RAB Reports 'Second Consecutive Year Of Growth For Radio'
February 17, 2012 at 7:33 AM (PT)
Radio marked its second consecutive year of growth in 2011, with full-year revenue finishing at $17.4 Billion, up 1%, reports the RAB. Performance was based on Spot momentum through the first three quarters, a double-digit gain in Digital (+15%), and stronger showings in Off-Air (+7%) and Network (+3%).
The latter three sectors also excelled in Q4 -- up 8%, 6%, and 5% respectively -- offsetting Spot at -4% to produce Q4 comps of -2%.
Pres./CEO JEFF HALEY said, "The diversity of Radio's revenue mix helped our industry achieve a second consecutive year of growth since rebounding from the recession. Spending across Radio's top-five categories has been consistent since 2007 and contributed greatly to Radio's revenue performance. Further, while Automotive remains dominant, the categories ranked #2 to #5 have grown closer to each other compared to 2007 levels and now represent a larger percent of the overall pie."
"A year-end spending increase of 5% by three of the top-five categories, combined with the contribution of Digital and Off-Air to Radio's bottom line, buoyed Radio during the uncertain environment that existed in 2011," HALEY added. "We believe we are well-positioned for a continued positive trend through 2012."
"Radio's Digital gains signify our ability to capitalize on advertisers' growing reliance on connecting with consumers," concluded HALEY. "Driven by Radio's mobility, local appeal and scale, broadcasters are finding more and more ways to generate the interactive experience expected in today's marketplace."