Katz: Spot Biz Rising With 20% Bump In Q2
March 15, 2010 at 1:38 PM (PT)
In his latest missive to clients, KATZ CEO STU OLDS reports that the National Spot Radio market is "pacing significantly ahead in both the first and second quarters of 2010 compared to the same periods last year. We're seeing double-digit gains in pacings for these periods as we witness strong momentum in our major sectors."
Based on the current pacing, OLDS expects KMG Consolidated Radio's Q1 to be up 19% over this time last year. Even better are the early Q2 reports -- up 17% in APRIL, 23% in MAY and 21% in JUNE, which would make for a 20% increase in all of Q2.
"While these pacing numbers only reflect business on the books as of today, this is certainly a very strong start," he noted. "The outlook for continued growth is supported by the advertising community’s optimism about an improving economy. In addition, we are seeing increased market pricing based on strong across-the-board inventory demand, core category inclusion of radio, and an improving understanding of radio’s value and capabilities."
Looking further ahead, OLDS predicts, "We expect political advertising to add to radio’s momentum in the second half of the year. With 37 gubernatorial seats, 38 U.S. Senate seats and the entire House of Representatives up for grabs, KATZ Political expects the radio industry to capture at least $250 million of the $3.3 billion expected to be spent by campaigns this year. And that number could swell as the recent Supreme Court decision allowing corporate spending in support of targeted issues could boost the political pie to more than $4.25 billion this election season."