BIA: Radio’s Value in Media Buy Apparent
Radio industry over-the-air revenues rose slightly in 2012.
That’s according to BIA/Kelsey, which says OTA revenues increased to $14.3 billion, up 11.5% from 2011. In a report, the research firm says the industry is still being affected by the sluggish economy as well as increased competition in the local media market.
For 2013, BIA/Kelsey forecasts OTA radio revenues should see 2.3% growth, or $14.7 billion, as the economy improves.
“Overall, the industry is still recognized as an important part of the media mix as it continues to meander around, rising slightly with the rate of inflation but not keeping up with the economy,” according to BIA/Kelsey VP/Chief Economist Mark Fratrik.
The revenue mix will continue to shift towards digital. BIA/Kelsey predicts income from online advertising will rise about 10.8% annually over the next five years, compared to 2.5% from OTA.
In 2012, online radio ad revenues reached $491 million, representing 3.3% for the industry. Markets such as Boston saw 14.2% in online radio revenue with overall numbers rising by 3.6%. BIA/Kelsey forecasts radio’s online revenue growth will reach $818 million by 2017, while the industry’s combined total revenue will reach $17 billion by 2017.
“As the digital marketplace continues to rise in all sectors of advertising, radio is improving its listener engagement online and benefiting from the value of its Web and mobile assets,” stated Fratrik.