• by Erik Sass  @eriksass1, August 21, 2009

Total radio ad revenues fell 22% in the second quarter of 2009 compared to the same period last year to about $4.2 billion, according to figures released by the Radio Advertising Bureau Friday afternoon. While the RAB tried to put a hopeful spin on this news, pointing to signs of a turnaround tied to a broader economic recovery, the fact remains that this is the ninth straight quarter of revenue declines -- meaning the downward trend began before the recession took hold.

As before, all the major ad categories took hits in the second quarter: local advertising revenue fell 25% to $2.4 billion, national revenue fell 25% to just under $600 million, and off-air (including events) fell 13% to $355 million. Like the first quarter, the declines were due in large part to continuing weakness in the auto industry and retail in general.

The one bright spot was digital revenues -- separated out from off-air revenues by the RAB for the first time -- which grew 9% to $120 million. But these figures only highlight the small contribution made by digital advertising to radio's bottom line: after nearly a decade of experimentation with online media, digital revenues still represent just 3% of radio's total take (and that's despite big declines in traditional broadcast revenues).

Nonetheless, RAB President and CEO Jeff Haley expresses hope that "we are most likely past the Q1 low point for radio revenues and are now on the rebound," pointing to the first stirrings of renewed demand for radio ad inventory in categories including restaurants, communications, and automotive.