STRONG NATIONAL RADIO PERFORMANCE IN 2005 Broadcaster Magazine The 2005 broadcast year ending August 31, 2005, saw strong growth in some new national categories and continued dominance in spending by the top five advertisers. Canadian radio outperformed its U.S. counterpart and the 25-54 demographic gained further share of market, according to Canadian Broadcast Sales, a national sales firm representing approximately 60% of all Canadian radio stations.
The top five categories by growth on CBS-represented stations are: Office Machines/Furniture 400%; Loyalty/Rewards Programs 163%; Food and Food Products 92.9%; Insurance 59.2%; and Automotive 46.9%.
The top five categories by spending accounted for 51.4% of national advertising spending on CBS-represented stations: Retail $23.033M (17.2%); Automotive $18.171M (13.6%); Telecommunications $11.653M (8.7%); Restaurant/Fast Food $8.094M (6.1%); Beer/Wine/Coolers $7.809M (5.8%).
The broad demographic of Adults 25-54 continued as the target of choice for national advertisers capturing a 43.65% share of revenue, an increase of 3% over the previous year. Second place Adults 18-49 dropped 2.45% to 14.5% from 16.9%. Third place Women 25-54 held steady at 9.4%, while Men 18-34 increased 0.65% to a fourth place share of 5.12%.
"It is interesting that the broadest demographic of Adults 25-54 gained 10% share in a time when everybody claims to be more targeted in their media buying and more and more attention is devoted to niche markets and demos," said Patrick Grierson, president of CBS. "This 25-54 demo growth is also inconsistent with what we know about the aging population and their disposable income."
Canadian national radio sales performed well in the 2005 broadcast year noted Grierson. "In fact, growth in this country outpaced that of the United States. For the 12 months ending August 2005, spot and non-spot radio sales increased only 1% in the U.S. compared to an overall increase in Canada of 8.7%, comprised of national growth of 17.0% and local growth of 6.1%.
"Looking ahead to the end of the first quarter, we see continued strength for radio across all major categories due, in part, to the increased fragmentation of media," said Grierson. "The debate over the granting of satellite radio licenses has heightened interest in the radio medium. However, given the proposed non-commercial nature of satellite radio and the unknown timetable for its launch, we believe commercial radio will experience no impact in 2006 and for some time to come." |