TORONTO – The release of July TRAM statistics shows an increase of 7% year-over-year for radio sales across Canada’s 12 largest markets reports Genuity Capital Markets.
Seasonally speaking, radio ad sales during the months of July and August are typically less relevant than other months. The months of July (7% of total LTM) and August (6.6% of total LTM) weigh far less in the balance than those during the September to December period.
Nonetheless a 7% YoY radio ad sales growth in July, amidst a softening economic landscape for many regions, warrants mention. Last year, July was a weak month for radio industry sales, as evidenced by the 1.3% YoY decline in total radio ad sales recorded at that time.
The pace of Alberta’s radio ad sales growth continued to slow in July; contrast Calgary’s YoY radio sales growth of 5% in July with the YTD performance in that city of 12.5%. Same for Edmonton; contrast radio sales growth of 7.6% YoY in July with the YTD performance of 12.3%.
While still highly respectable growth, it’s not at the same dizzying pace as witnessed from July 2007 to February 2008.
Other numbers saw Q3/08 (ended May) radio ad sales growth moderate significantly relative to Q1/08 and Q2/08. Growth of only 1.7% during the quarter brought nine-month gains down to 4.0% from 5.0% at the end of Q2/08.
While radio ad sales for the Montreal Francophone market registered 5% growth in July – the highest level of YoY percentage growth since June 2007. However on a TTM basis, the Montreal Franco market is down 2.1% YoY, largely due to stubbornly low pricing behaviour from certain competing television broadcasters in the province.
