3Q 2015 RADIO MEDIA BILLINGS
3Q 2015 DR Radio Billings Backslide 10. 2 Percent
Many indicators remain stable, but a single marketer’s pullback in spending may be responsible
for the market’s overall losses.
ANALYSIS BY THOMAS HAIRE
Ending a four-quarter run of year-over-year gains, third-quarter 2015 DR radio media billings — pro- vided by Kantar Media — dipped by more than $1.5 million compared to 3Q 2014 results. The 10.2-per-
cent decrease left total DR radio billings at $13,525,200 — still
the second-best third-quarter showing in the past six years.
While many indicators remained on par with results from
the same quarter one year ago, reduced spending by a single
marketer — 1-800-Contacts — could be seen as responsible
for key losses in the network radio outlet and the “Drug and
Toiletry” category. Losses in those spaces each accounted for
more than the market’s overall dip in 3Q 2015.
While nine of the 17 measured categories reported declines, three categories set the tone for the quarter. On the
positive side, thanks mainly to a spending rebound from My
Pillow, the “Household, Furniture and Appliances” category
added nearly $1.7 million in spending compared to 3Q 2014.
On the negative side, though, the loss of nearly $2.5 million in spending from 1-800-Contacts pushed the “Drug and
Toiletry” category down by $2.2 million — a 24.9-percent
slide for DR radio’s largest vertical. “Video Supplies and
Equipment” also suffered, dropping nearly 94 percent of its
spending from 3Q 2014.
Two of the three DR radio media outlets reported declines,
with network radio giving back almost half ($1.6 million) of
the gains it enjoyed in 3Q 2014. Again, 1-800-Contacts was
a major culprit here, as the marketer’s spending in network
radio fell by nearly $2 million. Network radio gave back 7. 5
points of market share, most of which ( 5. 1 points) was gained
by the national spot radio outlet, which more than tripled
in size to more than $900,000. Local radio slipped by almost
$600,000 ( 6. 6 percent), but added 2. 4 points of share.
The total number of DR radio campaigns in 3Q 2015 was
171 — a 16.3-percent increase. With spending in the top 10
campaigns down more than 35 percent, it’s no shock that,
though average spending per campaign slid 22. 8 percent, average spending on campaigns outside the top 10 rose 18 percent.
Five of the 10 campaigns from 3Q 2014’s top- 10 list made
this quarter’s cut — with Rosetta Stone (No. 2 in 3Q 2014)
and Proactiv Solution (No. 4 a year ago) topping the spending charts. And, even with its steep decline in spending,
1-800-Contacts still managed to finish No. 6 in 3Q 2015. ;
> > Fig. 4
$ 10 million
$ 15 million
Among DR Radio Outlets
National Spot Radio
> > Fig. 1
Total Quarterly DR Radio Media Billings
> > Fig. 3 3Q 2015 Total DR Radio
Average Money Spent on a
Campaign Based on Total:
Average Money Spent on a
Campaign Outside the Top 10: