Radio revenues worth tuning in for as ad market records post-Covid recovery

Some good news this week for the half-dozen people in the Irish radio business who aren’t on their holidays right now. The first six months of 2022 have delivered “buoyant” advertising revenues, according to an update from the newish industry body Radiocentre Ireland.

From January to June, revenue for all radio operators in the Irish market rose 18 per cent compared with the same period in 2021, Radiocentre Ireland said, reaching €74.2 million.

While there was some slowing in the year-on-year growth rate — revenues were up 22 per cent in the first quarter and up 14 per cent in the second — the numbers will still be music to the ears of those radio executives fighting a valiant battle to stave off the loss of ad money to online media giants Google and Facebook. Because radio is almost entirely dependent on advertising for revenues, it is even more vulnerable than other media to downturns such as that abrupt “pause” in marketing spend seen at the outset of the Covid crisis.

The welcome breakdown from Radiocentre Ireland, which is based on the actual recorded revenues for each radio station, shows that revenues from media agencies amounted to €51.9 million, up 10 per cent, with revenue coming directly from advertisers — typically smaller companies, including local businesses — up 40 per cent to €22.3 million, a gain that no doubt reflects the end of Covid restrictions.

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The six-month total comprises €60 million in spot advertising (standard commercials in ad breaks), which was up 16 per cent, as well as some €12.9 million in branded content revenue (including sponsorships and partnerships), up 21 per cent, and €2.3 million digital audio revenue. While this last component of the market remains the smallest, it is the fastest-growing, surging 50 per cent year on year.

Radiocentre Ireland chief executive Ciarán Cunningham says the strong start to the year has been “very encouraging” and reflects “booming” listening levels. Indeed, for radio industry people currently at their desks and the many, too, who have their out-of-office on, the hope now will be that this momentum can be sustained.