Analyst: Radio Declines Will Accelerate

Analyst: Radio Declines Will Accelerate
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"Local radio declines will accelerate as stations suffer from a declining reputation among advertisers, insistence on internal competitive warfare and slow response to clutter concerns."
That's the not-so-cheery outlook for radio from one analyst, Jack Myers, in his report titled: 2005 Spending Forecasts for Eleven Major Media."
Overall marketing communications spending is projected to grow 6.7% in 2005, with advertising growth projected at 4.8%.
He sees 2005 local radio revenues increasing 2%, with national network radio up 1% to 3%.
That compares to TV, as Myers forecasts Local broadcast television, "the beneficiary of an estimated $1.6 billion in political revenues during 2004, will suffer from difficult year-to-year comparables, shifts in spending by auto groups to newspapers, and continued softness in the local retail sector. Although growth for local television stations is only projected at 1.5%, the industry considers this a positive indication in a quadrennial off-year."
In selected other media, he expects online spending to grow 30%; second-tier and emerging cable nets up 12%; magazines and newspapers 4%.
Overall marketing communications spending is projected to grow 6.7% in 2005, with advertising growth projected at 4.8%.
His forecasts are based on proprietary analysis of the Myers Advertising Confidence Index survey of ad executives.
Myers is speaking at the upcoming NAPTE conference on Jan. 27 in Las Vegas.
To read the entire report, go to: www.jackmyers.com.

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