RAB: Radio Revs Down, Network Radio Up For Q3 And YTD
December 4, 2007 at 5:40 AM (PT)
The RAB reports that radio revenue was off 5% in the third quarter, to $5.5 billion, with local off 5% to $3.7 billion and national down by 8% to $1.1 billion. Local and national revenues combined were down 6%, at $4.7 billion. The good news was network radio and nonspot revenue. Network radio was up 9% from Q3 2006, to $293 million, and nonspot revs up 7% to $395 million.
For 2007 to date, through the end of Q3, local spending was down 2% to $10.7 billion, and national was off 4% to $3.2 billion, from the same period in 2006. Local and national revenues combined were down 3% at $13.9 billion. Network radio for the first three quarters of the year was up 5% from the same period in 2006 to $844 million, while nonspot was up 10%, to $1.1 billion.
The RAB cites TNS MEDIA INTELLIGENCE Report data showing that network radio's numbers were driven by retail, up 42% in Q3 and 21% year-to-date and automotive, up 70% in Q3 and 42% year-to-date. The leading growth categories, the RAB reports, were communications, including cellular and public utiities, which rose 9% in Q3 and is up 17% for the year so far, and concerts, theater and movies, up 11% in Q3 and 21% year-to-date. The leading political spenders so far: MITT ROMNEY in local markets, followed by BARACK OBAMA, RUDY GIULIANI and HILLARY CLINTON. TNS reports that GIULIANI is the only candidate using network radio so far.
"Major advertisers that continued or increased their investment in radio represent some of the leading brands in the U.S., said RAB Pres./CEO JEFF HALEY, "supporting the wisdom that the savviest marketers advertise no matter what the economic climate, and that they rely on radio to keep their brands front and center with the American consumer."
Read the full report here.