Audio Advertisers in Australia Split Spending Between Digital and Radio - eMarketer

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Audio Advertisers in Australia Split Spending Between Digital and Radio

Buyers follow listeners across the dial—and onto the internet

February 27, 2017

Radio and audio-based marketing is only a small piece of the overall ad market in Australia. eMarketer estimates radio ad spending will account for 7.2% of all media expenditures in the country in 2017, totaling just $797.8 million. But changes in audio ad expenditures may reflect a wider refashioning of ad spending in Australia, as traditional media is supplanted by digital formats.

Buying Methods that Media Buyers in Australia Expect to Use for Audio Advertising, Nov 2016 (% of respondents)

According to a November 2016 survey by the Interactive Advertising Bureau Australia (IAB Australia), media buyers in the country are increasingly splitting their investments between traditional radio spot buys and newer technology-driven approaches involving programmatic. Nearly three-quarters (74%) of buyers planned to purchase audio spots this year using traditional methods, while half expected to purchase programmatically traded inventory.

Average Weekly Time Spent Listening to the Radio According to Radio Listeners in Australia, by Type, June 2016 (hours)

The split in buying methods appears to reflect larger trends in the audio listening habits of radio listeners and music lovers. Research shows many Australians continue to devote significant weekly time to listening to terrestrial radio. A June 2016 study by the Australian Communications and Media Authority (ACMA) found radio listeners in the country spent an average of 8 hours per week listening to radio across AM and FM channels at home and in their cars.

However, the study also revealed that radio listeners are spending significant time with digital music and radio services. ACMA found radio listeners in Australia spent a combined average of 1.6 hours per week with digital audio broadcasting channels, digital radio and internet streaming radio. Data released in August 2016 by Roy Morgan Research also noted a significant uptick between 2012 and 2016 in the number of Australians who stream music digitally.

—Jeremy Kressmann

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