Communications Radio Advertisers Show Biggest Growth in 1stQ 2007

Communications Radio Advertisers Show Biggest Growth in 1stQ 2007

The Radio Advertising Bureau, in the recent release of 1st Quarter 2007 revenue data based on a pool of more than 150 markets, concludes that non-spot activity presents a significant growth opportunity for Radio to increase its revenue stream.  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.

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 (-1%), non-spot and network both showed healthy increases - 10% and 9%, respectively - to offset the national drop and bring Radio's total revenue growth in at 1% over the same period last year.

1st Quarter 2007 vs. 1st Quarter 2006(In millions)


Dollars (Mil)

% Chg

Local Revenue

 $   3,224


National Revenue

 $      945


Network Revenue

 $      257


Non-Spot Revenue

 $      302


Grand Total Revenue

 $   4,728


Source: Miller, Kaplan, Arase & Co.

 In the radio's leading growth categories, the Communications sector spending is up an impressive 17.3% in Q1 '07 compared to same period '06, representing a rebound from Q1 '06 vs. Q1 ‘05. Three dominant players in this category comprise nearly three-quarters of total Radio ad spend, and collectively spent 25% more than in 1st Quarter 2006. This outpaces the overall category increase of 17.3%.

  • AT&T/Cingular,
  • Verizon Wireless
  • SprintNextel

 Radio continues to enjoy robust gains in spending in the Health Care sector, posting a 9.5% Q1 gain for the second year straight. Eye care centers/services represent four of the top six spenders in the Health Care category:

  • TLC Laser Eye Center
  • Booth Eye Center
  • LCA Vision
  • Quest Diagnostics
  • Lasik Plus
  • Britesmile

While the Concerts/Theater/Movies category was up 17.3% in Q1 over and above ‘06's 12.1% increase, spending among the top eleven advertisers outpaced the category, growing collectively at 40%. These accounts represent 59% of total category dollars for the quarter -- and movies comprise 84% of that group. Major increases in movie spending in Q1 '07 came from

  • Miramax Films (up 944%)
  • Paramount Pictures (up 589%)
  • Sony Pictures (up 229%)

RADIO'S LEADING GROWTH CATEGORIES(1st Quarter 2007 vs. 1st Quarter 2006)


Q1 '07-Q1 '06

Q1 '06-Q1 '05

Communications/cellular/ public utilities






Health care



Source: Miller, Kaplan, Arase & Co.: X-Ray Markets

Automotive, Radio's leading advertising category, spent more than double that of the #2 category, Communications. The top 25 automotive Radio advertisers were up nearly 2%. Among this group, dealer dollars increased 7.7% over 2006, while manufacturer dollars were down 4.2%.

RADIO'S BIGGEST CATEGORY(1st Quarter 2007 vs. 1st Quarter 2006)  


Q1 '07-Q1 '06

Q1 '06-Q1 '05

Auto dlrs/dlr grps/ manufacturers/rentals



Source: Miller, Kaplan, Arase & Co.: X-Ray Markets


To read the report in PDF format, please Click here for full report(

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