Advertisers Feel TV Is Becoming Prohibitively Expensive, Finds RAB Research

In the face of an economic slowdown, the commercial radio industry may find that ad expenditure is turned its way as advertisers move away from TV and toward lower cost media. This is one of the findings of the Radio Advertising Bureau’s Advertiser Research.

The research reports that advertisers feel that television is becoming prohibitively expensive: 45% agreed with this and only 18% disagreed. “It must be of concern to TV that almost half its customers believe this to be the case,” said Justin Sampson, operations director at the RAB.

Whilst there was no clear indication from advertisers that budgets would be significantly cut in a recession, 58% agreed that they would seek lower cost media for their campaigns. In this instance radio would be expected to benefit – 48% of those questioned thought that this would be the case.

Although evidence currently shows that there have been no substantial budget cuts, advertisers are starting to plan expenditure on a quarterly, rather than annual basis. If belts are tightened, commercial radio may benefit from extra attention predicted by the RAB’s research.

Radio Advertising Bureau: 0171 306 2500