Radio Revenues Seen Rising

Back in January, reports in Mediaweek suggested a slight upturn of 2–3% in local radio revenues for this year. Now that 2010 is well underway, executives such as Stu Olds at Katz Media say that overall radio revenue could be up as much as 19% for the first quarter when compared to last year.  Olds attributes this optimism to “broad-​based category support, tightening marketplaces pushing up pricing and radio’s rediscovered value in the marketing mix.”

The following categories comprise the majority of the national spot radio market and have the increased spending rates shown in parentheses:

  • Retail (+7.6% )
  • Finance (+8.7% )
  • Entertainment (+36.4%)
  • Auto (+35.6% )
  • Telecom (+22.5% )
  • Consumer Products (+34.9% )
  • Professional Services (+21.5%)

Olds also reports that higher demand is widespread throughout the U.S. The highest growth rates are occurring in the Northeast at 37.4% while the West has the lowest growth rate at 11.4%. The improved health in the radio ad market is cutting down on the number of no-​charge spots. These changes mean inventories are tightening so marketers should plan ahead when considering media buys and be prepared to pay more this year for air time.

[Source: Katz: Radio Ad Revenue Continues to Rise, AllAccess, 2.8.10]
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.