Radio sales houses cut rates to cope with spend slowdown

Radio sales points have slashed their airtime rates to survive a sluggish summer and a downturn in dotcom adspend.

Radio sales points have slashed their airtime rates to survive a

sluggish summer and a downturn in dotcom adspend.



Media agency radio planners and buyers have reported that Emap and Opus

have dropped their rates by as much as 10 per cent for the month of

August.



Capital Radio and Virgin have also lowered their prices.



Chrysalis has not been affected to the same degree because it has a

strict inventory policy of only running three breaks per hour and

selling three ads per break.



The drop in prices has been attributed to an overall slowdown in the

market, combined with the fact that many web publishers are cutting

their advertising budgets after an initial six-month spending spree.



Some observers believe the common radio sales policy whereby advertisers

book radio campaigns at least four to six weeks in advance has not

helped the situation.



Howard Bareham, head of radio at MindShare, said: ’The short-term market

has evaporated because radio sales executives will penalise you if you

don’t book early.’



According to Bareham, advertisers have been penalised by as much as 10

per cent for booking a late radio advertising campaign.



Commenting on the rise and fall of prices, another radio buyer said: ’As

in every media sector, internet companies have pushed traditional

advertisers out of the market, the cost per thousand has risen and

advertising revenue has gone up by as much as 30 per cent.’



He added that as an advertising medium, radio has been growing by 10 per

cent year on year.



’August seems worse than it actually is because the medium has

over-achieved in the past six months. Every market has its ups and downs

and, overall, radio’s story has been glowing. But radio sales houses

should accept the lows as well as the highs.’



A spokesperson at Opus commented: ’August is traditionally a bad month

for the radio industry as everyone goes away on holiday.



’Our forecast is always slightly lower for August but nobody here has

opened up the bargain basement.’



Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content