Katz Media Reports 2010 National Spot Radio Was Up 17.7%
February 8, 2011 at 7:40 AM (PT)
In a memo sent earlier today, KATZ RADIO GROUP Pres. MARK GRAY shared that National Spot Radio for the KATZ MEDIA GROUP finished 2010 with a very strong gain of 17.7%. The Auto Category is off to a brisk Q1 start, with consumer products, finance and professional services showing increases.
Wrote GRAY, "The National Spot Radio market bounced back with a very strong year in 2010. Following an exceptionally weak 2009 that was hurt by the recession, the advertising recovery took hold with strong category gains across all regions of the country. National Spot Radio ended 2010 up 17.7% from a year earlier, as sales were lifted by robust demand across auto, telecomm, retail, consumer products, entertainment and an extremely active political season in the run-up to NOVEMBER's elections.
"At the start of 2011, National Spot Radio revenue is flat in the first quarter compared to the same period last year, based on current pacing data. There has been some negative effect on business caused by unprecedented weather disruptions in major media markets and JANUARY revenue finished lower than last year. We are seeing increased momentum in FEBRUARY and MARCH with pricing higher measured by Average Minute Rates, along with a surging auto category, measured by pacings against the first quarter of last year. As the U.S. economy moves from recovery to expansion and consumer confidence continues to build, we believe the radio sector will continue to benefit."
Core Category Support
GRAY continued, "The top seven categories in National Spot Radio have historically represented the majority of all national sales revenue on an annual basis. We are witnessing strong gains in the all-important auto category, along with increases in consumer products, finance and professional services. Entertainment, retail and telecomm are off to a slower start, partly because of later placement and shifting dollars from national to local.
Categories 2010 Total Year Q1 2011 Pacings
Auto +27.4% +73.4%
Finance -1.2% +6.9%
Telecomm +21.3% -18.8%
Retail +18.2% -16.4%
Consumer Products +19.9% +9.1%
Entertainment +9.7% -26.4%
Prof. Services +24.3% +7.4%
Leading Q1 2011 Advertisers
Automotive: O’REILLY AUTO PARTS, HONDA, AMERICAN AUTO ASSOCIATION, DODGE, JEEP, CHRYSLER
Consumer Products: PFIZER, PANERA BREAD, EPSON AMERICA, BOAR’S HEAD, AVON, BUFFALO WILD WINGS, CHIEF COMMERCIAL CLAIMS, GREEN MOUNTAIN COFFEE, EASTMAN KODAK, PALMER’S SKIN CARE
Entertainment: FOX BROADCASTING, SONY PICTURES, USA NETWORK, BUENA VISTA PICTURES, HALF PRICE BOOKS, NBC, UNIVERSAL PICTURES, HISTORY CHANNEL, E! ENTERTAINMENT TV
Finance: GEICO, UNITED SERVICES AUTO ASSOC., AMERICAN FAMILY INSURANCE, PNC BANK, ALLSTATE INSURANCE, AMERICAN EXPRESS, CAPITAL ONE, AMERICAN EQUITY MORTGAGE, ESURANCE, SUNTRUST BANKS
Professional Services: SUSAN G KOMEN FOR THE CURE, H&R BLOCK, LA FITNESS, PORTFOLIO MEDIA MANAGEMENT, LCA VISION, CEDARS-SINAI MEDICAL, LASIK EYE SURGERY, 24-HOUR FITNESS
Retail: SAFEWAY STORES, WAL*MART, SUPERVALU, GREAT CLIPS, SELECT COMFORT, MACY’S, TARGET, HOME DEPOT, OFFICE DEPOT, MATTRESS FIRM
Telecomm/Utilities: VERIZON, COMCAST, TRACFONE, CRICKET COMMUNICATIONS, US CELLULAR, FRONTIER COMMUNICATIONS