Earlier this year, Stu Olds from the Katz Media Group, predicted a rise in radio advertising revenue. And it looks like he was correct, especially for national radio advertising revenue. The numbers will show a 17% growth rate for the second quarter when compared to the same period in 2009.
The largest categories for business spending in the national radio market and which have experienced healthy growth rates this year include:
- Consumer products
- Professional services
However, spending has dropped in the following categories which are often considered big radio advertisers:
Olds continues to see positive trends for the radio and TV industries with respect to political advertising. "You have a candidate with a three- to nine-month window to push their brand," he says. "The real ability to move a brand is in TV and radio. The advertising need by political candidates and other groups with a political message should generate increased demand through the first part of the 4th quarter this year.
In addition, Katz sees a strong demand for national radio advertising in most regions of the U.S. which indicates that marketers are feeling better not only about advertising in general but about radio’s ability to reach consumers.[Sources: Nolter, Chris. Brave New World. The Deal Magazine. 16 April 2010; Sass, Erik. Katz: National Radio Ads Jump 17%. Mediapost.com. 18 May 2010. Web. 27 May 2010]