Cell Phone and Movie Ads Boost Radio in First Quarter According to the The Radio Advertising Bureau, local revenue, comprising over two-thirds of total Radio revenue in 1st. Quarter 2007, showed a 1% increase. While national, representing one-fifth of total Radio revenue, was off slightly, non-spot and network both showed healthy increases to offset the national drop and bring Radio's total revenue growth in at 1% over the same period last year. Radio Revenue inFirst Quarter 2007 (1st Q 2007 vs. 1st Q 2006 In millions)Revenue $ % Chg Local Revenue $ 3,224 1% National Revenue $ 945 -1% Network Revenue $ 257 9% Non-Spot Revenue $ 302 10% Grand Total Revenue $ 4,728 1% Source: Miller, Kaplan, Arase & Co Non-spot activity presents a significant growth opportunity for Radio to increase its revenue stream, says the report. Unmeasured prior to 2004, this category is 6.4% of total Radio revenue and is an important factor in Radio's total ad spend, impacting the medium into the positive growth position it displayed in 1st Quarter 2007. In the first quarter, radio's leading growth categories were Concerts/Theaters and movies, benefiting from heavy promotional activity. With the entire category up 17.3% in Q1 over and above ‘06, this category holds growing importance to Radio, concludes the report. The Communications sector spending and Health Care are both significantly. Radio's Leading Radio Growth Categories (1st Quarter 2007 vs. 1st Quarter 2006) Category Q1 '07- Q1 '06 Q1 06 - Q1 '05 Communications/Cellular/ Public Utilities 17.3% -6.2% Concerts/Theater/Movies 17.3% 12.1% Health Care 9.5% 9.5% Source: Miller, Kaplan, Arase & Co.: X-Ray Markets In Radio's biggest category, the top 25 automotive Radio advertisers were up nearly 2%. Among this group, dealer dollars were up 7.7% over 2006, while manufacturer dollars were down 4.2%. Radio's Biggest Category (1st Quarter 2007 vs. 1st Quarter 2006) Category Q1 '07- Q1 '06 Q1 '06 - Q1 '05 Auto Dlrs/Dlr Grps/ Manufacturers/Rentals -2.6% -10.0% Source: Miller, Kaplan, Arase & Co.: X-Ray Markets Three dominant players (AT&T/Cingular, Verizon Wireless and SprintNextel) in this category account for nearly 75% of Radio's total for the category in Q1 '07, and collectively spent 25% more than in 1st. Quarter 2006. This impressively outpaces Communications/Cellular's overall increase of 17.3%.