BIA/Kelsey Says Radio Should Be Optimistic
May 27, 2010 at 8:44 AM (PT)
BIA/KELSEY has slightly raised its outlook for the radio industry in 2010. Based on first-quarter results from a number of radio ownership groups, other market intelligence, and a renewed optimism for the industry as a whole, BIA/KELSEY now expects total radio industry revenues to hit $14.21 billion, an increase of 3.7% over last year. The higher forecast, which appears in the second edition of BIA/KELSEY's quarterly "Investing In Radio Market Report", also reflects radio's continued success in incorporating digital and mobile plans into its overall strategy.
We're confident that there is still a lot of room for growth in radio, but it will be a slow and steady rise that shouldn't be measured by the results of a single quarter.
"We're confident that there is still a lot of room for growth in radio, but it will be a slow and steady rise that shouldn't be measured by the results of a single quarter," said BIA/KELSEY VP MARK FRATRIK, PH.D. "The impact of this year's growth will be seen across many markets and is likely to reflect the areas around the country that have seen an economic upturn."
Radio's position in the overall local marketplace is also significant when compared with the revenues of other local media including direct mail, newspapers, television and Yellow Pages. According to BIA/KELSEY's Media Ad View reports, over-the-air radio ranks fourth in 2009 U.S. local media revenues, with 10.5% of the $130.2 billion total. Media Ad View provides research, trending and analysis across 12 media categories.
"In order for radio to maintain its position in the wider local media marketplace, it needs to continue to grow its broadcast revenues concurrent with its digital prospects," said FRATRIK. "Returning to revenues that were last seen by the radio industry in the early part of the last decade will come from utilizing traditional over-the-air assets combined with mobile and other digital solutions."
Fratrik points to examples shared during the recent BIA/KELSEY conference, Digital Strategies for Broadcasting, and documented in his BIA/Kelsey blog found at blog.bia.com/bia/author/mfratrik. His recent blog on some of the presentations from DSB 2010 - "Does the Emperor Have Any Clothes, Or Were We Just Looking at One Outfit?" - references the success of DAVIS MEDIA, GAPWEST, and others, all of which are seeing impressive increases in revenues through innovative online ventures, many that zero in on hyperlocal.