Commercial radio saw revenue increase by 7.5% year on year during the first quarter of 2004 to more than £150 million, as big-brand FMCG advertisers continued to increase their investment in the medium.
The latest figures from the Radio Advertising Bureau maintain the upward growth for commercial radio, which continues to lead the way out of the downturn with revenue rising by 11.3% over the last two years.
First quarter growth was driven by the fact that five out of the top ten radio advertisers increased their adspend by more than 25% year on year. This helped revenue for the three months to March to reach £150.9 million, including £91.3 million from national advertisers and £17.8 million from sponsorships and promotions.
COI Communications continued to be the biggest radio advertiser, with more than £23 million spent on the medium in the twelve months to March, up by 27.5% on the previous year. Proctor & Gamble increased its adspend by 40% during the same period to £7.5 million and Lever Faberge upped its on-air investment by almost 100% to £3.2 million.
The boom in third generation mobile phones saw Hutchison 3G increase its radio adspend by almost 1,300% year on year to just over £400,000 as it attempted to corner the rapidly expanding market. Orange boosted its investment in radio by more than 135% to £2.2 million during the same period, but rival Vodafone downsized its on-air spend by almost 30% to just under £7.4 million.
Lynne Springett, marketplace and PR Manager at the RAB, said: “The Q1 figures provide a great start to the year for commercial radio. Advertisers are increasingly being attracted to radio by its proven effectiveness and ability to increase sales and, with digital radio offering more and more targeting opportunities, we look forward to seeing this trend continue.”
The latest RAJAR figures for the first quarter of this year show that commercial radio is continuing to increase its delivery of core audiences to advertisers with year on year growth in both hours and weekly reach amongst 15 to 24 year-olds, ABC1 adults and Housewives.
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