SNL Kagan Report Predicts Tough Times For Radio Ad Revs
March 30, 2009 at 12:17 PM (PT)
The latest SNL KAGAN report on broadcast advertising revenue projects gloomy news for radio and TV, projecting revenues to fall 15% for radio and 15.7% for TV after declines of 10% for radio and 7% for TV in 2008. The declines will continue at a slower rate, dropping about 2% each year, for five years starting in 2010, according to the report, "Radio/TV Station Annual Outlook."
DETROIT is projected to be hit with a 16.3% drop for radio this year and 2.9% declines each of the following five years, with WASHINGTON faring the best with 0.4% annual declines over a five year period.
"The outlook for 2009 indicates another grim year for broadcast revenues," said Senior Analyst ROBIN FLYNN. "Those radio and TV station owners who are able to reduce expenses while continuing to transition their business models to develop digital assets and non-traditional revenue streams will survive and reemerge as more efficient operations. If broadcasters have an advantage over Internet companies, it is their reach within local communities, and their financial success will depend on how they work to meet the needs of the local market."