US Radio Benefits From Strong TV Market
The US radio sector is showing healthy advertising revenue figures, with the RAB this week reporting a 5% rise in August and claiming that Q4 should see double-digit growth (see US Radio Revenue Up 5% In August, Double-Digit Q4 Growth Anticipated). This follows an impressive 9% jump during July (see US Radio Revenue Shoots Up 9% In July).
However, the early recovery will create more difficult comparables during H2 2003 and so the broker has lowered its forecasts for next year from 6.5% to 5.6%.
National revenues are strong The top-line growth in recent months has been driven by strength in national revenue, says Merrill. It is national advertising spend that is expected to lead the radio sector out of the downturn.
One factor in the current strength of radio spend is that advertisers are being crowded out of a strong television ad market, say analysts. TV network inventory is up by double figures, further driven by political demand for airtime.