Double Digit Growth Helps Radio Out Of Downturn
Commercial radio continues to lead the way out of the advertising downturn with revenue increasing by almost 13% year on year during the fourth quarter of 2003 to almost £166 million.
The latest figures from the Radio Advertising Bureau show that fourth quarter growth helped the industry deliver a solid 6.8% increase across the year as a whole, to take total adspend for 2003 to £601 million.
Growth was driven big-brand FMCG advertisers such as Proctor & Gamble and Lever Fabergé, which doubled their investment in radio during 2003. Other advertisers including Specsavers and Easyjet increased their radio budgets by 274% and 160% respectively in the three months to December 2003.
Commenting on the figures, Simon Worthington, head of communications planning at Initiative Media, said: “Lever Faberge have significantly increased spend on radio during 2003 – radio has provided an additional and powerful dimension to support brand objectives.”
Sponsorship and promotions activity continued to go from strength to strength with revenue increasing by 15.2% year on year during the fourth quarter to more than £20 million. An increasing number of brands are turning to S&P as an efficient and cost-effective way of building brand awareness.
Michael O’Brien, client services director at the RAB, said: Radio is leading the way out of the downturn as marketers increasingly turn to radio, attracted by its clearly demonstrated effectiveness at building awareness and driving sales. The big FMCG companies often lead marketing thinking within the industry – hence P&G and Lever Faberge’s significantly increased investment in radio during 2003 bodes well for 2004.”
The figures from the RAB also show that the top twenty radio buying agencies increased their total radio billings by 14% last year, whilst the top 20 radio creative agencies recorded an 11% rise during the same period. Mother saw billing rise by a massive 134.1% and Radioville by almost 59%.
The latest data from Nielsen Media Research shows that nearly two thirds of the UK’s top one hundred advertisers increased their above-the-line spend last year, in a move that suggests the industry is emerging from the downturn and into a period of growth (see Confidence Returns As Top Advertisers Increase Spend).
RAB: 020 7306 2500 www.rab.co.uk
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