• by Erik Sass  @eriksass1, November 18, 2011

The radio business is continuing its gradual recovery, with total spending increasing 2% from $4.44 billion in the third quarter of 2010 to $4.53 billion in the third quarter of 2011, according to the Radio Advertising Bureau. For the first nine months of 2011 revenue is also up 2% to $12.89 billion.

The RAB attributed the overall growth to increases in network, digital, and off-air spending.

Network radio ad spending grew 2% to $282 million, digital jumped 17% to $190 million, and off-air increased 10% to $390 million. Spot advertising, long the mainstay of the radio business, was basically flat at $3.66 billion. 

Of the roughly $90 million added between the third quarter of 2010 and the third quarter of 2011, $5.5 million came from growth in network radio, $27.6 million came from growth in digital, and $35.5 million came from growth in off-air revenues. In other words, network accounted for about 6% of new revenues, digital for 30.7%, and off-air for 39.4%. 

Although digital revenues are posting strong growth, they remain a relatively small part of the radio business, making up just 4.2% of total ad revenues in the third quarter and, at $524 million, 4.1% of total ad revenues for the year to date.

Some of the top spenders on radio advertising in the third quarter were AT&T, McDonald’s, and Comcast Cable, which each spent roughly $90 million on spot radio advertising. Safeway spent $60 million and Verizon Wireless spent $56 million.