Digital audio advertising spend figures, revealed in February, totalled $221.2 million across the 2022 calendar year, according to the IAB Australia Online Advertising Expenditure Report prepared by PwC.

“I don’t think any part of the market has really appreciated that digital audio, and what we’re seeing in the digital audio consumption trends and now monetisation trends is our BVOD [broadcast video on demand] moment,” Kelly said.

LiSTNR’s podcast network audience grew from 3.3 to 8.1 million across FY23, which Kelly says shows audiences want to listen any time, anywhere, and crucially, in any place: the advantage the sector has over its TV and streaming counterparts.

It’s the one bright spot for the company in a “challenging market”, a term likely to continue to be used over the next few weeks, with broadcast radio revenue declining 1.2 per cent to $372.8 million and earnings down 11.2 per cent to $92.2 million.

Things are equally stressed for the television sector, with the broadcast ad market experiencing declines across the year. While BVOD viewing minutes and revenue continue to grow, it’s not fast enough for investors.

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Figuring out a solution for Southern Cross’ regional television assets continues to be a tough ask, with revenues down 14.5 per cent to $107.8 million, while its earnings 37.2 per cent to $18.7 million. Southern Cross announced a six-month extension to its affiliate deal with Network Ten last month.

“That was really to give us enough time to try and reorganise ourselves, particularly relating to the way we sell across the national footprint to agencies and national advertisers.”

Kelly is “unapologetic” about the heavy investment in LiSTNR over the past three years. More importantly, the majority of significant capital expenditure, including content, tech stack, talent and other outgoings is now in place.

However, he admits that radio remains Southern Cross’ main revenue driver, despite the positivity around LiSTNR. “I don’t want to disproportionately place all my attention on LiSTNR,” Kelly said.

Despite a subdued broadcast radio advertising market, which grew by 0.6 per cent in metro markets, Southern Cross increased its revenue share of the industry to 27.2 per cent, yet regional declines of 4.6 per cent ($7.8 million) meant there was regression overall.

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Audio doesn’t have the consumption problem that other mediums have, Kelly said, which continues to grow, and unlike those over in the television industry, he believes a unified industry approach will eventually benefit the audio market.

“We all want to get as many people into the stadium of audio as possible, and then we’ll fight like hell on the field,” he said.

“I know Ciaran [Davis, ARN CEO] thinks the same and I know that Peter Charlton [NOVA CEO] thinks the same. We have a very collaborative industry board, we all think that audio is in good health, and we believe we all deserve a better share of the revenue pie, so we’ll all work collaboratively to achieve that.”

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