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Radio Revenues Hit $14.1 Billion In 2010
By Mike Sachoff
Staff Writer
Article Date: 2011-04-06
Over-the-air local radio station revenues reached $14.1 billion in 2010, a 5.4 percent increase over 2009, according to BIA/Kelsey's quarterly "Investing In Radio Market Report."
BIA/Kelsey expects 2011 radio industry revenues to increase a moderate 3.7 percent, and 2012's election year to push revenues up 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."
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.
About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.
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