Interep: Radio Can Cash in on Wireless Boom

In 2003, telecom/wireless advertising was the fourth largest category for national radio, according to Competitive Media Reporting. The category allocated 7% of nationally places media dollars to radio, totaling $247 million. The largest share of media dollars among wireless advertisers went to newspapers (47%) followed by network television (24%), despite Mediamark Fall 2003 research that shows 88% of wireless users listen to radio in the average week, while only 50% read a daily newspaper.
The figures are in a report out from Interep Research, in conjunction with Morrison and Abraham, titled, “Radio Works for the Wireless Industry,” highlighting radio’s ability to target the wireless services customer.
The research shows that each additional percentage of wireless media spending redirected toward radio would bring an additional $36 million to the medium. For this reason, Interep’s new business development sellers are targeting this category as a potential source of incremental dollars for radio.
Also, two of the fast-growing wireless market segments, young adults and Hispanic consumers, are among the heaviest users of the medium.
Other highlights from the wireless report:
In 2003, wireless market penetration in the U.S. reached 50%; top metro cities for cell phone usage include Atlanta, Detroit, Austin, Texas, Washington and Miami; from 1993 to 2002, the wireless market experienced double-digit revenue growth; ad spending by wireless providers increased 71% from 2000 to 2003, rising from $2.1 billion to $3.6 billion during that same period; Verizon, Cingular and AT&T accounted for 67% of radio spending in 2003; and 31% of adults 18+ report one cell phone in household, 28% report two cell phones and 12% report three-plus cells.
For more information, visit www.interep.com.