Online radio ad revenues continue to rise

With the continued decline of traditional ad spending, radio stations have had to up the ante online and, according to new online revenue projections from SNL Kagan, their efforts are paying off.

by Helen Leggatt

Online radio ad revenues are forecast to rise by 12% this year, to $441 million, up 12% on 2008. Next year, ad revenues are forecast to increase again topping $530 million, up 20%.

By 2013, the online radio ad market will mature, predicts SNL Kagan, with annual revenues making up around 5% of total radio revenues, or $827 million. Online radio ad revenue currently stands at 2.7% of total radio revenue.

"In the past, radio broadcasters seemed resistant to embrace new technologies," said SNL Kagan analyst Justin Nielson, "but with the decline of traditional ad spending, radio stations have turned to online initiatives to grow top-line revenues, improving their websites and embracing online streaming and mobile apps to drive their local base to their multiple platforms. With total radio revenue only expected to post modest growth over the next five years, it has become increasingly vital for stations to monetize digital innovations."

Tags: advertising revenues, advertising spend, online radio, radio stations

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