilst local advertising revenue stood at £38.5 million.
Sponsorship and promotions remain an area of growth with revenue up 6.6% to £16.4 million in Q4. Across the full year 2001, S&P activity was worth £62.1 million.
Justin Sampson, the RAB’s managing director admitted that it had been a ‘difficult year’ but added: “The positive story for the longer term is that a couple of important sectors seem to be overcoming legacy objections to using the medium.”
The top ten radio buying points are shown below. OMD leads the way with a spend of £12.4 million in Q4, followed by Zenith at £10.4 million.
| Top Ten Radio Media Buyers, Oct-Dec 2001 | |||
| Rank | Agency | £million | Year on year % change |
| 1 | OMD | 12.4 | -17.0 |
| 2 | Zenith | 10.4 | 7.0 |
| 3 | Carat | 6.4 | -30.0 |
| 4 | MediaCom | 5.9 | 43.0 |
| 5 | Mindshare | 4.3 | 7.0 |
| 6 | MediaVest | 4.3 | 17.0 |
| 7 | PHD | 4.0 | -11.0 |
| 8 | Starcom Motive | 3.4 | -32.0 |
| 9 | Initiative | 2.9 | 73.0 |
| 10 | Optimedia | 2.7 | -21.0 |
| Source: RAB, February 2002 | |||