Annonse

Radio takes advertising revenue from TV

17.04.2023 - RADIONYTT.NO - Kyrre Dahl

In March, radio advertising in Norway increased sharply, while the advertising market as a whole is declining, according to the Mediebarometeret.

Photo: Pixabay

The media barometer from the Media Agency Association, which reports advertising revenue via media agencies, shows a slight decline in the first quarter of the year. The overall decrease is 2.9% compared to last year, which amounts to 68.4 million fewer advertising kroner in the first three months of the year.

In the first quarter of the year, TV revenue is down by 9.1%, equivalent to NOK 80 million. TV thus also loses shares of the total advertising cake by 2.4% compared to last year, while channels such as radio, cinema and, not least, outdoors grow their shares.

The audio media (radio and podcasts) can report an impressive 22.4% growth so far this year, which amounts to an increase of 22.1 million.

Harald Eide-Fredriksen, Director of Media and Negotiations in dentsu says: - This is probably not only driven by high prices for TV, but radio can also show stable listenership numbers on its linear channels, plus increased listening and a large degree of product development within the digital products.

- In terms of media, there is no doubt that the "coverage media" radio and outdoor take budgets from TV. TV is losing market share after two consecutive years of strong list price increases. There are many indications that market forces are now striking back in the form of reduced demand. One might wonder if the TV companies have overestimated their own excellence, and perhaps they have raised their prices a little too much? At least now they have free space - for the first time in a long time, says Eide-Fredriksen in a press release.

Ove Søgård, sales director for P4--gruppen ( Viaplay Radio ) says: -The figures are yet another confirmation of the record high demand we have seen on the radio side in the last couple of years and fit neatly into the series of quarters with strong growth for commercial radio.

- In a time where reach and attention are becoming increasingly difficult to achieve, radio still stands firm with high coverage and frequency at a very cost-effective price. This means that more and more advertisers are making radio a more central part of the media mix, and thus contributing to strong growth for the media channel, says Søgård.

The media barometer is a monthly advertising statistic from the Media Agency Association. The figures show net indented turnover, after all discounts, but before any commissions.

Radio listening experienced a slight increase in March, compared to February. The progress is particularly strong for the P4 group. Both NRK P1 and P4's main channel gained more listeners last week, but in terms of market share, the P4 group is a clear winner. The senior channel NRK P1+ is going slightly in the opposite direction, but it is too early to determine whether it is a trend.