Online and digital Radio revenues projected to grow 14.1% over next five years

Chantilly : Over-the-air local radio station revenues hit $14.1 billion in 2010, a 5.4 percent increase over 2009, according to this year's first edition of BIA/Kelsey's quarterly "Investing In Radio Market Report." BIA/Kelsey, adviser to companies in the local media industry, expects 2011 radio industry revenues to rise a moderate 3.7 percent, and 2012's election year to bump up revenues 4.5 percent. The firm also projects online/digital revenues for radio will experience a 14.1 percent compound annual growth rate (CAGR) in the five-year period beginning 2011. Revenues from online/digital provided $405 million to the industry in 2010 and are expected to rise from $494 million this year to $783 million by 2015.

"The higher than expected radio revenues in 2010 reflected the return of national advertisers to the airwaves and some political battles that made an impact in certain markets," said Mark Fratrik, vice president, BIA/Kelsey. "Radio, however, still continues to face a lot of competition in the local and online advertising marketplace. Stations are responding by becoming more aggressive with their digital and online strategies, which are driving measurable revenue."

To closely report on the growth of online and digital activities across the industry, the "Investing In Radio" reports for 2011 include individual market level online advertising revenue estimates based on BIA/Kelsey's work with broadcasters and industry resources.

In further analysis of market activities, Fratrik points out that 26.9 percent of 2010's radio industry revenue went to stations in the top 10 markets, and those markets saw over-the-air revenue increases of 6.9 percent. Radio stations in markets 11 through 25 saw a 5.7 percent increase, while the other markets experienced positive but lesser changes in income.

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