Report: NTR To Provide Radio's Growth In 2008
July 18, 2007 at 5:43 AM (PT)
With 2007 poised to be its seventh straight year of slow growth, the radio industry hopes to break the trend with political advertising and revenues from nontraditional sources in 2008, reports REUTERS.
"I think it would be shortsighted to view the industry as hopeless," said BARRINGTON RESEARCH analyst JAMES GOSS, noting that, despite slow growth and the "challenged" radio environment, these companies are strong cash generators. "Chances are 2008 will be better due to Internet dollars or nontraditional revenues and political dollars."
We're having explosive growth in Web usage and it's indicative of where radio is going in the future
While revenue from websites, concert promotions and other nontraditional areas amount to less than 10% of the total radio industry revenue base, it has grown steadily over the past few years.
"We're having explosive growth in Web usage and it's indicative of where radio is going in the future," said CBS RADIO CEO DAN MASON. He said CBS now runs online "Webisodes" of radio shows and is also entering the lucrative text messaging and ringtone businesses as part of its digital initiatives.
CLEAR CHANNEL RADIO CEO JOHN HOGAN expects GOOGLE will draw new advertisers to radio. "I know it will be additive to our business," he said, noting company initiatives such as cutting the lengths of commercials have also paid off. "It's not been a great year for radio, but CLEAR CHANNEL has had a better year than the industry. I'm encouraged by our performance... and that many of our initiatives are paying dividends."
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