BIAfn Report: Radio Revenue Growth Lags Economy Again
March 31, 2006 at 2:05 PM (PT)
BIA FINANCIAL NETWORK's latest report on radio revenues shows another year that the industry failed to keep pace with the economy. Radio stations billed $18.2 billion for 2005, just a 0.5% increase over 2004s' total. BIAfn projects a 2.2% increase for 2006.
"Continued poor performance has been mainly due to other forms of new digital technology and satellite radio vying for the same listeners and competing for the same advertising revenues," BIAfn VP MARK FRATRIK said. "This challenge is significant and is certain to cause revenues to remain significantly below the growth of the overall economy in the near future. For the industry to see stronger growth, it must better attract younger listeners by offering new formats and utilizing multiple distribution platforms. Also at the same time, radio needs to demonstrate its effectiveness as an advertising medium by utilizing improved research methods, as well as innovative selling efforts."
For the industry to see stronger growth, it must better attract younger listeners...
The report also notes some exceptions to the industry's slow growth, including FORT PIERCE-STUART-VERO BEACH (10.5% increase) FORT MYERS-NAPLES-MARCO ISLAND (7.9% increase).