BIA/Kelsey Revises Radio Industry Revenue Estimates for 2011 and
2012; Expects Increases of 3.5% for Over-the-Air and 15.1% for Online
in 2012
Station sales numbers remain steady with the value of sales increasing
CHANTILLY, Va. (Nov. 29, 2011) – With economic concerns affecting
advertising spending across all local media,
the radio industry has experienced only a marginal
increase in over-the-air revenues in 2011,
ending the year with projected revenues of
$14.1 billion, a 1.2 percent increase over 2010. The industry realized
increases in digital/online revenues and will end the year at $479
million, a 15 percent increase over 2010. In the fourth edition of
BIA/Kelsey’s
quarterly “Investing
In Radio® Market Report,” the company also reports
the number of transactions was down slightly, 0.2 percent,
but the value of these station sales increased
noticeably.
“It’s been a year of nominal growth for the radio industry,
as advertisers remain cautious about spending their ad dollars in this
sluggish economy,” said Mark Fratrik, vice president, BIA/Kelsey. “On
the upside, the radio industry has maintained its value, both from
a dollar and sales volume perspective. Sales across the country have
been steady and the total value of sales has increased to over $4.2
billion through October. All of this together underscores radio’s
continuing ability to effectively reach and monetize local audiences
via its proven business model. This is a positive situation considering
the considerable dollars at stake during next year’s election.”
The chart below represents BIA/Kelsey’s five-year forecast
for the radio industry:
Looking ahead to 2015, the “Investing
In Radio® Market
Report” forecasts radio revenues to grow a moderate 3.5 percent
in 2012, due to the election year and the continued growth of the online/digital
segment. Radio’s online/digital revenues will grow to $479 million
in 2011, up from $405 million in 2010. The five-year outlook indicates
radio’s online/digital revenues will reach $758 million by 2015,
representing a 13.4 percent compound annual growth rate (CAGR).
Number and $ Value
of Radio Stations Sold by Region: January-October
2011
Fratrik highlighted the industry’s continuing integration of
digital and traditional assets, which is giving stations opportunities
to attract advertisers through online, social media and mobile channels
and drive on-air audiences online. In particular, stations have been
launching deals into their offerings.
“Local radio stations are a natural participant in the deals space.
We’ve been told that you can literally see the sales meter jump when
there is an on-air mention of a deal,” says Peter Krasilovsky, vice president,
BIA/Kelsey. “Stations typically participate in deals with links to their
websites, or in partnership with other deals sites.”
To closely report on the growth of online and digital activities across the
industry, the “Investing In Radio” reports include individual market-level
online advertising revenue estimates based on BIA/Kelsey’s work with
broadcasters and industry resources.
Investing In Radio®
A complete profile of each of the 282 Arbitron-rated markets with historic
and projected market demographic and financial statistics is available in the
fourth edition of the quarterly “Investing In Radio® Market Report.” The
publication is part of the “Investing In” financial guide series
that includes estimated advertising revenues, technical data, ownership and
acquisition information, and more for every market. Information on these publications
is available on the company’s website.
BIA/Kelsey also publishes investment reference guides and provides data services
for the television and newspaper industries. For more information, call (800)
331-5086 or email info@biakelsey.com.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting
and valuation services, research, Continuous Advisory Services and
conferences. Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directory markets, as well as to government agencies, law firms and
investment companies looking to understand trends and revenue drivers.
BIA/Kelsey’s annual conferences draw executives from across industries
seeking expert guidance on how companies are finding innovative ways
to grow. Additional information is available at www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
BIA/Kelsey publicly available information (including, but not limited to, press releases, blog posts, company Web site content, presentations, and excerpts from advisories and reports) may be cited, provided BIA/Kelsey is properly identified as the source (Source: BIA/Kelsey). If you are uncertain about a particular use, please contact us for approval. Provide the full citation and context for your request via e-mail to Eileen Pacheco at eileen@tango-group.com
Company Information
BIA Advisory Services (BAS) is doing business as (d/b/a) BIA/Kelsey. BAS is owned by BIA Financial Network. For more information on this parent company and for a list of affiliated companies, please click now.
