According to the current report from the Radio Advertising Bureau, consistent with Q1 and first-half performance, Radio advertising posted moderate 1% growth through the first three quarters of 2012. Digital spending was up 7% for the period, followed by a 2% gain in Off-Air; Spot was flat. Third quarter revenue remained flat but Digital continues to represent a bright spot, up 8%.
Erica Farber, RAB President and CEO, says “While on-air advertising represents the core of Radio’s revenue stream... advertisers are taking advantage of expanding digital opportunities offered by stations... more marketers are tapping into the multi-platform aspects of Radio to reach... active and highly engaged audiences... “
Revenue Comparisons - 2012 vs. 2011 (In Million Dollars)
Source: Miller, Kaplan, Arase & Co./RAB, November 2012
Growth in spending by domestic and import autos, national grocery, clothing and big box retailers helped fuel revenue for the quarter. Radio also received an influx of dollars based on hotly contested political races, up six-fold over 2011’s Q3 pre-primary race spending.
Farber continued, noting that “... Radio’s Q3 and year to date results reflect the American economic picture... categories that are rebounding... have made Radio a greater part of their marketing plans...”
While the third quarter spending was flat compared to the same time period last year, several key categories increased their Spot Radio spending over Q3 2011 levels to help sustain the quarter. These include:
The lineup of markets/stations/networks may vary from year to year. Percent change is calculated on revenue adjusted to current year reporting. Advertisers contributing the most to Radio’s bottom line in Third Quarter 2012, in rank order by expenditure are:
Radio’s Top 10 in Q3
Comcast Xfinity Cable Service
Toyota Dealer Association
Source: RAB, November 2012
Spot Radio, Digital and Off-Air revenues are based on a pool of more than 100 markets as reported by the accounting firm of Miller, Kaplan, Arase & Co. and extrapolated to the entire U.S. Digital Revenue is comprised from activity generated by websites, Internet/web streaming and HD Radio including HD2 and HD3 stations. Network Revenue includes the top five Radio network companies. Revenue data has been randomly verified since 2002.
For the complete PDF file, including Political Overview, please visit the RAB here.