Radio Revenues Growing, Propelled By Political Ads

Total radio advertising revenues will grow 3.5% in 2012, according to BIA/Kelsey’s “Investing In Radio Market Report,” thanks, in large part, to intensive political advertising.

BIA/Kelsey also expects strong continued growth in radio’s online revenues. In 2012 BIA/Kelsey see total “over-the-air” local radio station revenues reaching just under $14.6 billion. If accurate, this forecast would be a welcome return to growth after a distinctly mediocre 2011. Total “over-the-air” local radio station revenues barely grew from 2010-2011, edging up 0.4% to $14.1 billion last year. Looking ahead, it predicts total over-the-air revenues will reach $15.2 billion in 2013, $15.8 billion in 2014, $16.3 billion in 2015, and $17 billion in 2016. Radio’s total online revenues increased 15.1% from 2010-2011, reaching $439 million, according to BIA/Kelsey, and the analysts predict they’ll grow another 15% in 2012, to $505 million. They see radio’s online revenues reaching $767 million by 2016, suggesting a cumulative annual growth rate of 11% per year from 2013-2016.