• by Paul Gough , March 29, 2004

Local radio ad revenues rose in February, leading national categories and bringing the whole medium higher.

The Radio Advertising Bureau said Tuesday that local radio rose 3 percent compared to the same period in 2003, while national ads dropped 4 percent compared to February 2003. Total revenue rose 1 percent compared to February--a month before the start of the war in Iraq and a time when the industry plunged back into recession.

It's important for radio stations to have strong local revenues, which make up about 80 percent of the business. National ad sales are about 20 percent of the mix. But the RAB noted that national ad spending in radio generally presages an improvement in local radio. That's not the case this time around.

Both sectors are expected to go into positive territory in the second quarter, RAB predicted Tuesday. That wouldn't be difficult, even without an improving ad picture--as the radio industry experienced a steep decline in March 2003 and posted up-and-down growth through the rest of the year.

"Radio's stronghold in the local marketplace has sustained the medium through the early part of 2004. We anticipate national growth to accelerate as the year progresses," said Gary Fries, president and chief executive officer of the RAB, in a prepared statement.