Radio Revenues Up 5.4% In 2010
April 4, 2011 at 9:41 AM (PT)
Over-the-air local radio station revenues hit $14.1 billion in 2010, a 5.4% increase over 2009, according to this year's first edition of BIA/KELSEY's quarterly "Investing In Radio® Market Report." BIA/KELSEY further predicts 2011 radio industry revenues to rise a moderate 3.7%, and 2012's election year to bump up revenues 4.5%.
The firm also projects online/digital revenues for radio will experience a 14.1% compound annual growth rate (CAGR) in the five-year period beginning 2011. Revenues from online/digital provided $405 million to the industry in 2010 and are expected to rise from $494 million this year to $783 million by 2015.
"The higher than expected radio revenues in 2010 reflected the return of national advertisers to the airwaves and some political battles that made an impact in certain markets," BIA/KELSEY VP MARK FRATRIK said. "Radio, however, still continues to face a lot of competition in the local and online advertising marketplace. Stations are responding by becoming more aggressive with their digital and online strategies, which are driving measurable revenue."