• by Jack Loechner , Staff Writer @mp_research, August 29, 2014

According to the RAB, Radio's Q2 '14 revenue performance was moderate, down 3% from the same period last year based on diminished Spot activity. Spot declined 5%, tempering respective gains of 13% and 9% from the Off-Air and Digital sectors and flat Network spending. Q2 represents the third consecutive quarter in which Radio has seen double-digit growth in Off-Air revenue.

Revenue Comparisons 2014 vs. 2013 (Million Dollars)
Revenue Source	$Q2  ’14	% Change	$ 1stH ’14	$ Change
Spot	$3,548	-5%	$6,495	-3
Network	286	Flat	534	-3
Digital	242	+9	449	+12
Off-Air	400	+13	853	+15
Total	$4,536	-3%	$8,331	-1
Source: Miller Kaplan Arase, August 2014

Erica Farber, RAB's President and CEO, says "… we anticipated a relatively flat to down Q2. … a greater percentage of Radio's total annual revenue historically comes through in the second half... “ Farber continued, "Among Radio's top 10 advertisers, the standouts are operating where there's intensified competition for top market share."

Q2's "Top 10" list represents the high-volume Spot spenders who consistently maintain a majority share of voice on Radio's airwaves:

Radio’s Top 10 Advertisers in Q2 2014

• AT&T
• Comcast
• XFinity
• McDonalds
• T-Mobile
• Verizon Wireless
• Geico
• Coca-Cola Company
• PepsiCo
• JP Morgan Chase
• Toyata Dealer Associaition

While many of Radio’s top categories saw slightly diminished Spot spending in Q2, Health care and Professional services registered small increases, ranked on dollar volume. Taking up some of the slack from the top ten Radio revenue categories, there were many positive stories from next tier categories (ranked on dollar volume).

Next Tier Radio Revenue Categories
Category	% Revenue Increase
Home improvement	4%
Chariable/Religious/NFP/government	11
Specialty retail	14
Auto parts/service	14
Amusement/theme parks/museums	9
Sporting events/expos/shows	6
HVAC/plumbing	6
Lawn & garden	6
Real estate/retirement communities	19
Transportation	7
Sporting goods	10
Personal fitness/weight centers	6
Music stores/videos/DVDs	3
Security services	10
Postal & delivery services	86
Source: RAB, August 2013

N.B. Spot Radio, Digital and Off-Air revenues are based on a pool of more than 100 markets as reported by the accounting firm of Miller Kaplan Arase LLP and extrapolated to the entire U.S. Digital Revenue is comprised from activity generated by websites, Internet/web streaming and HD Radio including HD2 and HD3 stations. Network Revenue includes seven major Radio network companies. Off-air / Non-spot / Non-traditional revenue: Revenue generated from and related to gate receipts, signage, concessions, sponsorships, merchandising and print activities.

For more from the RAB, please visit here.