• by Erik Sass  @eriksass1, December 18, 2009

Tune in: There's some good news for the radio business -- Clear Channel Radio and Katz Media Group (the radio ad sales rep firm owned by Clear Channel) reported a substantial increase in ad sales in December and January, compared to the same months in 2008.

Together with some positive macroeconomic indicators and glimmers of a turnaround in magazine ad sales, the radio rebound holds out hope for a broader media recovery in the New Year.

According to Katz, national spot ad sales increased 13.2% in December compared to last year; January 2010 is on track to deliver a 17.4% increase over January 2009's dismal results.

In terms of market size, the rising tide appears to be lifting all boats, with the top 10 markets up almost 22%, No. 11-25 up 19.3%, and No. 51-75 up 33.6%. These rebounds are in line with earlier recessionary trends, which saw mid-sized markets taking smaller hits than bigger markets.

Specifically, Clear Channel had some good news in the all-important category of local ad sales, which also grew in December, albeit more modestly. So far, local ad sales are up 1.4% for the month compared to December 2008. January is also looking positive, with average minute rates climbing 5%-6% compared to a year ago.

These numbers may not be huge, but they are vastly better than anything reported by most big radio groups over the last year, or even two to three years. For the industry as a whole, through the third quarter of 2009, total national ad revenues were down 22% to $1.7 billion, according to the Radio Advertising Bureau, while local fell 23% to just under $9 billion.

Going back two more years, the national figure represents a 48.5% drop from $3.3 billion in the first nine months of 2006, and the local figure an 18% drop from $11 billion.