Magna Sees 21% Decline in 2009 Radio Ad Spending
| RADIO ONLINE | , , | :am CT |
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Interpublic's Magna Group is projecting that local ad revenues will decline 26% in 2009 to a whopping $12.9 billion. The only medium expecting growth is Internet searches with a projected rise of 3.6%. Magna forecasts network radio and satellite radio ad spending will fall 11.1% this year to $1.1 billion. Local radio revenues are expected to fall 21.8% to $12.9 billion and total radio revenues are forecast to decrease 21% to about $14 billion.
In a new Magna category for Local Digital/Online, which includes revenues from local radio, TV, and newspapers, expected spending is forecast to decline 5.9% in 2009 to $3.5 billion. However, Magna projects growth at a compound average annual rate of 6.4% for the category over the next five years.
Magna projects that overall U.S. ad spending will fall 14.5% this year to $161.4 billion, with declines in TV revenues (14.4%), magazines (18.3%), outdoor (12.9%) and newspaper (24.8%).
