Radio Industry Data Shows Growth For Q4 2000, Slow H1 2001 Predicted
Radio industry advertising data has been released for the fourth quarter of 2000. This shows that revenues for the period grew 10.9% in a year on year analysis. Analysts ABN AMRO had forecast growth in Q4 2000 of 7.6%. Total growth in radio advertising for the year was 15.4%, compared with the forecast made by ABN AMRO of 14.4%. Radio’s share of display advertising was more than 6%.
Revenues for the quarter reached a record £145m, including an increase in national revenue of 17.1% year on year. This area continued to be the main driver, representing 73.8% of radio revenues and showing growth of 25.7% for the year in total. Total spot advertising revenue grew 15.4% year-on-year to reach £536m. Local revenues fell for the seventh quarter running, by 3.7%.
| Top Ten Radio Media Buying Companies 2000 | ||
| Spend Jan-Dec 00 | % Change | |
| £millions | Year on Year | |
| Carat | 38.0 | 12 |
| OMD | 34.5 | 15 |
| Zenith | 34.0 | 24 |
| Mindshare | 17.7 | 19 |
| Starcom Motive | 16.7 | 4 |
| New PHD | 16.1 | -15 |
| Universal McCann | 15.8 | 2 |
| Optimedia | 13.9 | 22 |
| MediaVest | 12.1 | 7 |
| MediaCom | 12.1 | 8 |
Over 13,000 brands used radio during the quarter. The largest radio advertiser during last year was the Central Office of Information, which represented 2.6% of total revenues. Vodafone and BT were the next largest, and telecommunications companies made up over half of the top ten. British Gas also entered the top ten advertiser list for the first time.
All but one of the top ten media buying agencies increased their spend during 2000. Carat remained the largest spender, up 12% year on year with a spend of £38m. The exception to the rule was New PHD at number 6, which reduced spend by 15% year on year to £16.1m.
Growth was faster in the first half of 2000, at 21.2%. It slowed during the second half to 10.3% and this is expected to continue during the first half of 2001, thanks to tough year on year comparisons, the reduction in dot com spend and deflated prices in the TV market. First half growth of 4.1% is predicted, picking up to 13.5% during H2. ABN AMRO has left its full year growth forecast unchanged for 2001 at 9.0%. Zenith Media is predicting 15% growth for 2001, while Optimedia predicts slowdown at 3.3%.
ABN AMRO: 020 7678 7277 www.abnamro.com Radio Advertising Bureau (RAB): 020 7306 2500 www.rab.co.uk
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