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New York, New York– March 4, 2007 -- Mirroring fluctuations in the current economic climate, Radio revenue for full-year 2007 and 4^th Quarter 2007 yielded mixed results across various sectors, with Off-Air and Network maintaining their lead growth positions.  Off-Air, (previously referred to as Non-Spot) continued its meteoric double-digit streak, up 10% for the year and 12% in 4^th Quarter.

 

“As Radio broadcasters expand their online components and extend interactive and on-demand options, Radio will continue to deliver a seamless audio experience across numerous platforms to connect with consumers where and when they want,” noted Jeff Haley, President and Chief Executive Officer of the Radio Advertising Bureau (RAB).  “The nimbleness of the expanded Radio space provides a true 360-degree integration opportunity for marketers and their agencies to reach and engage their customers.”

 

 

Off-Air was previously referred to as Non-Spot

 

 

Radio Full-Year Overview – 2007 vs. 2006

 

Network Radio benefited from heavy spending in the retail and automotive categories.  According to TNS Media Intelligence data, total retail grew 18% in 4^th Quarter and closed the year up 20%.  In the same manner, automotive grew nearly 21% in 4^th Quarter and revved up full year at a whopping 37%.

 

Local and National Radio’s performance per Miller Kaplan data for 2007 versus 2006 was supported by:

·        Major spending increases by key advertisers in the Communications/ Cellular/Public Utilities category (which moved to the #2 rank among all Radio spenders);

·        Added spending by advertisers in a group of mid-tier spending categories such as Insurance Companies (#7), Concerts/Theaters/Movies (#8), Health Care (#12), Casinos/Lotteries (#13), and Professional Services (#14);

·        An influx of political spending leading into the 2008 presidential race’s early primary schedules.

 

These factors combined to offset pullbacks by many advertisers in Radio’s largest category, Automotive.  Even here – following the adage that smart marketers pick up advertising when times get tough – a number of Radio’s major Automotive partners significantly upped their spending for the year.

 

 

 

 

The RAB began reporting quarterly Radio revenue in dollar amounts with the 2007 results.  The Radio Advertising Bureau serves more than 6,000 member Radio stations in the U.S. and over 1,000 member networks, representative firms, broadcast vendors, and international organizations. RAB leads and participates in educational, research, sales, and advocacy programs that promote and advance Radio as a primary advertising medium.  

 

*Local and national revenues are based on a pool of more than 150 markets as reported by the accounting firm of Miller, Kaplan, Arase & Co. and extrapolated to the entire U.S.  The methodology to derive the 2007 local, national, and non-spot (off-air) quarterly dollar amounts has been recalibrated and maintains previously reported quarterly total revenue while reflecting a shift in the dollars within the sectors.  Network Revenue includes the top five Radio network companies.  Non-Spot data has been collected and verified since January of 2002, and reported since September of 2004.

 

 

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