2009 Radio Revs Down 18%, Yet RAB Is Upbeat
February 22, 2010 at 4:25 AM (PT)
The RAB has released radio revenue figures for Q4 and 2009, with overall revs down 18% to $16 billion, and Q4 down 8%. Despite those numbers, the RAB says radio's results for Q4 2009 confirmed the encouraging signs that emerged in the second and third quarters and continued to gain traction through the end of 2009. "The green shoots that we saw earlier have fully taken root," said Pres./CEO JEFF HALEY. "In 2009, Radio went from -25% in MAY to flat in DECEMBER -- a tremendous lead-in to 2010."
"Key radio categories such as Automotive, Grocery and Financial Services all posted increases in Q4 spending, and Communications and Restaurants were at 90% and 95% of Q4 '08 comps, respectively. At the same time, advertisers' increasing interest in radio's digital capabilities generated the biggest gain of any quarter since we began breaking this segment out separately-- up 15%. Combined, these factors brought Q4 revenue totals to 92% of same period last year," continued HALEY.
Building on momentum from previous quarters, advertisers aiming at value conscious consumers maintained their drive to increase share of voice across radio’s airwaves. SUBWAY, DUNKIN DONUTS, TARGET, KOHL'S, and JC PENNEY are just a few notable advertisers who added to their radio spending in Q4. Specifically, within the retail category, TARGET increased its spending by nearly 10% in Q4.