• by John Gaffney , July 8, 2002

Despite consolidation concerns among regulators, advertisers continue to gravitate toward radio. National radio ad revenue posted an 11 % spike for May, while local dollars rose 1%. The combined total revenue was up 3% over May of last year, according to the Radio Advertising Bureau.

As measured by the newly created RAB sales index, which equates base year 1998 to 100, the local sales index for the month of May 2002, was 133.1, while national was 133.8. The combined total sales index for the month was 133.3. From January through May of this year, the local sales index was 133.2 and the national was 132.4 for a combined total of 133.0.

Gary Fries, President and Chief Executive Officer of the RAB predicted continued strong economic gains for radio. “All indicators point to continued sales gains for Radio as the year progresses,” he said.

The radio business has been facing internal issues lately. Clear Channel continues to buy up networks, causing protests among several of its competitors. Also a recent survey from the Freedom of Music Forum showed consumers are unhappy with the lack of variety found on the dial.