Direct Response Marketing

2Q 2011 DR Radio Media Billings Slide 12.3 Percent

1 Dec, 2011 By: Jackie Jones Response

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The number of campaigns and average money spent decreases as second-quarter numbers hit record low.

Second-quarter 2011 DR radio media billings, provided by Kantar Media, dropped 12.3 percent ($1.4 million) when compared to 2Q 2010. This is a reversal of fortune from the same period last year, when second-quarter numbers saw an increase for the first time in four years and total quarterly spending jumped above $11 million. This year’s second-quarter radio media billings slid to a new low of $9,731,000. The previous record low for a second quarter was recorded in 2009 — $9,879,200.

Bottoming Out

Just seven of the 17 categories reported advances in the second quarter, three fewer than 2Q 2010. “Automotive and Travel” bounced back from last year’s zero total at $49,700, while “Home and Building,” “Apparel” and “Business” bottomed out in 2Q 2011, losing $2,525,400, $48,200 and $8,500, respectively. A majority of categories continued to reflect extreme percentage changes for the second year in a row — be it an increase or a decrease — with 11 categories seeing percentage changes of 90 percent or higher.

Not taking into account the 100-percent gain of “Automotive and Travel,” “Multiple Category Ad” reported the highest dollar gain with a $2,567,800 increase, a 96.9-percent jump. “Crafts, hobbies, sporting goods and toys” boasted the top percentage gain of 99.8 percent, a $1,300,700 increase.

In addition to bottoming out, “Home and Building” lost the greatest dollar amount in 2Q 2011, followed by “Computers, Software and Home Office,” which declined $2,143,300 (87.4 percent).

Network Falls to Local

Two of the three DR radio media outlets reported a gain in the second quarter, with network radio losing the majority market share it claimed in 2Q 2010. Network radio dropped $1,636,900, a 26.1-percent decline, while national spot radio and local radio reported gains of $126,800 (88.7 percent) and $150,900 (3 percent), respectively. Local radio increased enough to claim the majority of the market with 51 percent, up from 43.3 percent in 2Q 2010.

The total number of DR radio campaigns aired in 2Q 2011 was 69 — off by just one from 2Q 2010, while both the average money spent on a campaign based on total and outside the top 10 decreased. The average money spent on a campaign based on the total declined $17,402, an 11-percent drop, while the average money spent on a campaign outside the top 10 dropped $12,633 (27.4 percent).

Spending in the top 10 decreased $567,700, a 6.8-percent dip, and four of the 10 campaigns from the previous top-10 list made this quarter’s list. Select Comfort Direct Corp. retained the No. 1 spot, while Rosland Capital enjoyed the highest-ranked debut at No. 5.

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