BIA Sees Radio Revenues Falling Again In '09
March 26, 2009 at 12:22 PM (PT)
BIA ADVISORY SERVICES' latest "INVESTING IN RADIO" quarterly report predicts that radio revenues will stay low with the top 50 markets seeing 11% declines, with mid-sized and small markets holding up slightly better with 9.64% declines. 2008 closed with $16.7 billion in revenues, off 8.5% from 2007, but mid-sized and smaller markets fell 6.6%. The study also shows online reveues up $76 million to $247 million in 2008; online revenue is projected to rise an average of $132 million each year through 2013. BIA sees overall revenues, including online, starting on a slight upward trajectory in 2011.
"Despite all appearances, radio is still a viable medium as evidenced through listener numbers, revenue growth in certain markets, and the popularity of specific formats," said BIA VP MARK R. FRATRIK, Ph.D. "Tough times will make owners think hard about what they are doing now and should be doing in the future. Technological advances such as online advertising, mobile device advertising, and other new-to-radio advertising could be a solution for offsetting declines in traditional radio revenues, especially in larger markets where these options could have a greater affect."
"While expense cutting may be necessary in this economy, radio broadcasters must accelerate their transformative process and recognize where they exist in the media ecosystem," said Chief Strategy Officer RICK DUCEY. "To do this they must recondition their sales teams, think more locally, look at their advertisers through a different lens, consider migrating to other platforms, and start partnering with other organizations to provide more for their audience."