Advertiser investment in radio has remained stable through the early part of 2014, although external factors – most notably the weather – have driven down spending in particular regions and categories.
Patrick Grierson, president of Toronto-based Canadian Broadcast Sales (CBS) (a national radio sales company that is jointly owned by Corus Entertainment and Rogers Communications) said that Eastern Canada has been slightly more challenged than Western Canada, which he attributed in part to a series of storms and prolonged cold snaps that have hit the region.
Grierson said that many retailers, for example, tend to pull back on advertising during inclement weather because they expect reduced foot traffic to their stores. On a national basis, retail spending is down slightly from the corresponding year-earlier period, although Grierson predicted an uptick in coming weeks as retailers look to move seasonal items left on their shelves.
Spending in the financial services category in January was more than double that of January 2013, which Grierson attributed to the continued introduction of new products and increased use of the medium.
Grierson also said that the financial services category has been a core target for CBS and its Radio Gauge product, which isolates radio’s influence on a media buy. “Whether that’s entirely responsible I don’t know, but I would certainly suggest it’s had some impact,” he said.
Government spending is down slightly, with federal government spending in particular almost non-existent. “We’ve seen very little out of the feds so far this year,” said Grierson.
The automotive sector is essentially flat over the same time period last year, while the lottery and gaming industry also spent slightly less than the corresponding period in 2013.
According to BBM diary data, news/talk remains the leading radio format in the country, accounting for 31.3% of tuning among people 12+ (up from 30.2% in the fall 2012 period). “It’s constantly moving,” said Grierson of the news/talk format, who said that hot news topics such as Toronto’s mayoral scandal can drive increased tuning.
News/talk is followed by the hot adult contemporary format (21.9%, up from 18.5% in fall 2012), adult contemporary (19.5%, down from 20.5%) and mainstream top 40/classic hits radio (19.4%, down from 24.4%).
