Radio revenues will continue to shift in the next 5 years, as income from online advertising grows by about 10.8% annually versus 2.5% growth for over-the-air (OTA) revenues, forecasts BIA/Kelsey in a new report. Nevertheless, OTA revenues will continue to account for the vast majority (~95%) of radio revenues in 2017, when total revenues are predicted to reach $17 billion. That represents somewhat of a more muted forecast than offered by the researchers last year, when BIA/Kelsey projected total industry revenue to reach $17 billion by 2015. That forecast also saw total revenues increasing to almost $17.8 billion in 2016.
According to the latest report, OTA revenues climbed by about 1.5% to $14.3 billion last year, with growth muted by competition in local media and economic difficulties. This year, that figure should grow by about 2.8% to $14.7 billion.
While online radio revenues grew to $491 million last year, they should continue to increase at double-digit rates, reaching $818 million in 2017.
The Radio Advertising Bureau previously reported that overall radio revenues grew by 1% year-over-year in 2012, while Kantar Media pegged the increase at 3%.
