• by Jack Loechner , Staff Writer @mp_research, April 3, 2013

According to the first edition of “Investing In Radio Market Report,” from BIA/Kelsey, radio industry over-the-air revenues inched slightly upwards in 2012, increasing to $14.3 billion, a 1.5% change from the year before. That slight change is due in large part to the sluggish overall economy for 2012 and the increased competition radio faces in the local media market, says the report.

The company also notes that station revenue mix will continue to shift somewhat and income from online advertising is expected to rise at a rate of about 10.8% annually over the next five years versus 2.5% from over-the-air. For 2013, BIA/Kelsey forecasts over-the-air radio revenues should see 2.3% growth, or $14.7 billion, again due to the slightly stronger economy.

The report shows that in 2012, online radio ad revenues reached $491 million, representing 3.3% for the industry. Markets such as Boston saw 14.2% in online radio revenue with overall numbers rising by 3.6%. The report forecasts radio's online revenue growth will reach $818 million by 2017, while the industry's combined total revenue will reach $17 billion by 2017.

Mark Fratrik, vice president and chief economist, BIA/Kelsey, concludes that "... as the digital advertising marketplace continues to rise... radio is improving its listener engagement online... the industry is still recognized as an important part of the media mix... rising slightly with the rate of inflation... but not keeping up with the economy... "

For more information about BIA/Kelsey, please visit here.