2Q DR Radio Media Billings Fall Below $10 Million1 Dec, 2009 By: Shay Moftakhar Response
Top-10 spending increases as local radio outspends network.
Second-quarter 2009 DR radio media billings, provided by TNS Media Intelligence (TNSMI), show an 11.9-percent decrease of more than $1.3 million. This marks the third consecutive year that second-quarter numbers have declined and is the lowest quarter reported in six years of TNS-provided data.
Total 2Q 2009 DR radio billings failed to hit the $10 million quarterly threshold for the first time, bottoming out at $9,879,200. This quarter’s results are off by more than half (57 percent) from TNSMI’s first 2Q report provided to Response in 2004 — $22,987,900.
Spending in the top 10 remains stable, showing a slight 2-percent increase, but the total number of unique individual campaigns continues to slide, losing 12.7 percent this quarter.
Drugs Take a Hit
This quarter’s sad tale starts with only five of the 17 categories reporting advances, the least for any second quarter to date. Like the previous second quarter, the “Multiple Category Ad” group had the highest dollar gain with a $444,100 advance — a 19.6-percent rise. The “Household, Furniture and Appliances” category came in second with an 11.3-percent rise of $349,600. The “Food and Beverage” category had the leading percentage gain, coming from zero in 2Q 2008 to report $2,600 this quarter. The “Business” category rose 383.3 percent with thanks to $2,300 in extra spending. Rounding out the five gainers, the “General” category reported a 4.3- percent gain of $46,600.
The “Drug and Toiletry” category was the loss leader, suffering a $1 million decrease in spending, reflecting a 44.9-percent demise. “Correspondence Schools” lost all $1,900 of its 2Q 2008 spending. The “Crafts, Hobbies, Sporting Goods and Toys” category suffered an 87-percent drop ($227,900).
“Automotive” and “Collectibles and Art” reported a zero for the second- and third-consecutive second quarters.
Only one of the three DR radio media outlets reported a gain in the second quarter, as national spot radio eked out an 8.3-percent gain of $14,200, pushing its total to 1.9-percent of the total market. Network radio continued its decline with a 22-percent loss of $1 million, reducing its market share to 38.3 percent. As in 2Q 2008, local radio managed to limit its losses and pick up a chunk of market share. A 4.5-percent loss of $280,900 helped it expand its share of the market to a healthy 59.8 percent of the pie. This is only the sixth quarter in six years that local radio has outspent network radio (the fourth in the past two years). Second-quarter 2009, however, is the second highest quarterly dollar differential in favor of local vs. network (behind only 3Q 2007), at more than $2.1 million.
The total number of unique DR radio campaigns measured during 2Q 2009 dropped to 62, a 12.7-percent decline and 46 fewer than the peak of 108 in 2Q 2004. The average money spent on a campaign based on the total actually increased by $1,393 (0.9 percent) to $159,342. The average outside the top 10 decreased by a hefty 30 percent, with $18,083 less spent per campaign, dropping the average to $42,058.
Spending in the top 10 actually rose, despite the drop in overall spending. A 1.9-percent increase of $146,400 provides a glimmer of hope that this DR medium is poised for a rebound in the near future. Nine campaigns from the previous top-10 list made this quarter’s list, while “Goldline Intl.” debuted at No. 9 with $262,500 spent. “Select Comfort” retained its No. 1 ranking and enjoyed a 19.7-percent increase in spending. Thanks to a 218-percent boost of $1 million, “Hershey Chocolate USA” rose to No. 2, dislodging “Purity Products,” which fell to No. 3 after a 39.5-percent decline in spending.