June Ad Time Down Again; Analyst Warns Internet Local Ad Share To Grow
July 12, 2006 at 6:01 AM (PT)
BMO CAPITAL MARKETS analyst LEE WESTERFIELD's latest Radio Airtime Monitor notes that commercial ad inventory fell again in JUNE, but noted that besides CLEAR CHANNEL and SALEM's initiatives to reduce inventory, the shrinkage is coming from "demand shortfalls and selective pruning rather than comprehensive initiatives." The industry averaged 10.7 minutes of sports per hour in the month, down from 11.8 minutes two years ago, with 30 second spots rising in the same time frame from 9.4% to 17% of inventory.
And in his analysis of industry stocks, WESTERFIELD warned that Internet local ad sales like those for GOOGLE and YAHOO!'s local components could take up to 2-3% of all local advertising in 2007.