Network and Non-Spot Radio Lead in Third Quarter and YTD Growth

December 4, 2007

This article is included in these additional categories:

Automotive | Media & Entertainment | Radio | Retail & E-Commerce

Network radio revenue grew 9% in the third quarter compared with the year-earlier period, followed by non-spot radio, with a 7% increase, writes MediaBuyerPlanner, citing data released by the Radio Advertising Bureau.

Year-to-date (first three quarters), non-spot radio gained 10% over the same time period last year, while network radio grew 5%; however, local radio declined 2% in the same period, while national declined 4%.


Network radio revenue was driven by heavy investment from retail and automotive, according to RAB, which used TNS Media Intelligence data:

  • Revenue from the retail category grew 42% in Q3 and nearly 21% in the first three quarters.
  • Revenue from automotive increased 70% in Q3 and 42% in the first three quarters.

rab-network-radio-category-leaders-3q07.jpg    rab-network-radio-category-leaders-1q07-3q07.jpg

Two key advertiser categories that had a strong showing in earlier quarters continue to outpace total radio spending in Q3:

  • Communications spending increased 16.8% through three the first three quarters of 2007 compared with the year-earlier period.
  • Concerts/theaters/movies revenue posted a gain of 20.7% in the first three quarters of 2007 compared with the year-earlier period.


In terms of government advertising, there are definitely some leaders in radio both in Q3 and Q1-Q3 of 2007, according to data compiled by Miller, Kaplan, Arase & Co.:

  • In the presidential race, Mitt Romney leads in local market spending, followed by Barack Obama, then Rudy Giuliani, and Hillary Clinton.
  • Interestingly, according to TNS reports, Giuliani is the only presidential candidate thus far to also use network radio.
  • Network radio spending is also high within the Government, Politics & Organizations category, as reported by TNS, with a 44% increase in Q3 and 16.8% increase year-to-date:
    • The greatest year-to-date increase came from the fourth-largest advertiser within this category, the US Army, at 301.7%.
    • The largest network radio advertiser, the US Navy, was up 19.9%, followed by National Highway Safety (up 75.5%), and the Office of National Drug Control Policy (up 71.5%).

About the data (pdf): Local and national revenues are based on a pool of approximately 150 markets as reported by the accounting firm of Miller, Kaplan, Arase & Co. and extrapolated to the entire US. Network revenue includes the top five radio network companies. Non-spot data has been collected and verified since January of 2002, and reported since September of 2004.

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