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October 24, 2014

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First Mediaworks


December 2005 Full-Year Radio Revenues
Radio revenue remained flat in 2005, compared with last year, yielding $21.455 billion in grand total combined spot and non-spot dollars.  Local sales figures for the year grew 1% when compared with 2004.  National dollars fell 2% in 2005 vs. 2004.  Network revenue dropped 2.6% when comparing full-year 2005 with full-year 2004.  The combined total local and national ad sales revenues were flat this year over last year, while non-spot dollars decreased by 1% in that same comparison. 
 
Fourth quarter 2005 was the toughest part of the year for the industry, with grand total combined spot and non-spot revenue down 3% over the same quarter from last year.  Local sales figures dipped 1% fourth quarter 2005 vs. fourth quarter 2004.  National ad dollars were hit hardest, dropping 9% in fourth quarter 2005, compared with fourth quarter 2004.  Total combined local and national revenue dropped 3% fourth quarter 2005 over fourth quarter 2004.  Non-spot dollars also decreased 3% in fourth quarter 2005 when compared with the same quarter from 2004.
 
December 2005 revenue results yielded a drop of 1% in grand total combined spot and non-spot revenue compared to December 2004.  Local ad dollars dropped 2% for the month compared to December 2004.  National sales figures stabilized somewhat, coming in flat December 2005 over December 2004.  Total combined local and national ad revenues for December 2005 fell by 1% when compared to December 2004.  Non-spot dollars also dipped 2% in December 2005 over December 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 RAB sales indexes for full year 2005 were: local, 139.6; national, 140.4; and total combined local and national, 139.7.  The sales indexes for December 2005 were: local, 118.2; national 119.1; and total combined local and national, 118.4.
 
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. 
 
The Radio Advertising Bureau (RAB) is the sales and marketing arm of the Radio industry with nearly 7,000 members including close to 6,000 stations in the U.S., and over 1,000 associate members in networks, representative firms, sales, and international organizations.


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