Commercial Radio Boosted By Sponsorship And Promotions

Commercial radio has again been boosted by the increasing popularity of sponsorship and promotions, which helped the industry to see its total revenue for 2002 increase by 2.5% year on year to £562.8 million.

The latest figures from the Radio Advertising Bureau (RAB) show that commercial radio revenue for the fourth quarter of 2002 was up by 4.2% year on year to £147.6 million. Sponsorship and promotions continued to be one of the fastest growing sectors, with revenue improving by 9.2% year on year during the quarter to reach almost £17.9 million. Over the course of the year revenue from this sector grew by 14.7% to total £71.2 million.

The industry has seen an increasing amount of high profile sponsorship and promotions activity over recent months. This culminated at the end of January when Woolworths was secured as the multimillion sponsor of the Network Chart Show, in what is thought to be the biggest sponsorship deal in British radio history (see Woolworths Signed As New Chart Show Sponsor).

Overall revenue growth in 2002 for the commercial radio industry was helped by several major advertisers significantly increasingly their spend over the course of the year. According to the RAB, notable improvements in investment came from Sainsbury’s, News International, Telewest, Toyota and Ford.

Commenting on the figures, Michael O’Brien, director of marketing operations at the RAB, said: “Given the continued economic uncertainties, we are very pleased to report 2.5% growth in radio revenues during 2002. With TV revenues expected to be flat during the same period we are confident that commercial radio will yet again have increased its share of total advertising spend.”

The advertising association is expected to report its fourth quarter and full 2002 year revenue figures for the whole of the industry, including TV and radio advertising, next month.

The radio industry is today digesting news that Kelvin MacKenzie’s The Wireless Group is challenging the existing method of radio audience measurement by commissioning a rival three-year survey using electronic measurement devices (see MacKenzie Commissions Rival Radio Audience Survey).

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

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