Radio’s Better Customers Cut Back the Most

Minus signs dominate the findings of a study of major market radio ad placement in 2005.
Media Monitors this week released findings by Wall Street analyst James Boyle. The findings:
The top radio advertisers in 2005 were the same 10 companies as the year before, including three car manufacturers (Toyota, Ford Lincoln Mercury and Chrysler Jeep Dodge) and three TV networks (ABC, CBS, and Fox). The order changed a bit, with insurer Geico at the top of the list, nudging out Verizon Wireless.
But commercial spots fell 3.6% and the largest radio advertisers dropped even more, nearly 6.8%. More bad news: the three largest auto advertisers purchased 5% fewer radio spots; and the two largest domestic automobile advertisers purchased 14% less.
Boyle’s analysis “affirmed that the radio industry indeed made good on its strategic plan for 2005 being a transition year, as it intentionally reduced commercial inventory to improve its product for its listeners and advertising clients alike,” RCS stated.
“But, Boyle reports, perhaps the spot load was reduced more than had been expected as its largest ad category, automotive, sputtered and the incomplete industry participation in the (Less Is More) effort may have dampened the subsequent demand from tighter inventory.”
The researcher found that radio’s top 1,000 advertisers purchased some 6.7 million commercial spots in the 10 major markets, but that was down from about 7 million.
And while the top 1,000 advertisers declined in spot purchases by 3.6%, the top 50 cut back “an even more dramatic” 6.8%.