Radio continues to mine New Advertisers in Down Economy.

As Q2 unfolded, increasing signs of an improving economy emerged, indicating that “we are most likely past the Q1 low point for Radio revenues and are now on the rebound,” stated Jeff Haley, President and CEO of the RAB. Much of Radio’s weakness in Q2 and for the first six months of 2009 is linked to marketers associated with the auto industry (formerly Radio’s top ad category, now #3) and major retailers feeling the impact of shaky consumer confidence and spending.

Some advertisers, previously unable to compete against their category’s leaders, are using this opportunity to increase their share and position within the market. “Taking advantage of Radio’s core strengths, advertisers marketing to the price/value consumer are increasing their share of voice on the airwaves — providing encouraging signs,” remarked Haley. These signs are visible across various reporting categories: Restaurants, Communications, and Automotive, particularly imports. Among those Local and National advertisers leading the charge are: Subway, Dunkin Donuts, Boost Mobile, US Cellular, Metro PCS, Mitsubishi, Volvo and Honda Motor Corporations.

Radio’s revenue derived from Digital platforms continues to rise, illustrated by a 10% increase at 2009’s mid-point. Digital will be an increasingly important sector as Radio continues to evolve into a cross-platform medium. The ability to leverage local advertisers should boost revenue significantly.

Prior to the downturn RAB projected Off-Air, then comprising Digital and Off-Air revenues, to reach $2B in 2009. Based upon current levels, indicators are that these two sectors in combination may approach this mark by year-end, despite the economy. (Effective 2009, the RAB separately reports Digital and Off-Air.)
As confirmation, a recent projection from BIA anticipates Digital advertising alone on Radio is on an upward track.

*Local, National, Digital and Off-Air revenues are based on a pool of more than 100 markets as reported by the accounting firm of Miller, Kaplan, Arase & Co. and extrapolated to the entire U.S. The methodology to derive the 2007 local, national, digital and Off-Air (non-spot) quarterly dollar amounts has been recalibrated and maintains previously reported quarterly total revenue while reflecting a shift in the dollars within the sectors. Digital Revenue is comprised from activity generated by the websites, internet/web streaming and HD Radio including HD2 and HD3 stations. Network Revenue includes the top five Radio network companies. Non-Spot data has been collected and verified since January of 2002, and reported since September of 2004.
The RAB began reporting quarterly Radio revenue in dollar amounts with the 2007 results.

To download report CLICK onlink below:
http://www.rab.com/dailypress/RevenueReportQ2_2009.pdf>