The advertising market is so short and obscured by economic winds that the looming final quarter of the calendar year, the three months to December, is hidden from view.
Broadcaster SCA, in releasing full year results, described the current market as short term and inconsistent.
Revenue for the year to June was down 3.7% to $505.6 million. SCA’s audio revenue was flat at $397.2 million, described as a “solid” result in current conditions.
“In terms of the pacing at the moment .. we expect the market overall to improve in the second half from January onwards, as economic conditions improve, but also the comparables,” CEO John Kelly told AdNews.
“Notwithstanding all that, digital audio continues to pace in accordance with the levels we achieved in 2023.”
SCA says it’s well positioned to benefit from expected improvements in advertising markets from January on.
Early data from SMI (Standard Media Index), not yet released publicly, shows July metro radio down 1.7% and regional radio 13.9%.
However, overall ad spend is tracking well for September, according to the confidential SMI numbers. This fits with Seven West Media’s outlook saying September was “slightly” ahead.
The digital side of SCA’s business is a standout, recording strong growth despite market conditions.
Media buyers are paying attention to LiSTNR, with digital audio revenue rising 36.2% to $21.3 million over the year to June.
LiSTNR had more than 1.5 million signed-in users and a monetisable audience network of over 8 million monthly listeners.
Kelly says LiSTNR is on target to reach breakeven run rate during the fourth quarter of the 2024 financial year, a year ahead of previous guidance.
“As an industry we're growing, but we're growing at a higher rate because of what we've been able to achieve, both with LiSTNR and with our partnerships, particularly podcasts," he says.
He says audio is accessible anywhere, anytime.
“Personally, I listen to podcasts when I'm running, I listen to radio on the way to work on the train.
“One thing that that audio has is we don't have a consumption problem.
Radio has never had a larger audience. And we do not see the death of radio anytime soon. In fact, 80% of the listening on LiSTNR is through either broadcast live radio or through catch up podcasts.
“We're great believers in audio, and probably unlike our free-to-air colleagues we are very collaborative about growing the sea of audio.
“We want to get as many people into the stadium as possible, and then we'll compete like hell on the field.
“We think audio as a medium is underweight in terms of our share of the advertising revenue pie.”
A slide from SCA's presentation to market analysts:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.