Sydney’s shrinking revenue share

Over the past decade, radio ad revenue in Sydney grew at a sluggish 1.6% p.a. whereas in the other four metro markets, in aggregate, the growth rate has been almost four times higher at 6.0% p.a. The result? Sydney’s share of total metro radio ad revenues fell from 40.5% in 2002 to just 30.8% in 2012. Go figure.

The man who has done the figures is a strategic consultant specialising in media, Bob Peters. In a six part series of reports, he examines trends in metropolitan radio advertising revenues over the past decade.


In the first of those reports Peters says many factors are likely to have contributed to Sydney’s slower growth rate in radio ad revenues, including the following:

o   In 2002, Sydney’s  40.5% radio revenue share was disproportionately high given that Sydney accounted for only 34.5% of the total metro population.

o   Conversely, at the same time, Melbourne’s respective shares were disproportionately low (ie 26.4% of ad revenues but 31.1% of the metro population), so over the past decade there appears to have been a more equitable rebalancing of ad revenue shares between Sydney & Melbourne bringing each close to their respective shares of the total metro population (of 32.7% and 31.7% in 2012) ;

o   Secondly, over the past decade, Sydney’s population has only increased by 1.1%pa, whereas it has been much higher in Melbourne (+1.8%pa); Brisbane (+2.3%pa); and Perth (+2.4%pa).

Interestingly, unlike radio, Sydney’s share of total metro TV ad revenues remained relatively constant over the past decade.  It was 36.5% in 2002 and is 36.6% in 2012. 

Bob Peters is a Director of Global Media Analysis Pty Ltd (“GMA”), a specialist financial and strategic consultancy to the media, entertainment, telecommunications and technology industries. Bob is also recognised as one of Australia’s leading media industry analysts.

Prior to establishing GMA in early 2001, Bob was a Director of Corporate Finance with ANZ Investment Bank and prior to that Capel Court Investment Bank.

In both his current and previous positions, Bob provides advice to corporate clients in relation to: takeovers & mergers; asset acquisitions & disposals; debt and equity fund-raisings; financial planning & restructuring; business & asset valuations; financial & economic feasibility studies; and the formulation of business strategies.

Bob holds a Bachelor in Economics degree from the Wharton School of Finance & Commerce at the University of Pennsylvania; a Master of Business Administration from The City University in London; and a Master of Economics degree from LaTrobe University in Melbourne.

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