RAB's Farber Calls Radio A "Healthy Industry" In Radio Show Keynote
September 19, 2013
RAB President/CEO Erica Farber spoke on Wednesday at the NAB/RAB Radio Show in Orlando, giving one of the event's keynote speeches. In Farber's prepared opening remarks, she discussed her time so far at the RAB, the financial state of the industry compared to other media outlets and more.
Farber said, "I've been at the RAB for a little more than a year and a half and during this time I have seen the impact of positive energy across the industry. Radio continues to be a healthy industry at $17.6 billion. Interestingly enough, it is still greater than some of the newer area of business like Online Video at $2.1 billion and Mobile at $2.9 billion. And unlike some other media, radio has taken an aggressive stand and taken advantage of technology to deliver content listeners want, in whatever format they want and when they want it. And advertisers recognize the importance of delivering their ad messages across all of radio's platforms including radio's fastest growing segment - Digital. Reaching a high of $767 million in 2012, Digital grew thirteen percent to $401 million by the first-half of this year - that's over eighty percent higher than the first half of 2009."
She noted that, "Communications, Financial, Automotive, TV/Networks/Cable, and Restaurants continue to be radio's top spending categories. Radio has also realized growth from advertisers in mid-tier categories like Professional Services and Casinos. We need to continue to position radio to capture dollars from new categories as well as identify new dollars from existing advertisers. We have a great opportunity right now with consumer messaging regarding the Affordable Care Act, estimated to reach $1 billion by 2015 according to Kantar Media. Some of you have already taken a first step. Nearly five hundred people attended the RAB webinar last month focused on how to develop and uncover new and evolving revenue streams from the upcoming changes in healthcare legislation. And many of you attended today's session on Healthcare advertising as we learned what we need to do to capture our fair share."
Farber also touched on the push for FM radio access on mobile devices, saying, "Radio's positive momentum in delivering content, like news, music and information, across additional platforms and devices will continue as NextRadio hits the market. This hybrid radio takes broadcast radio's efficiency combined with interactive capabilities to create a content rich listener experience with new advertising opportunities. Since it's very recent launch, it has already been downloaded over twenty-five thousand time and over three-thousand stations have been tuned in coast-to-coast. We now have another exciting platform to take to our advertisers. And it should be noted that, according to Miller Kaplan data, the number one category spender in radio for the first half of this year is Communications /Cellular and the number eight in rank of overall top radio supporters for the second quarter was Sprint - who increased their support of our medium by one hundred and fifty three percent!
She also noted that "HD Radio receivers are continuing to be added by automakers to more and more models. Did you know there are now over fourteen million HD receivers in the marketplace? Every six seconds over thirty percent of all new cars are driving off one of your client's car lots with an HD Radio! Thirty-three automakers have announced their plans to incorporate HD Radio technology in over one-hundred and seventy models by year-end with over eighty HD Radio receivers being included as standard equipment."