New York, New York – November 22, 2013 – Radio’s overall Q3 result was the best this year, up 1% compared to flat delivery in Q1 and Q2. Year to date performance remains on par with 2012.
The 3rd Quarter uptick was based on a 1% gain in the Spot sector, which represents the largest portion of Radio’s revenue base. Digital continues to show robust gains — up nearly 1/5 — while Off-Air was up 3%. Network posted a decline of 11% against last year’s sales. Year to date, Spot revenue is flat; Digital, Off-Air and Network are +15%, +3% and -7% respectively.
Digital continues its reign as Radio’s fastest growing sector. Off-Air activity also remains steadfast, increasing every quarter in 2013. Combined, Digital and Off-Air represent 13% of Radio’s total revenue.
“The momentum we saw building at the end of Q2 has definitely translated into a positive Q3 for Radio in many of our Top 10 advertiser categories, led by Communications/Cellular with a healthy 24% increase,” noted Erica Farber, RAB President and CEO. “Among key categories, Automotive, Professional Services, Health Care, Home Furnishings, all showed substantial increases, as well. Increases from these diverse ad categories illustrate Radio’s cross-platform strength to drive traffic and sales – for large corporations to Main Street businesses.”
“Automotive regained the top category ranking in Q3 but Communications remains as a strong #2 in the field,” noted Farber. “We’re looking for the holiday season and year-end selling efforts to provide additional momentum to end the year on a positive track.”
Radio’s Top 10 in Q3
Following are the advertisers contributing the most to Radio’s bottom line in Third Quarter 2013, in rank order by expenditure; seven of the ten increased their spending this year:
*Spot Radio, 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 LLP and extrapolated to the entire U.S. Digital Revenue is comprised from activity generated by websites, Internet/web streaming and HD Radio including HD2 and HD3 stations. Network Revenue includes seven major Radio network companies. Revenue data has been randomly verified since 2002.
The lineup of markets/stations may vary from year to year. Percent change is calculated on revenue adjusted to current year reporting.
The Radio Advertising Bureau serves more than 6,000 member Radio stations in the U.S. and over 1,000 member networks, representative firms, broadcast vendors, and international organizations. RAB leads and participates in educational, research, sales, and advocacy programs that promote and advance Radio as a primary advertising medium.
