RAB: Revenues Down 16% In Q3
November 20, 2009: The RAB reports that radio revenues fell 16 percent year-over-year in the third quarter, to $4.2 billion. Local revenues were off 19 percent, to $2.8 billion, with national down 17 percent, to $639 million. Local and national combined for a 19 percent drop, to $3.4 billion.
Radio's digital revenues were up 14 percent in the quarter, to $126 million, with network down 11 percent, to $253 million, and off-air down 9 percent, to $335 million.
The Q3 decline follows drops of 22 percent overall decline in the second quarter and 24 percent in Q1.
"As the quarter came to a close, it showed promise of an upswing in advertising spend by marketers," RAB President/CEO Jeff Haley said. "Increases in expenditures in highly competitive categories continue to positively influence radio's bottom line."
Haley continued, "Although there have been shifts in rank, radio's top five categories have been consistent since 2005. Within these top five categories we continue to see some advertisers aggressively increase their share of voice when compared to their higher-spending competitors."
Among the advertisers increasing spending in the quarter were Subway, Dunkin Donuts, MetroPCS, Volvo, and Hyundai Motor Corporations.
Communications Leads Again
Communications/cellular/public utilities was the leading category for the fourth consecutive quarter, spending $337.6 million. The top spenders in the category are AT&T ($106.4 million in the quarter) and Verizon Wireless ($107.5 million). Sprint, meanwhile, raised its radio spending by 176 percent in Q3.
Among the leaders in the restaurant category in Q3 were McDonald's, at $225.8 million, and Wendy's, at $81.5 million. McDonald's is radio's number three spender overall.
In the automotive category, "Cash for Clunkers" helped out in the third quarter, bringing radio spending to it highest levels of the year. GMC Motor Corp. spent $16.7 million in Q3, up 101 percent from Q3 2008, while Volvo moved spending up 26 percent, to $10 million, and Hyundai spent $7.4 million, up 65 percent. Year-to-date, Toyota Dealer Association is the top spender on radio, at $62.9 million.
In the retail category, the RAB pointed to JC Penney, with spending up 106 percent, to $17.3 million, and Kohl's, which spent $17.2 million, up 43 percent, as bright spots among department stores.
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