TORONTO – Computers and software led the growth in demand for radio airtime in the first quarter of fiscal 2006 according to Canadian Broadcast Sales.
Demand increased an average of 2.4% in major markets during the first quarter of the 2006 broadcast year. Owned by Corus Entertainment and Rogers Communications, CBS is a national sales firm representing approximately 60% of all Canadian radio stations. Fiscal Q1 2006 ended November 30, 2005.
In the first quarter, the top five categories by growth on CBS-represented stations are: computers and software 238%; unions 126.9%; insurance 94.1%; food and food products 58.9%; and financial 48.2%.
(Look for a healthy bump in Q2 sales, too, given the election spending going on right now.)
The top five categories by spending accounted for almost 55% of total national advertising spending on CBS-represented stations: Retail $6.4 million (17% share); Automotive/Auto Aftermarket $6.37 million (17%); Telecommunications $3.5 million (9.3%); Financial $2.6 million (6.9%); Beer/Wine/Coolers $1.8 million (4.8%).
“Following high demand for radio airtime in 2005, this year’s first quarter growth has led to price increases in some cities of up to 9% in a market already tight for inventory,” said Patrick Grierson, CBS president. “This suggests media decision makers should consider committing to buys earlier to ensure effective schedules. Radio has traditionally been among the last elements finalized in media plans, but we suggest this be rethought based on the current marketplace.”
The broad demographic of adults 25-54 continued as the target of choice for national advertisers capturing a 52.68% share of revenue, an increase of 11.7 share points over first quarter numbers from the previous year. Second place adults 18-49 dropped to 10.53% from 15.97%. Third place women 25-54 held steady at 8.78% versus 8.97%, while men 18-34 increased to a fourth place share of 5.01% from 3.26%.
“Within these top demographics, we are seeing the continued strengthening of last year’s trend toward more and more advertising dollars being spent against the broad adults 25-54 category,” said Grierson.
