SCBA Issues Quarterly Market Guidance Report

The Southern California Broadcasters Association (SCBA) has published its SCBA Quarterly Market Guidance Report for clients, advertising agencies, and its Radio member stations, via its website at www.scba.com.

The SCBA Quarterly Market Guidance Report is a comprehensive look into Southern California Radio listenership trends, key advertising category trends, economic trends, competitive analysis, industry trends, research highlights, and SCBA recommendations for Q2 Radio advertising strategies. The report is published prior to the start of each quarter and is designed to be used as a planning and strategy roadmap for Radio advertisers who are trying to understand the upcoming quarter’s important market and Radio trends in Southern California.

Thomas Callahan

“The dynamic Radio advertising environment for Southern California really demanded its own impartial report that looks ahead into each quarter to help clients and agencies gain a full understanding of the region,” said SCBA President Thom Callahan. “As the nation’s number one Radio revenue market, the need for substantive Radio information to help guide the market was imperative,” said Callahan.

“Our SCBA goal is to offer solid market intelligence for our clients and agencies as they plan and execute their Radio advertising strategies and to be an invaluable partner in their future planning and thinking,” said Callahan.

The SCBA Quarterly Market Guidance Report provides market and business trends as well as regional information from a variety of sources including The Los Angeles Economic Development Corporation, The state Department of Employment, The Regional Business Journals, Miller Kaplan Arase X-Ray data reports and market summary reports, Motley Fool Investment Newsletter, Inside Radio, Nielsen Audio, The Wall Street Journal, The Los Angeles Times, InRex traffic data, and up to the minute local and regional market intelligence from its 175 member radio station network.

Here is a brief overview of key categories and their trends to watch:

• Communications and Cellular Radio advertising is expected to grow by 23% in Q2 based on pacing and up front activity. The trend towards no long-term contracts and bundled services will get hotter among all the leading cell phone suppliers as summer approaches. 
• Education and Continuing Education has grown by 61% YTD. SCBA sees that trend  continuing as summer sessions are now as in demand as fall to spring classes. MBA fast track programs and certain vocational training schools will also become year round in attendance. 
• Insurance, including car, home and health categories have skyrocketed for Radio in 2013 and SCBA views 2014 as even stronger as health plans and car insurance will continue to use Radio for market and brand awareness. We see this category jumping to 152% in Q2.
• The Entertainment category for movies/concerts/theatre will remain strong in Q2. SCBA views the entertainment category as robust into Q2 and Q3 with a growth rate of 55%.
• An already strong Sporting Goods category will only accelerate as spring arrives in Southern California. The region’s 72% growth rate from January 2014 will continue as more people are outdoors and enjoying a variety of sporting activities. SCBA projects further consolidation of this sector with the announced sale of Sports Chalet.
• Lawn and Garden had a big growth year in Radio and SCBA expects that to grow by at least 40% in Q2 of 2014. The spring months are the prime time for this category and with the improving new housing starts and the overall health of the economy, we view Lawn and Garden as a significant Q2 advertiser for Southern California Radio.

Another category that looms large for Q2 in Radio is the Supermarket Grocery business.