Spot Revenue Is a Drag on Q2 Performance
Due to weakness in “spot,” its largest ad category, U.S. commercial radio saw overall revenue
fall 3% for in the second quarter compared to a year earlier.
At the half-year mark, revenue is down 1%.
Advertising Bureau says spot revenue fell 5% in Q2 while growth results were
seen in the smaller digital and off-air categories, up 9% and 13% respectively.
Network was flat. The “off-air” category in particular has been strong in
recent quarters. See chart below.
RAB deemed the quarter’s 3% revenue
drop a “moderate” performance.
U.S. radio brought in about $8.3 billion in the first
half of the year, the organization estimates. Erica Farber, RAB president and
CEO, said in the announcement, “While we don’t forecast, a greater percentage
of radio’s total annual revenue historically comes through in the second half,
and we’re anticipating that we’ll see better results by the end of this year.”
(Read the full report.)
RAB said many of radio’s top categories saw “slightly diminished” spot
spending in the quarter, while health care and professional services were up
and off-air revenues are based on a pool of about100
markets as reported by accounting firm Miller Kaplan Arase LLP and
extrapolated to the national market. Digital revenue is activity
generated by websites, Internet/Web streaming and HD Radio including HD2 and
HD3 stations. Network revenue includes seven network