The Radio industry is getting a glimpse of the recovery that is anticipated for the second half of the year, as national ad dollars for the month of June rose 16% over the same month a year ago. Local revenue continued to hold steady against the wavering economy, remaining flat for June 2003 when compared to June of last year. Local and national combined revenue for the month also increased 4% compared to June of 2002.
On a year-to-date basis, the revenue in the national sector rose 7% for the first six months of the year compared to that same time period from 2002. Local ad dollars also inched up 1% from January through June of 2003 over January through June of 2002. The combined local and national sales figures for the first half of 2003 also climbed 3% over the first half of last year.
Looking at Radio sales figures for the 2nd quarter of 2003, local numbers remained flat compared to last year’s 2nd quarter, while national revenue for the 2nd quarter went up 7% over the same quarter in 2002. When combined, local and national ad dollars for 2nd quarter 2003 climbed 2% over the same three months in 2002.
To put the intermediate and long-term growth of the Radio industry into proper perspective, the Radio Advertising Bureau (RAB) introduced a Sales Index that equates base year 1998 to 100. The Index works similar to the Consumer Price Index so that information can be monitored on a monthly basis.
The local sales index for June is 134.4; the national is 126.6 and the combined local and national total index is 133.5. From a year-to-date perspective, the local sales index is 135.0; the national is 142.7 and the combined local and national total is 137.6.
“The June revenue numbers demonstrate Radio’s stability even in an uncertain economic environment,” noted Gary Fries, President and Chief Executive Officer, RAB. “Local business has been delayed by concerns over the economy and global affairs, but has held steady. All indicators point to growth and recovery for the 3rd and 4th quarters.”
These monthly totals are based on the RAB Radio Revenue Index of more than 150 markets. The accounting firm of Miller, Kaplan, Arase & Co. provides the local and national revenue data on the more than 150 markets RAB uses to calculate its Revenue Index.