Commercial radio revenue dips as digital audio grows

Commercial radio revenue softened in the March quarter, but digital audio continued to grow as advertisers shifted more money into streaming and addressable audio inventory.

Commercial Radio & Audio members recorded total radio revenue of $257 million in Q1 2026, down 1.9% year-on-year.

Metro broadcast revenue fell 3.5% to $141.8 million, while regional revenue declined 2.4% to $90 million, reflecting weaker market conditions and subdued advertiser confidence during the quarter.

Digital audio was the bright spot. CRA members delivered digital audio revenue growth of 9.9% to $25.2 million, outpacing the broader digital audio market, which grew 8.3% to $83.6 million, according to the IAB Australia Internet Advertising Revenue Report for Q1 2026.

CRA members now account for 30% of the total digital audio market.

Lizzie Young, CEO at CRA, said the industry’s focus is on making audio easier for advertisers to plan and buy, while improving precision and accountability.

“Our entire industry is focused on making audio easy to plan and buy, ensuring we invest in the tools that deliver the precision, transparency and scale advertisers expect of digital media,” Young said.

“CRA Audio ID is live and trading - enabling brands to optimise reach and frequency through access to premium inventory across ARN, Nova Entertainment, Southern Cross Austereo and Tapt Media.”

Young said audio remains a strong performer for advertisers when budgets are under pressure.

“We know when budgets are under pressure audio consistently delivers. For every dollar invested in radio, brands see two dollars back. Allocating just 11% of media spend to audio can double campaign effectiveness,” she said.

“Outside of the capital cities, campaigns with regional audio can unlock 33% more effectiveness than those without it.

“When times are uncertain, people turn to what they trust. For millions of Australians, that's audio - and it's a medium advertisers can count on too.”