Report: Radio Spending to Improve in Coming Years

Spending on broadcast radio ads will increase at a compound annual rate of 6.4% over the next several years. That’s the projection from Veronis Suhler Stevenson in its latest Communications Industry Forecast & Report. The analysts say the 6.4% compares to an annual growth rate of 4.9% in spending in the past five years.
Although noting hopes for a significantly better second half in radio this year, the company states, “We believe increased local competition and the absence of a major event like the dot-com boom will translate into future growth more in line with that of nominal GDP and the advertising industry.”
They also say radio spending overall totaled $19.7 billion in 2003, including satellite advertising and subscription revenue, and expect that the industry will grow by 7.9% a year overall, to bring in $28.8 billion by 2008, of which satellite will account for about $2 billion.
Other numbers of note:
– Radio listenership grew for the fifth consecutive year, as the total number of people listening to radio in the average quarter hour increased 2.3% to 27.8 million.
– Stations formatting Spanish-language content have increased a “robust” 79% over the last five years while country “continued to wane in popularity” but remained the leading format in 2003 with almost 20% of the market.
– Total satellite radio spending, both subscriptions and ads, is expected to increase more than 250% to $335.6 million in 2004, and grow at a compound annual rate of 85% for five years.