Saga’s New Story: A Local Direct Leader In Q4
With CEO Ed Christian “unscripted” and sharing with investors and Wall Street analysts “what happens in the kitchen” in describing how Saga Communications gets its revenue each quarter, SVP/Operations Chris Forgy offered a peek at what the company’s top three ad categories were in the final quarter of 2021.
At the same time, CFO Sam Bush shared details on something Forgy praised as “beautiful” to Saga’s bottom line — its Local Direct prowess.
The No. 1 ad category, as shared by Forgy during Saga’s Q4 ’21 earnings call, is Home Improvement. This includes windows, siding, electrical contractors and plumbing, and illustrates how Saga’s mid-sized and small market properties are, in some ways, replacing the daily newspaper as a go-to for such community-based businesses.
The No. 2 ad category? At Saga in Q4 ’21 it was Professional Services, inclusive of attorneys, tax preparers, and financial planners.
Automotive is the third-largest ad category at Saga.
“We can’t plan on national dollars, where we have to have the bedrock of business we control,” Christian said on the earnings call. The comment came after Forgy noted, “We control the things we can and don’t worry about the rest.”
This helps to explain how Local Direct was flat in Q4 2021 — compared to Q4 2019. For FY 2021, it was below FY 2019 by just 3%.
Furthermore, Local Direct was responsible for 50% of Saga’s 2021 net revenue.
This success is expected to continue in 2022, with Bush noting that Q1 pacings are up 11% — even with March slowdowns tied to economic challenges related to the Russian invasion of Ukraine.
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