Radio Q1 Revenues Flat at $3.5 Billion

RADIO ONLINE | Friday, May 17, 2013 | 11:23am CT

According to a new report by the RAB, Radio's Q1 was basically flat from a revenue standpoint bringing in 3.5 Billion January-March of 2013. Traditionally the slowest quarter, a big hindrance to growth was a major pull back from automotive advertising. Both Digital and Off-Air performed well throughout the quarter and were up 9% and 5% respectively.

Spot spending by Communication/Cellular advertisers soared by over 1/3 (36%) for this quarter, propelling the category to #1 for the period. Also up-in rank order based on spending-were Financial Services (+13%), Department/Discount Stores & Shopping Centers (+58%), and Home Furnishings/Floor Coverings (+6%). While dollar volume was virtually flat for Television/Networks/Cable Providers (-3%) and Restaurants (-2%), these were solid contributors to radio's bottom line in the #2 and #4 spots; Automotive declined 20% and slipped to the #3 rank.

"Major increases in radio advertising by Communications/Cellular and Financial Services went a long way to offset a drop in Automotive spending," stated RAB's President & CEO Erica Farber. "Additionally, spending is up in the Department/Discount Stores category-reflecting increased confidence among retailers who have experienced radio's ability to drive traffic and sales."