Radio Must Increase Ad Revenue

According to a report launched today by Coopers & Lybrand, UK independent radio must increase its total advertising revenue by at least 50%, if it is to meet the demands of the projected increase in the number of stations and listeners.

The report forecasts that by 1996 UK independent radio will have a 45% listening share and a 68% weekly reach, but in order to sustain the projected increase in services, independent radio will need to achieve a 3% share of total ad revenues. In 1992 total ad revenue for independent radio was £140m a 2% share of the total ad revenue.

For independent radio to increase its share of advertising it needs to overturn current agency indifference to radio. According to the report the following factors should influence this:

* The anticipated growth in audience should establish independent radio as a credible national medium.

* Sales packages such as National Network Radio will make it easier to buy local radio on a national basis.

* The current increase in new advertisers on Independent National Radio can be expected to continue as it becomes more established.

* The establishment of the Radio Advertising Bureau to market independent radio advertising will be instrumental in breaking down any agency indifference.

Further information contact George Eccles, Coopers & Lybrand

071 213 5344

Copies of the report, “United Kingdom Independent Radio: a new area” from Heidi Rowe, Coopers & Lybrand 071 213 5351