Radio Revenue – RAB Aims For 5%

The Radio Advertising Bureau intends to take Commercial Radio’s share of the display advertising revenue to over 5% in the next four years. According to research carried out by the Henley Centre on the Radio Advertising Bureau’s behalf, this rapid growth is achievable.

Revenue for 1993 was £178.5m, up 26.7% on the £140.9m in 1992. The radio share of total revenue for 1992 was 2.8%; the estimated share for 1993 was 3.4%. However this improvement is relative because the 1992 figures do not include Atlantic, whereas the 1993 figures do. Sponsorship, which is not included in this figure, is estimated at £30m for 1993.

According to Douglas MacArthur, managing director of the RAB, radio will break the 4% barrier in 1997. RAB has been working with the Henley Centre to create a multi-variant econometric model for radio revenue; this is not yet complete; however, once the effects of a proposed national marketing campaign is fed into the Henley model, a target of 5% looks achievable.

Douglas MacArthur has been appointed a member of the RAJAR board. He intends to make the research more accessible and user-friendly. The increase in advertising spend on radio he attributes to the new RAJAR system; the advertising industry now has much more confidence in the research system.

RAB 071 636 5858