Phoenix: Very strong start to 2013 on TV

Phoenix was one of the markets hit hardest by the recession, which devastated the city’s once-booming real estate market.

But Phoenix has also been one of the first markets to fully recover, and that has led to an active and healthy media economy heading into 2013.

“The Phoenix DMA is recovering faster from the recession than most other markets,” one buyer says. “Home starts are up in fourth quarter, unemployment is under 8 percent, and tourism is on the rise in the state again.”

Unlike in many markets, first quarter is pacing ahead of 2012 with stations already seeing increases of 3 to 12 percent, local TV buyers say.

There are many categories driving the gains, but the main factor has been strong activity from auto manufacturers and dealers.

“In general the market has been on fire,” says Debbie Schwartzbauer, who buys Phoenix for RPA.

“Inventory varies from week to week and is affected by auto, as Phoenix is a very competitive auto market.”

Besides auto, other categories that have increased spending include telecom, furniture, home improvement, auto insurance, healthcare and retail.

Another buyer says the healthy conditions have impacted a number of different dayparts.

“Prime is always busiest, then depending on the station strength and quantity of news programming, usually early news and late news,” she says. “Otherwise fringe, both early fringe and late fringe.”

Inventory is tight in most dayparts as the year ends, and advertisers looking to place ads at the last minute will pay rates 20 to 25 percent higher than normal.

The strong start to 2013 follows a healthy 2012 for Phoenix. Non-political TV spending will finish up 6 percent versus 2011, up 20 percent when political spending is factored in.

Radio in Phoenix is healthy as well. Radio is expected to finish up 5 percent in 2012, and the market is pacing flat in first quarter 2013.

“Due to compression of radio ratings in the market, but with the same costs, cost-per-points are rising,” one buyer says.

Auto, furniture, restaurants, healthcare and insurance are the top categories on radio in Phoenix, while telecom advertising has slowed versus previous years.

Clear Channel has a very strong presence in the market, with five of the top seven radio stations in November, according to the ratings.

The top station in Phoenix last month was Clear Channel’s news-talk station KFYI-AM, which averaged a 5.9 portable people meter rating, according to Arbitron.

The other four Clear Channel stations finishing among the top seven in November were adult contemporary KESZ-FM (4.9 rating), current hits KZZP-FM (4.3), and hot adult contemporary KMXP-FM and country KNIX-FM (each with a 4.2 rating).

Tags: 2013, auto, clear channel, KNXV, KPHO, KPNX, local ad spending, local markets, market profile, media economy, phoenix, phoenix ad spending, phoenix radio, phoenix tv, radio, tv