National spot revenues hit a 50-year high, total ad revenues grew at the fastest rate in nine years and May was the first-ever billion-dollar month.
"It's always been fun to be in radio, but it's more fun now than ever before," said Gary Fries, president of the Radio Advertising Bureau.
Indeed, Fritz Beesemyer, an analyst at Oppenheimer & Co., New York, said, "Radio is healthier than it's been in years. That's because there is a very healthy sales environment-particularly in automotive."
Increased spending from General Motors Corp., Chrysler Corp. and others helped revenues grow 11.3% to $10.7 billion for the year. National spot shot up 14.8% to $1.86 billion and local revenues were up 11.2% to $8.37 billion; network spending was up 8.1% to $411 million.
Many ad categories show substantial growth. According to Competitive Media Reporting, some of the biggest growth areas for January to October 1994 were domestic car products, sales and leasing; toiletries and cosmetics; publishing and media; and drugs and remedies.