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October 1, 2014

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August 2005 Radio Revenues
Radio revenues returned to positive growth in August, with total combined spot and non-spot dollars increasing 2% over the same month from a year ago. Local ad sales for August of this year climbed 3% compared with August of last year, while national dollars remained flat in the same month-to-month comparison. Total combined local and national ad sales figures rose 2% August of this year over August of last year. Non-spot revenue was the only sector to experience a downturn, dipping 5% this August when compared to last August. 
 
On a year-to-date basis, total combined spot and non-spot sales figures rose 1% for the first eight months of 2005, compared with the first eight months of 2004.  Local sales figures for January through August of this year also grew 1% over those same months from a year ago.  National revenue for January through August 2005 increased 1% over January through August 2004.  Total combined local and national spot dollars for the first eight months of this year also grew 1% January though August of this year compared to January through August of last year.  Similar to the Radio revenue results for the month, non-spot dollars remained flat January through August 2005 over January through August 2004.
 
To put the intermediate and long-term growth of the Radio industry into proper perspective, the Radio Advertising Bureau (RAB) introduced an Ad 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 sales indexes for the month of August 2005 are: local, 131.1; national, 121.0; and total combined local and national, 127.1.  Looking at the sales indexes from a year to date basis for January through August 2005, they are: local, 140.1; national, 141.2; and total combined local and national, 140.2.
 
“Radio remains relevant to today’s consumers, even as new media proliferates,” observed Gary Fries, President and Chief Executive Officer, RAB.  “During the recent tragedies in New Orleans and the Gulf Coast, we witnessed the significance of Radio’s unduplicated localism and mobility.  As Radio transitions into the digital arena with HDRadio, its ability to engage consumers on a variety of levels will accelerate its growth even further.”

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.  Non-Spot data has been collected and audited since January 2002, and reported since September 2004.

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