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New York, New York – February 19, 2010 – Radio's results for Q4 2009 confirmed the encouraging signs that emerged in the second and third quarters and continued to gain traction through the end of 2009. "The green shoots that we saw earlier have fully taken root," states Jeff Haley, President and Chief Executive Officer of the Radio Advertising Bureau. "In 2009, Radio went from -25% in May to flat in December - a tremendous lead-in to 2010."

"Key Radio categories such as Automotive, Grocery, and Financial Services all posted increases in Q4 spending, and Communications and Restaurants were at 90% and 95% of Q4 '08 comps, respectively.  At the same time, advertisers' increasing interest in Radio's Digital capabilities generated the biggest gain of any quarter since we began breaking this segment out separately – up 15%. Combined, these factors brought Q4 revenue totals to 92% of same period last year."

Automotive spending merits special focus here, as this industry has been a leading indicator of the direction of consumer sentiment and the economy. Propelled by a 9% increase in Q4 spending over Q4 '08, Automotive regained its long-standing place as Radio’s top Local/National advertiser-spending category for the quarter and for full-year 2009.

Building on momentum from previous quarters, advertisers aiming at value conscious consumers maintained their drive to increase share of voice across Radio’s airwaves. Subway, Dunkin Donuts, Target, Kohl's, and JC Penney are just a few notable advertisers who added to their Radio spending in Q4. Specifically, within the retail category, Target increased its spending by nearly 10% in Q4.

Digital

Radio's digital platform continues to provide listeners more choice – delivering additional sources of messaging opportunities for advertisers. Reflective of Radio’s online capabilities and offerings, the digital sector has maintained its upward trajectory throughout 2009

Marketers increasingly recognize Radio's loyal audiences who tune in via multiple audio devices such iPods, HD, mobile apps, etc. Radio's opt-in communities, ability to drive website traffic and branded online opportunities provide additional revenue builders for the industry.

 

*Local, National, Digital and Off-Air revenues are based on a pool of more than 100 markets as reported by the accounting firm of Miller, Kaplan, Arase & Co. and extrapolated to the entire U.S.Digital Revenue is comprised from activity generated by the websites, internet/web streaming and HD Radio including HD2 and HD3 stations.Network Revenue includes the top five Radio network companies. Non-Spot data has been collected and verified since January of 2002, and reported since September of 2004.

 

The Radio Advertising Bureau serves more than 6,000 member Radio stations in the U.S. and over 1,000 member networks, representative firms, broadcast vendors, and international organizations. RAB leads and participates in educational, research, sales, and advocacy programs that promote and advance Radio as a primary advertising medium.

 

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