Radio experienced another quarter of growth across the Spot, Digital and Off-Air sectors – up 1% for Q2 and First Half 2012. Digital continues to be Radio’s fastest growing sector – up 3% for the quarter and 7% for the half.
A number of advertiser categories significantly increased their spending. Automotive solidified its position as Radio’s leading revenue category, 17% ahead of second place Communications. Rounding out Radio’s Top 5
categories are Restaurants, Television/Networks/Cable Providers, and Beverages.
“Advertisers continue to maximize Radio’s value within their mix with creative use of the medium’s various offerings – be they on-air, online or on the go”, stated Erica Farber, RAB President and CEO. “Today’s listeners are engaging and interacting with Radio across all platforms.”
Political advertisers also helped the bottom line in this key presidential and senatorial election year. Within the Miller Kaplan X Ray markets, political accounted for $15.2M for Q2 2012 and $22.5M year-to-date through June.
The Radio industry revenues for Q2 do not include Network Radio data.
Q2 spending was up compared to the same period last year (1%) and was buoyed by increased spen among advertisers in Health Care (+23%), Automotive (+17%), Home Furnishings (+10%), Insurance (+10%), Concerts/Theater/Movies (+9%), and Professional Services (+4%) categories.
First Half revenue gained (1%). Categories that posted positive movement through the first six months include Home Furnishings (+17%), Health (+16%), Automotive (+9%), Specialty Retail (+5%), Insurance (+4%), Grocery (+2%), and Casinos/Lottery (+1%) Seven of Radio’s Top 10 advertisers increased their Radio spending commitments over Q2 ’11 comps. The Q2 Top 10 list includes, in rank order:
–Comcast XFinity Cable Systems – 1%
–McDonald’s + 2%
–Coca-Cola + 37%
–AT&T – 22%
–PepsiCo + 26%
–Verizon Wireless – 23%
–Safeway + 4%
–Toyota Dealer Association + 76%
-GEICO + 1%
Political spending across Radio’s airwaves began to gain momentum during the second quarter. Within the Miller Kaplan X Ray markets political spending from candidates, Issues, PACs, etc., was $15.2M for the quarter – more than double first quarter’s political spending – totaled $22.5M by mid-2012.
Spending by PACs and various coalitions once again dominated the airwaves in
Q2, representing 56% of total political ad dollars ($8.5M). By second quarter
candidate spending also saw an uptick and accounted for 35% of the total
political dollars for both quarter ($5.4M) and mid-year ($7.8M).
2012 is proving to be a solid year for vehicle sales and dealers and manufacturers alike have pumped up the Spot Radio volume to help drive their message to consumers. While the total category was up 17%, nine of the
top 12 automotive advertisers paced ahead of total category growth:
— Toyota Dealer Association + 76%
— Ford Dealer Association + 98%
— Honda Dealer Association +288%
— GMC Motor Corporation +107%
— Chevrolet Dealer Association + 6%
— Nissan Dealer Association +145%
— Chrysler Group LLC – 49%\
— Chrysler Dealer Association – 8%
— Lexus Dealer Association + 90%
— Dodge Motor Corporation – 25%
— Hyundai Dealer Association + 23%
— Mercedes-Benz Dealer Assn. + 11%
Based on the strong uptick in spending in Q2, revenue for the Automotive category is up 8.5% for First Half 2012 – pulling well ahead of the 1% growth registered in first quarter.
Communications represented Spot Radio’s second-largest category in Q2 despite a slight dip (-5%) in volume. AT&T and Verizon Wireless curtailed their commitments versus 2011 comps (down 22% and 23% respectively) but remain category toppers, as well as Radio’s #4 and #6 top spenders for the quarter. T-Mobile more than doubled its advertising (+125%) and now is #3 in the category, with spending close to 90% of those two mighty competitors – and just missed inclusion in Radio’s top 10 this quarter (#11).