Auto was down 40% in the quarter according to CEO David Field. And when that’s your largest category it makes it tougher to overcome. The decline in auto ad spending accounted for 1/3 of Audacy’s Q3 revenue decrease when comparing to 2019.
Another 1/3 of that revenue decline, compared to 2019, was due to the combined impact of the cancellation of Audacy events, plus the decline in advertising from third-party concerts, theme parks and festivals.
With digital up 30% and spot revenue up 21%, Audacy reported a revenue increase of 23% when compared to the COVID-19 year of 2020.
Audacy’s larger markets are taking longer to recover from the pandemic, according to Field. “Our radio revenues are back to 78% of their 2019 levels excluding events. However, our smaller markets, those ranked 50 and higher, are back to 86% of 2019. And our market 50 and higher in the South and Midwest are back to 91%. This sharp contrast to market recovery reflects how larger markets were slower to reopen and faced more disruption to their local economies and work practices and commuting.”
With total revenue of $329.4 million in the quarter, Entercom broke it out as follows:
$220.6 million in local and national radio revenue
$23.5 million in network revenue
$12 million from sponsorships and events
$61.3 from digital.
Podcasting revenue was included in the digital revenue. Audacy did not break out the podcasting total from the digital.
In Q4 Field is expecting growth in the mid-single digits and excluding political, growth in the low teens, versus 2020 numbers.
Audacy’s problems are more than just “auto”.
The company is one of the worst offenders as far as excessive spot loads, hour in and hour out. Guaranteed listener burnout.
And their national and regional jukebox strategy is just horrible, forsaking “local”. Huge mistake.