US radio will grow 5% to 6% in 2002 predicts Gary Fries, president and chief executive officer of the US Radio Advertising Bureau (RAB). He described the radio sector as ‘good, stable and strong’ and urged the industry to captilise on current revenue growth.
In July total revenues rose by 9% year on year, with local sales up 7% and national rising 16%. In the calendar year so far, total radio revenue rose by 2%, whilst national figures increased 6% and local grew by 1%.
To put the intermediate and long-term growth of the US radio industry into perspective, the RAB compares figures to sales in a base year – 1998 – which is indexed to 100.
The local sales index for July was 142.2; the national index was 135.2 and the combined total index was 141.0. On a year-to-date basis, the local sales index was 133.3; the national index was 133.0 and the combined total was 133.2.
“We are noticing steady growth across all categories,” Fries indicated. “A large number of categories are showing healthy increases, particularly concerts/tickets, financial services, appliances/electronics, automotive and restaurants.
“All indicators point to continued recovery as radio continues to deliver results for its advertisers. Forward pacing is very encouraging through the end of the year.”
| US July Radio Advertising Revenue Growth And Index Figures |
| |
|
|
|
| July 2002 vs. July 2001 |
Calendar Year To Date |
| |
|
|
|
| Local Revenue |
 |
Local Revenue |
|
| All Markets |
7.0 |
All Markets |
1.0 |
| Local Sales Index |
142.2 |
Local Sales Index |
133.3 |
| |
|
|
|
| National Revenue |
 |
National Revenue |
 |
| All Markets |
16.0 |
All Markets |
6.0 |
| National Sales Index |
135.2 |
National Sales Index |
133.0 |
| |
|
|
|
| Local & National Revenue |
 |
Local & National Revenue |
 |
| All Markets |
9.0 |
All Markets |
2.0 |
| Combined Sales Index |
141.0 |
Combined Sales Index |
133.2 |
| |
|
|
|
| Source: RAB USA, September 2002 |
