Radio revenues: Local red, overall black
Results for the last month of December closely mirrored results for the year as a whole. Local was down 1%, national was up 6% for the month and 5% for the year, and the combined result for both combinations was neither red nor black, but a flat 0%. The ever-growing and creative non-spot category was up 8% for the month and 10% for the year, enough in both cases to produce a 1% gain for radio revenue overall. Both national and non-spot were strong throughout Q4, picking up 12% apiece to local's flat performance. That combination brought Q4 in a 3% to the good, giving the year as a whole a tow into black ink territory.
RBR observation:
We've been pounding away at this just about every time the RAB releases another report, but the fact remains that radio is a local business. The constant refrain, that the Internet is eating away at the advertising revenue pie, should be easily defeated by its relative inability to deliver a decent-sized local audience to advertisers. Many have speculated that advertisers should be realizing the folly for their ways just about now, and will return to the local fold. We suggest that you nudge them back in the firmest possible way, and provide some enticing Internet connections for them on the side, so they don't have to look at their recent online flirtations as a total waste - just another extra benefit from dealing with your friendly, effective, LOCAL radio station.
RADIO ADVERTISING BUREAU INDEX OF RADIO REVENUE POOL NUMBERS
|
DEC. 2006
VS. DEC. 2005
|
|
YEAR-TO-DATE
JAN. - DEC. 2006 VS. JAN. - DEC. 2005
|
|
4th QUARTER 2006
VS. 4th QUARTER 2005
|
|
Local Revenue
|
|
Local Revenue
|
|
Local Revenue
|
|
|
All Markets
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-1%
|
All Markets
|
-1%
|
All Markets 0%
|
|
|
Local Sales Index
|
116.4
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Local Sales Index
|
137.7
|
|
|
|
|
|
|
|
|
|
|
National Revenue
|
|
National Revenue
|
|
National Revenue
|
|
|
All Markets
|
6%
|
All Markets
|
5%
|
All Markets 12%
|
|
|
National Sales Index
|
126.4
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National Sales Index
|
146.8
|
|
|
|
|
|
|
|
|
|
|
Local & Nat’l Rev.
|
|
Local & Nat’l Revenue
|
|
Local & Nat’l Revenue
|
|
|
All Markets
|
0%
|
All Markets
|
0%
|
All Markets 3%
|
|
|
Combined Sales Index
|
118.7
|
Combined Sales Index
|
139.7
|
|
|
|
|
|
|
|
|
|
|
Non-Spot Revenue
|
|
Non-Spot Revenue
|
|
Non-Spot Revenue
|
|
|
All Markets
|
8%
|
All Markets
|
10%
|
All Markets 12%
|
|
|
|
|
|
|
|
|
|
Grand Total Revenue
|
|
Grand Total Revenue
|
|
Grand Total Revenue
|
|
|
All Markets
|
1%
|
All Markets
|
1%
|
All Markets 3%
|
|
2006 OVERALL RADIO REVENUE GROWTH
|
|
LOCAL
|
NATIONAL
|
NETWORK
|
TOTAL SPOT
|
NON-SPOT
|
GRAND TOTAL
|
|
2006
|
$15.478
|
$3.553
|
$1.112
|
$20.143
|
$1.522
|
$21.669
|
|
% Chg
|
-1%
|
5%
|
-2%
|
0%
|
10%
|
1%
|
|
2005
|
$15.634
|
$3.384
|
$1.135*
|
$20.071
|
$1.384
|
$21.455
|
*restated to reflect expanded network participation
