Revenue growth in radio advertising – automotive industry at the top
Radio advertising is currently catching up in the field of traditional media. Last year, retailers and mail order companies in particular withdrew advertising money from newspapers and invested them in the radio channel. In the first half of 2012 it was the automobile manufacturers who increased their budgets for radio advertising. The bottom line is that there is less and less left for marketers – the gross-net gap continues to widen.
From Klaus Janke
In radio advertising, the trees have never grown into the sky, but business is not bad: According to Nielsen, the medium’s gross sales increased by 5.1 percent in the first half of 2012 compared to the same period in the previous year and now amount to around 720 million euros. The most important source of impetus is the advertising offensive of the car manufacturers, which – counting all traditional media – increased by eleven percent, but added a disproportionately large amount (plus 18.8 percent) for radio. The importers in particular play a major role here: Toyota increased the budget by more than 300 percent, Citroen, Renault and Peugeot also set the tone, while Opel had to step on the brakes in a crisis. Tourism and home and garden outfitters are also ensuring above-average growth, while financial service providers and beverage manufacturers have made significant reductions.
Retail operates at a high level
Lidl remains the largest radio advertiser. The Neckarsulm discounter has spent almost 20 million euros, almost tripling its radio budget. Because other companies such as Media-Saturn and Real are saving, the retail sector has only achieved an overall increase of 1.8 percent – but it is operating at a high level: especially in the past year, radio benefited in this area from the weakness of regional daily newspapers . Big chains like Lidl, Real and Netto withdrew money from the newspapers on a large scale and put them on the radio. In 2011, retailers and mail order companies spent a total of around 256 million euros and thus almost 19 percent more on the radio.
|Companies||Gross expenditure January to June 2012 in million euros||Change compared to the same period of the previous year in percent|
|MC Donalds||15.5||+ 10.9|
The biggest advertisers on the radio
With the plus of 5.1 percent, radio can increase its market share slightly, since the total advertising market only grew by two percent. However, the radio share is a meager 5.8 percent (2011: 5.5 percent), the prospect of marketers growing only slowly to leave the “5” before the decimal point behind them at some point. After all: after the Internet (plus 17.6 percent), radio shows the greatest growth among traditional media in the first half of 2012.
|medium||Market share January to June 2012 in percent|
|Out of Home||4.8|
Market shares of the advertising media
Advertising prices are rising, so are discounts
Radio is thus continuing its growth path from 2011, when the bottom line was an increase of 6.2 percent and a total of 1.45 billion gross sales. However: gross is not always net. According to ZAW, net advertising revenues in 2011 were only 702.9 million euros. The ZAW statistics also show that the gross-net gap is widening. While net sales in 2001 accounted for more than 72 percent of gross sales, this figure fell below the 50 percent mark for the first time in the past.
The advertising prices are rising: The marketers took advantage of the fact that since 2010 non-EU countries living in Germany and speaking German have been included in the reach data of the media analysis (MA). Because this increased the range, they increased the tariffs at the same time. The gross-net discrepancy is explained by the fact that self-promotion, counter-deals and, above all, discounts have increased even more. No wonder that the two big marketers AS&S Radio and RMS keep each other’s price and discount policies more than attentive.
The radio medium draws attention to itself in particular through the “Radio Day” industry get-together and the awarding of the German Radio Prize. You will find a picture gallery for both events.
You can find the photos from Radio Day, which took place in Cologne on September 11, 2012, here.
The pictures from the festive gala for the awarding of the German Radio Prize on September 6, 2012 can be found here.