So. Cal '08 Radio Revenue Down, But Still Breaks $1B
April 8, 2009 at 6:13 AM (PT)
The bucks are flying into radio stations all over the SOUTHLAND -- including LOS ANGELES, ORANGE, RIVERSIDE, SAN BERNARDINO and VENTURA counties, which has generated over $1 bllion in radio advertising revenue in 2008. "While revenue was down over 12% compared to the previous year, it’s remarkable that radio in the region was able to generate a billion dollars in revenue in a year marked by the worst quarter in consumer spending in the past 75 years," said SOUTHERN CALIFORNIA BROADCAST ASSOCIATION Pres. MARY BETH GARBER. "LOS ANGELES remains the #1 Radio revenue market in the world."
Radio has made small businesses into large ones. It is part of the fabric of our daily lives.
"This once again demonstrates the resilience of Radio as an advertising form," said , Chairman of the SCBA Board of Directors and Pres./Market Manager for CLEAR CHANNEL RADIO/LOS ANGELES GREG ASHLOCK. "As long as people need, use and respond to radio, whether over the air, on their computers or on their wireless devices, radio will work well for advertisers."
"Remember, radio is the only mass medium that people still use in real time. Radio’s content is not recorded for later, commercial-free usage. It’s listened to live. That really works for advertisers," observed Vice Chair of the SCBA Board and EMMIS/LOS ANGELES SVP/Market Manager VAL MAKI.
"The growing Hispanic segment relates and reacts strongly to radio stations that understand and serve their preferences," said SCBA Board member and UNIVISION SVP/Regional Manager MICHELLE HOHMAN.
"Don’t let anyone tell you young people don’t listen to radio. Our new youth-oriented format attracted 1.7 million listeners within a single month with young adults," added fellow SCBA Board member AND CBS RADIO SVP/Market Manager ED KRAMPF.
"Look at the stories on our website (scba.com)," added GARBER. "Radio has made small businesses into large ones. It is part of the fabric of our daily lives, especially in the car-centric Southland. Our advertisers put a billion dollars behind their belief that radio ads work."
San Diego Doesn't Fare As Well
SAN DIEGO’s radio broadcasters suffered a revenue drop of 11% in 2008, marking the second consecutive yearly decline, and the forecast for the next two years is no better, reports THE SAN DIEGO BUSINESS JOURNAL, citing a BIA FINANCIAL NETWORK survey. "It will be 2011 before we’ll begin to notice growth in the SAN DIEGO radio market, but until then advertisers will be lagging in allocating resources, whether it’s radio or newspaper or TV advertising," said BIA VP MARK FRATRIK.
"There are fewer people who will buy new cars and refrigerators, and advertisers know that," he said.
According to BIA’s most recent report, SAN DIEGO’s 28 FM and 18 AM stations had revenues of $176.7 million in 2008, compared with $198.6 million in 2007.
CLEAR CHANNEL News-Talk KOGO-A topped the charts with $14.7 million in revenue, down from $14.9 million in 2007. CLEAR CHANNEL Classic Rock KGB-F placed second with revenue of $12 million, down from $14 million in 2007.