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DR Radio

Research 1Q 2010 Radio Media Billings

17 Sep, 2010 By: Jackie Jones Response

Despite 11 of 17 categories reporting significant gains, total billings decline more than $1 million from the previous year’s first quarter, a 9.3-percent drop.

DR radio media billings continue to slide in the first quarter of 2010, according to data provided by Kantar Media (formerly TNS Media Intelligence). First-quarter 2010 totals — $10,482,000 — were down just more than $1 million from 1Q 2009, a 9.3-percent decrease, and fell about $1.5 million (12.8 percent) short of 4Q 2009 totals. This loss marks the fifth consecutive first quarter that DR radio billings have declined from the previous year, but it was a minor improvement from last year’s 14.3-percent 1Q decrease.

Declines Hit Hardest at Home

Eleven of the 17 categories reported gains this quarter when compared to 1Q 2009 — a sharp increase from a year ago, when only three categories were on the rise. The “Collectibles and Art,” “Correspondence Schools” and “Lawn, Garden, Seeds and Bulbs” categories all bounced back from $0 reported in 1Q 2009, gaining $38,700, $2,400 and $10,900 in the first quarter of this year, respectively. The “General” category became the top-dollar earner with a $993,100 increase (up 30.3 percent). “Food and Beverage” netted the highest percentage gain, increasing 96 percent ($260,200) from 1Q 2009, followed by “Crafts, Hobbies, Sporting Goods and Toys,” which saw a 73.4-percent increase ($149,100) this quarter.

“Household, Furniture and Appliances” suffered the greatest dollar loss in 1Q 2010, reporting a decrease of nearly
$1.8 million (46.2 percent) from the previous year’s first quarter. “Home and Building” tumbled 86.7 percent ($98,900), the largest percentage decline for the quarter, followed by “Audio Supplies and Equipment” at 62.4 percent ($402,200).

Campaigns Up, Top 10 Spending Down

Network radio was the sole DR radio outlet to report any dollar gains in the first quarter, bumping its market share to 56.7 percent after an increase of $258,200 from 1Q 2009. National spot radio took a 9.8-percent dip of $10,300. Similar to first-quarter reports of 2009, local radio again took a heavy hit, declining about $1.3 million (22.9 percent).

The total number of unique DR radio campaigns aired during 1Q 2010 saw a slight increase of 4.3 percent to 69. The average spent on a campaign based on the total decreased by 13.2 percent ($23,185) to $151,913. The average spent on a campaign outside the top 10 decreased almost $6,000 (11.1 percent), a change from the previous year’s slight incline.

Spending in the top 10 decreased by $884,000 (10.3 percent). Seven campaigns from 1Q 2009’s top 10 carried over to this year’s list, with “Select Comfort” retaining the No. 1 spot again despite a significant decrease in spending. “Goldline International LLC” saw the greatest debut, bumping “Purity Products” from the No. 2 spot.

While DR radio media billings continue to flag, perhaps the freefall that’s been underway for some time now is nearing its floor. After failing to reach the $10 million mark in the second and third quarters of 2009, 1Q 2010 marks the second straight quarter of surpassing that number. First-quarter 2010 also marks the first time that a quarterly loss was lower than 10 percent since 4Q 2008.

Still, with 10 consecutive quarters of declining year-on-year results (the last positive quarter for DR radio was 3Q 2007), that floor will stay somewhere down there until the media segment has a quarter of growth.



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