Radio revenue jumped 6 percent in October compared to a year ago, RAB reported.
“Don’t get too excited,” writes analyst Marci L. Ryvicker of Wachovia Capital Markets. She says the industry benefited from “easy comps,” or comparisons, to a soft month a year ago.
For the first 10 months of 2006, overall revenue for the U.S. commercial radio industry is flat, according to RAB.
In October, grand total combined spot and non-spot radio revenue increased 6 percent. National business was up 14 percent, while local sales (the bulk of the industry’s revenue) was up 2 percent. Non-spot grew 15 percent in October.
“The 6% growth that October generated in 2006 does not even bring the radio industry on par with 2004’s absolute dollar amount; in fact, it is still below 2004 by 100 (basis points),” Ryvicker wrote.
“Looking at each segment separately, national revenue declined 19% in October 2005. If we take this year’s 14% gain, the industry is still 5% below where it was in 2004. Local declined 2% in October 2005. If we take this year’s 2% growth, local is flat with 2004.
“The only category that is experiencing organic strength is non-spot revenue, which was down 8% in 2005 but up 15% in 2006. This is not surprising given both advertisers’ and radio groups’ focus on the Internet,” she stated.
October Radio Revenue Was Up, Though Comps Were Soft
October Radio Revenue Was Up, Though Comps Were Soft
