Record breaking year for UK radio revenues
Commercial radio is celebrating a record-breaking year for advertising revenue, boosted by increased investment in the medium by online retailers.
Figures from Radiocentre show that commercial radio took £645.8 million in ad revenue in 2016, its highest ever figure. This represents a 5.4% increase on the previous year, outperforming the total 2016 advertising industry growth estimate of 4.4% from the Advertising Association/WARC.
The fourth quarter of 2016 was also the biggest on record with advertisers, growing 7.7% to £181.1 million, beating the previous record fourth quarter of £168.4 million in 2003.
Ebay increased its radio spend by 600% to £5 million in 2016, whilst ASDA and Morrisons continue to be big supporters of the medium, with spends of £9.8 and £7.1 million respectively. Sky remains the largest UK radio with spend of £19.4 million.
The motor industry, retail, entertainment and leisure, finance and government remain the biggest sectors for radio advertising but the medium was also boosted by a 90% growth in spend from online retailers, almost doubling from £6.5 million in 2015 to £12.4 million in 2016.
Siobhan Kenny, CEO of Radiocentre says: “These figures show that commercial radio is in great shape. Advertisers continue to value the reach, effectiveness and impact of radio and are making the most of its ability to reach far and wide”.