US radio advertising revenue rose by 7% year on year in February 2003, according to figures from the country’s Radio Advertising Bureau (RAB).
Local spend led the way with an 8% rise, whilst national dollars increased by 5%. The RAB says that this is indicative of a relatively healthy radio environment in spite of the uncertain geopolitical climate of February. It also marks the twelfth consecutive month of revenue gains for the sector.
In the year-to-date total spend was up 7%, with local figures up 6% and national up 11%.
Longer-term index 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 total combined local and national sales index for February was 139.7; local was 139.8 and national was 138.9. In the year-to-date, the total combined local and national sales index was 140.6; local was 139.5 and national was 143.7.
| US February Radio Advertising Revenue Growth And Index Figures |
| |
|
|
|
| February 2003 vs November 2002 |
Calendar Year To Date |
| |
|
|
|
| Local Revenue |
 |
Local Revenue |
|
| All Markets |
8.0% |
All Markets |
6.0% |
| Local Sales Index |
139.8 |
Local Sales Index |
139.5 |
| |
|
|
|
| National Revenue |
 |
National Revenue |
 |
| All Markets |
5.0% |
All Markets |
11.0% |
| National Sales Index |
138.9 |
National Sales Index |
143.7 |
| |
|
|
|
| Local & National Revenue |
 |
Local & National Revenue |
 |
| All Markets |
7.0% |
All Markets |
7.0% |
| Combined Sales Index |
139.7 |
Combined Sales Index |
140.6 |
| Source: US RAB, April 2003 |
The figures were higher than forecasts from Merrill Lynch, which had expected the total spend to rise by 6%. Despite this, the broker is leaving its Q1 2003 forecast unchanged at 3.7% growth.
“February’s revenue results show the on-going strength and stability of radio’s localism, even in a stressful economic climate,” says Gary Fries, CEO of the RAB.
