BIA/Kelsey: 19% Radio Revenue Drop For '09
Recovery In 2nd Half '10 Expected
December 3, 2009 at 4:28 AM (PT)
BIA/KELSEY's latest INVESTING IN RADIO market report projects radio to end up with a 19% drop in revenue year-to-year to $13.3 billion. The report also projects recovery in the second half of 2010 and a rise in traditional radio revenue to $13.5 billion for the year.
Online revenue for radio will total $382 million (up from $342 million in 2008), says the report, with a projected increase to $459 million in 2010. The report projects that by the end of 2013, the compound annual growth rate for online revenues will have increased nearly 16%.
"There are many reasons we believe that radio will rebound this coming year, especially in the second half, and hold its own in the coming years," said BIA/KELSEY VP MARK A. FRATRIK. "Among them, radio has strong brand equity in local markets, the economy is slowly coming out of recession, the industry continues to show strong listenership levels with teens and younger adults, and the possible introduction of FM radio receiving chips in cellular phones will generate both a positive image effect on radio and an increase in radio listening."
"Radio’s online assets have proven to positively impact consumer behavior," added Chief Strategy Officer RICK DUCEY. "Now radio has to extend this ability to impact consumers into its advertising efforts. Once the cross-platform model is fully embraced by sales teams, and advertisers learn how to effectively plan and buy radio’s digital and air assets, the revenue will follow."