Katz Sees Strong National Radio Growth
April 12, 2010 at 7:24 AM (PT)
National Spot Radio’s strong Q1 revenue results are rolling into an even better Q2, reports KATZ MEDIA GROUP CONSOLIDATED. This is especially positive as Q2 is historically the company's strongest quarter. KMG CONSOLIDATED RADIO finished the first quarter with revenue up 19%. Based on the pacing of business on the books as of TODAY, the company expects the second quarter to pace 21% higher than last year, with APRIL up 13%, MAY rising 27% and JUNE soaring 31%.
While these pacing numbers only reflect business on the books as of TODAY, this is a very strong start to Q2 and reflects continued momentum from Q1. While last year’s second-quarter comparisons are favorable, the depth of this market rebound continues to be driven by broad-based category support, inventory pressure that is pushing up pricing, and radio’s expanding value in the marketing mix.
Broad-Based Category Support
Despite softness in the financial services category and timing issues regarding the placement of entertainment spots, the majority of National Spot Radio’s key categories are showing strong double-digit gains in the second quarter.
Q1 Vs. Q2
Retail +8.5 +59.7
Finance +2.2 -7.8
Entertainment +30.9 Flat
Auto +33.7 +10.6
Telecom +22.7 +44.3
Consumer Products +33.7 +36.1
Prof. Services +15.1 +25.8
The list of top second-quarter advertisers includes VERIZON, SAFEWAY, HOME DEPOT, ACIT, SUPERVALU, COMCAST, GEICO, O’REILLY AUTO PARTS, PANERA, JP MORGAN CHASE, FOX, KOHL’S, WAL-MART, GENERAL MOTORS, MERCEDES, LEXUS, HYUNDAI, SONY PICTURES, among many others, touching every category.
This broad-based category activity is generating strong pacing in every market segment and in every region of the country. Eighteen of the top 25 markets are showing double-digit increases in second-quarter National Spot advertising. For example, WASHINGTON, DC +63%; HOUSTON +57%; MIAMI +51%; SEATTLE +46%; BOSTON +43%; DENVER AND TAMPA +41%; DALLAS +39%; PITTSBURGH +38%; BALTIMORE +27%; and PHILADELPHIA +26%.