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An edition of the Investing in Radio Market Report was recently released within the past few weeks, showing that radio revenue has seemed to fall flat. For 2011, the radio revenue was at $14.1 billion, which was only a 0.4 increase from the previous year, in 2010. This is not necessarily good news but it is not terrible news either. It is better to have fallen flat than to have a decline in revenue earned. While the offline radio revenue seemed to fall flat and did not do so great for the year, online radio revenue drastically increased by a total of 15.1 percent, with a total of $439 million earned.
For 2012, it is believed that online radio revenue will only continue to increase because the pace at which people are beginning to rely on Internet radio has increased drastically. It is believed that many radio stations will begin to rely heavily on the income earned from online listening. Radio revenue is expected to reach about $14.5 billion throughout the year, which would be an increase of 3.5 percent. In the meantime, it is believed that by 2016, online radio advertisement revenue will have grown to $767 million. This shows that online radio revenue is growing at such a fast pace.
The revenue that comes from radio has been slow for quite a while, typically around 2009, when the recession was just ending. But, the radio revenue always seems to increase when an election year takes place and it is definitely a good way of advertising and earning revenue from such advertisements. Online radio advertisement will continue to do well during the election year as well. The radio stations that play new different news broadcasts will also do particularly well, since these are the stations that will have the most coverage about the election. Many believe that because the economy is improving and continues to improve, the radio stations will have more sales.
The BIA/Kelsey made forecasts on estimates for online advertising revenue and uses a certain method to do so. The estimates come from an assortment of radio stations in the local area and also from many of the local market experts. BIA/Kelsey is known for helping other companies with its media space. The company has been in existence since 1983 and has helped with media, advertising, and telecommunications for quite some time. The company is always growing and expanding, offering its guidance and expertise to other companies that are looking to grow and increase their revenue earning potential.
Revenue for Radio Falls Flat
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April 10, 2012 Read More