Is PPM Killing Hispanic Radio?
May 26, 2009 at 4:44 AM (PT)
HISPANIC MARKET WEEKLY poses that question in an article running this week on its website. The publication writes, "It's not a great time to be a Spanish-language radio broadcaster. The four biggest companies targeting Hispanics across the U.S. with their AM and FM stations are facing rough financial challenges:
* UNIVISION RADIO saw its net revenue dip by 26%, to $66.5 million, during the first quarter of 2009.
* SBS experienced a 27% drop in its first-quarter 2009 radio revenue, to $24.2 million.
* ENTRAVISION COMMUNICATIONS' radio division registered a 31% tumble in its first-quarter revenue, to $13.4 million.
* LIBERMAN BROADCASTING suffered an 11.4% decline in its radio division's net revenue, to $12.1 million.
"Job cuts and expense reductions have been seen across the Spanish-language radio industry, as advertising challenges continue to put a damper on marketing activities -- But an end to the U.S. recession may not yield the rebound in advertising many of the radio companies targeting Latinos need to rescue themselves from a freefall in revenue.
"For many a Hispanic broadcast executive, the reason for a prolonged advertising slump is as simple as three letters - PPM."
Check out the full article here.