RAB Sees Encouraging Signs
August 21, 2009 at 12:23 PM (PT)
As Q2 unfolded, increasing signs of an improving economy has emerged, the RADIO ADVERTISING BUREAU says in a new report. Pres./CEO JEFF HALEY said, "We are most likely past the Q1 low point for Radio revenues and are now on the rebound." Much of Radio's weakness in Q2 and for the first six months of 2009 is linked to marketers associated with the auto industry (formerly Radio's top ad category, now #3) and major retailers feeling the impact of shaky consumer confidence and spending, continues the report.
Some advertisers, previously unable to compete against their category's leaders, are using this opportunity to increase their share and position within the market. "Taking advantage of Radio's core strengths, advertisers marketing to the price/value consumer are increasing their share of voice on the airwaves -- providing encouraging signs," remarked HALEY. These signs are visible across various reporting categories: Restaurants, Communications, and Automotive, particularly imports. Among those Local and National advertisers leading the charge are: SUBWAY, DUNKIN DONUTS, BOOST MOBILE, US CELLULAR, METRO PCS, MITSUBISHI, VOLVO and HONDA MOTOR Corporations.
Radio's revenue derived from Digital platforms continues to rise, illustrated by a 10% increase at 2009's mid-point. Digital will be an increasingly important sector as Radio continues to evolve into a cross-platform medium. The ability to leverage local advertisers should boost revenue significantly.
As confirmation, a recent projection from BIA anticipates Digital advertising alone on Radio is on an upward track.