Public radio companies have been reporting dismal local ad revenue for Q2. All week long we’ve been talking to privately held radio groups about local revenue in their markets. Today, Neuhoff Communications CEO Beith Neuhoff shares her thoughts. The company operates 23 stations in Illinois and Indiana.
Radio Ink: How was Q2 for local ad revenue?
Neuhoff: Local advertising was not strong in Q2. Automotive took a serious hit in our markets with some of our largest dealers leaving radio and going 100 percent digital. Cellular business also fell off.
Radio Ink: What are your three best categories?
Neuhoff: Despite a significant decline, automotive is still tops. Behind it are healthcare, home and garden, financial services, and restaurants.
Radio Ink: What are local advertisers saying about economy?
Neuhoff: Local advertisers seem less focused on the economy and more concerned about the over-saturation of the competitive landscape. Overall, the minimum wage increase is also of serious concern.
Radio Ink: How is pacing for Q3?
Neuhoff: Pacing is flat but seems to be accelerating into the quarter.
Radio Ink: What challenges lie ahead?
Neuhoff: Looking forward, navigating the exploding CBD market and sports betting are front and center. We also continue to advocate for ownership relief in the smaller markets as we feel the competitive squeeze acutely.
Radio Ink: Thoughts on how the rest of 2019 will go?
Neuhoff: I’m optimistic about fourth quarter. It always has a way of delivering something unexpected.
Thanks to Beth Neuhoff, President/CEO, Neuhoff Communications