Radio Ad Spending Up 22% In February

U.S. ad revenues swelled across all media sectors, except the print market, during the second month of the year, according to global advertising data company Standard Media Index (SMI). The total market rose by 10% in February compared to the same period last year.

Healthy television ad revenues during the month contributed to solid results (5% YoY) for the sector despite flagging ratings evident across the board. Notably, this awards season appeared to lose its luster with weak performances from both the Grammy Awards and Oscars broadcasts.

It was still a mixed bag for TV despite its overall growth. Broadcast’s revenues shed -2% for the month, however cable and all other TV sectors recorded year-on-year percentage growth in the single to double-digit range.

“While February continued to see ratings under pressure it looks like most of the cable networks have been able to wash a lot of their audience make goods through their systems and are starting to book some pretty healthy year on year revenue gains. TV continues to prove it’s the most powerful medium for reaching large, easily targeted and engaged audiences,” said James Fennessy, SMI’s CEO.

“Advertisers are also seeing that adding video to a TV buy multiples the effect and ROI of their campaigns and we’re seeing this in the very considerable and consistent growth levels delivered by video on both premium sites and through social platforms. We expect to see this trend accelerate through 2016 as measurement continues to improve.”

There were 21% more advertising dollars invested in the thriving digital sector this February over 2015, which comes as advertisers continue to favor the medium as a more effective way to reach their audiences. Digital's share of total ad spend has increased to 27%, rising by 3 points in February compared to 2015.

In traditional media, radio advertising spending (22% YoY) in February eclipsed even digital media’s performance in a surprising result, while newspapers (-17%) and magazines’ (-5%) ad revenues delivered negative year-on-year results.

SMI’s data showed that out of home (10%) advertising continues to be another bright spot in the market, maintaining the momentum it generated in late 2015.

Interestingly, U.S. consumer spending sputtered in February, according to a report released by the Census Bureau, while advertising spending continues to grow. Retail sales have now fallen for two consecutive months, a sign that the ad market might soon experience a knock-on effect.