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More Revenue Growth Predicted for Radio

The latest data from BIA/Kelsey show a 5.4% increase for 2010

Another industry metric shows commercial radio revenue was up last year.

Over-the-air U.S. commercial radio station revenue experienced a 5.4% increase for year 2010, with total revenue reaching $14.1 billion, according to BIA/Kelsey’s latest “Investing in Radio Market Report.”

That compares with an earlier estimate of 6% for the year from the Radio Advertising Bureau (though RAB puts the industry’s intake at $17.3 billion).

According to a chart from the quarterly BIA/Kelsey report, revenue will grow this year another 3.7%, with 2012 seeing a larger 4.5% bump, mostly due to the election cycle.

The report also foresees a 14.1% compound annual growth rate in the online/digital component over the next five years, beginning in 2011. Online/digital revenues were estimated at $405 million for 2010, and are predicted to grow from $494 million in 2011 to $783 million by the year 2015.

In its announcement, BIA/Kelsey President Mark Fratrik attributed recent growth to increased on-air political activity and a return to the airwaves by many national advertisers, and pointed out the competition facing the local and online marketplace.

Fratrik also noted that the top 10 markets garnered 26.9% of last year’s revenue, while stations in markets 11 through 25 saw a 5.7% increase, and the rest of the market experienced positive, though smaller, increases in income.

Radio Revenue Posts Best Increase Since 2000” (Feb. 2011)