CLEMENGER BBDO MEDIA INFLATION INDEX

AdMedia,  Oct 9, 2006  

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Provincial Radio Advertising Costs: Annual provincial radio inflation rate to November 2003: 15.7%.

Commercial radio listening in Northland, Rotorua, Tauranga, Hawkes Bay, Taranaki, Manawatu, Nelson & Southland is surveyed annually by Research International. In the latest round of surveys, overall commercial radio listening levels fell by 6% year on year, with the greatest falls in Tauranga, Hawkes Bay & Manawatu.

Southland actually recorded an increase, aided by the introduction of Radio Hauraki to that market.

Overall advertising costs increased by 8%, driven by rate increases and some new stations. Also contributing to media inflation was a small decrease in the overall population in these markets.

The overall impact of increased advertising costs and smaller listening levels was an annual inflation rate of 15.7%. This is slightly higher than the last reported inflation level for metropolitan radio of 13.5% to the year ended April 2003.

The Clemenger BBDO media inflation index for provincial radio is based on the annual change in the advertising cost per audience. Audience figures are from Research International and advertising rates are supplied by The Radio Bureau and do not include network or combination buys. As a basket-of-goods measure, it may not reflect the specific media buying of all advertisers.

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