RAB Touts 11% Digital Growth Despite Overall Flat Radio Revenues
November 21, 2014 at 7:14 AM (PT)
The RADIO ADVERTISING BUREAU (RAB) released data TODAY (11/21) showing the industry continues to build its digital profile as Digital revenue in Q3 showed growth of 11% over last year. In addition, despite a flat national advertising market across media, total Radio ad revenues showed signs of rebounding with improving trends over Q2 performance (-2% vs. -3%), and Off-Air revenue posted a 14% gain, for its fourth consecutive quarter of double-digit growth.
"The increasing strength of Radio’s digital platforms becomes more evident every quarter as advertisers recognize the unparalleled benefits of reaching Radio’s dedicated audiences on every device and platform they are using,” said RAB Pres./CEO ERICA FARBER. “In addition, the growth in off-air opportunities for advertisers is a clear indication that Radio is focused on continuing to deliver more innovative solutions to help them reach their consumers."
"As radio broadcasters continue their focus on reaching consumers and enhancing advertiser ROI through broadcast, digital platforms and new off-air opportunities, advertisers are recognizing that the best way to communicate with consumers and build brands has evolved far beyond simply running a Spot schedule on-air,” FARBER continued. “On-air personality involvements, events, station websites and other digital options continue to generate support, use and results among major brand marketers as well as local businesses.
Growth Categories In Q3
There were upticks from Health Care (+4%), Professional Services (+5%), and Insurance Companies (+1%); these industries also showed increases in year-to-date spending, up 6%, 6% and 7% respectively. Nice growth signs while several of Spot Radio’s top tier revenue categories registered dips while facing very strong Q3 delivery last year.
Additionally, there was upward momentum from many categories in the next tier that helped improve Radio’s bottom line this quarter, many of which reflect the impact of increased consumer optimism and spending in the housing, travel and personal entertainment areas.
"Looking at this list of growth categories, much of the increased volume derives from locally-focused, Main Street businesses who can directly observe the impact of Radio advertising on their bottom lines,” states FARBER. “Additionally, Radio’s ability to motivate listeners to action is reflected in the increased spending in such categories as Charitable/Religious/Non-Profit/Government Agencies, Entertainment, Sporting Events/Expos/Shows, and Recruitment/Employment -- advertisers that count on Radio to help raise funds, fill seats, fill jobs and depend on results from their investments."