• by Jack Loechner , Staff Writer @mp_research, April 18, 2004

Local Markets Lead Radio Growth in 2004

In a surprising twist, says the RAB, local radio revenue figures are rebounding faster and stronger than national, the sector that traditionally signals the healthy return of advertising. Both segments are expected to yield positive results in 2nd Quarter.

For the month of February, local ad dollars climbed 3% over February of 2003, while national activity dropped 4% this February compared to February of last year. Total combined local and national revenue for the month of February also rose 1% over February of 2003.

On a year-to-date basis, local ad dollars grew 1% for the first two months of 2004 versus that same time from a year ago. National sales figures for January through February of 2004 dropped 2% when compared to January through February of 2003. Total combined local and national dollars experienced a gain of 1% in the first two months of the year.

To put the intermediate and long-term growth of the Radio industry into proper perspective, RAB introduced a Sales Index that equates base year 1998 to 100. For February, the local sales index is 143.3; national is133.6; and the combined total is 141.5. From a year-to-date perspective, the local sales index is 141.2; the national is 141.6; and the combined total is 141.3.

"Radio's stronghold in the local marketplace has sustained the medium through the early part of 2004," noted Gary Fries, President and Chief Executive Officer, RAB.

These monthly totals are based on the RAB Radio Revenue Index of more than 150 markets.