Commentary

Radio Advertising Comparison to Last Year Skewed by Previous Political Spending

Radio Advertising Comparison to Last Year Skewed by Previous Political Spending

According to the most recently released revenue figures by the Radio Advertising Bureau, figures were off 7% for the month of October 2005 in grand total combined spot and non-spot ad dollars compared to October of 2004. The current downturn can be traced to specific markets in the battleground states from the 2004 election that were up against last year's high comparison to the current non-political 2005.

National ad sales figures for October 2005 took the biggest hit, falling 19% when compared to last October. Local sales figures fared better, dipping 2% in October 2005 compared to the same month from a year ago. Non-spot Radio revenue declined 8% in October 2005 compared to October of 2004.

From a year-to-date perspective, grand total spot and non-spot Radio revenue remained flat over the first 10 months of 2005 compared to those same 10 months from 2004.

The RAB Sales Indexes (based on 1998 at 100) for the month of October 2005 are: total combined local and national, 115.0; national, 109.8; local 115.7. On a year-to-date basis, the sales indexes for January through October 2005 are: total combined local and national, 139.6; national, 140.3, and local, 139.4

Radio Advertising Bureau Index Of Radio Revenue Pool Numbers

Oct. 2005 Vs. Oct. 2004

Year-To-Date
Jan. - Oct. 2005 Vs. Jan. - Oct. 2004

Local Revenue

Local Revenue

All Markets

-2%

All Markets

1%

Local Ad Sales Index

115.7

Local Ad Sales Index

139.4

National Revenue

National Revenue

All Markets

-19%

All Markets

-1%

National Ad Sales Index

109.8

National Ad Sales Index

140.3

Local & Nat'l Revenue

Local & Nat'l Revenue

All Markets

-7%

All Markets

0%

Combined Ad Sales Index

115.0

Combined Ad Sales Index

139.6

Non-Spot Revenue

Non-Spot Revenue

All Markets

-8%

All Markets

-1%

Grand Total Revenue

Grand Total Revenue

All Markets

-7%

All Markets

0%

Source: RAB, November 2005

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