It’s no secret that radio revenues are in a tailspin. According to a BIA Advisory Services Forecast published last week, radio revenue in the top 50 markets will drop 11% this year, with mid sized and small markets down a slightly lower 9.4%. This on top of an 8.5% drop last year.
Online platforms continue to be radio’s growth opportunity. According to the report online revenue nearly quadrupled last year, growing from $67 million to $247 million. It doesn’t stop there – on average, online revenue is expected to increase an average of $132 million through 2013.
“Technological advances such as online advertising, mobile device advertising and other new-to-radio advertising could be a solution for offsetting declines in traditional radio revenues, especially in larger markets where these options could have a greater effect.” says Mark Fratrik, vp for BIA Advisory Services.
Deloitte Consulting technology expert John Ruffolo agrees that the increasing popularity of online radio – driven by expanding wifi and mobile devices that can stream stations – may be the savior that radio needs. As the popularity of online radio increases, more and more advertisers are investing in it, spelling revenue growth for stations. Broadcasters that stream online are poised to take advantage of the growth in online radio dollars.
For in depth information on building and monetizing online platforms, attend Internet Radio’s Main Event, the RAIN Summit, April 20th in Las Vegas, sponsored in part by Audio4cast.