KATZ's Stu Olds Sees Advertising Rebound
'Meaningful Turnaround' in National Spot Market
January 11, 2010 at 3:15 PM (PT)
There's a light at the end of the radio revenue tunnel, according to KATZ MEDIA GROUP CEO STU OLDS. In a summary of the current spot business, he wrote, "We continue to see evidence of a meaningful turnaround in the National Spot Radio market."
OLDS believes the turnaround actually stated a couple months ago. "After finishing with strong numbers in 2009’s NOVEMBER and DECEMBER, we started the New Year with positive trends in JANUARY," he wrote. "CCRS and KRG are seeing large increases in dollars booked, sold inventory and pricing in 2010’s first quarter.
We're not sold out, but we're clearly seeing strong demand, earlier placement and increasing pricing
"KMG Consolidated Radio is pacing up 21% in JANUARY, with an increase of 2% in FEBRUARY and 7% in MARCH, translating into a healthy 19% first-quarter gain. While 2009 comparisons were admittedly woeful, this resurgence appears to have real legs.
What's more, inventory demand in 2010 has pushed booked spots up 36% over last year. No-charge spots as a percentage of sold inventories are down dramatically, and first-quarter pricing is moving up and improving daily.
A breakdown on the improvements by market size, as well as category breakouts, can be found here.
In conclusion, OLDS declared, "We need to make sure our customers understand that demand for radio inventory is intensifying. We're not sold out, but we're clearly seeing strong demand, earlier placement and increasing pricing. These trends are real and advertisers need to get to market sooner in their negotiations and placement."