Olds Sees 2010 Natl. Spot Radio Market Momentum

RADIO ONLINE | , , | :am CT

The National Spot Radio market is pacing significantly ahead in both the first and second quarters of 2010, says Katz Media Group President/CEO Stu Olds. "We're seeing double-digit gains in pacings for these periods as we witness strong momentum in our major sectors." Based on the pacing of business on the books today for the first quarter, Olds says KMG Consolidated Radio is pacing up 19% over this time last year.

On the same basis, the second-quarter is currently pacing up 17% in April, 23% in May and 21% in June. Overall, the second quarter is pacing up 20%. "While these pacing numbers only reflect business on the books as of today, this is certainly a very strong start," Olds said in a staff memo.

The outlook for continued growth is supported by the advertising community's optimism about an improving economy. Olds cited the National Spot Radio market, seven categories typically account for almost 90% of national spot advertising spending. "Most of the leading categories are showing sharp gains in the second quarter, pointing to a broad-based economic recovery," he wrote.

Leading first quarter advertisers include Verizon, AT&T, Comcast, PNC, GM, Ford, Target, Home Depot, Walmart, Safeway, Pfizer, Blockbuster and Sony Pictures, among others.

Olds also expects political advertising to add to radio's momentum in the second half of the year. With 37 gubernatorial seats, 38 U.S. Senate seats and the entire House of Representatives up for grabs, Katz Political expects the radio industry to capture at least $250 million of the $3.3 billion expected to be spent by campaigns this year.