BIA/Kelsey Projects 19% Revenue Drop In '09
December 2, 2009: BIA/Kelsey in its new "Investing in Radio Market Report" projects that radio's revenues will come in at $13.3 billion in 2009, down 19 percent from 2008. The researcher says recovery will be seen in the second half of next year, and expects radio to finish 2010 with $13.5 billion in revenues.
"There are many reasons we believe that radio will rebound this coming year, especially in the second half, and hold its own in the coming years," BIA/Kelsey VP Mark R. Fratrik, Ph.D., said. "Among them, radio has strong brand equity in local markets, the economy is slowly coming out of recession, the industry continues to show strong listenership levels with teens and younger adults, and the possible introduction of FM radio receiving chips in cellular phones will generate both a positive image effect on radio and an increase in radio listening."
BIA/Kelsey's analysts see the most hope in online and mobile, predicting that radio will bring in $382 million in online revenues this year, up from $342 million a year ago, with that rising to $459 million in 2010. Especially strong categories should be local mobile search and video.
BIA/Kelsey Chief Strategy Officer Rick Ducey said, "Radio's online assets have proven to positively impact consumer behavior. Now radio has to extend this ability to impact consumers into its advertising efforts. Once the cross-platform model is fully embraced by sales teams, and advertisers learn how to effectively plan and buy radio's digital and air assets, the revenues will follow."
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