Digital Ad Spend is boosting Radio Revenue
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According to the latest Advertising Association / WARC Expenditure Report released on the 28th July 2022, the total UK advertising market is on course for 10.9% growth in 2022, with a total ad spend reaching a potential new high of ￡35.4bn.
Coming off the back of a record 2021, radio is still expected to grow by 5.4% in 2022, however digital radio spend is forecast to be up by 10.7%.?Looking back at Q1, radio ad spend was up a fantastic 19.7% within which digital radio revenues increased by 24.8%. Digital radio spend is helping fuel the continued growth of radio revenues
Smart Speakers
The increase in digital spend reflects Q1 RAJAR listening figures which saw online listening still on the rise.?Smart speaker listening was also recorded separately for the first time and showed that these devices now account for over 10% of all radio listening in the UK.
As people were working from home, missing the office chat and needing some company people used these devices for company, the biggest use of those smart speakers was streaming radio. According to Statista the number of adults that own a smart speaker more than doubled between 2019-2021. They are putting audio firmly at the centre of the household. On the brand side of the fence, products like Global Media’s DAX, Bauer Media and Wireless Groups joint venture, Octave, are offering advertisers a wealth of opportunities, allowing them to reach incremental and previously unreachable audiences.?
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Looking ahead
Amongst the uncertainty because of the ongoing economic turbulence, 2023 predictions are lower than 2022 but radio is still expected to grow a further 2.1% and digital audio billings by 8.6%. Digital continues to offer new opportunities for brands and looks set to be a key revenue driver moving forward.
For more information, and to find out how we can help you navigate the world of audio from conception to execution, get in touch with us at [email protected]