Q1 RECORD REVENUE GROWTH SHOWS BROAD SIGNS OF STRENGTH AS KEY ADVERTISER SECTORS SPEND MORE IN RADIO

NATIONAL SPOT & DIGITAL SPENDING REGISTER HIGHEST GAINS



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New York, New York – May 21, 2010 – Reflecting growing signs that the U.S. economy is back, Radio delivers its best results in quarter-to-quarter revenue comps since Q1 2007 with a +6% overall increase to $3.687B.  In fact, this gain represents the highest posted in nearly a decade (3rd-Quarter 2000, +8).

 

 

Revenue Comparisons - 2010 vs. 2009

(In Millions)

Revenue

$Q1 '10

% Chg

Local

2,450

2%

National

568

19%

Local & National Combined

3,018

6%

Network

260

6%

Digital

123

18%

Off-Air

286

Flat

Grand Total

3,687

6%

Source: Miller, Kaplan, Arase & Co.*

Off-Air was previously referred to as Non-Spot

Digital consists of all revenue derived from radio websites

 

The Eastern Region outpaced the rest of the nation in ad spending gains for Q1, up 12.7% - followed by the Southwest and Central Regions, up 9.7% and 6.7%, respectively.  Spending is up but trails nationwide growth in the West (4.5%) and South (3.5%).

 

"Our growth in this recovery is showing signs that Radio's momentum is outpacing that of other traditional media," says RAB President and CEO Jeff Haley.  "This gain underscores Radio’s inherent strength with advertisers demonstrating renewed enthusiasm for spending in our medium."
 


Source: Trend based on same month comps (i.e., March
2010 represents 10% change from March 2009) based
on Miller, Kaplan, Arase & Co. X-Ray Markets


"Spending levels in important Radio categories such as Automotive, Communications, TV/Cable, Financial Services, Grocery, and Retail are all up significantly from what we saw a year ago," states Haley.  "First quarter's results prove that advertisers have found and, in many instances, rediscovered Radio.  With ever-expanding Digital and Off-Air vehicles adding to Radio’s appeal to advertisers and marketers, this growth trend will continue to gain momentum." 

 

Q1 2010 Leading Growth Categories

Local and National Radio

(in Millions)

Category

$Q1 '10

% Chg

Communications/Cellular/Public Utilities

350.5

6%

Television/Networks/Cable Providers

276.2

23%

Auto Dealers/Dealer Groups/Manufacturers/Rentals

230.6

39%

Financial Services

191.6

49%

Grocery/Convenience/Liquor Stores

187.2

27%

Home Improvement

31.0

18%

Source: Miller, Kaplan, Arase & Co.: X-Ray Markets

(Extrapolated dollar amounts based on the 35 market X-Ray pool may not be fully indicative of industry results as a whole.)

 

Communications/Cellular/Public Utilities, which held the top spot for spending in the first three quarters of 2009 (#2 in Q4 against a spending surge in Automotive), regains that position in Q1 '10 at $350.5M – an increase of 6% over Q1 '09.


 

*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 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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If you have any questions, please email revenuereport@rab.com or call 212-681-7200.