Anyone that knows me will know that local direct and regional agency revenues are what interest me the most from a working perspective; but I’m all too aware that national ad revenues are a real barometer of economic recovery. However we recently learned that commercial radio’s share of ad spend across the UK was down 6.6% in H1 of 2013 – so I decided to have a look at the three different revenue streams independently.
In my last post I was discussing how regional agency land was actually performing quite well against a backdrop of decline with Radio & TV the big winners (from a traditional media p.o.v) with Press & Outdoor suffering pretty much double digit % declines. So let’s have a look at the local direct market (those spenders with no agency) and open up the media type to include media other than traditional:
So actually… when it comes to what’s happening with the guys with their boots on the ground… it’s much more of a positive story than the initial figures would suggest! Overall, YoY local direct ad spend across the UK is down -7.48% to £2.32bn in the 12 months from October 12 from £2.51bn in the preceding 12 months. But actually – the need for advertising is seemingly just as great as it has been in previous years! Here’s the facts:
As you can see… despite the decline in local direct ad spend across the year, commercial radio has increased by 13.73% YoY – that’s up like for like by £6.1m in revenue in 12 months.
Big drops in direct mail due to it just not being a preferred method of delivery anymore – although it certainly still has it’s place from a customer service and up-selling perspective.
One thing I can’t explain is the growth in press advertising YoY from local direct clients… this is supposed to be a dying medium?!? Evidently not… they certainly have the knack for gaining and retaining revenue… perhaps a symptom of what happens when press reduce their rates to a more acceptable level?
What is clear to see though is that Radio, Press and Direct Mail remain mass reach options of choice at an affordable level for local spenders – and I don’t see that changing so much over the coming while.
Let’s all blame the London Agencies?!
Answers on a postcard as to how your region or medium is performing 🙂
