Signal Failure: Radio Revs Fall 8% In March
Radio revenues fell 8% in March compared to the same month in 2008, according to new figures released by the Radio Advertising Bureau--exceeding even Wall Street's negative expectation of a 3% drop. Local advertising, the medium's traditional mainstay, fell 8%, while national tumbled 17%.
The March numbers are just more bad news following a 6% decline in total revenues in January and a 2% decline in February. Although results for the quarter aren't yet available, a drop of 5% or more seems plausible in light of the percent figures.
Jim Boyle, an analyst with CL King, said the March results were especially ominous as radio was "up against easy comparisons" from last year, adding that second-quarter results "might very well be as discouraging as Q1's." The deepening decline prompted another analyst, Wachovia's Mari Ryvicker, to yet again lower her 2008 revenue forecast, revising it downward from a 1% decline to 2%.
Ryvicker noted that March's drop was the biggest since November 2001, when radio and other media suffered from general economic instability after 9/11. Boyle said radio's success in small markets is due to several factors, including more direct relationships with local advertisers and the absence of the kind of big station price wars that have undermined revenues in larger markets.
However, the news isn't all bad: Smaller markets are actually thriving as big and mid-sized markets take a dive, in what Boyle terms radio's "split personality." Small-market revenues grew 6%, benefiting predominantly small-market operators, like Cumulus, Saga, and Regent.
Additionally, the RAB highlighted double-digit growth in radio's "non-spot" category, up 18%, thanks largely to the growth in Internet radio advertising. But the non-spot category remains a small part of total radio revenues, contributing 8% of the total in 2007, at $1.68 billion. Internet advertising, in turn, was probably less than a third of that. According to Bridge Ratings, Internet radio's total revenues were about $500 million in 2007, including not just advertising but subscription services.
Recent MediaDailyNews Articles
-
Broadcasters Sue AereoKiller In DC May 24, 5:21 p.m.
Confirming their efforts to follow over-the-top TV services with legal filings in any market where they ... -
Cigarette Marketers Slice Mag Spending In 2011 May 24, 4:52 p.m.
The five major cigarette marketers nearly cut in half their collective magazine spending in 2011. The ... -
B2B Revenues Rises, Credits Events, Digital Ads May 24, 4:45 p.m.
Overall, business-to-business media revenues are growing, due to an upward trend in B2B trade shows which, ... -
Court Dismisses Defamation Suit Against WPP's Sorrell May 24, 3:31 p.m.
A New York Court has dismissed a defamation lawsuit brought against WPP CEO Sir Martin Sorrell.Sorrell ... -
MediaCom Races To Win FIA E Championship's AOR May 24, 12:37 p.m.
A start-up race car circuit, The FIA E Championship, has named WPP’s MediaCom as its agency ... -
Networks Tie For Last Month of the 2012-2013 Season, NBC Gains Ground May 24, 10:56 a.m.
The four major networks were in a virtual tie for the last month of the 2012-2013 ... -
Aereo Is Not Just For Cord-Cutters May 23, 6:34 p.m.
Are cord-cutters most likely to subscribe to Aereo? Not necessarily, according to early returns. CEO Chet ... -
Cars.com Drops Flag On NASCAR.com Sponsorship May 23, 6:25 p.m.
Cars.com has a need for speed. The site has a deal with Turner to sponsor a ... -
Worldwide Pay TV On The Rise, Big Growth In Asia May 23, 4:17 p.m.
North American pay TV subscribers may continue to show little or no growth for the first ... -
Activision Blizzard's Campaign Wins Grand Effie May 23, 4:12 p.m.
Video game marketer Activision Blizzards’ ad campaign “The Vet and the nOOb” for "Call of Duty: ...
Be the first to comment on "Signal Failure: Radio Revs Fall 8% In March"
Leave a Comment