RAB: Radio Revenues Down 24% In Q1
NEW YORK -- May 22, 2009: The RAB reports that radio's revenues fell by 24 percent in the first quarter of 2008, to $3.4 billion, with local down 26 percent, to $2.4 billion, and national off by 27 percent, to $473 million. Local and national combined for a 26 percent drop.
Network radio revenues fell by 13 percent in the quarter, to $238 million, with off-air down 12 percent, to $264 million. But digital revenues rose 13 percent in Q1, to $101 million.
"Radio's digital platforms are experiencing the greatest growth and are reflective of the dollar shift from media to marketing by many of today's advertisers," said RAB President/CEO Jeff Haley. "As consumer and technological sophistication increases, advertisers will continue to support those platforms which appeal to their customers' increased on-demand behaviors -- and radio is primed for it."
Top Categories
Communications/cellular/public utilities becomes the top spending category for both local and national, with MetroPCS spending 97 percent more on radio and USCellular upping its spending by 90 percent compared to a year ago. Category toppers AT&T and Verizon Wireless -- spending $138.8 million and $101.8 million -- are also radio's top overall spenders so far this year.
Restaurants were the number two spending category in the first quarter, topped by McDonald's and Burger King, with White Castle, Panera Bread, and Jack in the Box all bumping up spending substantially in Q1.
Automotive, meanwhile, including dealers, dealer groups, manufacturers, and rentals, fell to the number four spending category in Q1 for both local and national. But Volvo, Audi, GMC, and the BMW Dealer Association all increased spending in the quarter.
However, network radio saw increased spending by GM in Q1, doubling to nearly $7.5 million, and Chrysler and Volkswagen, which didn't spend on network radio in Q1 '08, each spent more than $1 million in the first quarter of this year.
In retail, Target was a big spender, nearly quadrupling its dollars for radio, to $15.3 million -- substantially ahead of Walmart in local and national. JC Penney spent $8.3 million, up 28 percent year-over-year, while Goodwill Industries spent 7 percent more on radio in Q1. On the networks side, Home Depot leads, spending $8 million in Q1 -- up 15 percent from a year ago. Walgreens bumped up spending by over 50 percent, to $4 million.
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