• by Jack Loechner , Staff Writer @mp_research, December 12, 2007

Retail and Automotive Strong Radio Users Through 3rd Quarter

According to a new TNS Media Intelligence Report, the Radio Advertising Bureau reports that Network Radio ad spending was driven by heavy investment from retail and automotive. Total retail grew 42% in 3rd Quarter and nearly and automotive increased 70% in 3rd Quarter.

Network Radio was the clear frontrunner with a 9% revenue gain. From a year-to-date perspective, Non-Spot maintained its lead in growth among Radio sectors, gaining 10% over the same time period from last year, while Network Radio posted a healthy 5% growth.

Results across Radio sectors reflect the U.S. economy in general - a mix of challenges and bright spots - while analysis of the results reveals that major advertisers maintained or increased their Radio spending in both the 3rd Quarter as well as in year-to-date.

Jeff Haley, President and Chief Executive Officer, Radio Advertising Bureau, said

"Major advertisers... continued or increased their investment in Radio... rely(ing)

Two key advertiser categories that showed up strong in earlier quarters continue to outpace total Radio spending in 3rd quarter 2007. These categories have also held up well for performance over the first three quarters of this year:

From a year-to-date perspective, the top 5 Network Radio retail advertisers accounted for 59% of the category total, and each increased their spending.

Additional Highlights:

• In the automotive category, General Motors was the biggest parent company 3rd Quarter and year-to-date Network Radio spender, with a 3rd Quarter 146% increase
• Gasoline boosted Network Radio by 111% in 3rd Quarter and 140% year-to-date with BP PLC energizing the category by introducing millions of dollars new to Network Radio (reported since 2000)
• Internet and online services had a near 7-fold increase in 3rd Quarter 2007 and 330% increase year-to-date
• Communications/Cellular/Public Utilities is the leading major growth category for Radio, with spending up an impressive 17% (to $1.385 billion) year-to-date and Q3 solid at +9% (to $439.7 million). Three players dominate this category... AT&T with 35%, Verizon Wireless with 28%, and SprintNextel with 14%
• Financial Services spending was up 11% in Q3 '07 (to $57.4 million) as advertisers continued to grow interest in Radio
• Concerts/Theaters/Movies posts a Q3 '07 gain of 11%, rounding out the year-to-date with a 21% increase, firming up its importance to the Radio industry

For the complete release and the full report, please visit the RAB here.