Nat'l. Spot Radio Revs Strong Heading Into Q3
July 1, 2010 at 6:11 AM (PT)
The National Spot Radio market turned in a very strong performance in this year’s first six months and, more importantly, that momentum is carrying into the third quarter, reports KATZ MEDIA GROUP. National Spot Radio revenue through JUNE 30th is pacing up more than 16% from the year-ago period. Based on the pacing of business on the books as of TODAY (7/1), Q3 revenue is pacing up 18%, with JULY up 13%, AUGUST growing 16% and SEPTEMBER up 28%.
National Spot Radio’s top seven categories (excluding political) represent 90% of all revenue and are all are pacing up in the third quarter over 2009, with the exception of entertainment. Consumer Products, Auto, Professional Services, Retail and Telecom are all up double digits in the second and third quarters.
Radioâ€™s continuing momentum is evident across the country as all market groupings are pacing up double digits in the third quarter.
Q1 Q2 Q3
Retail +8.8 +21.4 +23.2
Finance +1.9 -18.7 +1.9
Entertainment +29.7 -11.6 -4.4
Auto +33.4 +29.5 +39.0
Telecom +21.6 +38.2 +11.3
Consumer Products +30.6 +32.6 +56.9
Prof. Services +14.4 +29.6 +28.4
The leading companies increasing advertising in the third quarter include VERIZON, SAFEWAY, GEICO, SUPERVALU, AT&T, O’REILLY’S, HOME DEPOT, WAL-MART, JP MORGAN CHASE, SCOTTS, PANERA, PNC BANK, ALLSTATE, COMCAST, FOX, CRICKET COMMUNICATIONS, AMERICAN EXPRESS, HONDA and DODGE, says KATZ.
Radio’s continuing momentum is evident across the country as all market groupings are pacing up double digits in the third quarter. Currently, 85 of the top 100 markets are pacing ahead of this time last year. For example, BOSTON is up 72%, DALLAS +47%, SAN FRANCISCO +39%, PHILADELPHIA +27%, MIAMI +54%, TAMPA +58%, DENVER +56%, SEATTLE +40%, KANSAS CITY +65%, JACKSONVILLE + 61%, LAS VEGAS +44%, MEMPHIS +49%, COLUMBUS +79%, ROCHESTER NY +95%, BUFFALO +100%, KNOXVILLE +140%, FT. PIERCE +160%, AKRON +60% and CHARLESTON +56%.
Demand And Pricing up
While demand and pricing vary by market, KATZ sees the increase in demand forcing up pricing. Based on a tracking of markets representing about 90% of the industry’s sales, JUNE YTD pricing is up mid-to-high-single digits. The increased demand from core advertisers is likely to intensify with the AUGUST-OCTOBER political rush.