• February 2, 2003

The radio industry ended 2002 with a 6% increase in advertising revenues, fueled by a 13% jump in national advertising, which more than triple the 4% growth rate of local ad revenues. The final tally for 2002 was released by the Radio Advertising Bureau, which held its annual convention in New Orleans over the weekend. As revenues neared $20 billion, the RAB says 2002’s growth rates were a 98% recovery against 2000. “Radio has made a full recovery,” said RAB president/CEO Gary Fries during a speech Friday. He said 2003 looks “promising” as radio continues to attract a broad range of advertising categories. Radio remains a local medium, however. In 2002, the RAB says local radio revenues totaled $15.3 billion, followed by national spot advertising, which totaled $3.3 billion. Network radio, while on the increase, still accounts for just $1 billion of the industry’s annual revenue. Fries also noted that Radio attained 8.2% of the total advertising pie in 2002. “We crossed the 8% barrier in 2000 and when we did so, we started to gain momentum on other media,” he said.