After predicting a 19% growth rate for radio in the first quarter of 2010, Stu Olds, CEO of Katz Media, sees  revenue continuing to grow in the second quarter as well. Olds may be uniquely positioned to predict these revenue shifts as his organization oversees ad sales for both Katz radio and the Clear Channel Radio sales portals.

Growth targets by month for the second quarter for Katz Media Group Consolidated Radio are as follows:

• April +17%
• May + 23%
• June +20%

Olds indicates that “[t]he outlook for continued growth is supported by the advertising community’s optimism about an improving economy.”  Many media outlets are expecting the upcoming fall elections to result in additional revenue and radio is no exception. Olds reminds industry watchers that all members of the U.S. House of Representatives are either running for re-election or retiring. This turnover means candidates for 400 campaigns will buy advertising.  In addition, politicians will be competing for 38 Senate seats across the country. Combined, these political battles will result in  spending of at least $3.3 billion. Radio station operators hope to claim 7.6% of the spending or $250 million.

Nationwide, 2010 looks to be a strong year for radio revenue.

[Source: Katz: Spot Biz Rising With 20% Bump in Q2. AllAccess. 15 Mar. 2010. Web. 17 Mar. 2010]

If consumers like the sound of something they hear in an ad, are they more likely to buy? Ads are a complex combination of human voice, music, images and words designed to interact with a  listener’s acculturated experiences and influence aspirations. Some ads achieve their goals while others fall flat. Could the success rate of ads be linked to gender bias based on the voice used? Harris Poll recently surveyed consumers on this topic.

On the surface, some consumers say voice makes a difference:

• Women’s voices are more persuasive: 19%
• Men’s voices are more persuasive: 18%
• Makes no difference: 64%

The typical consumer does make definite associations with specific voices. For example, 48% of consumers say a male voice is more forceful. On the other hand, 46% of consumers perceive a female voice to be more soothing.

The poll also queried consumers on the use of voice when it comes to buying two specific products: computers and cars.

For all consumers, the following voiceover would be more likely to sell a car:

• Male voice 28%
• Female voice 7%
• Makes no difference 66%

For all consumers , the  following voiceover would be more likely to sell a computer:

• Male voice 23%
• Female voice 7%
• Makes no difference 69%

In addition, nearly 1 in 3 men say a male voice is more likely to them sell a car while 1 in 4 say the same for a computer purchase. When measuring women’s responses separately, the survey revealed that just under 1 in 4 women say a male voice is more likely to sell them both a car or  a computer. Based on these results, we can expect to see more auto and computer dealers looking to use additional male voices in their ads.

[Source: Are Consumers More Responsive to Male or Female Voices in Advertisements? Harris Interactive. 12 March 2010. Web  15 March 2010]

At the end of 2009, BIA/Kelsey predicted TV stations would see a revenue increase to $16.8 billion for 2010. These same analysts reaffirmed revenue expectations for TV in their 2010 U.S. Local Media Annual Forecast released last week. Additionally, radio is expected to reach $13.9 billion in 2010.

When it comes to digital revenues, an increasingly important part of any operator’s future budget plans, TV stations should bring in $600 million this year, a $100 million increase over 2009. This level  would comprise 3.6% of the total. Radio stations are looking at digital revenues of about $500 million which would be 3.6% of their total.

By 2014, local digital revenue sources will play an even more important role for radio and TV station operators.  Analysts are looking for a total of $18.3 billion in TV industry ad revenue. Of that $1.2 billion or 6.6% will be linked to online sources and the balance will come from broadcast. Digital revenues sources will contribute 5% of revenues, or $0.8 billion, to the radio industry’s expected total of $16 billion that same year.

Rick Ducey, BIA/Kelsey’s chief strategy officer emphasizes that operators must focus on digital and “[t]his means developing the right multiplatform and multiple revenue stream strategies, which in turn requires new workflow, partnerships, business models and resources.”

[Source: BIA/Kelsey Forecasts Local Ad Spending on Broadcast to Reach $34.3B in 2014. BIA/Kelsey. 9 March 2010. Web. 15 March 2010.]

Marketers continue to seek the best mix of media formats to reach consumers. While much is made of the growth prospects of new media and the multiple ways in which online video can influence prospective purchasers, consumers spend a significant portion of their day listening to radio. To date, radio’s reach continues to overshadow online when it comes to  capturing a share of consume time.  Nielsen indicates the following breakout for how consumers spend time with media (concurrent use):

• Live TV 67%
• Broadcast radio 18%
• Internet  11%
• Newspapers 3%
• Magazines 1%

Who spends the most time listening to the radio on a daily basis? According to Nielsen, the demographics point to men, middle-aged, and well educated consumers:

• Men (79%) Women (75%)
• Ages 18-34 (79%) Ages 35-54 (81%) Ages 55+ (70%)
• High school or less (69%) Some college (78%)  College degree (79%) Advanced degree (82%)

The study findings indicate that the typical radio consumer spends 80+ minutes a day listening in. Consumers who listen the most are well-educated, employed and enjoy a higher income.  An additional advantage offered by radio is that consumers cannot time shift their attention as they do with TV. A well-crafted marketing message or sponsorship of a program that consumers regularly listen to might be well-received as they drive to or from work. Radio should continue to be an important part of every marketer’s media mix.

[Source: How U.S. Adults Use Radio & Other Forms of Audio: an Observational Study. Nielsen. 2009. Web. 10 March 2010]