Radio Market on Track to Grow with Political Ads
After predicting a 19% growth rate for radio in the first quarter of 2010, Stu Olds, CEO of Katz Media, sees revenue continuing to grow in the second quarter as well. Olds may be uniquely positioned to predict these revenue shifts as his organization oversees ad sales for both Katz radio and the Clear Channel Radio sales portals.
Growth targets by month for the second quarter for Katz Media Group Consolidated Radio are as follows:
- April +17%
- May + 23%
- June +20%
Olds indicates that “[t]he outlook for continued growth is supported by the advertising community’s optimism about an improving economy.” Many media outlets are expecting the upcoming fall elections to result in additional revenue and radio is no exception. Olds reminds industry watchers that all members of the U.S. House of Representatives are either running for re-election or retiring. This turnover means candidates for 400 campaigns will buy advertising. In addition, politicians will be competing for 38 Senate seats across the country. Combined, these political battles will result in spending of at least $3.3 billion. Radio station operators hope to claim 7.6% of the spending or $250 million.
Nationwide, 2010 looks to be a strong year for radio revenue.[Source: Katz: Spot Biz Rising With 20% Bump in Q2. AllAccess. 15 Mar. 2010. Web. 17 Mar. 2010]