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According to updated projections from SNL Kagan, the radio industry's online revenues are expected to grow by double digits this year to $441 million by year-end, up 12% from $394 million annually in 2008. Looking forward, SNL Kagan projects an annual online revenue growth rate of 20% in 2010 to $530 million.

As the market matures, growth is expected to level off through 2013, rising to $827 million, or 4.7%, of total radio revenues by the end of the five-year period. That compares to 2% in 2008 and a projected 2.7% of total radio revenues in 2009.

"In the past, radio broadcasters seemed resistant to embrace new technologies," said SNL Kagan analyst Justin Nielson, "but with the decline of traditional ad spending, radio stations have turned to online initiatives to grow top-line revenues, improving their Web sites and embracing online streaming and mobile apps to drive their local base to their multiple platforms."

He continued, "With total radio revenue only expected to post modest growth over the next five years, it has become increasingly vital for stations to monetize digital innovations." (11-02-09)

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