Digital Dollars For Radio Are Increasing Faster Than Overall Revenue

Online revenues for radio will grow 14% a year over the next five years, according to a report from BIA Kelsey. Overall, radio revenues will rise just 3.7% in 2011 and 4.5% in 2012, meaning that online or digital revenue’s share of total revenue to radio will increase.

“Radio… 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.” says Mark Fratrik, vice president, BIA/Kelsey.

According to recent 2010 data from RAB, digital revenue for radio is up 24% over 2009 to 3.5% of overall revenue, up from 3% of overall revenue in 2009.

BIA Kelsey’s reported increase in the portion of radio’s revenue that came as digital dollars last year was 14.1%, versus RAB’s report, using Miller, Kaplan data, that digital dollars for radio were up 24%. This could be due to different assignments of revenue to the “digital” category.


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