Unlike other media, radio advertising is quite diverse, generating 10% or more of its advertising from five different verticals. Retail (18%), Financial/Insurance (17%), Restaurants (14.5%), Automotive (14%), and Technology (10%) accounted for almost 3/4 of advertising on radio in 2012.

Diving into the top vertical, Retail, warehouse clubs and supercenters accounted for the largest share of retail advertising, 22.7%, just as it was in other media I’ve discussed, such as newspaper and direct mail.

Three out of eleven subcategories accounted for a combined 67% of the advertising spend in the financial/insurance category: commercial banking, securities brokerage and auto insurance.

Media Ad View Plus breaks the restaurant category into seven subcategories. Three of these subcategories accounted for 83.5% of advertising revenue in this category for radio: full-service restaurants, supermarkets and other grocery stores (not including convenience stores) and quick-service/fast food restaurants.

For automotive, auto dealers and manufacturers accounted for nearly 77% of the category’s advertising spending, much as it did for television and newspaper.

In the Technology category, the wired telecommunications carriers and wireless telecommunications carriers (except satellite) accounted for a combined 72% of the advertising spend in the category.

BIA/Kelsey projects radio advertising revenue to increase at a compound annual growth rate (CAGR) of 2.85% from 2012 through 2017. In 2017, radio advertising is projected to reach nearly $16.9 billion, representing 11.4% of total advertising spend for the year. Retail, financial/insurance, restaurants, automotive and technology are expected to remain the top categories for radio advertising spending in 2017.

More information on Media Ad View Plus is available here.

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In a previous blog post, I mentioned that newspaper was the medium of choice for real estate advertising in 2012. However, while newspaper accounted for 27.7% of real estate advertising spend, the real estate vertical accounted for only 2.5% of newspaper advertising revenue. Retail (23.5%) and automotive (16%) were actually the largest vertical categories advertising with newspapers in 2012, according to BIA/Kelsey’s Media Ad View Plus.

Approximately 22% of the retail advertising revenue going to newspapers came from one of the 28 retail subcategories broken out in Media Ad View Plus: warehouse clubs and supercenters. For automotive, more than 77% of the advertising revenue going to newspapers came from automotive dealers and manufacturers. This isn’t surprising, as both warehouse clubs/supercenters and automotive dealers/manufacturers have the highest spend in their respective categories across all media.

BIA/Kelsey projects that newspaper advertising revenue will continue falling, reaching $21.3 billion in 2013, a loss of 5.4%. By 2017, BIA/Kelsey expects newspaper’s share of total advertising spend to have continued to decline, falling to just under 12% of total advertising spend. Newspaper advertising revenues are expected to fall from $22.5 billion to $17.8 billion, a compound annual growth rate (CAGR) of negative 4.7%. This projection places newspaper in third place in advertising spend, behind direct mail and television, but just ahead of radio and online.

With advertising revenue dropping, newspapers are looking for alternative sources of revenue. “Digital pay plans are being adopted at 450 of the country’s 1,380 dailies and appear to be working not just at The New York Times but also at small and mid-sized papers. Twinned with print subscription and single-copy price increases, the digital paywall movement has circulation revenues holding steady or rising. Together with the other new revenue streams, these added circulation revenues are rebalancing the industry’s portfolio from its historic over-dependence on advertising,” says The Pew Research Center’s Project for Excellence in Journalism’s State of the News Media in 2013 report.

BIA/Kelsey projects that in 2012, online represented 13.8% of newspaper’s advertising revenue. This is expected to increase to 20.5% in 2017.

More information on Media Ad View Plus is available here.

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For traditional media companies with legacy businesses to harvest, mobile platforms offer a critical opportunity to forward-shift toward tangible growth. At MLM SF, digital media executives and vendor partners shared a variety of actionable mobile successes that indicate that, at long last, mobile’s time has arrived.

Media can deploy effective mobile solutions to clients big and small, with different media sectors better aligned to service specific business segments. Belo VP of Digital Joe Weir noted that his local TV stations typically work upstream with larger clients that have already adopted a mobile strategy and seek richer branding opportunities. Auto dealers may sponsor a niche app, as an example, or a local builders association can fold its content into Belo’s apps while the station also assists the company in building and marketing its own mobile solution.

Tribune Media SVP of Mobile Andy Vogel amplified these mobile distinctions by explaining how different business segments value device-specific traffic. “Tablets are great engagement vehicles for big brands. The smartphone space seems to work very well with SMBs. And SMS can still be the best way to communicate with customers in a clear fashion.”

Whether it’s content sponsorships, mobile app building, or rich media tablet ads, the central idea is to leverage mobile “as a wedge to get in the door,” said Gumiyo CEO Shuki Lehavi. “That gives you the opportunity to sell across the portfolio.”
For TV stations, the portfolio sell opens up the 3-screen approach. For newspapers and other traditional media, it may be a different, more diverse product bundle. Either way, Weir urged the audience to go with a “simple sell.” And Chris Hanburger, StepLeader’s VP of business development, supported prudent product and sales strategy, but exhorted that those that are having the most success in mobile “are going gung-ho into it.”

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