RadioActive Media : Marketing, Promotions and Advertising: Radio, Television, Magazine, Internet.

800-599-RADIO | Text DR Radio to 511-511 | 714-787-0101 International

By RadioActive Media Team

“Radio delivers its best results in quarter-to-quarter revenue comparisons since Q1 2007 with a +6% overall increase to $3.687B. In fact, this gain represents the highest posted in nearly a decade (3rd-Quarter 2000, +8),” according to the Radio Advertising Bureau.

What do all these major advertisers realize?  Radio is a tremendous value due to its unique ability to target all segments of the population.

Let’s look at the significant categories and their growth along with the advertisers that know the value of radio advertising:

Communications/Cellular/Public Utilities – increased 5.7% over a comparatively strong showing in Q1 ’09.

Besides the biggies such as AT&T and Verizon the category saw increased spending from Leap Wireless, T-Mobile as well as new comers Palm Inc. ClearWire and Tracfone.

Television/Networks/Cable Providers

The category grew 23% overall, to $276.2M.  Comcast Cable led the way followed by: ABC, NBC, USA, CBS, Charter, Cablevision, Telemundo, Cox Communications Cable, ESPN and HBO.

Restaurants

McDonald’s remains Radio’s third-largest advertiser for this quarter.  Wendy’s spending represented an increase of 18%.  Other major players are: Romano’s Macaroni Grill, Buffalo Wild Wings, Panera Bread Co., TGI and Arby’s.

Auto Dealers/Dealer Groups/Manufacturers/Rentals

Financial Services

Financial Services moves into Local and National Spot Radio’s Top 5 this quarter with expenditures of $191.6M – up by nearly 50% from last year’s Q1. JPMorgan Chase led the way followed by PNC Bank, Wells Fargo Bank, Capital One,  Fifth Third Bank and Bank of the West.  American Express charged into the #2 position in this category with a $20.5M commitment (versus just $24.9K last year).  Within the Network sector, JPMorgan Chase was also the spending leader with $2M in activity compared to none in Q1 2009. American Express also increased their Q1 2010 spending by more than 300% to nearly $2M.

Grocery/Convenience/Liquor Stores

An impressive 27% increase in spending with category leaders such as Safeway with an increase of 63% over Q1 2009. Kroger Food Stores, Supervalu and relative U.S. newcomer Fresh &

Easy Neighborhood Market, Trader Joe’s and A&P Supermarkets. Also rapidly increasing: Radio spending by the fast-expanding Aldi Food Store chain.

Insurance Companies

Major additions in radio spending came from State Farm Insurance, Progressive and Safe Auto.  Other advertisers who added sizable increments to their Radio spending were Esurance and Titan Auto Insurance.

Retail – Including Home Improvement, Department Stores, Discount Stores & Shopping Centers

Radio’s revenue from Home Improvement advertisers grew 18% over Q1 ’09, with added spending by all four major players: Home Depot, Orchard Supply Hardware Lowe’s Companies and Menard’s Building Supply.

Other categories/advertisers with increased spending are:

Specialty Retail – Old Navy, Gap and ProFlowers and 1-800-Flowers

Concerts/Theaters/Movies – Paramount and Universal

Beverages- Coca-Cola Co., Kraft, Pepsi Dr. Pepper Seven Up, Anheuser-Busch and MillerCoors

Political

Issue advertising comprised 25% of first quarter’s political spending fueled by the healthcare debate. The recent Supreme Court ruling invalidating corporate campaign funding limitations should impact political throughout 2010. With 57% of all political dollars spent on candidate support ($7M) in special elections and preliminary name recognition building in Q1, Radio is certain to be a front runner come the primary and general election season.  (See earlier post:  Plan Early for the Political Ad Campaign Season – Rates are Up and Inventory is Down)

What do all these major advertisers realize?  Radio is a tremendous value due to its unique ability to target all segments of the population.

At RadioActive Media, we take radio advertising to the next level with text messaging campaigns, radio personalities and 24/7 tracking of results.

Source: Radio Advertising Bureau, Q1 RECORD REVENUE GROWTH SHOWS BROAD SIGNS OF STRENGTH AS KEY ADVERTISER SECTORS SPEND MORE IN RADIO

NATIONAL SPOT & DIGITAL SPENDING REGISTER HIGHEST GAINS http://www.rab.com/public/pr/revenue_detail.cfm?id=116

@radioactivemed

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800-599-RADIO | Text DR Radio to 511-511 | 714-787-0101 International

By Steve Pollak

Some radio stations are promoting HD Radio like it’s a new medium for radio, but it isn’t. HD radio allows AM and FM radio stations to switch to digital broadcasting from analog broadcasting. Basically HD radio upgrades terrestrial station‘s signals so that AM stations have a sound quality like FM stations and FM stations have a sound quality like a CD.

It is being compared to satellite radio where new programming and new opportunities for radio will occur, but that’s not what is happening. HD radio is more like HDTV which did not promote new programming; just clearer signals. Cable TV is what brought in new programming and content to television.

HD radio offers song title and artist information and tagging for later purchase on iTunes. While the sales of HD radios are increasing and more vehicle manufacturers are offering the radios as standard equipment in new cars, only 1.3 million total had been sold by Dec. ’09. Consumers can get HD radio when they download free station apps.

Currently there are no ratings available for HD stations and radio reps are using these stations as “add-ons.” Radio station ad sales have any pricing for HD radio. Instead, stations and their websites promote their latest iPhone apps or that they are streaming their content on their sites.

Radio stations need to change their focus from thinking of HD radio as a medium and realize it’s a technology. Like satellite TV added broadcast stations to its offerings, satellite radio should add the best radio stations to their roster and share revenue. Notice that Clear Channel’s KIIS Channel is an example of that which airs Ryan Seacrest’s show.

If terrestrial stations are viewing satellite radio as a threat, they need to put more effort into improving programming on current AM and FM stations, whether digital (HD) or analog.

I think in the next couple of years it will be hard to find an HD radio for sale. What are your thoughts on HD Radio?

@radioactivemed

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800-599-RADIO | Text DR Radio to 511-511 | 714-787-0101 International

By the RadioActive Media Team

Yes, it’s only July, but in the retail world, it’s already the end of the year. Now, is the time to get your advertising for 4^th quarter completed and booked. If you haven’t started, don’t waste any more time.

During the 2009 holiday season retailer Target used radio for the first time. They relied on live reads from their newspaper circular by local on-air personalities. In 2009 Target didn’t use coupons and since newspaper circulation is going down, they chose to use on-air personalities to flesh out their newspaper circulars by talking about seasonal activities like buying some holiday lights, making dinner for the family, buying gifts for family and friends. These are all everyday things we all need to buy and we all need to do. Target gave up their creative control to these local on-air personalities. The result was Target moved product better than before.

You may not have $10million to spend on your 4^th quarter advertising, but whatever your budget, RadioActive Media can design the best radio campaign to move your product or service to your target audience. We are experts in the power of on-air personalities and have used them to benefit our clients.

Don’t waste any more time thinking about your 4^th quarter campaign – contact Jeff Pollak at 800/559-RADIO (7234) and learn more about using radio personalities to deliver your message.

@radioactivemed

The purpose of the program: to find information about DR programs (and the frequency of any alerts)
Message and data rates may apply
Text STOP to cancel alerts
Text HELP for information
A statement of privacy disclosure