SCA issues warning in light of ‘volatile’ advertising market
Southern Cross Austereo (SCA) has issued an update to the ASX, noting weak media markets, and a short and volatile advertising market.
In light of the market conditions, SCA – which owns radio assets including the Hit Network and Triple M – said “a series of actions have been taken to mitigate full-year costs”.
SCA has had a tough Q1
The news comes at the same time as Commercial Radio Australia (CRA) reported commercial radio ad revenue was down 10.2% for the September quarter.
I love coded corporate announcements. Dripping with obscure euphemisms.
‘Mitigate costs’. Mmm … reduce costs? Of course!
What’s the biggest variable cost to radio stations? The bosses’ expense accounts? The lease on their Beemers?
Hell, no.
Therefore, regrettably, sackings at SCA coming up.
You can’t strip radio stations of their local brand identity in pursuit of a streamlined buying process for agencies and expect it not to have an impact on direct revenue.
You can’t instigate a race to the bottom on spot rate and expect the overall size of the pie not to shrink.
You can’t promise ratings will recover for years and never deliver.