US RAB: Radio Digital Revenue Climbs 11% in Q3

The Radio Advertising Bureau (RAB) reported Friday that the radio industry continues to build its digital profile as Digital revenue in Q3 showed growth of 11% over last year. In addition, despite a flat national ad market across media, total radio ad revenues showed signs of rebounding with improving trends over Q2 performance (-2% vs. -3%) and Off-Air revenue posted a 14% gain, for its fourth consecutive quarter of double-digit growth.
Year-to-date through September changes for Spot revenue and Network were identical to their third quarter showings (-3% and -4%, respectively). 
 
"The increasing strength of Radio's digital platforms becomes more evident every quarter as advertisers recognize the unparalleled benefits of reaching Radio's dedicated audiences on every device and platform they are using," said RAB President/CEO Erica Farber. "In addition, the growth in off-air opportunities for advertisers is a clear indication that Radio is focused on continuing to deliver more innovative solutions to help them reach their consumers." 
 
"As radio broadcasters continue their focus on reaching consumers and enhancing advertiser ROI through broadcast, digital platforms and new off-air opportunities, advertisers are recognizing that the best way to communicate with consumers and build brands has evolved far beyond simply running a Spot schedule on-air," Farber continued. "On-air personality involvements, events, station websites and other digital options continue to generate support, use and results among major brand marketers as well as local businesses. 
 
There were upticks from Health Care (+4%), Professional Services (+5%) and Insurance Companies (+1%)during Q3. These industries also showed increases in year-to-date spending, up 6%, 6% and 7%, respectively. Nice growth signs while several of Spot Radio's top tier revenue categories registered dips while facing very strong Q3 delivery last year. Additionally, there was upward momentum from many categories in the next tier that helped improve radio's bottom line this quarter, many of which reflect the impact of increased consumer optimism and spending in the housing, travel and personal entertainment areas.