The head of one of Australia's largest radio networks expects next year to be another tough one for the media sector.

This year has seen digital offerings increasingly challenge traditional media for audiences and advertising dollars, which in part has prompted mass redundancies.

In a final flourish for the year, Fairfax announced a proposal to merge its radio assets with Macquarie Radio and sell one of its Perth radio stations, 96FM, to APN News and Media for $78 million.

APN's purchase of 96FM completes a "five capital city offering" making it the "number one metropolitan radio network in Australia" according to an APN statement to shareholders.

But even that market dominance is not filling chief executive Michael Miller with confidence for the new year.

"Our anticipation for next year is that conditions will still be relatively flat and we are not anticipating any large increases in trading so ... we are focused on share of audience leading into share of advertising," he said.

It has been a tough year for media companies trying to attract advertising spend, but Mr Miller said the last quarter has seen a small turnaround.

November saw around 3 per cent growth in advertising dollars across all media and conditions in December were better than expected, according to the Standard Media Index.

The new year will bring in some major changes for APN Media's assets, with Melbourne's Mix station and the new Perth acquisition being rebranded as KIIS.

Mr Miller said he is focused on creating harmony across the company.

"The way that we will package to advertisers will be as the KIIS network," he explained.

APN Media's Australian radio boss Ciaran Davis said the future is in making it easy for advertisers.

"As agencies and advertisers attempt to cope with the ever increasing diversification, fragmentation and sophistication of media campaigns, the KIIS network sales proposition will provide the largest listener reach and easy to implement integrated solutions," he added.

Another challenge on the horizon in the new year is a possible change to media ownership laws, which would not affect APN Media directly but could open it up to a takeover.

Mr Miller said he does not think this will be something he will have to deal with though.

"I hope we are viewed as an attractive company to suitors out there, but I'm not seeing anything that would suggest we are a target."