Radio industry online advertising

Radio broadcasters are leveraging local content and programmatic platforms to capture 41% of online audio ad spend by FY28.

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

$189m↑

Projected radio industry online revenue (FY28)

30%↑

CAGR for total online radio revenue (FY23-FY28)

Locked

+2more stats

Companies covered:

Abstract

This report projects that by FY28 the 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 and sustainable growth amid evolving consumer preferences.

Key Takeaways

The Australian radio industry is forecast to reach $189 million in online advertising revenue by FY28, representing a 30% CAGR.
By FY28, online radio will account for 41% of the total $457 million online audio advertising market, overtaking music streaming's share.
Radio streaming and podcasting revenues are projected to reach parity at $95 million each by FY28.

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Frequently Asked Questions

The sector will expand at a 30% CAGR to reach $189 million in online advertising revenue by FY28. This growth is split evenly between streaming and podcasting, with each segment projected to generate $95 million.

Online radio is on track to overtake music streaming's dominance, capturing 41% of the total $457 million online audio advertising market by FY28. This shift is supported by a growing listener base, with 35% of survey respondents already consuming radio via online platforms.

Traditional broadcast revenue remains stagnant and is forecast at $1,023 million for FY24, well below the $1,225 million recorded in FY19. However, the transition to digital offers significantly higher efficiency, as podcasting ads can generate a yield 30 times higher than traditional broadcast ads per listener.

SCA and ARN are the market leaders, with SCA forecast to reach $70 million and ARN $52 million in online revenue by FY28. While they hold the largest volumes, smaller players like Nine and Nova are growing faster, with CAGRs of 41% and 39% respectively.

Radio industry online advertising

Abstract

Key Takeaways

Frequently Asked Questions

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