Radio Ad Revenue Trending Up

As the economy slowly begins to recover, marketers are returning to some of their favorite media formats. For radio station owners, 2010 is looking particularly strong and revenue growth should continue in 2011. This positive news comes from the most recent release by the Radio Advertising Bureau (RAB).

Through Q3, 2010, radio advertising revenue grew to $12.698 billion, marking a 6% improvement over 2009. The brightest spots in the report were national ads with a 14% increase to $1.97 billion and digital with a 22% increase to $443 million.  Jeff Haley, RAB President and CEO says “radio has generated steady momentum throughout 2010.”

Haley attributes the growth to several sectors that are spending heavily in local markets to bring the total in that part of radio advertising to $8.46 billion through Q3:

  • Communications/​Cellular
  • Auto Dealers/​Manufacturers/​Rentals
  • Financial Services
  • Television/​Network/​Cable Providers
  • Grocer/​Convenience/​Liquor Stores
  • Department/​Discount Stores and Shopping Centers
  • Professional Services

In the automotive sector, Toyota Dealer Association spends more than any other group. However, the Chrysler Group has allocated the largest budget increases to radio spending in 2010.  The RAB report indicates that most automotive advertisers are “significantly increasing radio ad spend.”

In general these growth rates support the positive outlook published by SNL Kagan earlier this fall. That research shop pointed to a 6.4% jump in radio revenue which would bring the sector to $17.1 billion for the year.

[Source: Double Digit Increases for Radio's Top 5 Categories. RAB​.com. 19 Nov. 2010. Web. 1 Dec. 2010; Radio is Participating in an Ad Market. Radioworld​.com. 7 Sept. 2010. Web. 1 Dec. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.