BIA/Kelsey Reports Radio Industry Revenues Rose 5.4% to $14.1 Billion
in 2010, Driven by Political Season and More Activity by National Advertisers
Online and digital revenues projected to grow 14.1% over next five
years
CHANTILLY, Va. (April 4, 2011) - Over-the-air local radio station
revenues hit $14.1 billion in 2010, a 5.4 percent
increase over 2009, according to this year’s first edition of BIA/Kelsey's
quarterly “Investing
In Radio® Market Report.” BIA/Kelsey,
adviser to companies in the local media industry,
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.
“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,” said Mark Fratrik,
vice president, BIA/Kelsey. “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.”
To closely report on the growth of online and digital activities across
the industry, the “Investing In Radio” reports for 2011
include individual market level online advertising revenue estimates
based on BIA/Kelsey’s work with broadcasters and industry resources.
The chart below represents BIA/Kelsey’s five-year forecast
for the radio industry:
In further analysis of market activities, Fratrik points out that 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.
Investing In Radio Publications
The first edition of the quarterly “Investing
In Radio® Market Report” and
the new 2011 “Investing
In Radio® Ownership Report” are now
available for purchase. The market report profiles every Arbitron-rated market
with historic and projected market demographic and financial statistics. The
ownership report offers a detailed analysis and guide of all owners in the
Arbitron-rated markets. The data in both publications come directly from the
broadcast industry and industry resources and are part of the “Investing
In” financial guide series that provides estimated over-the-air and individual
market-level online advertising revenues, technical data, ownership and acquisition
information, and more for every market.
BIA/Kelsey also publishes investment
reference guides and provides data services for the television and newspaper
industries. For more information, call (800) 331-5086 or email info@bia.com.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting
and valuation services, research, Continuous Advisory Services and
conferences. Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directory markets, as well as to government agencies, law firms and
investment companies looking to understand trends and revenue drivers.
BIA/Kelsey’s annual conferences draw executives from across industries
seeking expert guidance on how companies are finding innovative ways
to grow. Additional information is available at www.biakelsey.com,
on the company’s Local
Media Watch blog and on Twitter at http://twitter.com/BIAKelsey.
