TORONTO – Despite the hue and cry over the supposed nasty effects of new media, radio, a so-called old media, continues to post gains here in Canada.
According to Canadian Broadcast Sales, national radio sales for the first quarter of the 2007 broadcast year (September to November ’07) represent the medium’s highest-ever total revenue quarter as sales rose by 8.2% compared to the same period last year. The Toronto market took 42% of the growth.
CBS is a national sales firm representing approximately 60% of all private Canadian radio stations, a total of 128 markets, with clients including Corus, Rogers, Astral, Cogeco, Golden West, Newcap, Pattison, Rawlco, and Vista, plus other independent smaller market operators. Collectively, they represent over 322 stations in Canada.
"The Ontario market experienced a broadly-based 26.2% increase, B.C. and Alberta maintained consistent single digit growth, while markets like Saskatchewan and Manitoba were disappointing," said Patrick Grierson, CBS president and CEO. "Toronto’s 19.3% growth alone captured 42% of new revenue dollars.
The top five Q1 major growth categories on CBS-represented stations were: Internet/Technology, 298%; Insurance, 98.3%; Restaurant/Fast Food, 73.2%; Computers & Software, 66%; and Movies/Media/Entertainment, 33.4%.
The top five national categories captured 55.2% of all spending. Retail, $7.2 million (17.7%); Automotive/Auto Aftermarket, $6.3 million (15.6%); Telecommunications, $3.7 million (9.2%); Financial $2.6 million, (6.4%); and Restaurant/Fast Food, $2.5 million (6.3%). Restaurant/Fast Food is the only new top five category this quarter powered by its strong growth numbers.
While maintaining relatively steady sales figures, the leading adult 25-54 demographic showed some weakness for the first time in a number of quarters losing over 4% of its share, with a 48.1% total. Women 25-54 made up most of this ground, moving to second place with a 12% share. Adults 18-49 (9.6%), men 18-34 (5.2%) and adults 25-49 (3.5%) rounded out the top five demos.
"The solid Q1 results in many markets underscore radio’s strengths in audience delivery in the current media environment," said Grierson. "Television broadcasters are seeking additional fees to offset losses of ad revenue in many markets due to the impact of audience fragmentation. Newspaper readership continues to decline and satellite radio’s penetration is quite low. The challenge for radio is to ensure national advertisers are extending their campaigns through both major and secondary markets."
