RAB Reports 'Moderate' Q3 Growth, Digital Spending Up 7%
November 16, 2012 at 6:13 AM (PT)
Radio posted moderate 1% growth through the first three quarters of 2012, reports the RAB. Digital spending was up 7% for the period, followed by a 2% gain in Off-Air; Spot was flat. Third quarter revenue remained flat but Digital continues to represent a bright spot -- up 8%.
"While on-air advertising represents the core of Radio's revenue stream, it's most encouraging that advertisers are taking advantage of expanding digital opportunities offered by stations," stated RAB Pres./CEO ERICA FARBER. "More marketers are tapping into the multi-platform aspects of Radio to reach our active and highly engaged audiences. These expanding platforms afford Radio broadcasters additional avenues to bolster Radio’s growth."
Growth in spending by domestic and import autos, national grocery, clothing and big box retailers helped fuel revenue for the quarter.
"Radio's Q3 and year to date results reflect the American economic picture," FARBER added. "Categories that are rebounding based on renewed consumer confidence have made Radio a greater part of their marketing plans."
Radio also received an influx of dollars based on hotly contested political races -- up six-fold over 2011's Q3 pre-primary race spending.
Decreased third quarter activity by some of radio's key categories, such as Communications/Cellular, Financial Services, Insurance Companies and Restaurants led to flat comps.
Radio’s Top 10 In Q3
Advertisers contributing the most to Radio's bottom line in Third Quarter 2012, in rank order by expenditure are:
1. COMCAST XFINITY CABLE SERVICE
5. VERIZON WIRELESS
6. GEICO INSURANCE
7. TOYOTA DEALER ASSOCIATION