The results for radio are in for both the second quarter and the first half of 2013, and in both cases the bottom line is looking remarkably similar to that posted at the same point last year. In essence, positive digital results are balancing negative network returns.
According to the Radio Advertising Bureau, spot was flat Q2 to $3.742B; network lost 4% to $285M; digital gained 16% to $222M; off-air was flat at $407M; and combined results were flat to $4.656B. Miller Kaplan Arase LLP provided the stats.
YTD, the changes reported are -1% for spot, -4% for network, +13% for digital, and +2% for off-air, resulting in the same flat bottom line, which totals $8.443B.
“First-Half activity yielded a mixed-bag of results,” stated Erica Farber, President & CEO of the RAB. “While the Second Quarter was flat, activity was gaining as the months progressed, an encouraging sign for growth in the latter half of 2013.”
Farber is encouraged about prospects for the immediate future. She said, “When we analyze results for the year thus far, we see a clear commitment to advertising and Radio on the part of the most successful companies within their respective categories. Not only does this affirm the impact of maintaining an advertising presence through all economic climates, it underscores the fact that these marketers know the intrinsic value that Radio – both on-air and digital – brings to their brands.”
The Communications/Cellular category, up 27%, supplanted Automotive as the medium’s #1 set of clients; auto unfortunately slipped by an 11% factor. Another big gainer was #9 Department/Discount Stores.
Two other categories unfortunately joined Automotive in the double-digit loss column: TV/Networks/Cable, down 11%; and Beverages, down 15%.
Of note: Radio’s fates are tied to Sprint via the FM chip agreement, and according to RAB, the company has increased its spending with radio by 153%.
RBR-TVBR observation: There’s nothing good about getting a flat on your car, but when it comes to revenue comps, getting a flat isn’t all that bad. Sure, it’d be nice to see a bigger number than the one posted before, but a flat result sure does beat one that must be recorded in red ink.