BIA/Kelsey Revise Radio Revenue Forecast Upwards

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BIA / Kelsey LogoBIA/Kelsey has raised its outlook for the radio industry this year based on first-quarter results from a number of radio ownership groups. Combining this data with  other market intelligence and a renewed optimism for the industry as a whole, they now expect a 3.7 % increase in radio revenues. In dollars and cents, that works out to a hefty $14.21 billion. The revised forecast was published in the second edition of BIA/Kelsey’s quarterly “Investing In Radio® Market Report.” This version of the report includes numbers on Internet- and mobile-based work being done in the radio sector as well as traditional broadcast.

Take a look at their projections as they stand now:

I’m happy to see the upward trend displayed here. I’m also very pleased to my own assertions about the massive importance of online and mobile efforts substantiated in their findings.

“In order for radio to maintain its position in the wider local media marketplace, it needs to continue to grow its broadcast revenues concurrent with its digital prospects,” said [Mark] Fratrik [vice president, BIA/Kelsey]. “Returning to revenues that were last seen by the radio industry in the early part of the last decade will come from utilizing traditional over-the-air assets combined with mobile and other digital solutions.”

Fratrik points to examples shared during the recent BIA/Kelsey conference, Digital Strategies for Broadcasting, and documented in his BIA/Kelsey blog found at http://blog.bia.com/bia/author/mfratrik. His recent blog on some of the presentations from DSB 2010 – “Does the Emperor Have Any Clothes, Or Were We Just Looking at One Outfit?”– references the success of Davis Media, GapWest and others, all of which are seeing impressive increases in revenues through innovative online ventures, many that zero in on hyperlocal.

Hyperlocal, indeed! Another topic I am a booster for.

I would be willing to guess that these numbers will increase again further down the line. The introduction of the iPad and similar tablet devices should cause an expansion of mobile use through the creation of their own niche in the digital ecosystem.

Image: BIA / Kelsey logo and Chart / Fair Use: reporting

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