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BIA/Kelsey: Radio Revenues Rose 5.4% in 2010
Chantilly, VA - Apr 4, 2011 - According to the first 2011 edition of BIA/Kelsey's quarterly Investing In Radio Market Report, over-the-air local radio station revenues hit $14.1 billion in 2010, a 5.4 percent increase over 2009. BIA expects 2011 radio industry revenues to rise a moderate 3.7 percent, and 2012's election year to bump up revenues 4.5 percent. The firm also projects online/digital revenues for radio will experience a 14.1 percent 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.
BIA attributes the higher-than-expected radio revenues in 2010 to the return of national advertisers to the airwaves, including some political battles. BIA notes that radio still faces a lot of competition in the local and online advertising marketplace, and stations are responding by becoming more aggressive with their digital and online strategies, which are driving measurable revenue.
The report includes BIA/Kelsey's five-year forecast radio.
26.9 percent of 2010's radio industry revenue went to stations in the top 10 markets, and those markets saw over-the-air revenue increases of 6.9 percent. Radio stations in markets 11 through 25 saw a 5.7 percent increase, while the other markets experienced positive but lesser changes in income.
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