Press Release

Radio Industry Revenues Flat in 2011, While Online Revenues Jump 15.1%, According to BIA/Kelsey
Strong political advertising year and further growth in online revenues expected to boost overall radio industry ad revenues in 2012

CHANTILLY, Va.. (April 10, 2012) – In the first edition of its quarterly “Investing In Radio® Market Report,” BIA/Kelsey reports over-the-air local radio station revenues in 2011 reached $14.1 billion, a 0.4 percent increase from the year before. Radio’s online revenues increased 15.1 percent in 2011, reaching $439 million.

In 2012, BIA/Kelsey anticipates online revenues will continue to grow at a fast pace, becoming an important portion of station income. The firm expects overall radio industry revenues to reach $14.6 billion in 2012, a 3.5 percent rise over last year, bolstered by the national election. Online radio ad revenues will grow from $505 in 2012 to $767 million in 2016.

“Although radio’s revenue ascent has been slow since its bottoming in 2009, the industry always picks up steam in an election year and is continuing to prove itself as a valuable local advertising medium, particularly as the integration between over-the-air and online improves,” said Mark Fratrik, vice president and chief economist, BIA/Kelsey. “News stations, in particular, continue to be leaders in many markets by creating comprehensive over-the-air and digital portfolios of ad products and formats to drive deeper advertiser engagement and prove their value in the ad buying mix.”

The chart below represents BIA/Kelsey’s five-year forecast for the radio industry:

Radio Station Revenues 2006-2016

Analysis of Small and Mid-Sized Market Activities and Industry Transactions

BIA/Kelsey’s “Investing In Radio” shows the wide variations between some markets and identifies several small and mid-size areas that were able to distinguish themselves in 2011. For example, the Portland, Maine, market had the largest increase in revenues over 2010, with $25.4 million, or 22.8 percent. Continuing in order, Worcester, Massachusetts, posted a 15.8 percent increase, with $12.9 million in revenue, followed by Ann Arbor, Michigan, a 10.5 percent increase with $6.1 million in revenue, and Providence-Warwick-Pawtucket, Rhode Island, where revenue grew to $45.3 million, a 9.9 percent increase over 2010.

Fratrik notes that this year began optimistically with a significant rise in transactions, starting with Cumulus Media’s acquisition of Citadel Broadcasting and then Hubbard Radio’s purchase of some of the Bonneville stations. All-told, however, station transaction volume reached $4.3 billion in 2011 from a total of 1,080 transactions, of which, 682 were in metropolitan markets and 398 were in non-metro markets.

“The major transactions of the year turned out being unique unto themselves due to strategic decisions made by each company,” Fratrik said. “In 2012 we think the improving economy will increase the number of station sales, particularly as they prove themselves to be more than an over-the-air profit center.”

Investing In Radio Publications

The year’s first edition of the quarterly “Investing In Radio® Market Report” and the new 2012 “Investing In Radio® Ownership Report” are now available for purchase. The market report profiles every Arbitron-rated market with historic and projected market demographic and financial statistics. The ownership report offers a detailed analysis and guide of all owners in the Arbitron-rated markets. The “Investing In” financial guide series provides estimated forecasts for over-the-air and individual market-level online advertising revenues, technical data, ownership and acquisition information, and more for every market.

BIA/Kelsey’s forecast methodology is based on actual estimates of local online market advertising revenue totals. Estimates are solicited from local radio stations and knowledgeable local market experts. To provide an accurate review of the advertising marketplace, the model does not include revenues of e-commerce sales through daily or weekly deal campaigns or any retransmission consent.

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 http://www.biakelsey.com, on the company’s Local Media Watch blog and on Twitter at http://twitter.com/BIAKelsey.

For more information contact:
Robert Udowitz
For BIA/Kelsey
(703) 621-8060
rudowitz@biakelsey.com

Eileen Pacheco
For BIA/Kelsey
(508) 888-7478
eileen@tango-group.com

Press Relations

Interview requests, media inquiries, conference press passes, please contact:

Eileen Pacheco

(508) 888-7478

Robert Udowitz

(703) 621-8060

MacKenzie Lovings

(703) 802-2991

Citation Policy

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.