RADIO RESULTS UP 6.8% HALFWAY THROUGH YEAR CBS Release The Canadian radio industry continues to produce strong revenue growth with a 6.8% increase in sales over the first two quarters of 2007. Second quarter growth of 4.9% was supported by 8.3% in the first quarter, according to figures from Canadian Broadcast Sales (CBS).
“Forward bookings in the second half of the year are tracking nine per cent ahead of last year,” said Patrick Grierson, president of CBS. “We are already seeing inventory challenges in some markets and are expecting more in the back half of the year based on the current level of demand. Despite this continued support for radio, many advertisers aren’t taking advantage of the cost and availability benefits of earlier execution.”
CBS, a national sales firm representing approximately 60% of all private Canadian radio stations, provides the broadest single industry measure of national radio sales. CBS station groups operate over 322 individual stations in 128 markets, with clients including Corus, Rogers, Astral, Cogeco, Golden West, Newcap, OK Radio, Pattison, Rawlco, and Vista, plus other independent smaller market operators.
The “Adults 25-54” demographic with a 40.9% share continues to far outpace other demos, although this is a decrease from 44.4% last year.
“We are seeing dollars being reallocated to more targeted demos such as Women 25-54,” said Grierson. “The ability to reach specific audiences is one of the clear benefits radio has over other media and it’s gratifying to see advertisers and agencies recognize this based on how money is being spent. Another segment benefiting from this approach is the 50+ baby boomer categories.”
The top five demos this quarter were: “Adults 25-54” (40.7%); “Adults 18-49” (15.6%), “Women 25-54” (14%), “Adults 25-49” (4.4%); and “Men 18-34” (4.2%).
The top five national advertising categories captured 55.4% of all spending. Retail $6.9 million (22.8%); Telecommunications $3 million (10%); Financial $2.2 million (7.3%); Automotive/Auto Aftermarket $2.1 million (7%); and Restaurant/Fast Food $1.9 million (6.3%). Government spending dropped out of the top five due largely to the absence of a federal election this year.
“Election spending last year accounted for almost $1.4 million in revenue, so results this quarter are quite impressive when taking this into account,” said Grierson. “We’re also seeing broad-based growth across almost all of the top ad categories.”
The top five Q2 major growth categories on CBS-represented stations were: Pharmaceutical/Medicine (105.8%); Insurance (98.6%); Movies/Media/Entertainment (84.2%); Restaurant/Fast Food (47.7%); and Financial (45.8%).
Canadian Broadcast Sales, Canada’s only national radio sales company with six offices across the country, unites national advertisers with radio stations in all provinces and accounts for approximately 60% of total national revenues from all commercial radio properties in the country. CBS is owned by Corus Entertainment Inc. and Rogers Communications Inc. |