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BIA/Kelsey: Radio Revenues to Rise through 2014
Chantilly, VA - Mar 24, 2010 - The radio industry will begin to see slight broadcast advertising revenue increases in 2010, after several years of negative revenue changes and a very difficult 2009, according to BIA/Kelsey. The first edition of the BIA/Kelsey quarterly Investing In Radio Market Report shows that 2009 closed with $13.7 billion in revenues for radio from broadcast and online sources, a decline of -18.4 percent from 2008. The company predicts industry revenues to hit $13.9 billion in 2010, an increase of 1.5 percent, but also the start of 2-4 percent annual growth rate over the next few years, including a predicted 16.5 percent compound growth rate from Web and other online revenues.
Mark R. Fratrik, vice president, BIA/Kelsey, said, "The industry will continue to grow its online revenues in 2010 as increasingly more progressive radio groups recognize they are more than just over-the-air transmitters and begin to integrate cross-platform promotions with their broadcast and Web operations." Fratrik also noted that the full year 2009 saw a continued slow pace in station transactions, with only $400 million in total value of radio stations that were sold. The pace of acquisitions should increase in 2010 as operators will attempt to get additional properties that offer efficiencies of scale to their operations.
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