Growth In Sponsorship Lifts Commercial Radio Revenue

Commercial radio saw revenue increase by 2.1% year on year during the first quarter of 2002 to £139m, according to the latest figures from the RAB.

This is the second consecutive quarter that commercial radio has seen revenue increase, suggesting that the sector is expanding its share of the display advertising market. Managing director of the RAB, Justin Sampson, said: “These latest numbers give us confidence that a 7% market share will be achieved this year.”

A 16.8% growth in the area of sponsorship and promotions between April and June is understood to be largely responsible for the increase.

Sampson added: “The trend in S&P is very encouraging. New marketing models, such as permission based and experimental marketing, are fuelling advertiser’s desires to move beyond spot advertising – radio is clearly benefiting from the increasing integration of sponsorships and promotions alongside more traditional advertising mechanisms.”

According to the RAB, the telecoms sector showed “pronounced growth” during the first quarter of 2002, with BT, Vodafone, Telewest, O2 and T Mobile collectively investing 76% more in commercial radio than in the previous year. COI Communications, Sainsbury’s and BT were the biggest radio advertisers between April and June 2002, spending more than £4m between them.

Last month the RAB launched its latest marketing campaign aimed at promoting the medium to advertisers (see Johnny Vegas To Front Latest RAB Ad Drive). The campaign consists of four 30-second executions featuring comedian Johnny Vegas, who is best known for his role in ITV Digital’s Al and Monkey ads.

RAB: 020 7306 2500 www.rab.co.uk

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