Economic Effects on Radio

by

italy1

The global markets continue to find themselves in disarray. Financial uncertainty has become the omnipresent specter looming over every conversation. I predicted in a number of earlier posts that the ubiquity of radio combined with its cost effectiveness would bring the medium to the fore should the downturn continue, and now I have some numbers to share.

Eric J. Lyman of Hollywood Reporter brings us the news from across the ocean — Italy, to be exact:

ROME — Italian advertisers are tuning into their radios, monitoring company FCP-Assoradio reported Tuesday, as the medium appears to be one of the winners in the economic crisis gripping the boot-shaped peninsula.

While television and print ad buys slump, the group said that radio ad sales were up 4.5% over the first nine months of the year compared to the same period in 2007, totaling 297.6 million euros ($383.9 million).

The trend picked up steam as the year went on: on its own, September ad sales were 9.7% higher than in the previous year.

Italy has been suffering financial woes since well before the mid-election chaos that struck American markets sending the globe into a tailspin, which makes it a good case study for what is to come. Combine what is happening there with the fact that roughly half of the U.S. still lacks Internet access and I think you can extrapolate what follows. In addition, the fact that radio is a fiscally conservative way to keep a product or company in the public eye is something guaranteed to be on the minds of most advertisers. This is hardly shocking.

I’ll be keeping my eyes peeled for further corroborating material from around the world over the coming weeks.

Photo courtesy of roevin, used under its Creative Commons license

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