Radio revenue posted a 6% gain over a year ago, the largest year over year gain posted since third quarter of 2000, nearly a decade ago. The gain was made by national spot and digital revenue categories. Digital revenue as defined by the RAB, who released the report, includes all revenue derived from radio websites, and includes streaming. The report includes only AM/FM broadcasters and does not reflect revenue for the overall Internet radio category.
While the growth for national spot revenue was a huge comeback for radio from the 10% decline of last year, the digital category shows enormous positive momentum, growing at an even more rapid pace than it grew last year.
Last year, the digital revenue category was the only revenue category that showed growth for radio, with an annual rate of +13% over 2008. In the year end report for 2009, RAB President and CEO Jeff Haley remarked “Radio’s digital platforms are experiencing the greatest growth and are reflective of the dollar shift from media to marketing by many of today’s advertisers,”
Internet advertising revenues in the U.S. hit $5.9 billion for the first quarter of 2010, representing a 7.5 percent increase over the same period in 2009. While digital dollars for Radio are growing faster than the entire digital spend, Radio’s 480 Million in digital dollars remains a small segment of that pie.