Radio Sector Report

Marketline International has released a report into the radio sector in the UK, in which revenue figures for 1993 are estimated to be around £170m, an annual increase of 10-11%. Revenue for the first half of 1993 was £70.1m (a year on year increase of 7%).

Industry observers are optimistic about the prospects for 1994, and growth is expected to be between 13 and 15% in 1994.

Advertising revenue is split 70:30 between local and national sources for most ILRs.

Commercial radio now reaches 53% of ABC1 Adults and 56% of C2DE adults. Total radio listening is 21.2 hours per week per listener. Commercial radio is stronger with younger listeners; independent radio has a weekly reach of 69.4% among 15-24 year olds, but only 38.7% among over 55s.

According to the report, radio’s future looks healthy for the 1990s. Media planners see it as a growth medium; advertising revenue should increase significantly, and achieve over 2% of media advertising expenditure by the middle of the decade. This growth will be accelerated by new stations.

Finally the report addresses thequestion as to whether the BBC channels will be commercialised, and decides it is unlikely. The BBC may come to be defined as a provider of alternative services to those available on independent radio, the report decides, which would give commercial radio more opportunity to expand its share of listening.

Marketline International. Richard James 071 624 2200.