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:
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
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.
