Katz Media Sees Positive Momentum In Automotive, Finance And Retail Sectors

Q2 Growth Projected

Good news from KATZ MEDIA, which is reporting Q2 spending increases by advertisers are leading to strong gains in a number of leading advertising categories, including automotive (domestic), finance, retail and telecom.

The National Spot Radio Market is pacing up 1.4% in 2011’s second quarter compared to the same period last year as five of the six market group segments are showing increases, wrote KATZ. In addition, early third-quarter pacing numbers are up more than 7% compared to the same period in 2010. That comes after a 4% decline in national ad spending in this year’s first quarter.

"We remain very optimistic about radio’s outlook and long-term growth," KATZ wrote in the report. "Radio's incredibly strong daily reach, time spent with the medium, and overall ability to be America's companion offers advertisers the unique opportunity to reach engaged consumers. What's more, the radio industry has moved aggressively to expand into online, on-demand, mobile and digital broadcasts, offering broadcasting and online clients a greater ability to capture a larger share of advertising dollars in the digital space."

Core Category Support

"We're encouraged by several of National Spot Radio’s core advertising categories," noted KATZ. "The top seven categories represent 90% of all revenue. With the exception of consumer products, all are pacing up strongly in the second quarter over 2010, with auto, professional services and finance all up double digits."

Categories                2010 Total Year      Q1 2011 Actual      Q2 2011 Pacing 

Retail                              +18.2%                        -8.3%                         +0.8%
Auto                                 +27.4%                       +24.9%                      +11.0%
Finance                             -1.2%                        +4.1%                        +25.6%
Telecom                         +21.3%                        -16.2%                       +12.5%
Consumer Products   +19.9%                        -5.8%                          -21.4%
Prof. Services               +24.3%                        +5.2%                        +11.1%
Entertainment              +9.7%                           -20.6%                       +7.1%
Political                          +60.5%                        -39.9%                       -42.4%

Leading Q2 2011 Advertisers

Retail: HOME DEPOT, WAL-MART, SUPERVALU, SAFEWAY, KOHL'S STAPLES, JOS A BANK
Automotive: O'REILLY AUTO PARTS, DODGE, JEEP, SHELL OIL, CHRYSLER, CHEVRON
Finance: GEICO, ALLSTATE, PNC BANK, JP MORGAN CHASE, AMER FAMILY INSURANCE, BANK OF AMERICA, NAVY FEDERAL CREDIT
Telecom/Utilities: VERIZON, COMCAST, US CELLULAR, AT&T, TRACFONE WIRELESS, FRONTIER COMMUNICATIONS, CRICKET COMMUNICATION, QWEST
Consumer Products: SCOTTS, BOARS HEAD, CENTRAL GARDEN & PET COMPANY, CARRIER BRYANT HEATING & AC, KELLOGG'S
Professional Services: KAISER PERMANENTE, PORTFOLIO MEDIA MGMT, LCA VISION, HORIZON BCBS NJ, DIAL GLOBAL
Entertainment: NBC, FOX, SONY PICTURES, SPIKE TV, HALF PRICE BOOKS, USA

Pacing By Market Groupings & Regions

KATZ is seeing solid gains across most markets and regions of the country. While the top-10 markets are showing modest improvement in the second quarter, markets in the vast majority of the country are showing strong gains in the period, especially in comparison to first-quarter results. Similar to the segment performance, 2011’s second-quarter pacing by region is improving from the first quarter.

Market      2010 Total Year      Q1 2011 Actual      Q2 2011 Pacing

1-10              +14.6%                        -9.5%                           -3.1%
11-25            +19.4%                        -4.4%                          +4.6%
26-50            +14.7%                        -6.7%                          +4.0%
51-75            +18.2%                       +2.1%                           +3.4%
76-100         +12.8%                        +6.9%                          +7.9%
100+             +23.2%                        +3.0%                          +6.5%

Region                 2010 Total Year      Q1 2011 Actual      Q2 2011 Pacing
 
North Central           +18.9%                      +3.7%                         +12.6%
Northeast                 +17.2%                       -9.2%                            -3.0%
South Central          +18.9%                       -6.7%                            -4.3%
Southeast                +20.3%                       -0.4%                            +4.0%
West                           +9.2%                       -13.9%                           -2.3%

« see more Net News