Source States Local Radio to Slump 2.5% in 2010, Followed by 10% Drop Next Year

Though still not a growth medium, revenue for local radio is expected to drop by just 2.5% in 2010, according to a forecast from Magna.

Local radio will fall 2.5% from the $13.1 billion in ad revenue local radio pulled in 2009. Last year, local radio tanked by 20.9%, according to Magna (via Radio Ink).

Magna expects network and satellite radio to be up 2% in 2010, to $1.1 billion, followed by a 3% gain in 2011, to $1.2 billion.

Local radio, however, is expected to steepen its decline next year, falling another 10% in 2011.

Overall, Magna predicts that advertising revenue will be essentially flat in 2010 compared to last year, just 0.1%, excluding the effects of the Olympics and local elections. Including Olympics and election spending, the U.S. advertising economy will rise 1.4%.

U.S. advertising fell 15.5% in 2009, Magna estimates.

The advertising recession radio and print media particularly , and some watchers have criticized radio for not embracing the digital medium quickly enough. Still, digital has been a bright spot for radio, according to the , which said in November that, “Although there have been economic hurdles, stations supported and improved upon their ‘s online extensions – websites, online streaming, applications – providing content and that addressed listeners’ s therefore providing advertisers with additional marketing options.”

[source]


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