Australian radio industry online advertising

Broadcasters pivot to streaming and podcasts to capture younger demographics and secure sustainable growth.

David Kennedy · Venture Insights30 May 2024Period: FY248 min read

$189m↑

Projected Australian radio industry online revenues (FY28)

30%↑

CAGR for total online radio industry advertising revenue (FY23-FY28)

Locked

+2more stats

Companies covered:

Abstract

This report projects that by FY28 the Australian radio industry will generate $189 million in online revenues, evenly split between streaming and podcast ads. While traditional radio remains pivotal, music streaming and podcasting are reshaping the competitive landscape, especially among younger demographics. To adapt, radio broadcasters are investing in online streaming platforms, podcast production, and programmatic advertising, leveraging local content and partnerships to remain competitive. The report underscores the importance of embracing transformation to secure market position.

Key Takeaways

The Australian radio industry is forecast to reach $189 million in online advertising revenue by FY28, driven by a 30% CAGR.
Online revenue will be evenly split between radio streaming ($95 million) and radio industry podcasting ($95 million) by FY28.
Traditional broadcast radio revenue remains below pre-pandemic levels, totaling $1,068 million in FY23 compared to $1,225 million in FY19.

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Frequently Asked Questions

The sector is projected to grow at a 30% CAGR through FY28, reaching $189 million in total online advertising revenue. This growth is driven by an equal contribution from streaming and podcasting, with each segment forecast to generate $95 million.

Digital gains are not yet offsetting the broadcast decline, as traditional revenue fell from $1,225 million in FY19 to $1,068 million in FY23. By FY28, the radio industry will capture only 41% of the total $457 million online audio advertising market, indicating significant competition from global streaming platforms.

SCA and ARN remain the dominant market leaders, though SCA’s market share is expected to compress to 37% by FY28. Smaller players are increasingly capturing share as the market for online radio listeners reached 35% of survey respondents as of mid-2023.

Broadcasters must integrate programmatic advertising and first-party audience analytics to compete for national budgets within the $189 million online revenue pool. These tools are essential for matching the targeting capabilities of global music streaming competitors.

Australian radio industry online advertising

Abstract

Key Takeaways

Frequently Asked Questions

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