Monday, April 20, 2009

Finland's commercial radio thrives in downturn

Finlands' commercial radio business continues to grow, despite the overall downturn in advertising spending.

In 2008, radio had a record year in Finland. Ad sales were up 7.4% and commercial radio outperformed the general 1.7% increase in the ad market. This trend was even stronger in the first quarter of 2009. Radio gained another 5.3%, while the total advertising market collapsed.

Germany makes another attempt at digital radio

The 16 German states have agreed on a plan to establish digital radio.

Germany has opted for the DAB+ system, a more economical and modern version of the digital radio technology used in the U.K., Denmark and Norway. DAB+ is alrady on-air in Switzerland and is also the choice of Australia.

There will be a countrywide German multiplex with up to 15 stations. A third of the multiplex will be used by national public broadcaster Deutschlandradio, with the rest going to commercial radio stations. This is the first time ever that German commercial radio gets national licenses.

In addition to the national multiplex, each state will have two or three multiplexes for regional and local radio. In total, there will be space for 30-40 services throughout Germany.

Radio ad market up 0.4%

The international radio advertising market grew 0.4% in 2008, according to Nielsen's report Global Adview Pulse.

Radio lost some marketshare during last year, as the total ad market was up 1.5%. Advertising revenue was up 7.7% in East Asia, while sales in the U.S. and Europe fell 2.5%. Spain had the worst development, with a market that fell 14.1%. China stayed healthy with an increase of 17.1%.

Procter & Gamble was the biggest overall advertiser, followed by General Motors, Unilever, Ford, Toyota, L'Oreal, Verizon, AT&T, Johnson & Johnson and Volkswagen.