Katz: National Spot Radio Market Momentum Slowly Picking Up
August 18, 2011 at 7:15 AM (PT)
KATZ reports the national radio market is slowly picking up speed in 2011’s second half as the automotive, fast food and professional services categories "are showing very strong pacing in the third quarter." The National Spot Radio Market is pacing essentially break-even in this year’s third quarter compared to the same period last year. Excluding political advertising, however, National Spot Radio is pacing up 4%.
Despite the continued economic weakness and the recent political gridlock in WASHINGTON, the current pacing data is encouraging as a number of core categories and regions across the country are improving, writes KATZ. National Spot Radio was down 2.7% in the second quarter compared to a year ago.
"We’re extremely confident in radio’s overall outlook and long-term growth. Bolstered by radio's extraordinary daily reach and the amount of time the average person spends with radio, we're encouraged by the new and innovative ways advertisers are using the medium. We’re also pleased by the increased spending we’re seeing among major national advertisers such as WALMART, COMCAST, DODGE and AMERICAN FAMILY INSURANCE. We also continue to see increased momentum in the use of online, on-demand, mobile and digital broadcasts, which provides broadcasters with the ability to secure a greater share of digital dollars," added KATZ
Core Category Support
"Our core advertising categories are showing mixed results," notes KATZ. "While we’re seeing third-quarter growth in several of our key categories, there is some weakness in the retail, telecom and entertainment sectors. The top-seven categories represent 85% of all National Spot Radio revenue. As anticipated, political spending is down from last year's active election season. We expect 2012 to be a monumental political year due to the much-anticipated presidential election and an abundance of congressional races. Issue advertising focused on education, energy and the economy is also anticipated to continue making significant contributions."
Leading Q3 2011 Advertisers
"We’re pleased by the number of national advertisers maintaining healthy ad budgets in 2011 after an extremely strong year in 2010," added KATZ. "In fact, about 92% of 2010’s national advertisers have returned to radio this year. What’s more, a number of these advertisers have ramped up their spending in the third quarter, including BURGER KING, SEARS and T-MOBILE."