Cell Phone and Movie Ads Boost Radio in First Quarter

Cell Phone and Movie Ads Boost Radio in First Quarter

According to the The Radio Advertising Bureau, 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, non-spot and network both showed healthy increases to offset the national drop and bring Radio's total revenue growth in at 1% over the same period last year.

Radio Revenue inFirst Quarter 2007 (1st Q 2007 vs. 1st Q 2006 In millions)



% 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

Non-spot activity presents a significant growth opportunity for Radio to increase its revenue stream, says the report. 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.

In the first quarter, radio's leading growth categories were Concerts/Theaters and movies, benefiting from heavy promotional activity. With the entire category up 17.3% in Q1 over and above ‘06, this category holds growing importance to Radio, concludes the report. The Communications sector spending and Health Care are both significantly.

Radio's Leading Radio 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

In Radio's biggest category, the top 25 automotive Radio advertisers were up nearly 2%. Among this group, dealer dollars were up 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

Three dominant players (AT&T/Cingular, Verizon Wireless and SprintNextel) in this category account for nearly 75% of Radio's total for the category in Q1 '07, and collectively spent 25% more than in 1st.Quarter 2006. This impressively outpaces Communications/Cellular's overall increase of 17.3%.

  • T-Mobile Communications (up 650%)
  • SprintNextel (up 509%)
  • Leap Wireless (up 134%)
  • Metro PCS (up 82%
  • Cavalier Telephone (up 50%)

Radio benefited from heavy promotional activity in the Concerts/Theater/Movies category in first quarter. Spending among the top eleven advertisers in this group outpaced the category, growing collectively at 40%. These eleven 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%)
  • Warner Brothers Pictures increasing (up 67%)
  • Universal (up 33%)

RAB category analysis is based on data from Miller, Kaplan, Arase & Co. X-Ray Market Reports from advertiser expenditure data direct from station billing in 35 markets. X-Ray Markets represent approximately 80% of the dollars from the pool of 150 markets.

The complete quarterly report with charts, and more percentage growth rates will continue to be available on the RAB website here.

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