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 1
st 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) |
Revenue | Dollars (Mil) | % Chg |
Local Revenue | $ 3,224 | 1% |
National Revenue | $ 945 | -1% |
Network Revenue | $ 257 | 9% |
Non-Spot
Revenue | $ 302 | 10% |
Grand Total Revenue | $ 4,728 | 1% |
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) |
Category | Q1 '07-Q1 '06 | Q1 '06-Q1 '05 |
Communications/cellular/ public utilities | 17.3% | -6.2% |
Concerts/theater/movies | 17.3% | 12.1% |
Health care | 9.5% | 9.5% |
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) |
Category | Q1
'07-Q1 '06 | Q1 '06-Q1 '05 |
Auto dlrs/dlr grps/
manufacturers/rentals | -2.6% | -10.0% |
Source: Miller, Kaplan, Arase & Co.: X-Ray Markets |
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