Online threat to radio has been overstated

Advertisers who have deserted radio in favour of the internet in recent years will eventually “swing back” to the medium, claims research commissioned by commercial radio trade body the RadioCentre.

The report by media strategy firm Human Capital, to be published next week, found media buyers were “far more optimistic” about radio than they were a year ago.

It questioned the internet’s ability to continue attracting a significantly greater share of ad spend than radio, highlighting Ofcom research that shows radio listening hours outnumber consumers’ time spent online by five to one.

“This relationship appears unsustainable and suggests that advertising spend will swing back towards radio,” the report said.

The threat to radio from online services such as Last FM, MySpace and iTunes has been overstated, the report argued.

However, the report warned that the commercial radio industry is failing to capitalise on its relationships with audiences.

Media Week 26-Feb-08