Commercial Radio revenue is continuing to enjoy substantial growth, with data released today revealing that total revenue for 2004 reached £637.6 million, a 5.6% increase year on year.
The figures, released by Ofcom and the Radio Advertising Bureau (RAB), disclose that Sponsorship & Promotions continues to be the fastest area of growth, with revenue from the sector up 23.3% year on year, to stand at £93.7 million.
Although growth for the fourth quarter of 2004 was reported to be slightly down by 2.2% year on year, this was due to a particularly strong Q4 in 2003, which saw revenue rise by 14.7%.
The new data confirm Commercial Radio’s expected long term growth, with total Commercial Radio revenue growth in 2004 enjoying a 13.3% increase on 2002, compared to 8.0% growth in TV revenue across the same period.
Commenting on the new figures, Michael O’Brien, operations director at RAB said: “The next five years are a time of huge potential for commercial radio. Consolidation will help the industry compete for audiences with the BBC, while digital radio is bringing new interactive and targeting opportunities for advertisers. All at a time when newspaper readership is in long term decline and personal video recorders are expected to reduce the level of TV advertising.”
New research released yesterday by Ipsos Ominbus on behalf of the Digital Radio Development Bureau (DRDB), consolidates the growing success of digital radio, with consumer awareness of the product in the UK standing at 29 million people, or 59% of the adult population (see Increasing Consumer Awareness Of DAB Radio).
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