Radio celebrates as Jubilee provides 20% ad spend lift in May

The UK's radio industry is on track to record a bumper May for advertising spend, fuelled by Jubilee celebrations and the start of Euro 2012, with industry leaders anticipating lifts of around 20%.

Radio: Jubilee weekend bolsters ad market
Radio: Jubilee weekend bolsters ad market

May is said to have benefited from supermarkets and other advertisers spending around the Queen's Jubilee and brands bringing forward campaigns to avoid the London 2012 Olympic Games.

Industry estimates suggest radio's May performance make it 2012's strongest month to-date, although some media agency buyers tempered the talk by noting some stations had performed notably stronger than others, they expected the market rise to level out closer to 12% to 15%.

The increase in May should also be put in context as industry figures show the radio ad market declined by 3% in 2011 and by 4% in 2010. This means a 20% year-on-year rise in May 2012 equates to a 14% rise on 2009 revenues.

But the growth trend is expected to continue in June 2012 when advertising revenue is forecast to rise by between 5% and 7% year-on-year, putting the quarter as a whole up between 10% and 13% when compared to the same period in 2011.

According to figures published by the Radio Advertising Bureau for the first three months of 2012, total radio advertising rose by 7.5% year on year bolstered by brand integration (sponsorship and promotion) revenues which were up 10.2%.

The radio ad growth has been partly fuelled by national airtime rises across properties such as Global Radio's national brands and UTV Media’s TalkSport as well as by sponsorship and promotions.

When changes were made to the TV product placement rules last February, the guidelines governing what radio stations were allowed to do for commercial partners also relaxed and enabled stations to expand their offering.

The good news for radio comes in contrast to the outlook for TV, where media agencies suggest spend could be down by as much as five and 10% year on year in July and August.

Radio leaders hope the sector can continue to outperform the wider media market for the remainder of the year, although do expect a drop off and admit visibility remains murky. Early forecasts tip growth of around 3% for 2012.

Follow Maisie McCabe on Twitter @MaisieMcCabe

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

PHD co-founder Jonathan Durden reflects 25 years on

PHD co-founder Jonathan Durden reflects 25 years on

Who knew that a global phenomenon could be spawned from such humble beginnings? PHD co-founder Jonathan Durden takes a trip down memory lane.

Share
Friday's lesson? We should all be more unprofessional

Friday's lesson? We should all be more unprofessional

What kind of time is 18:05 to you? Home time? Carry on working time? Bloody big glass of wine time? At Brand Republic we know it's often time to recoup, when the day's meetings are over and you can catch up on the most important developments of the day. Our 18:05 digest brings you the five things you need to know at the end of every day. Whether it's the top news stories, what's trending on social, what the wider media is saying or irreverent inspiration for your journey home - we've got it covered. And don't worry, we'll keep it short.

Share
#MediaWeek30 set for bumper issue and party on 29 April

#MediaWeek30 set for bumper issue and party on 29 April

Media Week's 30th celebrations are taking shape, offering the chance for the UK's vibrant commercial media businesses to get involved.

Share

Get news by email