Myers Sees Another Slow-Growth Year Ahead for Radio

Total ad spending in all media will grow 3.7% next year, according to an updated forecast from business publisher Jack Myers.
Traditional media are projected to gain only 1.3 percent in ad revenues; newspapers, broadcast network television and local television will experience declines, he believes. Online media, branded entertainment, videogames, satellite radio, cinema and mobile advertising will generate composite 27 percent growth.
In 2006, Myers said, new media will finish the year up 28 percent, and overall ad growth for all media will be 6.8%, including 5% for traditional media.
“By comparison, however, 2006 will be the ‘good old days’ for traditional media, as 2007 ad spending growth declines to only 3.7% for all media and 1.3% for traditional media categories. Even growth of online ad spending is projected by Myers to slow in 2007.”
He thinks terrestrial radio revenue will be up only 2% this year and 1.5% next year, and says its share of the ad pie will drop from 9.5% to 9.3% next year.
Satellite radio’s revenue percentage increases will be much more dramatic but the total won’t break past 0.1% share of the ad pie, he thinks.