Building on the trend established throughout 2010, radio registered its fifth consecutive year-over-year growth quarter with a 3% increase in ad revenue to $3.783B in Q1 2011, according to data from the Radio Advertising Bureau (RAB). Strong growth in the digital (21%) and off-air (9%) categories helped propel overall growth.
Spot Revenue Totals $3.1B
Although its overall year-over-year growth was just 1%, spot radio still represented the lion’s share of radio ad revenue with almost $3.1 billion. Off-air revenue followed with $312 billion, network revenue totaling $290 million (flat year-over-year), and digital revenue equaling $149 million.
Communications/Cellular Leading Spot Radio Category
Radio’s top five Q1 2011 revenue categories based on spot spending are:
- Communications/Cellular: $338M
- Auto Dealers/Dealer Groups/Manufacturers: $333M
- Television/Networks/Cable Providers: $295M
- Restaurants: $262M
- Financial Services : $212M
AT&T Leading Spot Radio Advertiser
AT&T, McDonald’s and Comcast Cable top the list of Radio?s top 10 spot radio advertisers for Q1 2011:
- AT&T – $122M
- McDonald’s – $85M
- Comcast Cable -$84M
- Safeway – $65M
- Verizon Wireless – $54M
- Chrysler LLC – $47M
- MetroPCS – $46M
- Geico – $45M
- Toyota Dealer Association – $38M
- Fox Television Network – $38M
Three of the top 10 advertisers are communications/cellular providers, while two are automotive dealers/dealer groups/manufacturers, two are TV networks/cable providers, two are fast food restaurants, and one is an insurance provider.
Automotive Fastest-Growing Spot Category
Automotive dealers/dealer groups/manufacturers showed the most growth from Q1 2010 among spot advertiser categories, increasing 27% to $333.2 million. Casinos/lottery followed with 22%, although this category ranked fifth in terms of revenue ($101.6 million). Insurance companies ranked third in growth rate (20%) and second in revenue ($184.8 million).
The only other spot advertiser category with double-digit year-over-year growth, healthcare (12%), ranked ninth in terms of revenue ($53.6 million).
TargetSpot: Internet Radio Increases Online, Broadcast Ad Effectiveness
Internet radio users are more engaged both online and with broadcast radio, and are also more likely to respond to and recall online and broadcast advertising, according to an April 2011 white paper from TargetSpot and Parks Associates. Data from the “Internet Radio Advertising & Impact Study” indicates 49% of internet radio users spend 22 or more hours online per week, compared to 43% of non-internet radio users.
In addition, internet radio users have a slightly higher rate of using the internet one to seven hours per week (9% compared to 8%) and lower rates of using the internet eight to 14 hours and 15 to 21 hours weekly.