BIA/Kelsey Raises 2010 Forecast for Radio Revenues

RADIO ONLINE | Thursday, May 27, 2010 | 1:46pm CT

BIA/Kelsey has raised its outlook slightly for the radio industry in 2010. Based on first quarter results from a number of radio ownership groups, BIA/Kelsey now expects total radio industry revenues to hit $14.21 billion, an increase of 3.7% over last year. The higher forecast also reflects radio's continued success in incorporating digital and mobile plans into its overall strategy.

"We're confident that there is still a lot of room for growth in radio, but it will be a slow and steady rise that shouldn't be measured by the results of a single quarter," said BIA/Kelsey VP Mark Fratrik, Ph.D. "The impact of this year's growth will be seen across many markets and is likely to reflect the areas around the country that have seen an economic upturn."

Radio's position in the overall local marketplace is also significant when compared with the revenues of other local media including direct mail, newspapers, television and Yellow Pages. According to BIA/Kelsey's Media Ad View reports, over-the-air radio ranks fourth in 2009 U.S. local media revenues, with 10.5% of the $130.2 billion total.

"In order for radio to maintain its position in the wider local media marketplace, it needs to continue to grow its broadcast revenues concurrent with its digital prospects," Fratrik added. "Returning to revenues that were last seen by the radio industry in the early part of the last decade will come from utilizing traditional over-the-air assets combined with mobile and other digital solutions."