• by Jack Loechner , Staff Writer @mp_research, August 30, 2011

Compared to the Arbitron estimates from one year ago, network radio increased its weekly reach among persons aged 12 and older by more than 1.9 million listeners, according to theRadar 109 Cume audience estimates

The June 2011 report saw an increase in key demographics reached by network radio over the same period last year, with adults aged 18 to 49 and adults aged 25 to 54 gaining more than half a million listeners. 

Demographics Reached by Network Radio
Demographic	RADAR 105(June 2010)		RADAR 109(June 2011)		Change(000)
	Reach (000)	Reach Rating	Reach (000)	Reach Rating
Persons 12+	189,990	73.8	191,891	74.0	1,901
Adults 18+	172,706	74.3	174,299	74.3	1,593
Adults 35+	119,360	73.7	120,238	73.4	878
Adults 18-49	103,336	76.5	103,841	77.0	505
Adults 25-54	97,489	76.9	97,992	77.2	503
Source: Arbitron RADAR, August 2011

And, according to the Radio Advertising Bureau, radio delivered its sixth consecutive quarterly uptrend with a 1% increase to $4.581B in Q2. First Half was up 2%, to $8.364B. Results for the quarter were buoyed by Digital, and Network, and for the half: Digital, Off-Air, and Network.

Revenue Comparisons (2011 vs. 2010 In Millions)
Revenue	$Q2 '11	% Chg	$FH '11	% Chg
Spot	3,722	-1%	6,784	Flat
Network	282	3%	542	2%
Digital	185	18%	334	19%
Off-Air	392	5%	704	7%
Grand Total	4,581	1%	8,364	2%
Source: Miller, Kaplan, Arase & Co., August 2011

Growth in Radios sectors for First Half 2011 was through key Automotive, Television/Network/ Cable Providers and Retail categories. Advertisers within the second tier categories, Insurance Companies, Financial and Beverages, bolstered Radio's revenue with significant increases for the quarter and first six months of 2011:

Second Tier Radio Sectors
	Q2 2011	First Half 2011
Insurance Companies	$187M (+29%)	$399M (+23%)
Financial	$296M (+11%)	$567M (+4%)
Beverages	$297M (+10%)	$430M (+14%)
Source: Miller, Kaplan, Arase & Co., August 2011

Jeff Haley, RABs President and CEO, notes that "... contrary to... recent market woes... many of the nations largest marketers are forecasting increases in media expenditures through the end of 2011... P&G, AT&T and Coca-Cola have all reported upcoming campaign support for various products...  Fiat is reintroducing its vehicles to the U.S.... "

RadioS Top Five Radio Revenue Categories (Second Quarter 2011; Spot Sending)

·      Communications/Cellular $341M

·      Auto Dealers/Dealer Groups/Manufacturers $330M

·      Restaurants $317M

·      Television/Networks/Cable Providers $305M

·      Beverages $270M

Comcast Cable takes the lead among Spot Radio advertisers for Q2 2011:

Q2 2011 Leading Advertisers (Spot Radio; Approximate $ in Millions)
Advertiser	Ad Dollars (MM)
Comcast Cable	$91
McDonalds	88
AT&T	85
Verizon Wireless	82
Walmart	65
Safeway	60
Coca-Cola	56
Chrysler	52
Home Depot	52
Pepsi	81
Source: Miller, Kaplan, Arase & Co., August 2011

 

Q2 2011 Leading Growth Categories (Spot Radio; $ in Millions)
Category	$Q2 '11	% Chg
Television/Networks/Cable Providers	$304.7	21%
Beverages	$297.0	10%
Financial Services	$295.7	11%
Insurance Companies	$187.1	29%
Department/Discount Stores & Shopping Centers	$154.0	34%
Source: Miller, Kaplan, Arase & Co., August 2011

In the Spot radio retail category:

·      Department & Discount Stores sub-category finished the first-half 2011 at #11 with $246.1M

·      Home Depot continued as the Home Improvement sub-category leader for the quarter and first six months of 2011. $71.5M (FH ‘11) maintained the top spot.

·      Walmart remains the retail powerhouse with $4.5M in Q2 and $6.3M mid-year 2011. Walgreens is a close second with First Half at $6.1M (+28%)

Allstate Insurance nearly tripled Radio spending in Q2 to challenge perennial category leader GEICO; the two dominated the Spot category this quarter.

2011 vs. 2010 Spot Radio ($ in Millions)
Advertiser	$FH '11	% Chg
GEICO	$83.0	1%
Allstate Insurance	50.9	370%
Blue Cross Blue Shield	19.9	58%
USAA Insurance	35.9	268%
Farmers Insurance	18.1	34%
American Family Insurance Inc	23.9	113%
AAA Auto Assn. of America	18.8	28%
Source: Miller, Kaplan, Arase & Co., August 2011

The biggest Spot spender in Radio for Q2 2011 comes from Comcast Cable, topping the charts at $91.7M, up 58% over same period last year. NBC TV Network, ranked #2 at $24.4M, falls under the Comcast umbrella following the Comcast-NBCU merger in January 2011. These two are also up for the first half at $175.5M (+46%) and $41.2M (+16%) respectively.

Business has improved considerably for the Financial sector since the crisis of 2008 and this is reflected in Radio's 11% Q2 gain in Spot revenue to $295.7M.

Q2 2011 Highlights:

·      JPMorgan Chase rebounded from a lackluster Q1 performance with a 21.1% Q2 increase, to $43.8M and category leadership

·      Visa charged up $22.1M in Q2, up 70% over same period in 2010

·      Major gains came from PNC Bank, Fifth Third Bank, and US Bank

·      Bank of America turned up Radio to $16.8M, up from $1.4M last year

Now in its third growth quarter since Q4 2010, Beverages the fifth ranked category for Q2, 2011 increased spending 10% over 2010 comps with an additional $25.8M.

2011 vs. 2010 Spot Radio (in Millions)
Advertiser	$FH '11	% Chg
Coca-Cola	$80.2	98%
Pepsi	78.8	23%
MillerCoors	56.3	9%
Source: Miller, Kaplan, Arase & Co., August 2011

Automotive closed out the First Half as the #1 category, up 9% over its 2010 level to $755M; second quarter comps were off just 6% (to $330) and rank moved to #2.1st Half 2011 Highlights:

·      Chrysler Group LLC Corporate dominates Radio at $101.9M, a gain of 40% over 2010

·      Chrysler Group LLC Dealer Association is 10th overall based on a 29% increase to $21.8M

·      Toyota Dealer Association retains the #2 spot at $62.7M and Toyota Motor Corporation ranks 4th, quadrupling spending to $28.3

·      Combined Toyota spending is up 31% versus 2010

·      Network Radio spending $933K, nearly double FH 2010

·      Dealer Association spending grew among several American brands, including...

·      Chevrolet (+43%, to $28.8M); Ford (+15%, to $25.8M) and foreign makers

·      Hyundai (+99%, to $28.3M), Mercedes-Benz (+28%, to $17.4M), and BMW (+26%, to $16.0M)

·      GMC Motor Corporations spending nearly tripled, to $21M

Communications recaptured Radio top Spot revenue ranking in Q2 while dropping 13% in spending. The improved position was aided by Automotives temporary quake-related issues. The category is headed by Radios #3 and #4 overall spenders, AT&T ($86.4M) and Verizon Wireless ($84.0M).

Many smaller carriers have called for more Radio in Q2 and 1st Half 2011:

Communications 2011 vs. 2010 Spot Radio ($ in Millions)
Advertiser	$FH '11	% Chg
MetroPCS	82.7	25%
T-Mobile	46.0	217%
Qwest Communications	14.3	226%
US Cellular	17.8	8%
Tracfone	15.9	83%
Sprint	10.1	103%
Source: Miller, Kaplan, Arase & Co., August 2011

For the Radio Listener report, please go here, and For additional information, including restaurants, wireless phones, grocery, convenience and clothiers, please visit the RAB here.