The May Miller-Kaplin numbers were released today, and broadcast stock analysts are expecting radio stocks to get slammed.
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Radio revenues declined 8% last month when compared to May 2007. That's double the 4% decrease expected by Wall Street.” The numbers, gathered by the Los Angeles accounting firm of Miller Kaplan Arase & Co., and released by RAB this morning, were a horror show.

Local revenue for all markets was off by 9%, said the RAB, while national revenue was down 13%. The combined local and national revenue figure was a drop of 10%. One bright spot, which continues to be a positive trend in the radio industry, is non-spot revenues which grew 12% in May.

You may find it interesting to check Internet revenue growth over the same period of time, exclusive of radio's 12% non-spot which is almost all Internet.
Our agency does not permit us to post numbers publicly or it would be included.
We believe revenue streams are trending towards Internet and Cable.
This is primarily due to radio's product issues as it relates to portions of its audience moving to other types of media.
There are indeed fabulous spot buys within the various clusters of stations. They simply don't work at an efficient enough level for most clients to justify the buy at any cost.

If you are not increasing revenue at your station, then you are doing something wrong.
We have increased revenue by 17% in the last two months in this so called "bad economy".
How?
Creative packages, aggressive AE's and thinking outside the box.
That is without internet income or some of the "other" incomes. Just good old fashioned air sales.
This in a non Arbitron market, so no agency stuff either.
You just have to be smart in this economy and work your butt off!

Dodger: It's hard to believe that almost every radio station in the top 150 markets of the country is, as you say, "doing something wrong," just because your dollar-a-holler non-Arbitron market station is doing well. That's like saying Coke and Pepsi must be doing something wrong because your kids' lemonade stand increased revenues last month.

Most major market sales staffs are working their hearts out -- they live and die by commissions from national sales, and local agency sales. Non-agency local is a tiny part of radio revenues for most broadcast organizations.

This isn't a 'so-called "bad economy"'--- IT IS ONE. And radio is suffering from one of the worst economies in decades as well as a total collapse of its business model.

Check your smug and self-righteous ego at the door.

Whoa hoss: "smug and self righteous"? Wow, that's a bit strong isn't it? Guess I's just a po stupid "dollah hollah" boy.
So this is a "bad economy"? Let's see, unemployment is at 5.5% Compare that too 1976-80 sometime. Or even better 1930-33. SOME parts of the economy are struggling, but this is NOT a recession, depression or anything else but a bit of slowing.
There is actually still growth happening in the economy. Those who adapt to changing times will succeed. That was and is my point.
No, I disagree, large markets have always depended on a huge amount of agency biz, now some of that will be going away, so how to replace that?
Promotions, ideas and special sales.
I Have been in small market radio for 30 years now. I like small market. Small market is where REAL radio still happens.
I will of course defer to your experience in larger markets. We must be doing something wrong I guess, but I will happily take the raise in salary recently as well as increased commissions!

From what I've been reading in the trades and favorite blogs, biz in the major markets "sucks"...down anywhere between six and 13 percent...while smaller markets are seeing increases in year-ago sales figures. From what I gather, it's been running in the high single digits to teens on the plus side when expressed as a percentage.

I think the difference is selling CPMs in the big city versus selling "results" for local merchants in small towns... It's something called a "relationship" between client, station, and audience.

Sounds kind of old-fashioned, doesn't it?

Congrats, Dodger, to you and the whole station crew...Working under the umbrella of the Portland market ain't easy. Keep up the good work and delivering RESULTS!

From what I understand, this is an "apples and oranges" discussion. Large markets depend on agency buys to make a profit. Unrated markets make most of their income from direct advertising so if you are selling in an unrated market, you aren't affected in the same way.

markandrews: you are right on with your observation.
Connecting and creating relationships is what makes small market sales fun. We are delivering results, not based on some purely random survey done several times a year, but by butts in their stores and in their seats.
We have added 21 new clients this month alone and 17 resurrected that haven't been on the air in a long time.
That was due to a concerted effort to reach out and "relate" to them. Part of that "reach out" was letting them know we have a LIVE body in the morning and in the afternoon.
We can bring them what they need.
I have one account only, I am not a salesman, but it's my country club. They wanted new members, so after never having tried radio, I put them on a heavy rotation for two weeks, giving listeners who asked for it, 2 for 1 golf.
After 5 days, they asked me to stop as they were "we have too many customers and we are giving away too much golf!!!".
Now they are getting new members weekly.
THAT is local and small market radio delivering the goods.