Response Magazine - June 2008

Research 4Q 2007 Radio Media Billings

4Q 2007 DR Radio Media Billings Decline $4 Million

‘Computers, Software and Home Office’ and ‘Drug and Toiletry’ categories each decrease more than $2 million.

Fourth-quarter 2007 DR radio media billings reported by TNS Media Intelligence (TNSMI) reflect an 18.3- percent decrease of $4,074,100, making 4Q the third losing quarter of 2007 and signaling a fallback after a third-quarter advance. Fourth-quarter 2007 experienced the heaviest loss of the year, almost tripling 2Q’s reported losses and nearly five times the loss in 1Q 2007. This is a sobering setback when compared to fourth-quarter 2006’s 28-percent ascent in the DR radio space. For the year, DR radio billings fell short of 2006’s results by 7. 6 percent, or $5.3 million.

Similarly to the first two quarters of 2007, only seven categories reported gains in the fourth quarter. “Household, Furniture and Appliances” claimed the highest dollar gain with $1,471,900, and finishing second was “Audio Supplies and Equipment,” with an $824,500 gain. Both categories

> > Fig. 1

Percentage Breakdown
Among DR Radio Outlets

Local Radio
36.2%
$6,569,700

Network Radio
63.6%
$11,532,900

National Spot Radio
0.24%
$43,900

Total: $18,146,500

advanced 27 percent. “Food and Beverage” doubled its order with a $313,600 rise. The percentage leader was the “Video Supplies and Equipment” category, with a staggering 33-fold jump of $219,300. Also worth noting was “Correspondence Schools” earning an extra $3,400, good for a 136-percent gain.

The top dollar loser for 4Q 2007 was “Computers, Software and Home Office,” which suffered a loss of just less than $2.7 million, or 97.2 percent — which was, surprisingly, not the top percentage loser. “Drug and Toiletry” also lost more than $2 million, with its 47.8-percent slide. The top percentage loser title went to 2007’s worst performing category, “Business,” which lost $1 million — or 98.7-percent. The “General” category lost 25 percent (or nearly $500,000). “ Apparel” sank 67.8 percent.

Only one of the three DR radio outlets reported a gain in 4Q 2007. Continuing the momentum started in the third quarter, local radio claimed a $338,400 advance of 5. 4 percent, increasing its market share by 8. 2 percentage points. Network radio squandered most of its 4Q 2006 gain of $5.5 million by losing $4.1 million, shrinking its market share by nearly 7 points. National spot radio almost diminished into nothingness with an 86-percent loss of $270,300, reducing its total market share to a paltry 0.24 percent.

The total number of unique DR radio campaigns aired during the fourth-quarter 2007 remained the same as fourth-quarter 2006 — 83. Hence, the average money spent on a campaign based on the total also fell by the same amount as the total decline in spending, 18. 3 percent ($49,086) to $218,633. The average minus the top 10 fell even deeper with a 33.9-percent decrease to $67,844.

Top- 10 spending decreased by $1.53 million ( 10. 4 percent), while the amount necessary to gain entry into the top 10 fell by 36. 6 percent to $507,600. “Select Comfort” maintained the No. 1 spot with an additional 12.4-percent,