RAB Publish 1996 Review Of Radio
The Radio Advertising Bureau has published its Commercial Radio 1996 Marketplace Report which reveals that last year £308.8 million was spent on the medium, representing a growth of 14% year on year. This compares to a growth of between 5% and 6% for total display advertising. It is expected that commercial radio’s advertising share will reach 4.7% when 1996 figures are released for all media.
New data also shows that the rate of revenue growth was matched by increased demand for radio airtime: the number of minutes of advertising broadcast in 1996 rose by nearly 15% while there was an increase of almost 15% in the number of impacts bought.
The RAB also researched the views of 200 advertisers at the beginning of this year. In answer to the question “what do you perceive to be commercial radio’s greatest strengths?” the top answers were low cost; the ability to target defined audiences; the relationship radio has with its listeners. There was also an increasing agreement compared to previous years’ surveys with the statement that “there is an intimate relationship between consumer and radio which advertising can exploit.”
There were two new entries into the top 10 advertisers, of whom nine increased their spend year on year. COI was the largest spending advertiser with expenditure of almost £9m. Vuaxhall Motors entered the top 10 at number 4, with a spend of just under £4m, while Coldseal Windows’ expenditure of £2.9m placed them as the eighth biggest spender.
Top Ten Advertisers In 1996
| 1996 Spend (£000s) | 1995 Spend (£000s) | Annual % Change | |
|---|---|---|---|
| COI | 8,790 | 3,580 | +145.5 |
| Dixons | 6,136 | 3,603 | +167.5 |
| Carphone Warehouse | 4,768 | 2,397 | +98.9 |
| Vauxhall | 3,980 | 634 | +527.8 |
| Kimberly-Clark | 3,975 | 3,159 | +25.8 |
| Coca-Cola | 3,880 | 3,013 | +28.8 |
| McDonalds | 3,782 | 3,925 | -3.6 |
| Coldseal Windows | 2,981 | 827 | +260.5 |
| Ford | 2,798 | 2,014 | +38.9 |
| Renault | 2,743 | 2,094 | +31 |
Retail & Mail Order remains the biggest spending category on radio with £95.149m spent, followed by Motors (£48.835m) and Publishing (£24.620m). The most notable increases in percentage terms was seen among advertisers in the Household Equipment (up 50% to £8.871m), Government (up 75.1% to £16.194m), Food (up 41.7% to £8.871m), Pharmaceutical (up 96% to £8.179m) and Toiletries and Cosmetics categories (up 89% to £3.149m).
There were two new entries in the top 10 buying points, of whom 9 increased their spend on the medium. The Media Centre took top spot with an increase of 56.9% in their radio billings to £18m. New PHD and IDK Media both entered the top 10, with spend of over £6m, placing them respectively at numbers 9 and 10 in the ranking.
Top Ten Buying Points In 1996
| 1996 Spend (£000s) | 1995 Spend (£000s) | Annual % Change | |
|---|---|---|---|
| Media Centre | 18,042 | 11,499 | +56.9 |
| Zenith Media | 15,845 | 17,234 | -8.1 |
| TMD Carat | 10,787 | 6,737 | +60.1 |
| Universal McCann | 9,158 | 5,885 | +55.6 |
| Leo Burnett | 8,394 | 5,312 | +58 |
| The Network | 7,587 | 4,742 | +60 |
| CIA MediaNetwork | 7,262 | 5,622 | +29.2 |
| Media Business Group | 7,238 | 5,337 | +35.6 |
| New PHD | 6,673 | 4,396 | +51.8 |
| IDK Media | 6,295 | 4,296 | +46.5 |
Source: RAB
RAB: 0171 306 2500