• by Erik Sass , May 19, 2008

Radio revenues fell only 1% in April, according to the Radio Advertising Bureau, easily beating Wall Street's expectation of a 5% drop and holding out hope that the industry's slide will be shallower--and shorter--than previously forecast. The 1% decline in April follows more substantial declines of 6% in January, 2% in February, and 8% in March; a total figure for the quarter isn't yet available.

The rising tide did not lift all boats, but it did benefit some radio stations in big markets that had been suffering in recent months.

In the first three months of 2008, most stations in big markets experienced a year-over-year revenue decline of 10%; in March, all the 16 big market stations tracked by CL King and Associates saw revenues slip in comparison to the same month in 2007. However, that trend appeared to reverse somewhat in April, with five of the 16 big market stations posting revenue increases.

Although there are signs that May will be another weak month for stations in big markets, CL King analyst Jim Boyle says the April bodes well for June, traditionally a strong month for radio advertising. Small-market radio stations continued to thrive in April, and the trend is likely to continue.

All this good news is only relative, of course. According to the RAB, the radio business overall is still seeing erosion in its key revenue category--local advertising--down 1% in April. National revenue, another important category, is down 5%. Meanwhile, non-spot, a small category that has been growing because it includes Internet radio, was up 8%--respectable growth, but slower than the first three months of 2008, when it grew 11%, 17%, and 18%, respectively.