The downturn in the ad sector as a whole appears to have had a beneficial effect on radio advertising, which grabbed its highest ever share of the ad market in the third quarter of 2001, according to the Advertising Association.
Radio claimed 6.8% of display advertising (all except classified ads) in Q3, handing it 6.4% for the twelve months to the end of September, as brands with reduced marketing budgets turned away from TV.
In addition, its proportion of broadcast revenue rose year-on-year from 14.1% to 14.8% in the third quarter, with a total of 13.4% for the year to September.
The Radio Advertising Bureau, which has been promoting heavily the benefits of placing ads on the medium, said the message was starting to be heard.
“The dislocation in the market caused by the slowdown will mean that marketeers have got less money and must try and find more effective ways of spending their budgets,” said RAB managing director Justin Sampson.
“Radio is a particularly cost-effective way of increasing brand awareness and is doing particularly well among finance and motor companies.”
According to Sampson, Rover, Ford and Toyota have all increased their radio ad budgets, the latter proving the biggest spender in August 2001 with expenditure on the medium of £580,000 for the month.
News source: MediaGuardian.co.uk