MONTEREY, CA – Radio’s on-line revenues are expected to grow by double digits in 2009 as broadcasters turn to on-line streaming and mobile apps to help offset traditional ad revenue declines, according to SNL Kagan.
The market research firm projects that revenues will top US $441 million by year-end, up 12% from $394 million annually in 2008. Looking forward, it forecast an annual on-line revenue growth rate of 20% in 2010 to $530 million.
As the market matures, growth is expected to level off through 2013, rising to $827 million, or 4.7%, of total radio revenues by the end of the five-year period.
“In the past, radio broadcasters seemed resistant to embrace new technologies,” said analyst Justin Nielson in the press release. “But with the decline of traditional ad spending, radio stations have turned to on-line initiatives to grow top-line revenues, improving their web sites and embracing on-line 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.”
