Ofcom's view of market definition for radio advertising

Ofcom report (101 pages, PDF) assessing the constraints on the price of direct and indirect radio advertising, and suggesting that a wider market definition than that used by the Competition Commission in recent radio merger cases might be appropriate. In the case of direct advertising (purchased from individual local radio stations), local newspapers are thought to provide a competitive constraint. In the case of indirect advertising (i.e. mediated by national sales houses), television, online and press advertising are considered to give an effective competitive constraint, at least in aggregate. The report is supported by two market research studies.

Filed under Media, Merger control, Ofcom.

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