LOS ANGELES – National advertisers pumped a healthy 20.5% in additional revenue into L.A. radio for the first quarter of 1993, compared to the same quarter last year.
Radio spending from national advertisers totalled $20.3 million for the first quarter of 1993, up from $16 million in the first quarter of 1992.
Those figures were twice as high as national revenues cross country, according to Miller, Kaplan, Arase & Co., the L.A. accounting firm that compiled the data based on reports from 20 local radio stations for the Southern California Broadcasters Association.
Local advertisers spent $62.3 million on radio for the quarter, up 2% from $61 million in first quarter ’92. The local rate of growth is slightly below the national norm, the accounting firm said.
Combined, local and national spending for the first quarter reached $82.6 million, up 6% from $77.6 million the previous year.
‘The Southern California economy is lagging behind the rest of the country a bit,’ said Miller Kaplan’s George Nadel Rivin. ‘Fortunately, we’ve had some positive reaction from national advertisers. In their local markets, optimism about the economy has picked up.’
SCBA reporting showed increases in nine of the top-10 categories of spenders, with grocery stores and television stations leading the way with increases in excess of 50% each.
Grocery stores spent $5.9 million in the first quarter of ’93, compared to $3.9 million in first quarter ’92. Growth in the category, Nadel Riven said, matches the hot battle for market share in that field. Radio, he said, is the closest ad medium to point-of-purchase for shoppers.
Nadel Riven said the immediacy of radio, especially in afternoon drive time, may have pumped more money into the TV category too, as stations battled for viewers. TV stations spent $6.3 million, up almost 50% over first quarter ’92.
Automakers and dealers, the leading category of advertisers on radio in this market, spent close to $10 million in first quarter ’93, up 20% over the same period last year.
Copyright Adweek L.P. (1993)
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