Commentary
Radio Revenue Finishes Up in 2006
- by Jack Loechner , Staff Writer @mp_research, February 9, 2007
According to the Radio Advertising Bureau the Grand total Radio revenues increased 1 percent in 2006 over 2005, boosted by a 10 percent increase in non-spot dollars over that same time period. Total combined local, national and network sales figures were flat for 2006 compared to 2005. National business grew 5 percent in a year-over-year comparison. Local ad sales figures fell 1 percent, 2006 over 2005. Network Radio decreased 2 percent year over year, 2006 versus 2005.
Fourth quarter 2006 grand total revenues for Radio grew 3 percent when compared to that same quarter from a year ago.
To put the intermediate and long-term growth of the Radio industry into proper perspective, the Radio Advertising Bureau (RAB) introduced an Ad Sales Index that equates base year 1998 to 100. The RAB sales indexes for full-year 2006 are: local, 137.7; national, 146.8; and total combined local and national, 139.7.
Ongoing, the RAB will report quarterly Radio revenue in dollar amounts beginning with the 2007 results. Monthly percentage growth rates will continue to be available on the RAB website at www.RAB.com.
Radio Advertising Bureau Index Of Radio Revenue Pool Numbers | |||||
Dec. 2006 Vs. Dec. 2005 | Year-To-Date Jan. - Dec. 2006 Vs. Jan. - Dec. 2005 | 4th Quarter 2006 Vs. 4th Quarter 2005 | |||
Local Revenue | Local Revenue | Local Revenue | |||
All Markets | -1% | All Markets | -1% | All Markets | 0% |
Local Sales Index | 116.4 | Local Sales Index | 137.7 | ||
National Revenue | National Revenue | National Revenue | |||
All Markets | 6% | All Markets | 5% | All Markets | 12% |
Nat'l Sales Index | 126.4 | Nat'l Sales Index | 146.8 | ||
Local & Nat'l Revenue | Local & Nat'l Revenue | Local & Nat'l Revenue | |||
All Markets | 0% | All Markets | 0% | All Markets | 3% |
Combined Sales Index | 118.7 | Combined Sales Index | 139.7 | ||
Non-Spot Revenue | Non-Spot Revenue | Non-Spot Revenue | |||
All Markets | 8% | All Markets | 10% | All Markets | 12% |
Grand Total Revenue | Grand Total Revenue | Grand Total Revenue | |||
All Markets | 1% | All Markets | 1% | All Markets | 3% |
Source: Radio Advertising Bureau, January 2007 | |||||
(
2006 Overall Radio Revenue Growth (In billions) | ||||||
Local | National | Network | Total Spot | Non-Spot | Grand Total | |
2006 | $15.478 | $3.553 | $1.112 | $20.143 | $1.522 | $21.669 |
% Chg | -1% | 5% | -2% | 0% | 10% | 1% |
2005 | $15.634 | $3.384 | $1.135* | $20.071 | $1.384 | $21.455 |
Source: Radio Advertising Bureau, January 2007 | ||||||
Local and national revenues are based on a pool of more than 150 markets as reported by the accounting firm of Miller Kaplan Arase & Co. Non-Spot data has been collected and verified since January of 2002, and reported since September of 2004.
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.